Create a great business througheffective staff
“How to make your staff as effective as possible”
- How far you go is up to you
Stuart FechnerNational Key Account Manager
Melanie AlparBusiness Development Manager
Why is the Structure important?
• Structure should support and enhance the practice’s culture & strategic objectives
• Should remain flexible enough to adapt to change
• The success of a simple structure relies on the business owner’s ability to provide close guidance and direction in order to co-ordinate individual work effort
• Different types of Business Structures
Types of Structures
A simple business structure
Business Owner
Financial Planner Risk Writer Paraplanner Admin Assistant
A functional business structure
P a ra P la n ne r (1 )
P a ra P la n ne r (2 )
F in a nc ia l P la n n er
R isk A ss is ta n t
R isk W rite r
A d m in is tra tive
R e ce p tio n ist
O ff ice M a na g er
B u s in e ss O w n er
Groups employees around dedicated functions or activities
Types of Structures
A divisional business structure
A ccou n ts P a yab le /R e ce iva b le
A d m in is tra tive A ssis ta n t
Ju n io r P lan n er
S e n io r P lan n er
M a n ag e r - F in an c ia l P lan n ing
A ccou n ts P a yab le /R e ce iva b le
A d m in is tra tive A ssis ta n t
Ju n io r R isk W rite r
S e n io r R isk W rite r
M a n ag e r - P ro te c tion P rod u c ts
A ccou n ts P a yab le /R e ce iva b le
A d m in is tra tive A ssis ta n t
M e m b e r E d u cta ion
S a les C on su lta n t
M a na g er - S u pe ra nn ua tion
M a n a g in g D ire c to r
Groups employees around specific clients, product lines, geographic areas, outputs etc
Types of Structures
From a Practice Perspective• Identifies skills, personal attributes and qualifications
required when recruiting employee’s
• Assists in measuring and monitoring an employees performance
• Provides a reference for planning and restructuring
• Assist in preparing interview questions
• Help to identify specific training and development needs
• Helps in construction of recruitment add or briefing to recruitment agency
Position Descriptions
From an Employee Perspective• Provides clarity about their job
• Assists in understanding the expectations that their manager and the business has of them
• Provides insight into the achievements or outcomes by which they will be evaluated or rewarded
• There is a move towards getting them signed off
Position Descriptions
Where do you begin?• Preliminary questions
– What does management need from the role?
– What will the employee actually do?
– What does the current incumbent think the role does?
– What do others in the practice think the role does?
Position Descriptions
Checklist• a brief description of where the role sits within the business in terms
of reporting lines?• the qualifications/and or experience necessary for the role,
(NOT the qualifications and/or experience of the incumbent)?• list the major areas of activity for which the role is accountable?• list the outcomes or results that the role is expected to achieve?• list the responsibilities that, if achieved, will indicate a job well done?• differentiate between key accountabilities and accountabilities to
which the role only makes a contribution?• explain what specific outcomes are expected in relation to each
accountability?• use clear language, not vague or ambiguous words that need
clarification?
Position Descriptions
As far as small business is concerned, recruitment is a big problem!
2%
2%
2%
3%
3%
3%
4%
4%
5%
5%
5%
7%
8%
9%
10%
Low prices for products
Paperwork/red tape
Government regulations (State)
Profitability/poor returns
Drought/Climate
Bad debts
Lack of time
GST
Consumer confidence
Government regulations (Federal)
Rising costs
Competition/big business
Cash flow
Finding quality staff
Lack of work/sales
Source: Sensis Business Index, Sweeney Research (May 2004)Courtesy Doug Turek
Recruitment
Advertise Internally• Let current employees consider the role
• May have the ability to step up or want to change role
• They may be able to recommend someone they know
Advertise Externally• Use the Internet or newspaper
Recruitment
Recruitment Agency• Ensure they know the industry and its challenges
• Ensure they know your business and culture
• Give them a clear brief about the person, the role and the position
• Agree the process and fee in advance– can range from 8% - 32% of salary
– negotiate
– obtain guarantee
Recruitment
Other options• Targeted campaigns at business schools and universities
(sponsor information nights)
• Solicit satisfied clients
• Hire seniors or target part timers
• Target employees currently working with other advisers (outside of the Consultum network!)
Make sure you utilise the 3 month probationary period
Recruitment
Remember• Sometimes the good people are not looking
• Don’t be afraid to recruit someone better than yourself
• Good selection leads to good retention which leads to profitability
• Don’t overlook ‘B Players’ that bring stability and depth, they slowly but surely improve an organisation and will not leave for better monetary rewards elsewhere!
• Today’s employees in most cases are not job seekers, they are career opportunists
Recruitment
Remember differing demographics• Traditionalist (born 1900 - 1945)
– They want to build a legacy
• Baby Boomers (born 1946 - 1964)– They want to build a stellar career
• Generation Xers (born 1965 - 1980)– They want to build a portable career
• Generation Y’s (born 1981 - 1999)– They want to build parallel careers
Recruitment
Short listing
Y OR N Score 1 - 5
Selection Criteria CANDIDATE
1 CANDIDATE
2 CANDIDATE
3 CANDIDATE
4
Has completed High School certificate
N N 5 5
Experience on reception
Y Y 5 4
Worked with PABX of 20 + lines
Y N 4 4
Proficient with MS Office
Y Y 1 4
Demonstrates good customer service skills
Y Y 3 4
Has handled difficult customers
N Y 1 3
Has an understanding of Master Trusts and investments
N Y 0 1
Etc
19 25
Recruitment
Recruitment
Recruitment (The ten most common mistakes)
1. Inadequate Screening
2. Inadequate Preparation
3. Lack of knowledge about role
4. Unintentional Coaching
5. Ineffective Questioning
6. Dominating Interview
7. Stereotyping
8. Don’t probe for depth
9. Evaluate Relatively
10. Premature Evaluation
Swayed by persuasive candidates who don’t match criteria
Fail to develop a questioning strategy and read CV's
Judge candidate by wrong standards
Tell candidate about requirements as opposed to uncovering
Don’t use open ending questions, ie can you……………
You do all the talking
Don’t remain objective with likeable candidates
Accept inadequate answers
Pick the best candidate available even though they won’t do
Relying on first impressions before comparing with others
Mistake Description
Source: Greening - Profile: The HR Book for Small BusinessCourtesy Doug Turek
Recruitment
The 7 steps required to develop a training program
Step 1 - Assess business needs
Step 2 - Assess training needs
Step 3 - Set training objectives
Step 4 - Design training
Step 5 - Conduct training
Step 6 - Evaluate performance
Step 7 - Re - evaluate performance
Staff Development and Training
The causes of poor performance• Is the person over-qualified and therefore bored?
• Are there obstacles to performance?
• Does the person know what is expected?
• Are conflicting demands placed on the persons time?
• Is the person experiencing health or family problems?
• Are you inadvertently discouraging good performance by delegating more work and placing more pressure on that person?
• Have they got the skills in the first place?
Performance Management
Has anyone got some solutions to address poor performance?
Has anyone had to address poor performance?
Performance Management
Some possible solutions for poor performance
• Could support, development, mentor/coach or structural changes improve the persons performance and or behaviour?
• Can the person be encouraged to generate their own ideas about how to improve their performance?
• Could they commit to a plan of action which has been made and agreed upon?
• Are both parties clear on the follow-through process to ensure the problem or issues is improving or being resolved?
Performance Management
Providing Feedback
• Ask permission to provide feedback
• Focus on ‘what’ or ‘how’ rather than ‘why’ and ‘should have’
• Provide feedback that is timely and consistent
• Avoid feedback when you are angry and emotional
• Check to see if the feedback has been understood and accepted
• Start with positive feedback and end on a positive note
Performance Management
Tips for conducting a performance appraisal• Firstly, separate counselling for poor performance from reviewing
and appraising - they are different
• Prepare and encourage the employee to prepare
• Keep a record of performance throughout the year
• Check objectives set at the start of the year
• Discuss training and development requirements
• A performance review should be positive and constructive
• Use concrete examples of behaviours to support a rating
• Document the outcomes
• Allocate sufficient time
Performance Management
Tips for conducting a performance appraisal (continued)• Listen to each other and encourage 2 way dialogue
• Examine how well previously set goals in key result areas were achieved
• Focus on performance and behaviour - not personality
• Acknowledge good performance and achievements
• Identify areas needing improvement and obtain commitment to addressing these issues
• List future directions and steps to be taken
• Conclude by summarising what the interview has achieved
• Ensure the employee leaves feeling positive
Performance Management
Remuneration
From the survey we found• 40% of responses offer equity of some description• mainly provided to senior planning staff by invitation or upon
hurdles being met• Equity valuation based upon BOLR (ie 2.5 x revenue), EBIT
(4 x EBIT) or on a discounted cash flow estimate• Amount of equity varied up to 20%• Half of those business’s offering equity also provided the
finance.
Remuneration
Other forms of remuneration• Education Expenses
• Parking
• Mobile Phone
• Conference Cost
• Professional Memberships
• Insurances
• Flexible Hours
Remuneration
Remuneration
Additional Information• Classified Salary Information Services -
www.csirem.com.au
• www.wagenet.gov.au
• The Hay Group - www.haypaynet.com
• Mercer HR Consulting - www.mercerhr.com.au
Aviva HR Workshop
Aviva Business Development Manager• Worksheets
• Templates
• Questionnaires etc
Thank you for your time
For more information