How Mandatory Sick Pay Laws Hurt Small Business
If news reports are an accurate reflection of where the country is at, we’re in a period of increased conflict in employer-employee relations. The most visible of these conflicts has been the public protests demanding a $15 per hour minimum wage. Yet there’s another battle going on that’s capturing fewer headlines, but could have a bigger impact in the short and medium term: state and local sick pay mandates. Connecticut, the District of Columbia, Jersey City, New York City, Portland, Oregon, San Francisco and Seattle have all passed legislation requiring virtually all employers to give paid sick days. Similar bills are pending in Alaska, Arizona, California, Florida, Hawaii, Illinois, Iowa, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, New Jersey, New York, North Carolina, Oregon, Pennsylvania, South Carolina and Washington. On the other side of the battle, several states have passed legislation that prevents cities and counties from enacting their own sick pay laws: Arizona, Florida, Georgia, Indiana, Louisiana, Kansas, Mississippi, North Carolina, Tennessee and Wisconsin. The battle lines are drawn. Both sides of the debate Proponents argue that these workers – including part-time and temporary employees – need the pay for financial and job security reasons. Further, it is a matter of public policy because without paid sick leave, employees often go to work ill and spread disease, attorney Nancy Delogu told Bloomberg DNA. The National Federation of Independent Business cites a study done on the Massachusetts law that says 16,000 jobs would be lost and the state’s economy would take a cumulative hit of some $8.4 billion by 2016. But perhaps the worst finding is that two-thirds of the job losses and about half the drop in sales would come from small business. While all of these proposed laws differ, they all come with additional paperwork and record keeping requirements and sometimes the formulas used to calculate entitled sick days can be rather Byzantine. For example, due to state and city laws governing sick pay in New York City, a domestic worker who puts in 20 to 29 hours per year in the previous year is entitled to three and one-third sick days. The usefulness of one-third of a day is, at best, debatable. Small vs big business Among bigger businesses and government, sick days are expected to be part of the benefits package. In fact, this has been the case for so many years that sick days are generally viewed not as a “benefit” but as a right. The problem is that sick days have a different operational impact on small business. In large companies – with the exception of long-term illnesses – there are usually no additional payroll costs when an employee misses work. Big businesses can stay open and function when employees call in sick. The work can be delayed or staff members juggled around. However, when there are only a handful of employees, this isn’t so easily accomplished. The missing employee needs to be covered through overtime or by bringing in someone to cover. The small business owner pays both the sick pay and the cost to have someone else do the work. It seems like many of our elected officials are unable to discern the different economic ecosystems in which big business and small business are able to thrive and when they legislate the write...
read moreHackers Are Getting Better: How to Make Sure Your Company is Secure
The headlines are loaded with corporate security breaches. While most large companies have proper security systems in place, it still keeps happening with alarming frequency. These are not mom-and-pop companies, either; these are multimillion dollars corporations that should have known better. From 2009 to 2010, for example, the social media giant Twitter had eight of the worst hacks in social media history. The company has gone a long way to improve their security strategy, yet it is still having problems. Here are three of the largest corporate social media hacks in history that never should have happened and what you can do to make sure it doesn’t happen to you: LinkedIn LinkedIn is one company that should never be on the end of a devastating hack. Yet in June of 2012, it had the biggest hack in its company history. Easily penetrated encrypted passwords enabled a hacker to leak about six million of them. When the breach was discovered, the company disabled the profiles that were thought to be compromised. Within two days, the hacker got over 150,000 more. The company apologized, promised an investigation, advised customers to change their profile information, and that was about the last we heard of it. The problem and solution: Those six million passwords were stolen because they weren’t encrypted well. The solution seems obvious — bump up your encryption level, and make it impossible for users to access their profile with an easy password. The top three passwords hacked were: link, 1234, and work, reports Mashable. Bottom line: Look for encryption software put out by several vendors to fit your needs and take steps to ensure that customers cannot create weak passwords. Note: The LinkedIn hacker was found to be a Russian forum user; after the LinkedIn hack, he turned around and did the same thing to eHarmony. He hinted he had user names as well as passwords for both hacks. Burger King In February of 2013, Burger King Twitter followers found out the chain had been sold to McDonald’s – or so they read. An advertisement for Fish McBites was tweeted and the Burger King logo disappeared and was replaced by the McDonald’s logo. For a little over an hour (until Twitter suspended the account), massively inappropriate and obscene tweets were posted, including tweets about “employees” doing drugs (with photos); too much drug use was cited as the reason why Burger King was sold. The company apologized for the incident later in the day, reports Time. The problem and solution: Not protecting its Twitter account with a solid password and not monitoring the activity turned Burger King into a victim. Heavy security system monitoring, along with strong password implementation would have gone a long way towards barring the breach. Bottom line: Change the main Twitter account password often and make sure it is known to as few people as possible; ensure the password is strong. In addition, there are security monitoring companies that will watch all activity on all accounts 24/7 in your company; shop for one that fits what your company needs. Home Depot On September 8, 2014, Home Depot issued a statement to the public regarding a “payment breach.” The company reported that basically anyone in the U. S. or Canada who had used “a payment card” from April...
read moreHow Saying ‘No’ Can Be Good For Business
If you watch any of the reality televisions shows – stick with me here – that involve the creative process, Project Runway comes to mine, you’ll notice that when contestants do poorly usually it’s due to a lack of editing. We tend to have the attitude that “more is better” and when we’re faced with making difficult choices, we would rather not choose at all. Or when we don’t know exactly what to do, we throw the “whole kitchen sink” at the issue. Let me toss a great Steve Jobs quote your way: “People think focus means saying ‘yes’ to the thing you’ve got to focus on. But that’s not what it means at all. It means saying ‘no’ to the hundred other good ideas that there are. You have to pick carefully. I’m actually as proud of the things we haven’t done as the things I have done. Innovation is saying no to 1,000 things.” When Project Runway contestants go overboard on design ideas they just get scorned by the judges and perhaps lose their chance at the grand prize. In any case, the “punishment” is over quickly. When small business owners are unable to “edit” their ideas and say no to projects or commitments, they usually have to live with the consequences for a long time. Consider some of the possible situations and their consequences. You expand too quickly. In retail this often means that the business’ first location suddenly ends up playing “second fiddle.” Quality and customer service drop. Pretty soon the owner discovers that he or she has a problem store or restaurant that needs rehabilitation. Before you open a second location, be sure the first can operate without your care and feeding. By the way, this can also happen when merely physically enlarging a facility. Supervising a large crew is far different than looking after a handful of original employees. The expansion could be in the product catalog. This happens in retail and in business-to-business enterprises. Consider the amount of revenue that each new item should bring in. How much added staff will you need to support that? Will the added revenue be sufficient to cover the added overhead or are you just diluting your overall margins? You chase rabbits. One day you become enchanted by the potential of a somewhat unrelated business area and open another business or department to specialize in it. This is what Jobs was talking about. For example, rumors of an Apple television set have been going around for as long as I can remember. Consider the number of TV sets that are sold each year, this could be a profitable and appealing market – if Apple could maintain its margins. However, jumping into making TVs would significantly change the focus of the company and so far, the risk hasn’t been worth the gamble. When you go on a rabbit chase, your original prey – your core business and its customers – leave your field of vision. Presented with tempting new business offers and ideas, you need to consider them carefully and learn that often the best response is to “just say no.” However, don’t stop there: use that “no” as a signal to go back and renew your efforts on your core business. Image: Just Say No, ©...
read moreSimplify, Declutter and Cash In
I love it when major social currents come together and that’s just what has happened to me recently: I’m simplifying and decluttering my personal life and getting a taste of a “work from home” business many others are pursuing full time. I live in a big house that has afforded me the space to keep a rather large number of “sentimental items” – I even have all my childhood dance costumes. However, I’ve realized that it’s time to thin the herd a little and instead of just bagging stuff up and giving it away, I’ve started selling on eBay. In my own small way, I’m able to join the legions of people who are carving out home-based businesses for themselves – or adding another dimension to their legacy businesses – as eBay sellers. If you’re surrounded by things that you would like to convert into cash, let me cover a few essentials and share a couple of tips. There are two things you absolutely need: a PayPal account and stuff to sell. But once you have those things ready, you need to know if your items have value. Let me show you the best way to find out. Find your value To get a realistic assessment of value, use the eBay “advanced” search to find the same item as you are selling. Be certain to check the “Completed listings” button. Then you will see what prices buyers actually paid for the items being auctioned and which ones went unsold. Otherwise you just see what people are asking or the current level of bids. Also, when you compare the prices that items actually fetched, be sure to note condition and shipping. For success, eBay auctions need to be competitive and shipping plays an important role in that calculation. Set up your auction Once you have a value range in mind, you need to set up your auction. Provide pictures and an honest description of condition. (Your eBay reputation is critically important, so point out any flaws. You don’t want disappointed buyers.) Studies always indicate that low starting prices, say 99 cents, generate the most interest and ultimately the best sale prices. You can set a reserve if you’re nervous, but again, no-reserve auctions typically get the most action. You can name a “Buy it Now” price if you want to move your item more quickly and would be satisfied with a certain price. You can select how long your auctions will last. Make it one week. That way you will be certain to have a weekend within your auction. Also, statistically the best time to start your auction is between 6-9 p.m. Pacific Time. That’s when the most people are on eBay. Provide excellent customer service Respond to bidder questions promptly and ship your items immediately, if possible. Establishing and maintaining a high seller rating is invaluable on eBay. Make your customers delighted by how quickly they receive their items and by how accurately you described their condition. There are, of course, other nuances to selling on eBay, but these will get you going in the right direction. And by clearing out some items around your house, you can see if becoming a serious eBay merchant is something you’d like to do. Image: Ebay Explained 2006 (KLCC), © 2006 Cheon Fong Liew, used...
read moreGo Where the Money Is: Be Ready for Universal Payments
When asked why he robbed banks, underworld mythology says Willie Sutton answered, “Because that’s where the money is.” The veracity of that quote is certainly in doubt. However, there’s no doubt that your business should be diving into the world of universal payments. Not long ago on these pages, I touched on this issue with regards to Bitcoins. I want to take a little step back this time out and look at the broader issue of “universal payments,” which for my purposes will be mobile card readers and mobile wallets. Mobile card readers Because they are often advertised on television, most of us are probably somewhat familiar with mobile card readers. For some reason, the marketing folks behind these think their shape is important, so PayPal’s mobile card reader is triangular and the Square Card Reader is, well, square. If your business makes any “away from home base” sales, you should probably be using a mobile card reader. If you don’t do any business away from your main location, you should brainstorm opportunities; the technology affords you a low-cost way to explore new markets. Head to flea markets, farmer’s markets, inside complementary stores or other large public events to find new customers. Also, I know that some retail businesses – even today – are reluctant to accept credit cards. After all, who wants to give away a chunk of their profit on a sale? But 40 percent of all consumers are carrying less than $20 in cash and two thirds carry $50 or less, so you really need to have a way to accept credit cards. A mobile card reader is a low-cost way to see how accepting credit cards will benefit your business. If you don’t like the results, just tuck away your little smartphone attachment in the back of your sock drawer. Mobile wallets Somewhat less known are mobile wallets, although Google created its mobile wallet back in 2011. There is no doubt that credit card security is becoming a major issue with both consumers and businesses. It seems like there’s a new high-profile hacking incidents every two or three months.. Mobile digital wallet technology is designed, at least in part, to provide additional security to transactions; it also enables a wide range of add-on features that can be leveraged for marketing purposes, such as loyalty programs and promotions. The most simple digital wallet could be thought of as a pre-loaded credit card accessible through your smart phone. However, its tentacles can stretch much further, as I said above it could be tracking loyalty accounts, be used in lieu of event tickets, pay parking fees, enable “social shopping” and much more. In a store setting, mobile wallet systems generally use near field communication or quick response (QR) codes to communicate with a vendor’s point of sale hardware. They eliminate the need for consumers to carry around a wallet full of cards and can be used just as easily online as in a store. However, so far they haven’t been a big hit with consumers. Nonetheless, accepting payments via mobile digital wallets can be an effective marketing tool for your business. If your customers are tech-savvy, adopting any “forward looking” technology – mobile wallets or Bitcoins, for example – can help you convert prospects. Apple Pay I recently...
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