Would You Pay Bad Employees $3,000 to Leave?

Would You Pay Bad Employees $3,000 to Leave? | LinkedIn.

By Todd Palmer

The average cost of making a bad hire, according to 41 percent of companies surveyed by CareerBuilder, is $25,000. The survey — conducted among 2,696 employers between Aug. 16 and Sept. 8, 2011, by Harris Interactive — found that a single bad hire can significantly affect an organization’s bottom line.

A bad hire can be measured several ways, including:

• Less productivity – 41 percent
• Lost time to recruit and train another worker – 40 percent
• Cost to recruit and train another worker – 37 percent
• Employee morale negatively affected – 36 percent
• Negative impact on client solutions

One company, online retailer Zappos, is getting a lot of attention by paying new hires — potentially before they become bad employees — $3,000 to quit their job with Zappos. In the book Delivering Happiness, by Zappos CEO Tony Hsieh, he outlines the process of new employees receiving “The Offer.” Zappos offers new hires the wages they have earned for the hours they have worked during their initial training period, plus an additional $3,000 to leave after, their initial training period. This offer is offer expires within 24 hours of being offered. Hsieh says only 2 percent to 3 percent of people take the offer. The other 97 percent say no — they choose the job over the instant cash.

Considering the cost of having a bad employee, this program makes a lot of financial sense. Zappos is able to quickly identify employees, who by their willingness to accept the $3,000 offer, self-select out of the company, at a relatively low cost. By removing an employee who doesn’t want to be a part of their organization, Zappos saves on future hassles and headaches that far exceed the money paid to the employee, as they exit stage left.

I believe what this process has done for Zappos is to help them truly define, in the early candidate screening stages, what a good employee looks like for their culture. By putting the burden of successful recruiting upon their Human Resource department to select new employees who will be a good fit, front-line managers will have an easier time of retaining talent by creating a place that eager employees want to work.

EO Detroit “Stick’s With It”

On September 25th, some 58 business owners – all members of EO Detroit – gathered in Downtown Detroit, to engage with Lee Colan, celebrated author of 12 books and advisor to America’s leading businesses.  Overlooking the beautiful waterfront of the Detroit River, the event was structured around Lee’s Adherence Equation that has helped small and large business alike consistently execute their plans:  Focus x Competence x Passion.

Lee says, “A good plan gets you into the race, but excellent execution propels you into the winner’s circle.  The Adherence components of Focus, Competence and Passion help a entrepreneurs work on the business to create a scalable operation and sustainable growth.”

Scott Rice, of PowerLink Facilities Management, and Day Chair for the event, said of the event “To me the definition of a great event is a high energy speaker like Lee Colan with great takeaways, a venue like the riverfront and great fellowship sharing a meal with other EO’ers”

All attendees walked away with actionable takeaways for their companies – with the goal of elevating their team’s level of achievement.

Entrepreneurs’ Organization Detroit Names Board Members

Southfield-based Entrepreneurs’ Organization Detroit, a chapter of a global organization that works to enrich members’ lives through direct peer-to-peer learning, connections to experts, and once-in-a-lifetime experiences, has named its 2014-2015 board members.

Comprised of metro Detroit entrepreneurs, EO Detroit’s board members will serve a one-year term during which they will be responsible for fostering growth and development between new and current members to ensure the organization’s success. EO Detroit now has 129 members, generating $1.4 billion in sales and employing more than 7,500 employees.

The 2014-2015 board members include:

• Brian Hare, owner at Raflaski Hare PC
• Eric Banks, executive principal and partner at CORE Partners
• Mark Winter, managing partner at Identity
• Bob Kuehne, president at Renaissance Science Corp.
• Scott Wolfson, founding member at Wolfson Bolton PLLC
• Matt Wolf, partner at Wolf-Chandler Agency LLC
• Scott Rice, COO at Powerlink Facilities & Construction Services
• Brian Dietz, president at Dietz Property Group
• Kristen Tassielli, Fitness Thing Inc.
• Tyla Wells, owner at Our Spirit LLC
• Joe Wichowski, president at Traction Consulting Group
• Matt Farrell, executive principal and partner at CORE Partners

Established in 1987 as a catalyst for entrepreneurs to learn and grow from each other, EO is a global network of more than 8,500 business owners in 40 countries. Together, these entrepreneurs account for $160 billion in sales and oversee 1.7 million employees.

Entrepreneurs’ Organization Detroit Names Board Members

EO Detroit Sponsor Spotlight – Jaffe Raitt Heuer & Weiss

Jaffe Raitt Heuer & Weiss has been trusted for many years to provide strategic legal advice to entrepreneurial businesses and business owners.  We are consistently recognized as one of the most respected firms that can help mid-sized businesses build value and grow.

A longstanding supporter of EO, Jaffe attorneys serve the day-to-day business and transaction legal needs of a variety of clients whether local to Michigan or located across the country ranging from development stage entrepreneurial businesses to mid-sized companies experiencing rapid growth.

Beyond the business needs of any client, we help clients facilitate wealth preservation and transfer.  Our estate planners work closely with you to offer a complete package that includes planning for marriage, divorce, retirement, disability and death.

We identify and provide creative solutions for our clients in light of the myriad factors affecting their businesses at any given time.  We advise clients in forming business entities, facilitating and executing sound growth and expansion opportunities, while developing and imple­menting their exit strategies. We are experienced in negotiating, drafting and reviewing agreements of all types, including employment, distribution, manufacturing, licensing, buy-sell, lease and security offerings.  Jaffe also counsels clients on financing through loans, private equity and venture capital.  Often we make introductions to these various funding sources.

Our lawyers regularly advise on technology licensing, transfer and collaboration arrange­ments for clients across a wide array of industries.

Our sophisticated experience in mergers and acquisitions extends to both public and private com­panies supporting a wide variety of middle market transactions. We expertly negotiate and structure mergers, stock and asset purchases and divestitures (both tax-free and taxable), spin-offs recapitalizations and management and employee buyouts.

In conjunction with our highly specialized tax attorneys, our team develops creative strategies designed to maximize the economics of each transaction and navigate the complex issues that arise in virtually all transactions.

The attorneys at Jaffe are experienced in developing creative strategies designed to navigate the issues that arise in all phases of these transactions and maximize value for our clients. We are sensitive to the issues of family-owned businesses looking to partner with private equity investors to sell a minority or controlling interests in their businesses while protecting the value created by their entrepreneurship.

Our Team

Jaffe attorneys leverage their extensive experience and expertise to provide pragmatic yet innovative counsel that helps owners and management tackle business issues or opportunities to achieve their objectives.  We share our clients’ entrepreneurial passion and deliver responsive representation.

The Jaffe team is also accustomed to bringing their skills to bear on transactions involving private and public enterprises. For the past 3 years, transaction engagements with Jaffe clients were recognized by Crain’s annual M&A Awards.

In addition to providing timely advice and practical solutions to clients facing a wide variety of legal and business challenges, Jaffe attorneys provide general counsel advice for all types of businesses at all stages of business growth.  Our team of integrated attorneys works alongside business owners and their management team to help them understand and manage the legal issues that impact their business.

Members of the firm have lectured extensively across North America and have contributed articles to many professional and academic journals.

Our breadth of experience, highly specialized expertise in business, corporate and commercial law, and innovative approach allow us to expeditiously solve our clients’ legal challenges and add significant value to their business endeavors.

To discuss your business further and explore how Jaffe can help, please don’t hesitate to contact:

Aaron Sherbin, Partner asherbin@jaffelaw.com Mobile:  248-672-6660

Alicia Schehr, Partner aschehr@jaffelaw.com Direct:  248-727-1448

Marie Seipenko dishes on EO’s “Entrepreneur Masters’ Program” (EMP)

The EMP (Entrepreneur Masters’ Program) is the best kept “secret” of EO.  As an owner who is very active in a growing business, I normally get my learning opportunities from short, one day local sessions.

But, after hearing  tremendous things about the EMP, I took the plunge and committed to the three year program in Boston at the MIT campus. I went in with an open mind (and a little hesitation!) about sitting in a classroom for 12 hours a day, 3 days in a row, for  each of these 3 years.

The speakers have been amazing, and worth every minute. 

But, the greater value for me was the ability to meet and learn from classmates who come from 15 different countries. We left both years with a TON of books, videos and tools, many that I’ve been able to implement immediately in my business. We also formed small accountability groups, to help us stay focused…..which has been challenging with so many great ideas and opportunities.

Bottom line – give EO’s Entrepreneur’s Masters Program a try. There will be no regrets!

Marie Seipenko
Preferred Solutions, Inc.
President & CEO

Advice For New Entrepreneurs

Entrepreneurs play an important role in the way our world works. They create new jobs, push innovative ideas, and move society forward. Taking the first step towards starting a business however can be extremely intimidating. Unfortunately, there may be some amazing ideas out there that aren’t being brought to light due to fear and no proper guidance. That’s why we’ve put together this list of advice for young entrepreneurs everywhere who are struggling to start out. Read on and be inspired!

Make sure you want it. Picture this. You have a great idea and you’re eager to share it with everyone. You spend days researching and testing the idea out on your friends. Three days in, you hit a wall and can’t find a way over or around it. What do you do? If your answer is to move on to a new hobby, recognize that that’s likely what it was to begin with—a hobby. There’s a huge difference between doing something that you like and doing something you’re passionate about. If there’s no real love behind what you do, you’ll be more likely to become discouraged and throw in the towel. If you’re set on launching something of your own, make sure that you would buy what you’re selling.

Network and find mentors. If you want to be successful, this is crucial. One of the obstacles every young entrepreneur faces is a lack of credibility. People are hesitant to invest in someone young and inexperienced. If others see that established and credible entrepreneurs support you, they are much more likely to trust you.

Recognize the importance of PR. You may have the best idea since the ipod, but if nobody knows about it, you won’t get anywhere with it. Reach out to bloggers and ask them to review your product. Notify the media about your new business. What makes you different from the rest? Focus on that! Young entrepreneurs don’t typically have the funds to pay for extravagant advertising. Public relations will cost far less and the messages that your audience receives will be perceived as much more credible.

None of these tips will ensure that you’re the next Steve Jobs. Not following them though, will guarantee that you’re not. Follow this advice and build a solid foundation for your start-up. Who knows? Maybe we’ll all be using your product one day.

EO Detroit June Accelerator Spotlight: Ari Fischman, Simplified Benefits

Meet  EO Detroit Member and Founder Ari Fischman of  Simplified Benefits. He’s this month’s Accelerator Spotlight and he’s filled with insight. Get to know more about Ari, his company and his experience with EO and entrepreneurship!

What has been the most important thing you have taken away from the program?

​How to think more critically, be bold but yet strategic.​

 Have you noticed a change in your business so far?  

​Yes, I have made transformational changes to how we do business and taken on other​ business ventures.

What were your biggest fears going into the program? how have you dealt with those fears? 

​I was confident with my decision to enter the program day one and never looked back.​

What advice do you have for future accelerants?  

​To listen, learn, act quickly and take advantage of the mentor program.​

What has been your favorite exercise your group has participated in?  

The optional break off sessions, the one in particular the Kolbe session.

4 Ways People Damage Their Credibility Without Knowing It

Sometimes, without even realizing, you may be giving off body language or action cues that people pick up and interpret as being negative, even if you believe you’re doing nothing wrong at all. Whether we accept it or not, people read each other “People read each other’s intent as soon as they see each other,” says Nick Morgan, speech coach and author of new book “Power Cues: The Subtle Science of Leading Groups, Persuading Others, and Maximizing Your Personal Impact.” Automatically and without thinking, we are constantly on the lookout for signals from others that we then fixate on and interpret through our own lenses.

 

What messages are you unknowingly sending? Below are a few of the most universal ways you can hurt your character at work without even realizing it:

 

1. Not preparing for meetings: Every conversation consists of two parts, the verbal talk and the physical body language. When you’re saying one thing and your body is conveying another, you’re sending mixed signals to others. Although your content might be beneficial, you are losing credibility, as people are more focused on your lack of enthusiasm rather than the ideas you present. Focus on the tone of your voice and the energy you’re giving off when speaking to others.

 

2.  Leaning back in conversations: A common way people give off the impression that they are bored, impatient or disinterested in what a co-worker or supervisor has to say is by leaning back, slouching or just turning their head toward the person talking, as opposed to their entire body. People want to know that what they are saying has value to the person supposedly listening. Pay extra attention to your posture-whether standing or sitting. It also helps to sit closer to the edge of your seat while exhibiting great posture and leaning in toward the conversation.

 

3. Long-winded: This is very common to many people, especially when trying to tell a story that hasn’t exactly been thought out completely. What we think sounds coherent in our head may be the exact opposite when spoken out loud. By rambling on or dragging out a story, idea or task to someone, they are not focusing on what you’re saying and are likely to concentrate on wanting to just find the nearest exit out of the intended conversation.

 

4. Not controlling your voice: The tone of your voice has a huge impact on the impression you give to others.  According to Nick Morgan, “a stressful situation, like an important presentation or meeting, causes many to drive their voices outside of their natural vocal range, which makes it sounds thin and weak. Women tend to go up too high, while men tend to go too low. Sitting or standing upright, taking deep belly breaths, and letting your voice rise with passion and fall with authority help create a neutral leadership voice.”

June EO Member, Dave Galbenski, Lumen Legal

Meet Dave Galbenski, EO Detroit Member and Founder & EVP Strategic Initiatives at Lumen Legal. He’s this month’s member spotlight and he’s filled with insight. Get to know Dave, his company, and his experience with EO and entrepreneurship!

What would you say are the top three skills needed to be a successful entrepreneur? 

1. Active listening
2. Continuous learning
3. The capacity and capability to lead

How do you generate new ideas?

I am an avid runner and my best ideas come while I am running through the neighborhood. It “clears my mind” and allows innovative solutions and new ideas to emerge from the “noise” of my daily life.

Name one business failure and what have you learned from it?

I aggressively invested significant resources to build a “national” permanent placement division for Lumen Legal right before the onset of The Great Recession.  As The Great Recession dramatically curtailed permanent placements of lawyers, we suffered significant losses and had to quickly pivot away from the strategy. I learned that the key to long-term, business survival is to quickly scramble out of mistakes.

What is your greatest business fear, and how do you manage it?

I believe FEAR really stands for False Evidence Appearing Real.  If I focus on it as an acronym, fear never has to exist for me in business (or life) and I have no need to work on “managing” it.

How do you define success?

I love John Wooden’s definition the best, “Success is peace of mind which is a direct result of self satisfaction in knowing you did your best to become the best that you are capable of becoming.”

What has been your most satisfying moment in business?

My most satisfying moment occurs each and every day when I think about the ability that I have as an entrepreneur to positively impact the lives of my employees and their families by striving to provide a company environment that allows them (and me) to get closer to realizing our unlimited potential.

What is one thing that no one knows about you?

That’s a tough one as I am open and transparent and have been in a variety of EO Forums for the last 15 years and have answered this question many times before!  So, I will answer it with a fun fact about a “bucket list” item that I completed with my wife, Lynn, and our daughter Sarah.  Over a 3-year period, we visited all 30 major league baseball stadiums to fulfill a lifelong dream of mine.  My vote for the best stadium (outside of Detroit) is:  PNC Park in Pittsburgh.

Excluding yours, what company or business do you admire the most?

I love disruptive and innovative business models and companies. The one I currently admire the most is Amazon.  How can you beat the 1-click, 2-day delivery to your home business model for virtually any item you want? What’s next . . . drones?

What is your favorite EO memory?

I have been an EO member since 1999, so I have lots of incredible memories generated from being with other EO members in unique venues around the globe. My favorite memory from one of the 20+ EO Global Universities I have attended over the years occurred in 2007 at EO Berlin University. The Saturday evening event involved parading into the stadium where the 1936 Olympics were held with your fellow EO members from your country with your national anthem playing while waving your flag of your country. The memory of it still sends chills up and down my spine.   If you are looking to elevate your EO memories to the next level, check out an EO Global University!

What is your favorite thing or place in Detroit?

I enjoy spending time at the Detroit Athletic Club. Great people. Great food.  Great memories. I can always feel the heartbeat of the city from this venue given its location in the entertainment district. As a huge baseball fan, it never hurts to be close to Comerica Park!

In one word, characterize your life as an entrepreneur.

Thrive.

5 Ways to Improve Your Leadership

As business owners, we are constantly adapting and changing to improve our businesses and better meet the needs of our employees. In order to ensure that these changes are carried out, we, as business owners need to work to improve our management style first.

How can we expect changes to be made without improving our leadership? By leading well, we set the example and the pace for our employees to be leaders.

Don’t micromanage – Trust your workers to get the job done. Provide them with the task and step back. An important part of leadership is knowing when to step in and when to step back. You hired your employees for a reason, let them do their job.

Build a relationship – Make sure you develop relationships with your employees. Go beyond the surface level of, “hi, how was your weekend?” You want your employees to feel valued at work. Let them know you’re keeping up with how they are. Although this may seem time consuming, your reaching out goes a long way and provides your employees with a more meaningful connection to their job, aside from just going in and completing their work.

Continue to learn and grow – As leaders, we need to be constantly learning and growing ourselves. Keeping up with business trends, relevant industry news and ways to better your leadership skills are outward signs to employees that you don’t just expect them to better themselves, but that what you ask of them, you do as well. Leading by example is critical to developing employee and business growth.

Know who you are – As executives, we sometimes are unaware of how we appear to others. If you’re in a bad mood or seem despondent, your employees will likely reflect those attitudes, or have a negative impression of you. Be sure to enter into work with a positive attitude. If you expect that from your employees, make sure to do the same.

Practice leadership skills – Being an effective, positive and influential leader takes time and is a constant learning process. Learn what it takes to be a good leader and practice every day. The more you practice, the more you improve.