Human Capital

What is the cornerstone in the strategy for scaling and preparing your business for the future, to grow, to thrive, and to build a legacy that lasts? That’s right – Regular Progress Check Meetings! Think of them as your business’s GPS, helping you navigate the winding roads of growth and strategy. These are not the same conversations as the old water cooler chats.  These are checkpoints along the journey to ensure your highly regarded employees and associates are engaging purposefully and meeting the expectations of their roles. Why are these meetings essential? Here’s the breakdown: Tracking Growth: Stay updated and informed about your Team’s collective journey to success. Ensuring Alignment: Everyone must know not only the what but the how and why behind their goals, ensuring harmony as you move forward collectively. Unify Direction: This is where your team member’s hard work shines. Each team member’s contribution is crucial and should enable the entire team to move in sync towards a common goal. When every team member is crystal clear about their role, that’s when the magic happens. That’s when a small business is not just a player, but a force to be reckoned with.  Use a Progress Check Meeting to fuel team participation and guide your business growth.  Team participation means understanding each role and its impact, assuring that every step takes us closer to our goals. Remember, in your team every voice is influential, and your team’s ideas, feedback, and perspectives are the answer to the next level of greatness and success in your business. With the guidance of Maria Forbes and FIREPOWER Teams, you can empower your team to drive sustainable growth.  Let’s Connect!  

Onboarding isn’t just about shaking hands on day one or drowning your new hires in an ocean of paperwork and procedural manuals. FIREPOWER Teams is here to help you find and grow the right team to fuel success and sustainable growth in your small business. Reach out to Maria Forbes and discover the potential of people-powered change in your organization.

Introduction Running a small business is like navigating through different seasons – there are sunny days full of triumph, and then there are stormy days that test our resilience. One key factor that can make a world of difference in weathering any storm is having the right team members by your side. Just like bad weather always seems worse when viewed through a window, hiring the right individuals can help us see beyond the obstacles and propel our businesses toward success. 1. Weathering the Storm When it comes to building a successful team, it’s essential to understand that every business faces challenges. The key to success is to hire team members who not only have the necessary skills and qualifications but also possess the right mindset to weather any storm. Look for candidates who have demonstrated resilience and adaptability in their past experiences, as they are more likely to navigate through tough times with you and with grace and determination. 2. The Power of Teamwork Remember, when you hire a new team member, you’re not simply adding an employee – you’re gaining a partner who can help you face challenges head-on. When the storm clouds gather and the sky looks ominous, a strong and cohesive team can work together to find innovative solutions, brainstorm ideas, and provide the support needed to overcome obstacles. The right team will transform challenges into opportunities for growth and improvement. 3. Going Beyond the Surface The journey of hiring the right team members extends beyond reviewing resumes and conducting interviews. To choose individuals who can truly thrive in your organization, it’s important to look beyond the surface-level qualifications. Consider their values, work ethic, and their ability to fit into your company culture. Seek out candidates who demonstrate a genuine passion, drive, and willingness to go the extra mile – these are the qualities that will shine through, even when you have to face the fiercest storms. 4. Embracing Uniqueness Don’t be afraid to embrace the uniqueness of each team member. Just like different weather patterns bring a variety of experiences, having a diverse team can lead to fresh perspectives and innovative solutions. Encouraging collaboration where everyone’s ideas are valued will create a team that is equipped to tackle any challenge that comes their way. 5. Building Trust and Resilience Trust forms the foundation of an effective and cohesive team, allowing everyone to rely on each other when the going gets tough. Foster an environment where open communication, transparency, and mutual support are valued, and watch as your team weathers even the strongest storms with unwavering determination. Conclusion Just as bad weather always looks worse through the window, the challenges we face in our businesses can seem insurmountable when we don’t have the right team members to support us. Together you can change your perspective, navigate through any storm with confidence, and emerge stronger on the other side, ready to embrace the sunny days of success that lie ahead. Remember, FIREPOWER Teams is here to help you find, nurture, and grow the right team to fuel success and sustainable growth in your small business. Reach out to Maria Forbes and discover the power of people-powered change in your organization. Let your business thrive and watch as the storm clouds dissipate, leaving a bright future full of possibilities.

As we noted in Glassdoor identified that companies with a well-structured onboarding program improved new hire retention by 82% and outlined the following successes: 91% felt strong connectedness at work. 89% felt strongly integrated into their company culture. 49% reported contributing to their team within the first week. Employees were 18 times more likely to feel highly committed to their organization. In contrast, organizations without an effective onboarding process experience a 31% higher employee turnover rate within 6 months, and more than half of employees who received ineffective onboarding (52%) also felt negatively about the organization as a whole. The Impact of Poor Onboarding When employees leave within the first few months, it creates several notable problems: High Recruitment Costs Recruiting new employees is expensive. It involves advertising job vacancies, screening resumes, conducting interviews, and training new hires. When employees leave within a short time, you will incur these costs again, increasing your recruitment expenses. Loss of Productivity New hires take time to adapt to their new roles and responsibilities. When they leave within a few months, they have not completed their learning curve and are unlikely to have made significant contributions to your business.  They have also taken time from peers and others on training. This loss of productivity slows your business operations. Negative Impact on Morale High employee turnover rates can affect morale among the remaining team members. When employees leave without being replaced, other team members must pick up the slack and work longer hours. This can lead to burnout and decreased job satisfaction. Jeopardized Business Exit Strategy When you plan to sell your business, potential buyers look at various factors, including employee retention rates.  A high turnover rate is a factor in the perceived value of your company, making it less attractive to potential buyers. Benefits of a Proper Onboarding Plan New hires should be provided with a comprehensive onboarding plan outlining their role’s expectations and responsibilities. This plan should include an introduction to the company culture (i.e., shared values, attitudes, behaviors, and standards that make up a work environment), a detailed role description, and training timelines should be completed. A well-designed onboarding process will help your business in several ways: Increased Employee Retention An effective onboarding program can significantly improve new hire retention rates. When employees feel welcomed and supported, and their time is structured during their first few weeks on the job, and they have scheduled progress checks with supervisors, they are more likely to stay with your company. Enhanced Productivity A proper onboarding plan accelerates new hire productivity. When employees clearly understand their roles and responsibilities and receive proper training and support, they can start contributing to your business operations sooner. Additionally, new hires should be given access to the necessary tools and resources to succeed in their role. Improved Employee Morale A positive onboarding experience can boost employee morale and job satisfaction levels. When employees feel valued and supported, they are more likely to be engaged in their work and motivated to achieve their goals. Favorable Business Exit Strategy When you have a well-structured onboarding process in place, you demonstrate to potential buyers that you have a stable and committed workforce. This can increase the determined value of your business, making it more attractive to prospective buyers. Conclusion A proper onboarding plan is crucial for retaining employees, achieving business success, and increasing the perceived value of your business in preparation for a business transition or exit. Investing in a customized onboarding program designed by FIREPOWER Teams is critical to achieving long-term success for your business. Contact Maria Forbes at maria@firepowerteams.com today.

In the dynamic landscape of employee performance evaluations, 360-degree reviews have emerged as a holistic approach, offering a well-rounded perspective. However, to extract the full benefits of this method, managers must adopt a strategic outlook. This blog post explores key elements to enhance the effectiveness of 360 reviews, delving into the nuances of communication, goal setting, and the overall contribution of employees to organizational success. Key Considerations for Meaningful 360 Reviews 1. Managerial Preparedness for Effective Communication One pivotal aspect of successful 360 reviews is the manager’s commitment to investing time in preparation. To unlock the true potential of this evaluation method, managers must be well-prepared to clearly communicate the details of the review. This involves not only understanding the process but also being adept at articulating constructive feedback. Clear and transparent communication sets the tone for a positive and impactful review experience. 2. Clarity in Communication Building on the foundation of preparedness, managers must emphasize clarity in their communication during the 360-review process. Ambiguity can lead to misinterpretation, undermining the purpose of the evaluation. By asking great questions, listening thoroughly and  being precise and concise in feedback delivery managers can ensure that employees grasp the essence of their performance and areas for improvement. Clear communication fosters an environment of trust and mutual understanding. 3. Setting Attainable Goals Goals are the compass that guides professional development. In the context of 360 reviews, managers play a pivotal role in setting clear and attainable goals. These goals should not only align with the organization’s objectives but also consider the individual strengths and areas for improvement identified through the evaluation. Specificity in goal setting enhances the employee’s sense of direction and purpose, contributing to overall job satisfaction and productivity. 4. Communicating the “Why” of Employee Contributions Beyond the traditional focus on skills, it is essential to communicate the “why” behind an employee’s work. Managers should highlight the meaningful impact of individual contributions on the success of the company. This perspective instills a sense of purpose and belonging, motivating employees to actively engage in their roles. Connecting the dots between daily tasks and organizational success creates a more profound understanding of the employee’s value. Additional Perspectives on 360 Reviews Soft Skills Emphasis: While technical competencies are crucial, the 360-review process is ideally suited for assessing soft skills. Not everyone possesses the same technical expertise, making it challenging for a comprehensive evaluation. Soft skills, on the other hand, are universally applicable and contribute significantly to team dynamics and overall workplace harmony. Choosing the Right Platform: The choice of the platform for conducting 360 reviews is pivotal. Online surveys, with a mix of rating scales and open-ended commentary, have proven to be effective. This approach encourages honest feedback and provides a comprehensive understanding of the employee’s performance. Optimal Timing: Consider the timing of 360 reviews carefully. Avoiding busy periods, such as month-end, ensures that employees can dedicate sufficient time and attention to the evaluation process. This consideration reflects a commitment to a fair and thoughtful assessment. Encouraging Open Feedback: Acknowledge that not all employees may feel comfortable expressing themselves in written form, especially if English is not their primary language. To address this, provide alternative channels, such as internal forums or private HR consultations, where employees can voice their opinions comfortably. Incorporate 360 Reviews into Your Culture Incorporating these perspectives into the 360-review process transforms it from a routine evaluation into a powerful tool for professional growth and organizational success. By investing in preparation, embracing clarity, setting meaningful goals, and emphasizing the “why” of employee contributions, managers pave the way for a more insightful and constructive performance review experience. With any questions about implementing a 360-review process, reach out to the WhiteWater Consulting team today.

At FIREPOWER, we’re here to help our leaders achieve growth and innovation through their biggest asset: their people. Together, let’s achieve the hardest growth goals and go beyond the surface-level approach of employee reviews by learning how to balance people, processes, and technology to establish an empowered workforce. It’s time to unlock the true potential of your workforce and create a thriving culture of unwavering team enthusiasm that drives business growth and sustainability. The Real Deal? Let’s face it, leaders who simply “dabble” in traditional methods such as annual performance reviews or employee surveys are only getting a snapshot of the workforce influences on business growth and sustainability, you are missing out on the real deal! To hit those hardest goals and unlock the full potential of your team, you need the right talent infrastructure to create real human synergy. Trust us, it’s like unleashing a powerhouse of growth and innovation. More Than Buzzwords When your leaders are equipped with the right tools and strategies to engage their team members, they become unstoppable. Your team’s engagement and enthusiasm become more than just the latest buzzwords – they become the driving force behind your success. Your team feels valued, motivated, and fully invested in the mission and vision of your business. And here’s the amazing part: when leaders prioritize team engagement and enthusiasm and in turn create a culture of growth and innovation, they not only achieve those hardest goals but also become magnets for the best buyers when it’s time to sell. Who wouldn’t want to acquire a business that has a thriving, engaged, and enthusiastic team firing on all cylinders? “It’s your employees who create all the economic value for your enterprise. You need, therefore, to stage a remarkable employee experience.”- B. Joseph Pine II, internationally acclaimed author. So, let’s revolutionize your approach to employee engagement. With FIREPOWER, we’ll help you create the right talent infrastructure to achieve and activate real human synergy. Say goodbye to surface-level tactics and hello to a culture that fosters growth, innovation, and long-term success for you, your leaders, and your team.  Together, let’s attract and retain your top talent, achieve those challenging goals, and create a business that is not only successful but also sustainable. It’s time to tap into the untapped potential of your team, ignite their passion, and watch your business skyrocket.

Hey there, hardworking business owner! We know you’ve been hustling and adapting like a champ over the past year. Remote work became the norm, and you made it work! But now, a moment of truth is upon us: the option to return to the office. While remote work definitely had its perks (like sweatpants and a commute that involved rolling out of bed), there are some undeniable benefits to gathering your team back at the office. So, gear up, and let’s dive into why returning to the office can be a game-changer for your business. Unleash the Collaboration Beast Picture this: you’re sitting at your desk, surrounded by your crew of superstars, whiteboard markers in hand, ready to brainstorm and tackle challenges as a team. That’s the power of in-person collaboration at its finest! Returning to the office means bringing together minds that think differently, work off each other’s energy, and create magic through collaboration. From casual water cooler chats to spontaneous brainstorming sessions, the possibilities for innovation and problem-solving are endless when you’re physically present. Foster a Thriving Team Culture Culture is the secret sauce that fuels successful businesses. Returning to the office allows you to shape and nurture the unique DNA of your team. Imagine the infectious energy of joint victories, the camaraderie built over Friday donut runs, or even the playful banter during lunch breaks. These moments might seem small, but they create a sense of belonging and foster connections that can’t be replicated in video meetings. Flexibility within the Office Walls Let’s talk about flexibility. Returning to the office doesn’t mean throwing all your remote work gains out the window. It’s all about striking the right balance. By working together in the office, you can create a hybrid work model that allows for a mix of office and remote days. This means you can reap the benefits of face-to-face collaboration while still giving your team the freedom to rock those sweatpants and work from home when it makes sense. Boost Your Business Mojo Here’s the thing – when your team is firing on all cylinders, amazing things happen. Returning to the office allows for quicker decision-making, streamlined communication, and the ability to tackle challenges head-on. Being physically present in the office fuels productivity and creates an environment where ideas can flow freely. Plus, the office is the center of inspiration and motivation as you witness your team’s collective drive and determination. The Office as an Oasis Sometimes, a change of scenery can be exactly what you need to rekindle your entrepreneurial flame. The office offers a dedicated space away from the distractions of home, where you can fully immerse yourself in work mode, ready to conquer the world surrounded by like-minded individuals fueling your business mojo. Embrace the Best of Both Worlds Returning to the office doesn’t mean abandoning the lessons learned during remote work. It’s about embracing the best of both worlds – combining the power of in-person collaboration, the flexibility of hybrid work, and the safety measures necessary to thrive in today’s reality. Your team is a force to be reckoned with, and the office is the rallying point where they can unleash their collective potential. So, gear up, rally your troops, and get ready to conquer new heights. It’s time to return to the office and unleash the untapped power of teamwork that will propel your business to the next level.

In today’s ever-expanding “gig economy,” outsourcing entry-level tasks and job roles has become commonplace. But a growing number of organizations are exploring and adopting outsourcing for higher-level functions, too. Small to mid-sized sales organizations are increasingly outsourcing the sales function – from the sales rep role to executive sales management – and finding success with this new paradigm. What are some key reasons for sales outsourcing (and some reasons why a company might not want to)? Let’s take a look: Advantages of Outsourcing Your Sales Function While businesses have learned it can be lucrative to outsource frontline sales functions such as lead generation, now, small to mid-sized businesses are beginning to understand benefits at higher levels – sales leadership levels – in the sales organization. The use of outsourced fractional sales leaders, is rapidly gaining recognition as a means of attaining an essential competitive advantage in the marketplace.

Nobody likes a micromanager. In fact, studies confirm that just the opposite is true: Employees tend to be much happier and more engaged when they are afforded some autonomy to make their own decisions. And leaders benefit, too, when employees are given some leeway to act independently: It tends to result in a higher-quality of creative work, and a team that takes greater ownership of what they accomplish together. Alas, even for leaders who are theoretically committed to the idea of an empowered employee base, it’s all too easy to slip into the mindset of, “Well, it’s easier if I just do things myself.” And to be sure, some leaders have been burned by bad experiences, entrusting employees to make wise decisions and then being dismayed by the outcome. The good news is that there are some guardrails you can put into place. Here are a few tips for equipping your team members to make thoughtful, judicious decisions, exercising their independence in a way where everyone wins. Tips for Empowering Your Team to Make Autonomous Decisions 1) Be thorough in evaluating your personnel. You don’t want to impart important tasks to just anyone. Instead, you want to really know the people on your team, allowing you to ensure that you’re entrusting the right tasks to the right personnel. Make sure you evaluate your employees’ current skills and their natural abilities, but also their interests; whenever possible, you’ll want to give important jobs to employees who really want to do them. A harmonious alignment of interests is key. Finally, always be sure to evaluate employees’ time. Be respectful of those workers who already have too much on their plate, or who are at a higher risk of burnout. 2) Remember, delegation and empowerment are two different things. Delegation means taking something off your plate and putting it on someone else’s. This usually benefits you, allowing you to free some time, but it doesn’t necessarily benefit the other party. Empowerment means more than just giving someone a task; it means providing them with the space and the freedom to make decisions on their own, not just following your instructions but setting the direction for a project or task. This is how your employees grow, develop, and become more engaged in their work. 3) Check-in frequently. Once you’ve empowered an employee to do a specific task, make sure you check in with them regularly, simply assessing their progress and offering help as needed. This is not the same as micromanaging. It’s simply about showing that you haven’t forgotten them; that you care about the project they’re working on and want to support them however you can. 4) Avoid retracting power. What if you empower someone, and they don’t handle the task quite the way you’d hoped? In this situation, your natural inclination may be to retract power, but this can be hugely deflating to the employee. Instead, create a safe space for mistakes and failure, and provide coaching opportunities before the next task. Show that you still believe in them, not that you’ve given up on them based on one goof-up. Learn More About Empowering Your Team An empowered team is an engaged team. To find out more, reach out to 

The decisions employers make regarding their benefits offerings during this period of economic uncertainty will likely have lasting impacts on their finances, their employees’ expectations, and their ability to attract and retain talent — all of which can affect the organization’s overall health. To ensure continued success, employers should critically evaluate each and every area of operations, including employee benefits. Zeroing in on this particular piece of the operational puzzle can help you uncover opportunities for cost savings that could potentially impact your organization’s bottom line. The following recommendations offer actionable strategies employers can implement today to maximize their benefits program and support operations in lean times. Re-Evaluate Plan Designs To bolster the overall cost-effectiveness of their operations, many employers are taking this opportunity to re-evaluate their health plan designs and offerings to ensure maximum savings. Some organizations are shifting to self-funded or partially self-funded health plans, while others are leveraging health reimbursement arrangements or health savings accounts to incentivize employees to make financially smart healthcare choices. Our Building a Year-Round Communications Strategy.     Create a Comprehensive Benefits Package During tough economic times, employers may have to cut back on benefits. But organizations can still support employees with mental health resources, financial wellness programs, and a wider range of voluntary benefits. Thinking outside the box and leveraging cost-effective employee benefits can help preserve the quality of your offerings while freeing up funds for other operational areas needing additional support during an economic slowdown.

Entrepreneurial leaders do a lot of things well, but hiring the right people, aligning talent for top performance and optimizing collaboration is not where they want to spend their time.  It’s not why they went into business and they are unfamiliar with the impact of talent on their growth and succession goals. They don’t understand that the aggregate of human ability is an asset and a competitive advantage when human capital is part of the strategic planning work. That’s where FIREPOWER Teams comes in.  Talent strategies, or workforce planning is for owners and leaders of lower mid-market businesses to attract, optimize and retain their best people. We help them create reliable and scalable people engagement so the whole company will help achieve their growth and succession plan.

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Qualified Small Business Stock is a type of stock that includes immense tax relief for investors. Those benefits serve to stimulate investment in small businesses by mitigating the tax consequences that attach to their returns. Below is an article that discusses the definition of QSBS, the relevant IRC section at play, the tax benefits flowing from QSBS, the standards for obtaining QSBS, and the costs and importance involved in gaining a QSBS certification. What is Qualified Small Business Stock? Qualified Small Business Stock is that class of stock issued by a small C corporation that meets specific qualifications specified in the Internal Revenue Code. It enables the investor in QSBS to exclude from federal income taxation up to 100% of the capital gain realized upon the sale of such stock, provided certain requirements are met. The provision is meant to incentivize investment in startups and small businesses as a means of promoting innovation and driving economic growth. Governing Section of the Internal Revenue Code Treatment of QSBS is given under Section 1202 of the Internal Revenue Code. This section was enacted as part of the Revenue Reconciliation Act of 1993 and has undergone several amendments to expand the benefits available to investors. Section 1202 outlines those requirements that must be satisfied for stock to qualify as QSBS, along with particular tax benefits available to the investors. Examples of Qualified Small Business Stock Tax Benefits Investing in QSBS offers substantial benefits in terms of tax. Example: Exclusion of Capital Gains: Depending on when the QSBS was acquired, up to 100% of the capital gains from the sale of QSBS can be excluded from federal income tax. The exclusion percentages are as follows: 50% of the stock acquired from August 11, 1993 to February 17, 2009. 75% for stock acquired between February 18, 2009 and September 27, 2010. 100% for stock acquired after September 27, 2010. Limitation on Gain: The amount of gain to be excluded is limited to the greater of $10 million or ten times the adjusted basis in the stock. The generous cap allows for significant tax savings by investors. The Alternative Minimum Tax (AMT) stipulates that gains exempted under Section 1202 do not qualify as preference items for the purposes of AMT, potentially offering supplementary tax relief. State Tax Benefits: Some states follow federal QSBS exclusion rules, giving additional state tax benefits. Investors should check the particular rules of the state pertaining to QSBS. How to Meet the QSBS Requirements To qualify for QSBS treatment, certain requirements must be met: Qualified Small Business: The issuing corporation must be a domestic C-corporation and it must meet the definition of a “qualified small business.” A qualified small business is one in which the corporation’s aggregate gross assets do not exceed $50 million at any time before and immediately after the issuance of the stock. Active Business Requirement: During at least 80% of the period the investment is held, assets of the corporation must be used in the active conduct of one or more qualified trades or businesses. The following types of businesses specifically do not qualify:. The stock must be obtained directly from the corporation when the stock is originally issued, in exchange for money, other property but not stock, or as compensation for services. Holding Period: The investor must hold the QSBS for more than five years to qualify under the capital gains exclusion. These requirements are often complex to navigate, and guidance is usually sought from a tax specialist to ensure compliance with the law. What is a Qualified Small Business Stock Attestation? A Qualified Small Business Stock Attestation is the declaration of a corporation; a formal statement that the stock of the particular corporation meets all the qualifications necessary for the classification to be deemed a QSBS under Section 1202 of the Internal Revenue Code. This certification gives assurance of qualification both to investors and the tax authorities, confirming the eligibility for the tax advantages to the owners. Importance and Cost of a Qualified Small Business Stock Attestation Investor Confidence: It enhances investor confidence because the attestation is basically a documented proof that the stock is qualified for favorable tax treatment; thus, making it more attractive to prospective investors. Tax Compliance: An attestation plays a crucial role in confirming adherence to tax regulations and can promote more efficient engagement with tax authorities. It functions as proof that the corporation satisfies the QSBS requirements, which may streamline the tax reporting procedure. Risk Mitigation: The attestation works by giving a risk mitigation of disputes or challenges in the future that may develop in the mind of the IRS about the stock’s QSBS status. Cost The costs for obtaining a QSBS certification will depend on many factors, such as the extent of complexity of the company’s organizational structure and how much any given professional services company charges for providing the certification. In most cases, the costs range between several thousand to tens of thousands of dollars. Regardless of the monetary investment, the tax advantages likely to be gained for the backers, coupled with increased certainty of conformity, could make the expense a wise investment. Conclusion Qualified Small Business Stock provides substantial tax advantages to investors in the interest of enabling small businesses to energize the economy. Controlled by Section 1202 of the Internal Revenue Code, QSBS enables considerable exclusions from federal income taxation of capital gains. However, fulfilling these requirements can be tricky, and the ability to get a QSBS attestation may provide much value through assurance with compliance and qualification for huge tax benefits. Although obtaining such certification does involve some costs, the potential tax incentives and reduced liabilities make it an important consideration for companies and investors alike.

Depending on who you are talking to, Private Equity is either the Great Satan or the savior of small and mid-market companies in the United States. The stories depend a lot on the personal experience of the speakers. Once a vehicle for high-risk investment plays in corporate takeovers (see Bryan Burrough’s Barbarians at the Gate,) Private Equity has morphed into tranches where specialists seek opportunities in everything from a Main Street entrepreneurship to multi-billion-dollar entities. What is Private Equity? The term itself is relatively generic. According to Pitchbook, there are currently 17,000 Private Equity Groups (or PEGs) operating in the US. The accepted business model for our purposes is a limited partnership that raises money to invest in closely held companies. The purpose is plain. Well-run private businesses typically produce a better return on investment than publicly traded entities. The current Price to Earnings (or PE – just to be a little more confusing) ratio of the S&P 500 is about 27.5. This is after a long bull market has raised stock prices considerably. The ratio is up 11.5% in the last year. That means the average stock currently returns 3.6% profit on its price. Of course, the profits are not usually distributed to the shareholders in their entirety. Compare that to the 18% to 25% return many PEGs promise their investors. It’s easy to see why they are a favorite of high net worth individuals, hedge funds and family offices. As the Private Equity industry has matured and diversified, they have even drawn investment from the usually more conservative government and union pension funds. Private Equity Types Among those 17,000 PEGs the types range from those who have billions in “dry powder” (investable capital,) to some who claim to know of investors who would probably put money into a good deal if asked. Of course, which type of PEG you are dealing with is important information for an owner considering an offer. private equity moneyThe “typical” PEG as most people know it has a fund for acquisitions. It may be their first, or it may be the latest of many funds they’ve raised. This fund invests in privately held businesses. Traditionally PEGs in the middle market space would only consider companies with a free cash flow of $1,000,000 or greater. That left a plethora of smaller businesses out of the game. For a dozen years I’ve been writing about the pending flood of exiting Boomers faced with a lack of willing and able buyers. I should have known better. Business abhors a vacuum. Searchfunders Faced with an overabundance of sellers and a dearth of capable buyers, Private Equity spawned a new model to take advantage of the market, the Searchfunders. These are typically younger individuals, many of whom graduated from one of the “EBA” (Entrepreneurship By Acquisition) programs now offered by almost two dozen business schools. These programs teach would-be entrepreneurs how to seek out capital, structure deals, and conduct due diligence. Some Searchfunders are “funded”, meaning they have investors putting up a stipend for their expenses. Others are “self-funded.” They find a deal, and then negotiate with investment funds to back them financially. Both PEGs and Searchfunders seek “platform” companies, those that have experienced management or sufficiently strong operational systems to absorb “add-on” or “tuck-in” acquisitions. The costs of a transaction have bumped many seasoned PEGs into $2,000,000 and up as a cash flow requirement. Searchfunders have happily moved into the $500,000 to $2,000,000 market. In the next article we’ll discuss how PEGs can promise returns that are far beyond the profitability of the businesses they buy.

Early last month, the Occupational Safety and Health Administration (OSHA) proposed the Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings rule. The aim is to curb heat related injuries or death which OSHA identifies as “the leading cause of death among all hazardous weather conditions in the United States.” The proposal places new responsibilities on employers: establishing heat thresholds, developing Heat Injury and Illness Prevention Plans, regularly monitoring temperatures, and establishing safety measures when heat thresholds are met. This rule is yet to be finalized however, it is a sign of what’s to come. The standard applies to all employers except for the following: Work activities for which there is no reasonable expectation of exposure at or above the initial heat trigger. Short duration employee exposures at or above the initial heat trigger of 15 minutes or less in any 60-minute period. Organizations whose primary function is the performance of firefighting and other certain emergency services. Work activities performed in indoor work areas or vehicles where air conditioning consistently keeps the ambient temperature below 80°F. Telework (work from home). Sedentary work activities at indoor work areas that only involve some combination of the following: sitting, occasional standing and walking for brief periods of time, and occasional lifting of objects weighing less than 10 pounds. Heat Thresholds There are two heat thresholds which will trigger employer action: An “initial heat trigger” means a heat index of 80°F or a wet bulb globe temperature (defined below) equal to the National Institute for Occupational Safety and Health (NIOSH) Recommended Alert Limit; and A “high heat trigger” means a heat index of 90°F or a wet bulb globe temperature equal to the NIOSH Recommended Exposure Limit. The “heat index” is calculated by measuring the ambient temperature and humidity. Wet bulb globe temperature is a heat metric that considers ambient temperature, humidity, radiant heat from sunlight or artificial heat sources and air movement. Employers may choose either method of measuring the temperature.   Heat Injury and Illness Prevention Plan (HIIPP) Requirements If an employer does not fall under the exceptions, it must develop a HIIPP with the input of non-managerial employees and their representatives for occasions when the heat threshold is surpassed. This plan may vary on the worksite but must be written if the employer has more than 10 employees and use a language employees will understand. The HIIPP must contain: A comprehensive list of the type of work activities covered by the HIIPP Policies and procedures needed to remain compliant with the standard. Identification of which heat metric the employer will use heat index or wet bulb globe temperature. A plan for when the heat threshold is met. Along with creating the HIIPP, employers must designate one or more “heat safety coordinators” responsible for implementing and monitoring the HIIPP. The HIIPP must be reviewed at least annually or whenever a heat related injury or illness results in death, days off work, medical treatment exceeding first aid, or loss of consciousness. Employers must seek input from non-managerial employees and their representatives during any reviews or updates. The definition of “representative” is not defined; if this is broadly defined, this could be a major complexity employers must face. Identifying Heat Hazards Employers must monitor heat conditions at outdoor work areas by: Monitoring temperatures at a sufficient frequency; and Track heat index forecasts or Measure the heat index or wet bulb globe temperature at or as close as possible to the work areas. For indoor work areas, employers must: Identify work areas where there is an expectation that employees will be exposed to heat at or above the initial heat trigger; and Create a monitoring plan covering each identified work area and include this work area in the HIIPP. Employers must evaluate affected work areas and update their monitoring plan whenever there is a change in production processes or a substantial increase to the outdoor temperature. The heat metric employers choose will affect the thresholds. If no heat metric is specified, the heat metric will be the heat index value.  Employers are exempt from monitoring if they assume the temperature is at or above both the initial and high heat trigger, in which case they must follow the controls below. Control Measures When Heat Triggers are Met When the initial heat trigger is met, employers must: Provide cool accessible drinking water of sufficient quantity (1 quart per employee per hour). Provide break areas at outdoor worksites with natural shade, artificial shade, or air conditioning (if in an enclosed space). Provide break areas at indoor worksites with air conditioning or increased air movement, and if necessary de-humidification. For indoor work areas, provide air conditioning or have increased air movement, and if necessary de-humidification. In cases of radiant heat sources, other measures must be taken (e.g., shielding/barriers and isolating heat sources). Provide employees a minimum 15-minute paid rest break in break areas at least every two hours (a paid or unpaid meal break may count as a rest break). Allow and encourage employees to take paid rest breaks to prevent overheating. At ambient temperatures above 102° F, evaluate humidity to determine if fan use is harmful. Provide acclimatization plans for new employees or employees who have been away for more than 2 weeks. Maintain effective two-way communication between management and employees. Implement a system to observe signs and symptoms of heat related problems (e.g., a Buddy system). When the high heat trigger is met, employers are additionally required to: Provide employees with hazard notifications prior to the work shift or upon determining the high heat trigger is met which includes: the importance of drinking water, employees right to take rest breaks, how to seek help in a heat emergency, and the location of break areas and water. Place warning signs at indoor work areas with ambient temperatures exceeding 102° F. Other Requirements Training: all employees and supervisors expected to perform work above the heat thresholds must be trained before starting such work and annually.   What’s Next? The rule is yet to be published in the Federal Register. Once this happens, there will be a 120-day comment period when all members of the public may offer OSHA their opinion about the rule. Whether this rule comes to fruition may also depend on which party wins the White House. Furthermore, if finalized this rule would likely be challenged in the courts, which now have more discretion to overrule agency rules following the US Supreme court case of Loper Bright Enterprises v. Raimondo and Relentless Inc. v. Department of Commerce (overturning the Chevron deference decision). Employers should review their heat illness prevention policies to maintain compliance with regulations. If you have questions, call competent labor and employment counsel. Brody and Associates regularly advises management on complying with the latest local, state and federal employment laws.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560  

Today we are highlighting the FIREPOWER Owner Sweet Spot Sessions! We’re about to embark on a game-changing conversation that will revolutionize the way you approach your business. It’s time to shift gears and start envisioning the future of your company in a new personal role. The Small Business Universe: Common Concerns of Owners Similar concerns echo throughout the small business universe. Maybe you feel like you’re lacking the right leadership, or worse, you don’t have any leadership at all. Perhaps your workforce has hit a plateau, or you’re dealing with the frustrating challenge of high turnover. And let’s not even get started on the never-ending cycle of decision-making, where it feels like you’re carrying the entire load on your own. What is the Work that Only You Can Do? We’re here to share a secret to successfully moving your business into the future. It all starts with a simple question: What is the work that only you can do? It’s time to tap into your natural talents and abilities that have fueled your business success from its inception and then refocus your efforts in a new way. Now, brace yourself for a little revelation that’ll bring a smile to your face. The answer to that question is much less than what you’re currently doing. Yes, you heard it right. You’re probably sporting way too many hats, it’s time to bid farewell to those unnecessary responsibilities and rediscover your true sweet spot. Enter the FIREPOWER Owner Sweet Spot sessions. These sessions are crafted to help you pinpoint those burdensome responsibilities that are holding you back from doing the work your company desperately needs from you. We’re here to lift that heavy weight off your shoulders and set you free to focus on what truly matters in achieving your future goals. Deciphering the best use of your time is the key to solving both short-term challenges and long-term business goals. It allows you to stay fully engaged in the work that only you should do, helps your teams to know your true superpowers, and ultimately unleashes your full potential to lead your company into the future. At FIREPOWER, we truly get the challenge, we live it every day. We understand the struggles you face as an owner.  Juggling numerous roles and tasks can be incredibly overwhelming and downright draining. But here’s some fantastic news – it doesn’t have to be that way. By identifying your unique strengths, you can reclaim your valuable time, restore your energy reserves, and reignite your enthusiasm for your business. So, are you ready to unlock your Owner Sweet Spot? Then it’s time to bid farewell to all the hats you’ve been wearing, delegate those unnecessary responsibilities, and rediscover the true value you bring to your company. Our owner-focused approach led by Maria Forbes, will expertly guide you through the process, empower your team, and take your business to unprecedented heights. Conclusion Remember, sustainable growth flourishes when you harness the potential of your team and become laser-focused on the work that only you can do. The number of hats you wear will shrink, while the quality of your life expands. It’s time to embrace the FIREPOWER within you and achieve the success you’ve always dreamed about. Together, we can make it happen! Fuel your people power, Maria Forbes with FIREPOWER Teams

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