21.04.2022
Change Advocate
Are you a Change Advocate?
Especially in the business world of today, where everything is about change, most people will eagerly raise their hands. Everything is changing: the way we work, where we work, how we interact, and everyone considers himself as a leader in this change.
However, are we truly Change Advocates?
When it comes to dinnertime, is there a set place at the table? When it comes to mornings, do any of you have the same routine? What other habits are you following?
Have you ever taken a different seat at the table? Especially when you're dining with your family. How did it feel? Awkward, different? Do you have a different morning routine every day?
What is the right level of change, and what is the appropriate level of routine? In order to execute routinely, we need to draw the line between "We have always done it this way" and "we are making it up as we go along?"
You can measure how open you are to change by seeing how much you are ready for changes in your daily routine. Starting with the little things can give you a sense of what change really means, especially when you aim to change the behaviour and routines of peers and employees.
Do the things you have been avoiding in your private life. You might not feel comfortable with certain things. Consider how these changes to behaviour affected you. Was it just uncomfortable because it was different? Routine gives us such a nice sense of security. Or was the situation really “painful”?
Why is it that we are so easy in telling other people to change, but have a difficult time changing our own attitudes? Is it because we might fail, that we rarely take advantage of new opportunities or things?
What do you fear most: stability or power loss, failure, or uncertainty? And if failure is the fear, why are we afraid to fail? Our failures provide far more lessons than the things that are easy and smooth in life.
Our approaches to instilling change into the organization might change entirely after we explore all those feelings regarding change. Once you understand the feelings withholding change, addressing those feelings makes it so much easier to gain buy-in.
Nevertheless, a change just might be the perfect thing you didn't anticipate beforehand!
Be a successful Change Advocate!
11.07.2021
The leader - a supernatural being?
You can find countless articles on the internet about the qualities a manager these days should possess, such as these:
- Truthful
- Trustworthy
- Models Self-Care
- Servant Leader
- Open-Minded
- Own Character flaws
- Lifelong Learner
- Avid Reader
- Approachable
- Strategist
- Helps Others Rise And Give Support
- Mindful Of Words
- Attentive Listening
- Compassionate For Self And Others
- Responsible
- Committed
- Offer A Safe, Welcoming Environment
- Ability To Fail Forward
- Empathetic
- Strive To Mentor
This list completely excludes the responsibility of leading the company, or division, successfully into the future, to pay attention to costs and still achieve a very good return.
Since these attributes exist, then isn't it logical that fewer and fewer employees aim for leadership roles? The pressure that is present here, especially if one does not possess one of the characteristics, is huge and has been increasing lately.
The first thing to keep in mind is that a manager is a human, with all the positive and negative aspects that come with it. The attributes set forth above, as well as many other items still scattered through the Internet, can be distributed over numerous shoulders, so that the company as a whole can successfully look to the future together.
20.06.2021
FMEA
Our topic today involves a very practical one; one that serves as the foundation for approach and way of thinking in processes. It is referred to somewhat cryptically here, but the connection will become apparent further down the line.
With regard to the corona pandemic and its consequences for the individual and community, we sometimes wonder if those living and working without emergency plans will be able to deal with the worst-case scenario essentially in the everyday situations that come along.
Let us take the appointment service example. If a client has to cancel an appointment, he might find himself back at the bottom of the line because a new one has to be agreed on. However, now, the service provider has rejected the request and informed the client that all appointments are taken. People will have to wait for at least two months - the shrugging hint pointed out to Corona.
Then you wonder, what if there is no Corona, but service provider needs to cancel due to a technical issue or a server failure, or a neighbourhood has been evacuated because of a bomb? Will they shrug their shoulders like that?
It is not that difficult to create an emergency plan using FMEA (Failure Mode and Effect Analysis). This approach is at least 80 years old, and originates in product and process development.
The purpose here is to anticipate possible failures / malfunctions (Failure Mode), especially from a customer's perspective. These possible failures are prioritized based on severity, frequency and accessibility (effect analysis). FMEA aims to reduce the number of errors by eliminating or reducing them starting with those errors with highest priority.
An approach that is, for example, completely natural in IT (several servers at different locations). What does this have to do with day-to-day work? Think about the mindset, especially with respect to the customer, about how failures / malfunctions can occur, what effects they have and what needs to be done in order to limit the impact to a minimum.
A prepared emergency plan is much more helpful when you are suddenly faced with a challenging situation and don t have to worry about what you might do now. Having an emergency plan in place before an unexpected situation occurs can go a long way towards calming the situation.
That said, good luck brainstorming failure options!
30.05.2021
Do open-plan offices still have a future?
There was another aspect of the corona pandemic, that of aerosols and their spread and transmission in the office. Suddenly it became advantageous for the companies with closed-plan offices. Small offices can accommodate one person, and fewer employees have to work from home. This is not possible in an open-plan office.
Besides Corona, cold and flu viruses spread much more easily in an open-plan office than in small offices. So back to: everyone for himself and nobody sees each other?
There are other options as well. The first starts with the type of walls. Glass ensures transparency, which breaks the feeling of being isolated. The next option, which is especially important for family offices, are open areas or exchange rooms. Especially when it is anticipated, that mobile working will increase. While employees work somewhere on the go, the shared office space is increasingly becoming a place to exchange ideas and meeting. The space is mainly used for creative work and not for daily tasks.
Employees do not all enjoy mobile working. However, in a place that consists of quiet workrooms and open space for interaction, everyone can find themselves again and stress associated with the design of the office space is reduced.
There is no right answer to all of these if you are considering the space for tomorrow. One thing is for sure: open-plan offices are stressful. There are eternal torments such as to hot, to cold, drafts and the like that should not go unmentioned here.
Good luck with your design!
16.05.2021
Provisions relating to termination of employment contracts
Provisions must be in place so that the economically incurred expenses can be allotted to the appropriate periods. Different requirements relate to commercial law and tax law for creating provisions. We limit ourselves here to the commercial law.
Differentiating between provisions and liabilities is crucial. Liabilities are fixed in terms of measure, amount, and due date, while provisions are uncertain in nature. The provision is therefore a liability whose amount is uncertain.
Following scenarios may obligate the employer to set up provisions when the employment relationship is terminated:
• A termination agreement is to be made or a legally binding one has already been agreed that includes a severance payment;
• An irrevocable release;
• It is likely that the employee will file a lawsuit against the employer for dismissal protection.
A legally binding cancellation agreement is a liability and does not require a provision since the amount of the severance payment has already been predetermined. If the amount, however, is uncertain but quite probable, provisions must be created. Generally, the termination agreement is not yet signed in this case.
Once a provision has been made, if a legally binding cancellation agreement is made at a later date, the provision must be dissolved into a liability.
To cover the period of leave, it is also imperative that provisions must also be made for the full wage amount; however, these provisions are reduced monthly based on the wages being paid. This applies only to irrevocable leave.
If an employee threatens legal action for termination by the employer, provisions must be made for litigation costs and severance pay, as this is a provision for unforeseen liabilities. Based on the case law, provisions might include lost wages as well.
Generally companies are only required to set up provisions and liabilities at the turn of each year, but larger organizations typically carry out such calculations on a monthly basis during the year in order to determine their profit or loss.
In this blog, I will not include the numerous provisions that arise in the payroll accounting area year after year, including deferred compensation and pension schemes.
02.05.2021
There is an increasing gap ...
The gap between large businesses, including global companies, and smaller companies is increasing. This became evident during the Corona period. There are a few notable exceptions, such as start-ups, which are usually very digitally oriented and creatively oriented from day one.
What is gap am I referring to? General speaking, about the gap in human resources. The large companies are already using HR analytics and are already dealing with the challenges associated with New Works, but there are still employers who only offer paper vacation requests and who print and send payslips to employees by post.
Although some measures would be exaggerated for smaller companies, other measures are critical to the future survival of a company. It is particularly relevant with regard to the increasing digitization of future employees, who are already growing up digitally. Even if the schools in the digital sector are still blatantly behind the times, the world is already looking different in the vocational schools. Even before Corona, digital technology found its way here. This young generation feels pushed back into the past when they work in companies, which still rely heavily on paper. In particular, those who still do not feel comfortable removing their employees from their desks and who insist on the office as a workplace, except for those whose workplace is already mobile per se. It will become increasingly difficult to find young employees for these employers.
It is likely there will be an aging workforce and, ultimately, perhaps also a break-up of the business. In particular, it is important for companies who have so far resisted these innovations vehemently to tackle them immediately.
Often nowadays we talk of a VUCA world—a world characterized by volatility, uncertainty, complexity, and ambivalence. A very clear example of this was the corona epidemic, which highlighted which companies were better equipped to cope with it due to their organizational cultures, and which companies faced much more difficulties. Except for the sectors specifically affected by the lockdown.
Consequently, all companies should use this experience as a “wake up call” and find ways to eliminate their structural disadvantages. Since the world remains a VUCA world—even without Corona!
19. April 2021
Young Talents
The previous blog discussed how to make your company visible to professionals. It is undeniable that the market for qualified experts is finite, and it is also fiercely competitive. Long term, there is only one-way to counteract the shortage of qualified experts: build up your own qualified experts.
The options are numerous depending on the end goal and the positions to be filled. The first thing you need is a sufficient budget! On average, 30% of your employees are likely to remain in the company, while other companies will poach the rest. No matter how strongly you try to stop it, it will happen. Young talents who have emigrated to another company and returned to your company after a few years abroad are another example of your success.
Let us get to the ideas and options. Dual study program offers are the first to be considered based on the age of prospective employees. The university is your best first point of contact. They are always looking for companies to work with. It is necessary for you to establish collaboration with several universities according to the skills you intend to develop with Young Talents. Under dual studies, the company usually pays the student's university fees, and they are usually paid at least equal to apprentice salaries.
Additionally, there are also contacts for students at technical colleges and universities. One is the classic offer of part-time student work. These positions are best advertised directly at the respective university, mostly via AStA (General Student Committee). A student looking to increase their financial opportunities in their future career is in a win-win situation.
The offer of master and bachelor theses is another option. Universities and technical colleges are increasingly requiring bachelor and master theses with practical content. Here, a company not only has an opportunity to retain a future employee, but can tackle issues that are on their wish list and which are too often put off due to more pressing business issues. As mentioned previously, this is also a win-win situation for both sides.
Finally yet importantly, we also have the opportunity to offer a trainee program for young graduates. Implementing this strategy requires a lot of effort and requires that you also look for trainees who would like to participate in your company's training program.
In order to ensure that a trainee program does not fail from the start, there are several important factors:
- Develop a realistic, well-planned, well-founded program.
- Make sure that all departments in the company support the program.
- A trainee program just centred on on-the-job training will not motivate anyone. Besides workshops, lectures and occasional non-specialty topics, there can also be company-sponsored speakers.Do not try to upsell something that you do not provide. A company is international if it has international employees in one location. In other words, if you are represented abroad and have locations there with local employees, then you are not offering anything else. Ultimately, the main objective of the trainee program is to find future employees.
- In general, it is reasonable to assign trainees a project. Of course, the project must be feasible within the time frame set.
- Facilitate learning by providing mentors and organizing overarching events.
The subject list given here is not exhaustive, but it does indicate that it needs to be organized properly. Now you are wondering how you are going to cope with the time constraints. Well, you can try to state the topic as a bachelor or master thesis.
An unwise move in obtaining young talent: Offering compulsory internships that, although the intern gives the company added value, are not remunerated under legal circumstances.
Good luck!
12. April 2021
Shortage of qualified experts – now what?
Employee branding is a crucial component (see blog from November 9th). If we go into the field of qualified experts, contributions are what attract the attention of the people you wish to hire. Whether in trade publications or social media platforms, convince the specialists that they are getting the expertise they need in your company. Co-operation between the specialist department, marketing and HR is essential. Provide free webinars, even after Corona! These are great ways to reach your target audience with minimal effort. Undoubtedly, the webinars' content is essential! You need to structure them very well both in terms of substance and in terms of presentation. It is always preferable to interact with the participants rather than just give a simple presentation. Think of it as a promotion and invest the same time and quality as if it were a conventional promotion.
The platforms LinkedIn, Xing and Clubhouse are other options. Actively approach specialists here and invite them to your activities mentioned above. The best way to locate suitable candidates is to search the platforms proactively. Advertise as much as you want on social channels without seeming intrusive or unprofessional. Do not expect success within two months. It requires perseverance to carry out these measures, especially if you are new to it. You will need the help of your current specialists to accomplish this. Any article you post on social media will gain the attention of more readers if it receives a "Like", comment, or other attention from readers. The shortage of qualified experts is detrimental to the company, and in particular to the departments concerned.
As soon as you have a strong presence in the market, things become much easier. After making some initial mistakes you have gotten a better sense of what interests the experts you need to hire and what is rather uninteresting to them. Build up your expertise.
This is why I emphasize again the need for good, productive cooperation between Human Resources, Marketing and the respective departments, with a shared goal of finding the best candidates for the company.
6. April 2021
Apprentices - where are you?
During the recent Corona pandemic, training positions were difficult to find because many companies were not filling any training positions. There is justifiable concern that the shortage of trainees will increase again as early as 2022 and by 2023 at the very least we will fall back to our training levels in 2019.
What can companies offer in order to find trainees? In addition to training fairs and advertising, there is also Instagram and Facebook. These are all options which are mainly used by large companies. However, what options are available to small businesses, craft businesses, or companies around the corner?
Student internships in 8th and 9th grades play a significant role here. Students in the 8th and 9th grades are usually required to complete an internship of two to three weeks at a company, also called a professional field exploration. Some students lose out on these internships by working in the company in which their parents work because they cannot find an internship in their dream job. A number of districts, municipalities and cities have now set up databases in which companies can offer an internship to students, and some schools work with these databases as well. Still, everything is left to coincidence. A lot of people are seeking the company's services in this area. Get in touch with the school in your area. Internship students don't like travelling far for the student internship. Ask the school about information sessions or create flyers.
As soon as you have found a student or a team of students for the internship, you should make sure that the student knows what to expect during the two to three-week internship. Come up with an internship concept. Only once do you develop this concept and you can use it repeatedly. Let the intern get to know the company and vice versa. There is no better way to get to know a potential future trainee!
Most often, the internships in different schools don't run simultaneously. Therefore, if you can't accept more than one intern, take advantage of the opportunity to meet several students from different schools. In the end, this increases your chances of finding a good trainee. Don't assume success without a substantial investment. Yet, in the end, employing a trainee who is already familiar with the company and enjoys being a part of it is worth the extra effort.
Career exploration days are held in many schools before the multi-week school internship. Here, the student only spends one or two days in a company. Do not miss out on this chance either! Talk to the schools about this day, and lay out a plan. The most important thing about internships: Make sure the students participate!
Another option are vocational schools. These schools are known by different names in each state, but in general they are the same. Likewise, students need several-week internships in companies. Most of the students at these schools are 17 or older.
Ultimately, this initiative is mutually beneficial. Employers can find their future recruits from the internship program, and schoolchildren get a taste for a job, regardless of whether their parents are involved.
Good luck with your search!
30. März 2021
Company car - lower taxes with extra payment
On February 23, 2021, I had already mentioned that a special blog post would follow on the subject of company car taxation. Voila! It is not about the well-known topics of taxation (flat rate or by the logbook method), but the possibility of reducing the monetary benefit through the employee's extra payment for the acquisition cost of a company car.
There are two options: The first is undisputed, while the second has been up for court review at the Federal Finance Court (BFG) since 2018.
Here is the first choice for saving. Until the co-payment is used up, the employee's co-payment can be divided over the same amount of monetary benefit. This does not depend on the calendar.
More specifically, this means:
In addition to the € 70,000 purchase price, the employee also pays an extra € 10,000 in extras, raising the acquisition value to € 80,000. For example, let us say the distance from home to the first work place is 40 km. Monthly calculation of the pecuniary benefit:
1% of the purchase value: € 800
Distance from home to first place of work (0.03% x 80,000 € x 40 km): 960 €
As a result, the benefit in kind is € 1,760. A reduction of € 1,760 will be made to your contribution of € 10,000. Therefore, the employee only pays 1,760 € in personal contributions, reducing the pecuniary benefit to zero for the employee. In the example, where our own contribution is € 10,000, the savings are made for five months. The co-payment for the 6th month is only € 1,200 (€ 10,000 co-payment - 5x € 1,760). Thus, the employee must pay only the co-payment of € 1,200 this month, and tax an additional € 560 as a benefit in kind.
As previously mentioned, the second model, still pending at the BFG, takes the calculation one-step further. It is based on the court decision of April 16, 2018 - 9 K 162/17. Here the Lower Saxony Finance Court takes the view that, if we take our calculation example from above, the employee's own share at cost is paid in full by the employee in the first month. However, the amount can be spread over an agreed length of time, and the monetary benefit for the period can be reduced. In our example, we will take three years. To calculate the benefit in kind, the own share at the cost of € 10,000 is evenly distributed over a period of three years, and the amount is then reduced accordingly. If this method is used and rejected by the tax office, it is important to file an objection with reference to the pending BFG proceedings. A corresponding objection will be taken into account if the BFG follows the opinion of the Lower Saxony Finance Court.
Safe journey!
23. März 2021
Shaping corporate culture - a task of HR?
Corporate culture is [] something that has evolved and is not directly recognizable, but which is an important component in daily cooperation.
Today's blog is about corporate culture or the question of whether the creation and shaping of corporate culture is a task of HR. To do this, we should first deal with the meaning of corporate culture. What exactly is corporate culture: "[Corporate culture refers to the] population of common values, norms and attitudes that shape the decisions, actions and behaviour of the members of the organization." (Source: Gabler) Behaviour, unwritten rules, and manners who exists over the years and influences everyday business life form the corporate culture, for the most part unconsciously.
Corporate culture is thus something that has evolved and is not directly recognizable, but which is an important component in daily cooperation. Everyone who starts new in a company has already made the experience that it requires a while to grasp the characteristics of the corporate culture. Can HR really shape the corporate culture against this background?
To answer this question, let us dig deeper into choices, actions, and behaviours. Primarily, managers, starting with the top hierarchy level, specify and exemplify them. Here, a company is no different from a family, in which the parents set and exemplify the family culture from day one. As the children grow up, the family culture changes. The same goes for companies, they change over time.
However, the development of decisions, actions and behaviours depends on how they are designed by the top management level and how they are transferred to the next management level. It is not uncommon for corporate culture to change quickly and radically when there is a change in company management. To what extent can HR influence this? First, and this is a very important task, as soundboard for the top management level. Usually there are few corporate cultures where employees want / are allowed / able to give direct feedback to their management. HR has the task of explaining what specific effects decisions, actions and behaviours have. This should and must not be done critically, but only in a descriptive manner. Nevertheless, it illustrates the effects that supposedly small, insignificant actions can have. It is then up to the manager to decide whether this effect is intentional or whether a change in behaviour is appropriate.
When choosing management-training courses, coaching and mentoring, one should always keep an eye on which behaviours should be preferred, but in accordance with reality. Slogans, sayings and written values lose their meaning and power if they are not in harmony with reality. Here they bring a lot more if the desired culture has already been achieved than if the written values only represent a desired aim.
You cannot specify a corporate culture, just like a project “We are now changing the corporate culture.” Rather, it lives from living and being lived.