Marketing Consulting Blog

By GuyKawasaki

I recently learned about Science Daily. It is a treasure chest of interesting studies that has implications on business practices. I’ve collected so much material from it that this is going to be “Science Daily Week” in my blog.

For example, have you ever wondered whether giving employees a pay-for-performance bonus or a merit raise fosters greater productivity? According to this “Bonuses Boost Performance 10 Times More Than Merit Raises” in Science Daily which pointed to a Cornell study called “Using Your Pay System to Improve Employees’ Performance: How You Pay Makes a Difference” by Dr. Michael C. Sturman, a bonus yields far better results.

Obviously, compensation is more complex than this, but it’s interesting that the study found a ten to one advantage for bonuses.

PS: While poking around the Cornell site, speaking of bonuses, I also found this very interesting study: “Sweetening the Till: The Use of Candy to Increase Restaurant Tipping.” It says that tips go up from 15.1% to 17.8% when a restaurant gives candy.

By Michael Wade

There are three common mistakes that people make when leaving organizations; one is merely an inconvenience but the others can harm a career.

The minor mistake is giving too much notice. In most instances, the departing executive or manager who gives more than a month's notice is going to find how quickly he or she is transformed into a lame duck. Communication dries up, fewer meetings are booked, and people soon begin to give those "Are you still here?" looks.

A more serious mistake is giving too little notice. The problem with this approach is it sows rumors that the departure was less than voluntary. This is compounded if the person fails to send out a farewell notice or permits the employer to issue a cryptic, "Samuel has decided to explore other career options" message. For many skeptics, "other career options" means a park bench.

The most serious mistake is to burn bridges. It may be very tempting to leave with a loud blast at the trolls and weasels who've made your life miserable, but the mysterious ways of life may someday cause you to need those people. Furthermore, leaving in such a manner is unseemly and prone to make outsiders suspect that there was something wrong with you, not the malefactors.

Circumstances may demand otherwise, but as a general rule, give no more than a month's notice (in most cases, two weeks are fine); send a pleasant, nicely-worded, farewell note to your co-workers and friends; and behave in a positive, professional manner that avoids any recriminations.

In short, act in a way that could be a model for future resignations.

By Michael Wade

By Anita Campbell on HR

Using non-profit employment-related organizations in your community can be a low-cost way to hire and train employees, and even provide benefits for them.

The Hitachi Foundation has issued “A Pocket Guide for Business Leaders.” This is a PDF report that outlines why and where to set up strategic alliances with local non-profits where you can find a source of new employees, get training for employees, and get access to subsidized benefit programs:

One of the toughest management challenges for businesses is finding and keeping productive employees. This can be particularly difficult for small- and mid-sized firms with limited human resources management (HR) capabilities. Business-nonprofit partnerships are a means to addressing business needs such as this one.

Businesses in all industries face challenges in finding, training, and retaining the right workers with the right skills. The cost of the resulting turnover is a real drain on productivity and profits.

On the other hand, the seemingly non-stop economic churn is producing a constantly renewed supply of experienced and talented workers ready to meet your needs. Nonprofits are often on the frontline of this churn, providing critical training, placement, and support services to job seekers of all capabilities and with all types of experience.

As the Guide points out there is a lot of economic churn in our society. Translation: people get laid off from jobs. Devastating for those involved — to be sure — yet at the same time there can be a silver lining if your company learns about these out-of-work individuals and hires them. Often these individuals will be excited to work at a smaller business, especially if you can offer them flexible working conditions. It’s an added plus for your business if you can use non-profit (i.e., low cost) sources in your local community to help find this qualified talent, train them and provide benefits for them.

Also read for background: Small Business Employment Trends for 2007.