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Posts Tagged ‘Human resources

How to achieve transcendence in business: Believe in others

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What motivates people at work?

TransHow to boost the bottom line

In a post-recession environment where employee engagement plays a major role in organizational success — up to a 250 per cent boost to the bottom line — attention to motivation and engagement demonstrate greater loyalty from employees. A focus on innovation sets organizations apart. (See below infographic.)

What does innovation look like with respect to employees?

Feel valued. Feel engaged.

From the employees point of view:

  • Believe in me
  • Believe in others

Recent data from a Dale Carnegie engagement study, which focused in part on “belief in senior leadership”, found:

Organizations that believe people are intelligent, self-motivated individuals that do good work outperform. Collaborative work, like many things, thrives when management prioritizes it. Minimizing employees’ knowledge and efforts is counterintuitive.

Brilliant work comes from treating people like they’re brilliant. But how do you get those diamonds to shine?

Creating a culture where employees are underappreciated, creates an environment where employees:

  • Give less
  • Find another way to feel appreciated
  • Move on

Invest in relationships

Business is about relationships. Relationships need investment just like anything else you want to grow. That’s as important internally as it is externally.

Every company is trying to get the best out of its employees. Because every company faces the costs inherent in employee turnover.

Disengaging from employees is disengaging from operating margin

Towers Watson studied 50 global companies and  found:

  • Companies with low engagement scores had an average operating margin just under 10 per cent
  • High traditional engagement had a higher margin of 14 per cent
  • Companies with what Towers defines as the highest “sustainable engagement” scores had an average one-year operating margin of 27 per cent

The Carnegie study found companies lose $350 billion a year because of employee disengagement. One-third of a trillion dollars lost to employee disengagement.

What do companies want to achieve? Three things they don’t want is less productivity, increasing turnover or gifting employees to competitors.

Engage to innovate, innovate to engage

Employees of companies that outperform when it comes to innovation said in a Hay Group survey (see infographic below):

  • A majority of executives intend to create employee incentives to encourage collaboration across functions (79 per cent)
  • My company evaluates or rewards leaders based on their ability to build excellent relationships with peers (95 per cent)
  • 91 per cent of best-in-class companies regularly reach out to employees for ideas on creating efficiencies

Watching a former employee later excel with a competitor is painful. Long-term strategy regarding employee engagement and innovation should embrace the strengths of employees.

Forgetting to invest in meaningful work for employees comes with its own negatives. How do we know?

Because according to 95 per cent of employees at top companies, leaders work hard to connect people with projects that are personally meaningful to their employees.

Believe in your employees. Transcend the mean and shine. dia

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Written by johnrondina

June 17, 2013 at 1:35 pm

RESPs for the educated mind

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The kids are all right

Strategy. Strategy. Strategy.

You have watched your child grow and develop. You can’t believe it, but your little bundle of joy has grown up, has her own opinions and philosophies and is now ready to embark on one of her greatest adventures. Higher education. Goodbye high school. Hello post-secondary education.

Remember your own first year in university or college? Everything looked so big … How could you possibly get from one end of the campus to the other in five minutes? The excitement … The feeling of learning and collaborating … And now, it’s your own child ready to swing the door open to a whole world of possibilities. Immensely proud, you have some small, nagging worries about your child getting a great education and a smooth path into the future.

You have planned for this, though. Long ago, you established a Registered Education Savings Plan (RESP). And now, that long-term thinking is about to pay off. You might think your financial planning and strategy for you child’s education is done …

Think again.

Did you know that the way money is withdrawn from an RESP is enormously important? Strategizing doesn’t end now – it evolves.

Just like that little baby that grew into a teenager ready to take on the world.

  • Limit withdrawals – Remember the government … The government limits the withdrawal of RESP income and Canada Education Savings Grant funds including the CES Grant. Government restrictions on a maximum of $5,000 in the first 13 weeks of your child’s program, might leave you searching for extra funds, tempting you to grab some extra cash from the RESP to add to the $5,000. Avoid this redemption, if possible. Think long-term. Investing is often about deferring tax. Redeeming early undermines a registered plan’s tax-deferred growth potential just as leaving college or university early may limit your child’s future possibilities. Even worse, if the program doesn’t qualify, you’ll have to repay a portion or the entire CES grant!

Wait a minute … Didn’t you start this plan to give your child an advantage?

Yes. And knowledge will help you graduate RESP complexities with honours.

  • Get permission for an early withdrawal – And get it in writing. You can exceed the $5,000 limit on the withdrawal of RESP earnings by requesting permission in writing from the Minister of Human Resources. Avoid withdrawing plan capital (and a repayment of CESG funds), but make your request early. By making the request as soon as you can, you’ll get a timely response and be able to determine if this plan works for you before school begins.

The government could request a payback …

  • Strategic withdrawals avoid paybacks The government may ask you to pay them back the CESG grant money if they see earnings remaining in the plan after your child graduates or leaves school. Avoid the potential CESG payback, be sure to use the plan’s earnings before withdrawing contributions.

Part Two is here.

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