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3 Ways to Motivate Your Employees!

The question of motivating employees is often on a business owner’s mind. It can be difficult to find ways to genuinely motivate employees at work, and often the old standards—performance-based bonuses, increased rewards and commissions—only work in the short-term, if they work at all. In fact, some tests have shown that the usual motivational tactics aren’t always effective.

So how can you authentically motivate workers?

1. Share positive feedback:

Too often, rewards and recognition are based on achievements—increasing sales or closing a big account for example. But your employees do a lot of work that doesn’t gain attention on a spreadsheet. Going the extra mile for a client or showing compassion when dealing with a frustrated customer, for example, enhance your company’s reputation even if they don’t immediately have an effect on your profits.

Create a process through which you gather feedback from your clients. When they share positive comments about your workers, share it with them. Let them know they made someone’s day, even if it wasn’t directly related to their job. Doing so can increase your employees’ satisfaction, which can be a great motivator. It also shows employees that you (and your customers) appreciate them.

2. Focus on individuals:

Yes, your employees are members of a team. But each team member contributes in a way that is unique, and based on their individual skills, goals, and habits. Remember when you’re motivating your team as a whole that the people on it need to feel aligned with the strategies and goals you implement. You need each person to feel that they contribute to and also benefit from the work the team does.

Talk to the individuals to find out what they do and don’t like working on, what their goals are and how the team can help them reach their objectives. Do they want to improve their skill set or try a new role? Do they want a mentor on their team who can help them with professional development? Have one-on-one check-ins and ask questions focused on their individual skill set. Listen to their thoughts and ideas. After all, you hired them for a reason.

3. Ask your employees what they want:

Business owners frequently develop rewards and recognition programs based either on what they want or by following what other companies do. Rewards are often tied to promotions or financial incentives. These are nice to offer, but they may not appeal to all your employees. Not everyone wants increased work responsibility, for example.

Some employees might prefer additional vacation days, enhanced benefits, free lunches, flex time at work, or other bonuses that aren’t tied to their salary or job title. Talk to your employees. Ask what motivates them and create rewards and bonuses based on what they identify as being most valuable to them.

Final thoughts

Entrepreneurs often view financial rewards for achieving goals as the main way to motivate employees. Research shows that these tactics may not be as effective as previously thought. There are other things you can do to show your employees you appreciate and value the work they do.

It’s also good to remember that even the most motivated employee faces tough days. In those moments, showing your colleague compassion and offering support can help them feel valued.

Got a question about your business? If you are looking for Fulham accountants or a tax advisor in London, get in touch!

e: office@londonaccountants.co   t: 0203 137 9791

 Kind Regards,
The Team at London Accountants

If my business is making profit, where is the cash?

Some small business owners find themselves in the difficult position of running a business that appears to be profitable, but still having no money in the bank. It’s an important situation to address. After all, a lack of adequate cash flow is one of the main causes of small business failure.

Here are three reasons profitable businesses have little money in the bank, and what business owners can do to address these situations.

1. Using business money for personal reasons

Owners may be using their business bank account as a personal bank account, withdrawing the money as they see fit. Of course, business owners need to earn a living. 

Instead of using the business account like a personal account, entrepreneurs should give themselves a wage and transfer that from the business account to their personal account at set intervals. If their personal money runs out, they can’t go back to the business account for more money until their next withdrawal date.

Regular use of the business account, even for relatively small amounts, adds up and can have a drastic effect on a business’s cash flow.

2. Not collecting payments

Businesses need to make money, and they do so when customers pay their bills. 

Not sending out invoices in a timely manner, not following up when customers fail to pay and not conducting adequate credit checks on customers all put cash flow in jeopardy.

It’s best for business owners to send out invoices with clear payment terms and follow up immediately if customers violate those. 

They can also put procedures in place to avoid customers who are unlikely to pay for work done or to mitigate the damage if clients attempt to get away without paying. Requiring deposits, for example, are a great way to manage both cash flow and customers.

3. Not preparing for tax season

Many small business owners see taxes as something they can worry about later. 

Then tax season rolls around and they don’t have enough money set aside to pay the collector. In some cases, a business may have suddenly had a large profit increase but not increased the amount set aside for taxes.

Business owners must treat their taxes as a regular expense. Set money aside each month to pay taxes. If there is a drastic increase in profits, set aside even more money. Being prepared is far better than being caught with too little.

Final thoughts

There are steps business owners can take to ensure that their business makes a profit and has money in the bank. 

First, they should learn how to read and understand their balance sheet and debtors ledger. These show how much money is coming in and where it’s going. It also highlights which customers aren’t paying their bills.

Entrepreneurs should also avoid using the business bank account for personal expenses. Instead, they should pull a set amount of funds to their personal account and limit their personal expenses to that amount.

Finally, business owners must understand their liabilities. Liabilities affect how much cash is available for their business and even small liabilities add up quickly. Know how much is owed, how much is paid monthly and when those bills are due.

By keeping track of the money coming into their business and where it goes when it leaves, entrepreneurs can get a better handle on ensuring their business not only makes a profit but actually has money in the bank.

If you are looking for Fulham accountants or a tax advisor in London, get in touch!

e: office@londonaccountants.co   t: 0203 137 9791

Kind Regards,
The Team at London Accountants