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5 Leadership Mantras Debunked

Posted: 04 Jul 2019 01:00 PM PDT

Like a backflip on skis, most leadership advice – whether you heard it in business school or from a "self-educated" YouTube entrepreneur– can only be mastered with experience.    

For those still lacking experience, however, the next best thing is to learn from someone else's. With that in mind, we asked leaders from business and politics for the leadership lessons they learned on the job. From the stories they shared, it turns out we have a lot to unlearn instead.

Here are five leadership mantras debunked:

1. Treat others the way you want to be treated

Ergo, manage others the way you want to be managed, motivate others the way you want to be motivated, tell others that their market research report would have been excellent coming from an intern, but that you expected much more from a senior analyst the way you yourself sometimes need tough love in order to get the ball rolling …

It doesn't take any stretch of the imagination to see how this piece of advice can be a slippery slope. That's not to say leaders are being disingenuous about how they want to be treated – most wouldn't be promoted to that role without some competitive spirit and willingness to put in the hours.

"When I was first promoted into a leadership role, I assumed that my team members were motivated by the same things that motivated me: rah-rah energy, high fives, contests to reward performance, come in early, stay late, live to work, etc.," said Bryan Zawikowski, vice president and general manager at Lucas Group, a recruiting firm. "I really 'lived to work,' assuming every team member felt the same way."

Instead, Zawikowski's team started to dwindle in performance. It finally took one comment from a tenured peer – "Don't expect everyone to be just like you" – for Zawikowski to realize that his leadership style was to blame.

"The key takeaway was that everyone has a different set of motivators based on their personality and what is going on in their lives," Zawikowski said. "I learned that if I was going to be an effective leader for the whole team, I was going to need to treat people the way they wanted to be treated, not the way I wanted to be treated."

2. Fake it 'til you make it

For a textbook example of the "fake it 'til you make it" strategy, take Theranos or Fyre Festival, two of the most recent high-profile business failures. Both were so good at imitating the aura of successful tech startups that they attracted investors and publicity without having to show any bottom line. It wasn't until it came time to show results, however, that their façade of credibility came tumbling down like a house of cards.

As it turns out, there's a fine line between a display of confidence and deceit. A quieter majority has found success with the honest approach.

"I am firmly against the notion to 'fake it 'til you make it,'" said Megan Tamte, who took on a leadership role for the first time after opening her store EVEREVE. "That's encouraging people to pretend they know more than they do or [be] something they are not."

Instead, Tamte attracted the kind of business partners and customers she wanted to associate with by "being honest, telling my story and explaining my 'why' to people." The strategy paid off: EVEREVE made $120 million in sales in 2018 and is on pace to hit $150 million this year.

3. Think positive

Judging by the number of business self-help books on positive thinking, it appears we all suffer from a cripplingly pessimistic outlook. Judging by the fact that two-thirds of startups don't survive the first decade, however, it appears many business leaders could use a dose of reality.

Hence, some experts caution against excessive positive thinking.

There are several ways positive thinking can be abused. From a management perspective, it's a way to shut down others' opinions and concerns by dismissing them as harmful negativity (again, see Fyre Festival). This should be validating for anyone who's ever become enraged by the phrases "it's all good" or "look on the bright side."

From a decision-making perspective, it's also a clever mind trick for delaying action on a bad situation. Left unchecked, this can snowball into collective denial.

Meanwhile, negative thinking can ensure survival.

"Being a small business owner in Southern California means always preparing for the worst when it comes to natural disasters like earthquakes and fires," said Deborah Sweeney, CEO of MyCorporation, a filing services company based in Calabasas. One recent example of how disaster preparedness can pay off is the Woolsey Fire, which swept through Calabasas in November 2018.

4. All's well that ends well

If all's well that ends well, then a good management style is any management style that checks boxes, turns a profit or yields growth. 

This one may be harder to let go of, thanks to many companies' obsession with the bottom line. But replace "all's well that ends well" with the sinister near synonym "the ends prove the means," and one can see how this can be a problematic way to evaluate a manager's performance. 

Luckily, there are other metrics that pick up the "soft skills" of management. When David Leonhardt worked as campaign manager for his friend's 1997 bid for a seat in the Canadian parliament, his leadership would have been deemed a failure by any traditional performance-based measurement – the "bottom line" in this case being that they lost the election.

To say that this, however, would have been jumping to conclusions. For one thing, the party's local vote share increased from the previous election, despite a decrease nationally. For another, "from a leadership perspective, one metric blew everything else away – volunteers abandoned campaigns in other electoral districts to work on our campaign, and they did so more and more as the election progressed," Leonhardt said.

Leonhardt has since retired from partisan politics and is now president of THGM Writers, a ghostwriting service. 

5.    Literally, everything we just said

In the saturated market of business advice, all the points we've made in this article – cater to your employees, honesty is key, expect nothing, fear the worst, end performance isn't everything – could probably be just as easily debunked.

The takeaway is not that some leadership advice is wrong but that the world is filled with nuance and no single tip should be treated as canon. Most readers will only be able to test these by jumping in the deep end and assuming that leadership role.

And once you've jumped in the deep end and learned your tried-and-true approach, always be prepared to consider new ideas and adjust.

"Leadership isn't a one-size-fits-all approach, and I had to learn that the hard way," said Harrison Doan, director of analytics at Saatva. "There was a time when I would come into a new position with the tactics and strategies I'd learned from my old job and would immediately try to enact them as if I was working at the same place … This didn't always work to my advantage."

Experience may be essential, but an old dog must also be willing to learn new tricks.

6 Tips for Starting Your Own Independent Business

Posted: 04 Jul 2019 10:00 AM PDT

The independent workforce is composed of more than 41 million people working as contractors, consultants, freelancers, side-giggers and more. These independent workers provide specialized expertise to companies that are looking to bring staffing flexibility and in-demand skills to their business. Nearly two-thirds of senior executives today say their external workforce is essential for operating at full capacity and meeting demand.

While there are many benefits for companies who engage independents, there are equally as many advantages to starting your own independent business. You get to be your own boss, decide when and where you work, and effectively have limitless ability to earn and pursue a career you are truly passionate about. If you're thinking of joining the independent movement, use these six simple tips to build a successful business.

1. Identify skills you can build a business around.

The first important step you'll want to take is defining the services your business will offer. If you don't already have an idea of what you want to focus on, think about what you like and don't like to do at work and in your free time. This will help you narrow down your niche and find your individual, sellable talent.

Next, take some time to research the industry you want to focus on. What skills are in demand? How can your unique services be configured to meet the unmet needs of potential clients? Keep in mind that as a newcomer to this market you may need to build out your education. As you grow your business, consider looking at online courses, professional certifications, or classes at a local college that can lend credibility to your expertise. 

2. Write a detailed business plan.

Creating a business plan is a valuable exercise for anyone starting their own business because it requires you to think through all aspects of your future business. Many independents find it useful to create both a 12-month roadmap as well as a longer-term plan for the next three to five years. The shorter plan can focus on business basics, monthly profit goals and target clients, while the long-term plan should focus on future goals, growth strategy and the overall identity and purpose of your company.

When drafting a business plan, consider including the following topics:

  • Your target audience
  • A marketing strategy
  • A plan for landing your first contract
  • What your competitive advantage is
  • How you will price your services
  • Why, when and where you want to work
  • Goals for income and personal development

3. Get your finances in order.

There's no way around it – launching an independent business requires financial preparation and forethought. A good target number to have in mind is enough start-up capital to keep your business running for at least six months. For example, you probably won't invoice your first client for at least 30 days. Then, many net payment terms can stretch out to 60 days – or even longer for some large organizations. That means a full 90 days before you see any money coming in.

When thinking through finances, consider initial start-up costs like internet and utility bills, computer technology and additional project supplies, as well as hard ongoing costs like office space, if you choose to work outside your home. You'll also want to decide on a business structure as that will determine your federal and state tax obligations. The U.S. Small Business Administration (SBA) is a good resource that provides information about taxes, licenses and permits and business insurance. Setting the right billing rate is key to ensure you charge the right amount for your services to cover your expenses.

Editor's note: Looking for the right liability insurance for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.

 

4. Be prepared to be the boss.

Yes, being your own boss is great, but make sure you are in the right mindset to handle everything that comes with running your own business. As an independent business owner, you're not just responsible for completing the work outlined in a contract – you're also responsible for finding that work. You'll need to use your network to land new clients, remain confident during contract negotiations, and push back on clients who are late with their payment or who are poor communicators.

Because running a business can be so time-consuming and complex, many independent business owners will automate tasks, engage other contractors, or use outsourced services like an accountant to free up their time so they can focus on high-value tasks. By outsourcing back-office activities that aren't in your wheelhouse, you'll be able to pursue what you really want to be doing every day.

5. Set goals and consistently evaluate your progress.

As your business takes off, it can be easy to get caught up in the day-to-day of project work, client communication and securing your next contract. But it is equally important to take time to give yourself a performance review a few times a year. During these reviews, revisit your goals, evaluate your progress and make a plan for improvement. Consider what success means to you and how you can create measurable steps to achieve it.

Remember, not everything you do will work out perfectly. It is okay to reevaluate both personal and business goals and adjust your strategy accordingly. As industries and technology change and evolve, so will your business.

While there are many benefits to starting your own business, the path to independence requires preparation and hard work. If these tips sound overwhelming, you may consider initially testing out your business on a part-time basis while keeping your current job. This is a great way to try out business ideas and get a feel for what running a company is like with a safety net in place. As you build your network, confidence and portfolio, you can then transition into a full-time independent business.

6. Establish the basics.

To get your business started, you'll need to establish concrete items to operate compliantly, particularly if you wish to engage with large enterprises as a qualified independent professional. At a minimum, this means a business structure, which can range from a sole proprietorship to a more complex C corporation.  

You'll also demonstrate that you've "hung your shingle" by developing basic marketing materials, such as a website, business cards and a presence on professional networking sites like LinkedIn. Not only can these materials help you get new business, they demonstrate that you are actively soliciting work and serve as a sign to some businesses that you are qualified to work independently.  

You'll also want to secure business insurance. Many organizations will have specific qualifications, but at a minimum you'll likely need general liability insurance.

Speaking of qualifications, you'll also want to be sure you have a contract with your client before beginning work. This includes a process for payment – ideally with favorable terms – as well as a defined contact within the organization for day-to-day questions, both about your project and about questions that may come up regarding your engagement. It also includes a written scope of work for each engagement that includes the services you'll provide as well as the deliverables the client will receive.

After you've agreed upon terms with your contact, the contract will likely need to be approved by other departments if you're working with a large organization. You'll want to make sure that this process is complete before you begin work.

3 Tips for Negotiating a Business Loan

Posted: 04 Jul 2019 09:00 AM PDT

You can't start or grow your business without funding. Unfortunately, applying for and getting a business loan isn't a fast or stress-free experience.

Applying for a loan is one of the most crucial steps for a small business owner. To give yourself the best chance of getting approved, follow these tips for negotiating and ultimately getting a business loan.

1. Do your homework and go to the right banks.

Alex Espinosa, SBA lending consultant and founder of BOLD Lender, recommends researching banks before applying for a loan. Like doctors, banks have specialties. You should find banks that are able to help you – don't waste your time applying to banks that can't.

"Some banks are good at restaurant loans and some are good at gas station loans, but many lenders reject those categories," said Espinosa. "I would start by looking up every bank headquartered in my county and begin investigating them, starting with the smallest. A good place to start is on the FDIC website." 

BJ Lackland, CEO of Lighter Capital, suggests trying to seek capital from multiple sources. "In any negotiation, it helps to have options," he told Business News Daily.

2. Know the terminology.

Bankers and lenders won't take you seriously if it seems like you're unprepared or unsure of what you're talking about.

"Speaking the same language as your lender demonstrates that you understand the process and your responsibilities, increasing your lender's confidence in you," said Paola Garcia, a small business advisor at Excelsior Growth Fund. "This can also help you spot warning signs that a potential lender may not have the experience you need or may demonstrate predatory lending behaviors – either of which can result in a loan that's poorly structured, with repayment terms that jeopardize your business's cash flow."

Before you apply for a loan, here are some terms you should familiarize yourself with.

Balloon payment: "[This is] the unpaid balance due at the end of a term loan for loan types that don't fully amortize over the term of the loan," said Gennady Litvin, associate at Moshes Law. "The balloon payment is due at the end of the loan to pay the balance in full."

Default: Litvin defined this as "failure to make the agreed-upon periodic payments on a loan."

Financial covenants: "These are financial guardrails within which you need to operate your business," Lackland said. "If you go outside these, you'll be in default under the loan and the lender can demand immediate repayment." Financial covenants may include a minimum cash balance in your bank account, a minimum level of profitability and asset coverage of cash-flow ratios.

Loan-to-value ratio: "[This is] the ratio of a loan to the value of the purchased asset," Litvin said. "It's one of the metrics used to evaluate the risk on a potential loan."

Personal guarantee: "If you personally guarantee a loan, that means not only is your business on the line, your personal assets are also at risk," said Lackland. "The capital source could come after your house … Try to avoid a PG as much as possible."

3. Be prepared.

"Preparing for a business loan is like dressing for your wedding," said Espinosa. "You want to look as attractive as possible and present yourself like a good risk."

While you need to speak the part, so does your paperwork. Espinosa recommends getting copies of your credit report to identify any negative items and try to repair or remove them. "Have a letter of explanation prepared for any negative items that remain."

You should also have your tax returns for the past three years, three years of fiscal year-end financial statements and year-to-date financial statements.

"You should prepare a personal financial statement listing your income, assets and liabilities," Espinosa said. "Have copies of up to six months of bank statements, recent broker and retirement account statements, copies of your life insurance policy and statement, any trust information, and any recent appraisals you have had done."

Before you arrive at the bank, make sure you and your paperwork are organized and neat. "Neatness, grammar, spelling and organization counts," said Espinosa. "Sloppy requests don't even get read and are often rejected immediately."

4. Try and limit personal guarantees.

Walter Gumersell, an attorney with Rivkin Radler who specializes in business negotiation, said small business owners should be wary of the personal guarantee. Many small business loans, especially those from online alternative lenders, require a personal guarantee to serve as collateral for your loan. Personal guarantees may make sense in some instances, but it's a tool you should be aware of before signing a loan agreement.

Instead of taking business property as collateral (which the lender may already be doing), the lender may also ask for a personal guarantee, which means that in the event of default, your personal assets can be seized to reconcile the debt. If your lender requires a personal guarantee, try and limit it to only certain assets. Don't ever sign a loan agreement that you feel will put your personal financial situation in jeopardy.

5. Negotiate a right to prepay.

While it may seem counterintuitive, many lenders charge you a fee if you pay off your loan in one lump-sum payment. This is because, depending on your loan agreement, if you pay off your loan upfront, the lender collects less total interest. Variable interest rates can fluctuate, and even fixed interest rates are charged on the remaining principal. As your loan matures and amortizes, the amount of interest you pay each month will be a result of the remaining principal. If you pay off the total principal and interest upfront, you're not making future interest payments to the lender, which affects its balance sheets and total interest collected. You could also be paying less interest overall.

Gumersell recommends negotiating a prepayment option so you can pay off your loan immediately if you have the opportunity. This tip comes down to flexibility: You want to be able to be as financially nimble as possible. Having the option to pay off a loan in one lump sum means you can quickly attain financial freedom if you have the opportunity.

For more information on what you need for a small business loan application, read this Business News Daily guide.

Additional reporting by Matt D'Angelo.

Why Responding to All Your Online Reviews Is Critical

Posted: 04 Jul 2019 08:00 AM PDT

Competition is fierce in today's digital age, with nearly every business claiming the best products and services and touting fantastic customer service. How then do people decide which company they're going to do business with?

The answer is customer reviews, and it's why my business offers an affordable reputation software solution that makes it easy to do online reputation marketing. Notice that I didn't say online reputation management. The truth is that managing your brand's reputation is essential but marketing it is critical for the success of any business.

To improve your online reputation marketing efforts, you can simply start by responding to all your existing customer reviews. Sadly, this is one of the most neglected and under-utilized online reputation marketing strategies around, yet it's one of the easiest to execute. Here are five reasons why you want to respond to every single customer review.

1. Let the world know you care about every customer, not just the ones who complain.

I see companies make this mistake every single day. As you research a company and read its reviews, you'll hopefully see some positive reviews. Suddenly, you discover a negative review, and that's when the business finally decides to take the time to respond. It's really a shame. The business is rewarding someone's negative comments with their time and attention, instead of replying and showing appreciation to all the customers who took the time to share a positive review of the business. 

What does it say about your business when people see positive reviews ignored, but then see a lengthy response to a bad review? It says your business cares more about your reputation than about your customers and their experiences. The truth hurts, doesn't it? 

That's the real difference between reputation management and reputation marketing. The business is managing a negative review, instead of marketing its brand using all the reviews. If you thoughtfully respond to all your online customer reviews, you can market to your existing customers and attract new customers as well.

Here's a tip about replying to positive reviews. Don't just respond with a simple "Thanks!" or "We appreciate you." Instead, personalize your response where appropriate and possible, so your customers know you took the time to compose a sincere and meaningful reply. You might think that you can't afford the investment of time to respond to all reviews. However, when you invest the time, it will provide you with a positive ROI every time.

2. Increase the lifetime value of your customers.

When you respond to your customers' reviews, you are given the golden opportunity to market to your existing customers. Did you know that when you respond to a customer review the customer will know that you replied? Most review platforms notify customers when the business responds to their review. This is an easy way to make your existing clients feel appreciated, and they are much more likely to become repeat customers. 

Too many business owners and entrepreneurs are so focused on acquiring new customers that they ignore their existing ones. Do you believe a customer will be more inclined to do business with you again and refer you to new customers when you express your gratitude publicly to their positive review? Exactly.

Editor's note: Looking for the right online reputation management service for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.

 

3. Enhance Your SEO efforts.

Every time a customer reviews your business, whether good or bad, it's your opportunity to provide additional SEO value for your business. Search engines like Google, Bing, and Yahoo crawl the internet to find new information so they can provide the most recent and relevant content for their users. When you respond to each customer review, you can add context about your customers' experience with your business. 

Let's say that you are a plastic surgeon in Maryland and a happy patient just posted a glowing review online. You could reply, "Thanks for the great review! We are constantly striving to be the best cosmetic surgeons we can be. I'm so grateful you chose our practice. If you need help or have any questions, call our Maryland office anytime. Remember, you also have my private cell phone number and can reach me anytime, 24/7, if it's urgent."

Did you notice how I mentioned the keywords "best cosmetic surgeons" and "Maryland" in the reply? This is additional relevant content that will enhance the SEO value of that review page, especially for your Google local business listing. Google specifically states in its help system that reviews can improve your listings' visibility in its results.

Warning: don't overdo it with the keywords in your replies. Otherwise, Google and other search engines may penalize your listing, and you could potentially offend your client or patient if they feel like your response isn't authentic. Remember, these responses are public for everyone to see. The good news is you can add to, edit, or update your replies at any time.

4. Protect your business reputation with trust and transparency.

When you fail to implement a reputation marketing system in your business, you're leaving yourself vulnerable to attack. If you are neglecting your online reputation, all it takes is one or two bad reviews to cripple your business. Did you know that just one bad review can cost your business as much as 22% of prospective customers? Your potential to lose customers skyrockets to 59.2% if people find three negative articles or reviews about your brand. 

However, if you're actively marketing your brand reputation and requesting online reviews, you can drown one or more negative review in a sea of positive reviews. Remember, in today's digital age, consumers are well-educated. Most people know that you cannot please 100% of the people 100% of the time. Your competition likely has a negative review or two, as well. The key is having dozens or hundreds of positive reviews to outweigh the negative ones. When you combine positive reviews with personalized responses to all your reviews, you are creating an impenetrable fortress around your brand's reputation.

The fact is when people see dozens of positive reviews and an occasional negative review; they are likely to discount the negative review – especially if the business has replied to all the reviews with sincere honesty and transparency. People understand that companies make mistakes and can even empathize with them in certain situations. It's critical that if you or an employee makes a mistake that you own it and take responsibility. People will understand and forgive you if you craft appropriate and thoughtful apologies to your negative reviewers. 

Many times, it's your responses that will attract new customers to your business. When they see you responding to all your clients and observe how you handle difficult situations, most people will trust you to do a good job or to do the right thing if you don't.

5. Attract new customers who post reviews.

A 2017 study found that 78% of consumers trust online reviews as much as personal recommendations. That's why it's critical to implement a reputation marketing strategy that helps you develop trust with your prospective customers.

As you earn more reviews for your business and consistently reply to them, prospective customers will see why they should choose you over your competition. They will see that you care about all your customers. As a result, more people will trust your business, and you will become the clear leader in your marketplace.

When you invite your new customers to share reviews about their experiences online, simply remind them why they chose your company. Your odds of getting your new clients to post a review online are substantially higher since it was customer reviews that attracted them to your business in the first place. Of course, this only works if you deliver on your promises and do good work.

Bonus tip: How to handle negative reviews.

Most entrepreneurs and business leaders make every effort to satisfy and please the customer. However, no matter how hard you try, sometimes it just doesn't happen and your business is forced to address a negative online review. When that happens, it's crucial to consult with people you trust who have legitimate business experience and acumen before you respond. The last thing you want to do is to reply in an emotional state of distress or anger.

Instead, think of how you can reply in an authentic and meaningful way without compromising your integrity. Let's face the truth: some customers will try to sabotage your business to get free products and services or to simply get attention. Don't let this happen to you. Stay true to your core values and do your best to reply in a professional and thoughtful manner.

Here's an example of how we coached a client to respond to a negative review. One of our clients found a negative review that labeled their chiropractic clinic as "another cattle-in and cattle-out operation." Ouch! The business owner wanted to share a fun and light-hearted response and wasn't afraid to repel people who didn't resonate with his message. After careful consideration and discussion, we decided to create a video response using a humorous, yet authentic, approach and posted it on Facebook. Remember, it's okay to have a sense of humor in business, as long as you are genuine and sincere.

We got thousands of views and lots of positive feedback from the business's Facebook fans. However, this reputation marketing strategy could have backfired if the business did not have dozens of five-star reviews. This is why every entrepreneur must be laser-focused on building a five-star online reputation for their business and brand.

The Importance of Completing an FLSA Compliance Self-Audit

Posted: 04 Jul 2019 06:00 AM PDT

The Fair Labor Standards Act (FLSA) is a federal law created to establish a minimum wage, regulate the number of hours worked each week, determine how overtime is awarded, protect children from unfair working conditions, and require a standard of record keeping. 

If you fail to comply with FLSA regulations, you could be fined almost $2,000 per employee for minimum wage and overtime penalties. Child labor violations can result in even stiffer penalties per occurrence, so it makes sense to take the time to regularly self-audit. 

To make this self-audit easier, this article contains links to some of the most valuable government resources to help you make sense of the FLSA. 

Contractors and nonemployees

This is one of the trickier points for many small business owners. If your business uses a high percentage of independent consultants or contractors who actually function more as an employee, you could be in trouble. Not sure what the difference is? 

The Department of Labor (DOL) has a great infographic that helps to break down the distinction between an employee and independent contractor. If you have a worker whom you're claiming as an independent contractor but who does not determine when and how they work, they're probably an employee. If there is any chance you could be in violation of claiming an employee as an independent contractor, you can gain clarity from the Wage and Hour Division of the DOL. 

Record keeping

It's important to ensure that how your nonexempt employees record their time complies with FLSA. To see if your organization is following proper protocol, you should review when the DOL expects employees to be counting hours worked and how those hours should be tracked. 

In general, if your employee is doing something specifically for you or is unable to do something else because they need to be available for you, it's likely that they need to count their time as hours worked. 

The way in which those hours should be tracked is very regimented and requires employers to maintain the following records on all employees: 

  • Full name and Social Security number of employee
  • Address with ZIP code
  • Date of birth, if younger than 19
  • Sex
  • Occupation
  • Day of the week and time when workweek begins
  • Number of hours worked daily
  • Total hours worked per workweek
  • The basis of employee wage (e.g., "$11 per hour," "$540 a week," "piecework")
  • Normal hourly rate
  • Weekly or daily total of straight-time earnings
  • The total amount of overtime earnings for each workweek
  • Any deductions from or additions to the employee's wages
  • The total amount of wages paid per pay period
  • The date of payment as well as the pay period for which the payment is being made 

Overtime exemptions

There are some positions which are exempt from overtime earnings. If you have employees who are classified as exempt from earning overtime, you need to review their responsibilities and compare them to FLSA regulations regularly to ensure the employee's status hasn't changed. You also need to have your payroll department verify they are only making allowable deductions from employees' paychecks. 

Child labor

The FLSA is the primary regulation that protects children from being exposed to unfair and dangerous working conditions. The federal government carefully regulates all aspects of how employers may employ individuals under the age of 18. 

The types of jobs children can work, as well as the number of hours each week they can work, vary based on the child's age. As a general guideline, 14 is the minimum age for employment, and those under the age of 16 have strict limitations. 

The DOL has extensive child labor resources available if you employ children under the age of 16 and want to ensure you are in compliance with FLSA regulations. 

State law

If you've passed your FLSA self-audit with flying colors, it's time to think about state law. Are you paying the minimum wage as dictated by your state government? You can check those numbers here, but, remember, some cities have higher minimums than even their state government requires. 

Extra credit

You can also perform the DOL's self-evaluation tool. This is recommended if you think you might be out of compliance or if you want to check the finer points of the law. 

If you feel secure that you are complying with current practices, great! State and federal laws change unpredictably, so take the time each year to check to ensure you are still in compliance or you could face stiff federal penalties. 

On the other hand, if you aren't sure that you have addressed any of the above issues, it's time to do some follow-up work. Consult your legal counsel and make a point to identify and remedy any potential violations.

How Mobile Recruiting Can Improve Your Talent Search

Posted: 04 Jul 2019 05:00 AM PDT

  • 74/201As more and more job seekers rely on their phones, it's up to recruiters to make sure their job boards are mobile optimized.
  • New job search and social media apps make it easier to apply, attracting a wider pool of candidates and speeding the recruiting process.

An applicant can always tell when a company's job boards are outdated. The type-in forms are long and complicated, the user experience is unintuitive, and the website is rarely suited for mobile. 

In the modern job market, candidates expect to be able to search, view and apply to jobs right from their smartphones. This means that not only are mobile-friendly job boards a necessity, but some companies are taking it further with mobile recruitment apps.

Smaller companies may be on the fence about investing in a mobile-optimized hiring process, but if you want to draw in today's top talent, you'll need to reach them where they are. Luckily, there's more than one way to up your mobile recruiting game, and not all of them require heavy investment in risky new apps.

Why mobile recruiting?

You don't need to look far to see how industries are scrambling to adapt to mobile. Banks, retail stores and even healthcare companies all have their own mobile apps, making it easier for consumers to stay connected. Recruitment is no exception – a mobile application process is simpler and more convenient for candidates.

"The mobile job-seeking experience must evolve from the current job board paradigm, with its outdated search functionality, run-on job descriptions and different application forms for each job, to one that's simple, convenient, and optimized for mobile," said Yarden Tadmor, founder and former CEO of job-matching app Switch. "Millennial workers have shown they want a different application experience, one that brings jobs to them quickly and easily."

Ashley Pelliccione, senior talent acquisition director at Namely, an all-in-one human resources software platform, added that the mobile recruiting process creates a much more streamlined candidate experience.

"It's intuitive, user-friendly and offers significant time savings in the application process than the traditional method," she said. "Giving candidates the option to apply easily on mobile can drive traffic to the Careers page and bring more attention to the company in general."

Young, upwardly mobile professionals

Need another reason to make the move to mobile? According to a 2019 Pew Research Center report, nearly 1 in 5 U.S. adults rely on smartphones as their sole source of internet at home. This proportion rises among younger smartphone users. By 2025, three-quarters of the world is estimated to access the internet exclusively by smartphone. 

With that widespread smartphone usage in mind, mobile is moving from "nice to have" to table stakes in the recruiting world, said Jason Berkowitz, solutions consulting senior director at Talemetry.

"Companies that don't have a mobile strategy are going to miss out on engaging with a significant portion of the talent pool, especially millennials and tech professionals who are even more mobile savvy than average," Berkowitz said.

Making mobile recruiting work for you

If you're new to the mobile recruiting scene, here are four tips to help you make the process simpler for you and your applicants.

1. Consider texting

Whether you're upgrading your recruitment technology or simply advertising your vacancies on social media, the one feature that Facebook, LinkedIn and mobile recruiting apps have that the traditional job boards lack is instant messaging.

It may not sound like much in terms of innovation, but texting functionality can go a long way in streamlining in the application process.

 "The biggest takeaway I have from utilizing mobile recruiting in the past is the sheer speed of communication and engagement with a prospective candidate," said Will Manuel, president and CEO of Core Mobile Apps.

While employers are still urged to keep initial communications within more formal channels, texting is a great way to signal interest once a business relationship is established, said Amy Arenz, founder and CEO of Concero. Still, Arenz advises limiting it to quick communications, such as "scheduling a phone screen, confirming a meeting, checking in after an interview and following up on a request."

As candidates advance to the interview process, some platforms even offer video call functionality.  

2. Expect a broader, if not better, pool

As mobile recruiting is still in its nascent stages, there is still some debate on the kind of candidates it attracts. While there's an argument to be made that the easier the job application, the more likely a well-qualified but already-employed candidate will impulsively apply, Manuel did not necessarily find this to be the case.

"I can understand the logic of the passive job searcher, but those are not always the 'better candidates,'" Manuel said, citing a major life change as one reason a qualified candidate may actively seek a new job. "Additionally, the passive job searcher is much less likely to use mobile recruiting methods or platforms altogether."

Instead, what employers can expect is a greater breadth of candidates, especially through mobile-optimized recruiting methods such as social media. "There is a lot to be said about being ubiquitous when posting," Manuel said. "It can show the candidate just how serious you are about filling the position with the right fit."

3. Take advantage of the algorithms

There's no question that job search apps have made the application process easier on candidates, and in many cases, mobile applicant tracking systems (ATS) have made hiring managers' lives easier, too. But there is a downside to that aforementioned breadth of candidates – all the resumes to sift through.

"By allowing candidates to apply to jobs in one click, candidates do not always consider crucial details like professional qualifications and culture fit," Pelliccione said. "In these cases, recruiters are faced with evaluating a plethora of unqualified applicants, rather than focusing their time on sourcing passive candidates or assessing those with the necessary skills."

To ensure you're getting the most out of your mobile ATS, it's a good idea to take advantage of keyword filters or algorithms so you can weed out the irrelevant applications. Once you've found the best-qualified candidates through your system, use your old-fashioned (but reliable) human intuition to truly analyze the applicant via his or her cover letter, portfolio and social profiles.

4. Test your own application process.  

There's no point in investing in mobile recruiting unless it makes the application process more user intuitive. Luckily, this can be easily tested through your own layman experience. 

Before you make any changes to your recruiting methods, try using your own smartphone to go through your company's mobile job application process to see if there are any gaps or issues, Berkowitz said.

"If you run into a step that your smartphone won't support – like uploading a resume, e-signing a document or even searching for jobs on your careers page – then it's apparent where you need to focus your efforts," he said.
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