Author: Paul Segreto

Passionate About Fueling Entrepreneurial Spirit; Entrepreneurship Coaching; Management & Development Advisory & Consulting; Franchises, Restaurants, Service Businesses; Thought Leader, Influencer, Content Creator & Author.

Employee Training: The Key to Controlling Workers Compensation Cost

May 11, 2009May 11, 2009 · 1 Comment ·

The following article has been submitted by franchisEssentials Guest Author, Margaret Spence, CWC, RMPE – President/CEO of Douglas Claims & Risk Consultants, Inc. and WorkCompSeminars.com. Margaret is a Board Certified Workers’ Compensation Consultant, Speaker and Trainer who ranks among the experts in the field of injury management and return to work implementation. For more than two decades, she has managed workers’ compensation claims for Fortune 500 Corporations, Public Entities and small businesses. She is an expert at showing companies how to slash their workers’ compensation cost by implementing strategies that drastically reduce injury rates, increase productivity and energize employees to work safely. She also is the author of – From Workers’ Comp Claimant to Valued Employee. Margaret pioneered adding National Return to Work Week to the 2009 US calendar – this week highlights the importance of implementing Return-to-Work or Stay-at-Work Programs. To learn more about Margaret please visit her website at www.cdouglasrms.com.

Employee Training: The Key to Controlling Your Workers Compensation Cost

Imagine if you could hire the right candidate, keep them safe and retain them for years to come? As your company grapples with layoffs, budget shortages and declining profits – is this realistic? Can you balance employee retention, injury prevention and economic sustainability? The answer is easy – in tough economic times businesses can not afford to overlook retention and injury prevention. Training is the key to sustaining profits, decreasing workers’ compensation cost and retaining employees.

How would you rate your company’s training program? (a) Exceptional – (b) Great – (c) Adequate – (d) Needs Improvement

Most employers rate their training programs as Great to Adequate; in reality most programs need drastic improvement.

The typical employer describes their training program in the following manner: “Well, we have new employees come in to the HR Department to complete the hire package, then we go over their benefits, we show them a safety video and then we send them to their department for job-specific training.” What the employer is actually saying – new employees are put into a buddy situation, you are asking their co-workers to train them to do the job. Guess what —this is not training! That is passing the torch from Employee A to Employee B.

With this scenario, you are hoping that Employee A, your superstar employee, will pass down all of the requirements for the job. In reality, Employee A is frustrated because she has to train all of the new employees without additional pay, and she passes down her bad habits, her frustrations and what I like to call her accumulated employee baggage to Employee B. Before Employee B has a chance to get her feet wet, she is already forming a negative opinion of your company. Before long, you are totally surprised when Employee B is injured and out on workers’ compensation. What went wrong? You failed to provide the employee with adequate training to prevent the injury – you created a “tribal training program”.

As employers, you have to stop passing the torch – or doing what I call “tribal training”. In the olden days information was passed down from generation to generation using verbal queues, thousands of years later, employers are still doing this every day when they hire new employees. Employers have to recognize that “tribal training” is not training at all – job specific, formal, documented training is what prevents injuries. Like a cookie cutter, every employee in the same job should have the same training – Consistency.

Where should you start?

a. Determine the specifics tasks required to do the job.
b. Determine the essential functions and demands of the jobs.
c. Write a clear job description that addresses the minimum requirements to do the job safely.
d. Determine the safety rules that should apply to the job or work areas.
e. Determine the minimum competency required to do the job safely.

Use this information to create a Training Matrix that charts the job task, minimum competency required to do the job, the safety requirements and a time table for the employee to achieve competency in the position. Then use this information to develop your training classes and start training your employees – Simple.

Do not accept experience for training, even if employees come to your job site with impressive amounts of experience. The previous employer may have done things the right way, but they may not have; the employee may have been adequately trained to perform the job, but he or she may not have been. It is up to you to provide training specific to your work environment and the job tasks you are asking your employees to perform.

Remember training should be an ongoing initiative, not a one shot deal. It should be Simple, Specific and Consistent. As the Employer you must recognize that bad hiring decisions and improper training programs can increase the likelihood that an employee will be injured. Spend the money to train your employees correctly—from the beginning. If you evaluate the overall cost of one workers’ compensation claim—including: the loss of manpower, the administrative cost to manage an injured employee, the workers’ compensation premium cost and the overtime to cover jobs that would have been done by the injured worker—you will see the cost benefits of integrating an effective training program that emphasizes safety into your workplace.

The Occupational Safety and Health Administration (OSHA), mandates that you provide training to your employees. In today economic climate, most employers are asking their employees to do more with less staffing, it is imperative that your employees are highly trained and remain injury free. The most cost effective scenario is preventing injuries not managing them. In this economy, you can not afford to continue the training scenarios of the past. Job specific training will ensure that your company moves from one that is trying to survive, to one that is looking for new ways to thrive.

Exploring Twitter Basics

May 11, 2009May 11, 2009 ·

The following is some great information submitted by Guest Author, Gini Dietrich, Chief Executive Officer at Arment Dietrich PR. The information explores Twitter basics and how to get started using this innovative tool in your social networking efforts. Gini fully understands franchisors’ public relations and communications needs and was a keynote speaker at the Franchise Finance and Development Conference recently held in Las Vegas. Arment Dietrich PR is among the country’s fastest growing boutique public relations agencies. Their motivation is a relentless drive to find new and better ways to help clients boost their businesses and bottom-line results.

Getting started on Twitter

As budding experts on social media, believe us when we say Twitter is not dominated by gossiping teenagers and social butterflies (though they are there). Many corporate executives, reporters, and entrepreneurs recognize social media not only as a powerful tool for communication, but also as a resource for networking and attracting new business. And though the excuses people use to avoid social media are plentiful (”I don’t get it,” or “it takes too long,” or “I don’t know how to get started”), it really isn’t painful or difficult, as long as you commit a little time to get started.

So what is Twitter?

Twitter is a social networking site where you can meet new people and exchange ideas and information. You are allowed to say whatever you want, as often as you want (in 140 characters or less), in a message called a “tweet.”

Types of Tweets

DMs, RTs, and @replies. What do all of those mean? A DM is a direct message you send to anyone in your network who is also following you (we’ll get to following later), and is not viewable by anyone else. It is like an email between you and another person. If you find a tweet of particular interest, you can RT or retweet it. All of your followers may not be connected, and retweeting a post shares the information with your network. Lastly, @replies are simply a reply to someone else’s tweet. Your followers may not see the initial message, but they will be able to read your @reply on your Twitter page.

When you’re tweeting, don’t forget that Twitter is just like any other information source, so it’s important to give credit where credit is due and reference your source when sharing other people’s tweets.

Getting started

First create a Twitter handle (also known as a screen name), upload a picture, and write a bio. Use your real name and a current picture so people recognize you. (For some quick tips on how to write an online bio, check out Gini’s recent post on the Geek Girls Guide.)

Start networking

If you want anyone to read what you are writing, you need some followers. When you subscribe to someone else’s Twitter stream, it is called following. The easiest way to build your online community is to search for people you already know using Twitter and start following them. (Follow the Arment Dietrich team here!) You can also search keywords to find like-minded people. And, start tweeting! Use DMs, RTs, and @replies to engage and connect.

Making time for TwitterCheck Twitter morning, noon, and night. Or, at least three times per day at first. Once you get used to checking it and reading your updates, you’ll see you don’t have to make a huge time investment to become involved.

There are many programs out there to make your Twitter experience as easy as possible (such as TweetDeck), and allow you to group your followers and track tweets based on interests or people. Programs like these are a big timesaver.

Social Networking and Business Growth: A Winning Combination

April 27, 2009April 27, 2009 · 6 Comments ·

Social Networking is the perfect answer to growing your business, economic downturn or not.

Over time, personal interaction within a social networking environment creates trust. In turn, it develops relationships, shares information, provides two-way communications, and provides points of reference for follow up. It creates a multi-tiered platform of information that benefits both business development and customer generation efforts alike. Often, simultaneously.

How are you using social networking (and Web 2.0 tools) to grow your business? Are you using LinkedIn, Facebook and Twitter to full benefit? Need some questions answered? Post them below and we’ll be sure to answer them. If we don’t have the answers you need, we’ll get them for you as soon as possible.

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95% Will Maintain or Increase Social Media Spending

April 26, 2009April 26, 2009 · 2 Comments ·

The following article about Social Media spending was originally posted on the Forrester Research website. We’re sharing this article because we feel it’s an excellent follow up to our last article about social media marketing. All trends are pointing towards significant increases in social media spending.

Recession resistant: 95% of social media marketers will maintain or increase social media spending
originally posted by Josh Bernoff

Last year, we surveyed interactive marketers and found a strong desire to continue investing in social applications, even with a recession looming. Now the recession is here. What are they saying now?

Based on a more recent survey from December of 2008, they still will maintain or increase their social media investments. The full statistics are in a new report by my colleague Jeremiah Owyang called “Social Media Playtime Is Over.” Remember, in late ’08 the recession was nearly as gloomy as how it looks now. And yet:

1. More than half of interactive marketers plan increases in their social technology spending. (These stats are from 114 marketers currently using social media, out of the 145 interactive marketers we surveyed.) Only 5% plan decreases. Go ahead, name another marketing investment that’s anywhere near this strong in recessionary times.

2. The most rapidly growing categories are social networking, blogging, and user-generated content.

3. Remember that the base of this growth is small. While the marketers in this sample all come from companies with at least 250 people, three quarters of them are still spending $100,000 or less on these social technology projects. This is a drop in the bucket compared to other marketing expenditures.

This has reinforced what I’m hearing out there anecdotally, which is an awful lot of marketers asking for (and paying for) advice on this topic.

What’s driving this? As the executive summary of the report says:

These inexpensive tools can quickly get marketing messages out through interactive discussion and rapid word of mouth, and properly managed, can deliver measurable results.

The report includes recommendations for marketers. Here are some for my blog readers:

•If you are a marketer interested in social media, use these stats to get a realistic budget, then concentrate on measuring the results of your efforts to prove they work. Don’t dabble; dabblers will see their budgets cut. Social media playtime is over.

•If you are a consultant or recently laid off person, yes, this is a growth area. But it is one in which there are already an awful lot of experts. To become successful, concentrate on developing expertise in implementation, management, moderation, or measurement of social media efforts; that’s where the need appears to be, from the companies I speak with. In other words, social media playtime is over.

•If you are a technology vendor, case studies with proof of value will be far more effective than features, functions, and technology claims. If you can offer a consultative sale and handholding service, you’ll be a lot more likely to win clients and thrive in this space. Say it with me, now. Social media playtime is over.

Got it? What do you think? Is the recession halting social media efforts at your company, or encouraging them?

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Huge Growth Projected for Social Media, Mobile and Email Marketing!

April 24, 2009April 24, 2009 · 3 Comments ·

As the following article and graph points out, it is projected that social media marketing, mobile marketing and email marketing will experience huge growth through the year 2014. franchisEssentials has projected the same, and has geared up to provide clients comprehensive, technologically advanced marketing services and strategies. Complementing its own expertise and increasing success in social media marketing, franchisEssentials has recently aligned itself with several leading marketing and support organizations. To address email marketing and mobile marketing, it has entered into Strategic Partnerships with iVideo Makers (aka Franchise Video Makers) and Strategic Growth Concepts.

iVideo Makers bring an exciting combination of video and audio products that take email marketing to new levels of message delivery and professionalism. Quite frankly, nothing compares. It’s newest product, iVidMail is state-of-the-art and is used to create video email campaigns with extensive audio and video capabilities, complemented by an expansive tracking and reporting system.

Strategic Growth Concepts utilizes years of experience and expertise in mobile marketing and cellular technology to create successful mobile marketing campaigns for franchise organizations and independent small businesses alike. Utilizing more strategy than a particular product, and capitalizing on the increasing popularity of the iPhone and Blackberry, Strategic Growth Concepts keeps itself on the leading edge of the rapidly expanding mobile marketing market.

franchisEssentials has also entered into Strategic Partnerships with Arment Dietrich PR, Open Box, SmartFinds Marketing and AssociAD. These highly successful organizations are focused on public relations, custom software development and tech support, internet marketing and direct mail marketing, respectively. franchisEssentials is excited by its ability to offer clients extensive and comprehensive marketing and emarketing services, as a one-stop marketing and development company, for years to come.

Forrester Predicts Huge Growth for Social Media Marketing [and Mobile Marketing and Email Marketing]
as posted on Marketing Pilgrim Friday, April 24th, 2009 by Andy Beal

Forrester Research is holding its own conference (Forrester’s Marketing Forum 2009) down in Orlando and has just revealed its predictions for the growth of online advertising. The bottom line is that social media and mobile will be the hottest, but just about everything will see an upward trend.

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Changing Sign From Franchise to Independent and the “After-Effect”

April 23, 2009April 23, 2009 ·

“What is the effect on a business if you take down the brand name sign and put up an unknown brand?”, was a recent question for discussion in a couple of the LinkedIn franchise groups. The question turned into a good discussion as there were over fifteen responses but I was surprised there was minimal reference to legal obligations and potential ramifications under the franchise agreement. Below, please find a few of the comments submitted, including my own. As we have done in the past, the names of the responders will only be identified as their LinkedIn description and their names will not be included in this forum. Upon reading the comments please free to include your own at the end of this article.

Award Winning Franchise Sales Specialist and Business Consultant said: That is a very good question. This is purely antedotal experience but what I have noticed in two industries;

Hotels- Drop-off is immediate. However, only about 10% of the revenue typically comes from the sign itself. It is the lack of a global reservation system that has the greatest effect.

Real Estate Companies- Slower but I typically saw a decline of revenues of up to 50% over a much longer period. ie. 5-7 years. Was this because of the sign or lack of tools and systems that the brand provided.

As a zee and a zor I would never sell nor buy a brand merely on the benefits of the sign. It’s the tools, systems, and experience that the brand provides that is of most vaule to small business owners.

CEO/Founder & Managing Partner of a franchise consulting firm chimed in: The question is too broad to to have a strong singular answer.

A McDonald’s owner (just using an analogy for comparative purposes) with a six of seven figure marketing budget and with an organization that has a 55+ year history, deeply embedded in the American culture would be committing commerce suicide.

However, I have been a part of a franchise where a number of the franchisee’s left the system in a service business; having established their capability, customer service commitment and frankly a strong book of business. Still they lost sleep, hair and either gained or lost weight before having made the decision.

How much of who you are is about you, your service, your relationships, your ongoing knowledge and the trust you have developed compared to the value brought by the company branding?

Secondly, taking the sign down only one part of the thought process. You may or may not value the marketing or positioning that the franchise has established but are you gong to be able to replicate it? Are you also going to have the time and the competency to evaluate both the future of the service, its technology and it’s market while continuing as it’s operator? Do you have the professionalism, time and organization to replace the things that the franchise should be providing?

Things that make you go hmmm…or, if they don’t, they should.

Founder, Owner and President of a franchise consulting firm added: I think the best example I can provide has to do with a brand that has been with my family for 4 generations now, Dairy Queen. Most of us have seen the iconic mansard red roofs of Dairy Queen and the image box out front. Some have seen these businesses close down and become all kinds of businesses. In fact just within a few hours drive of my house these former DQ’s once serving those glorious soft serve treats are now Taco stands, Cuban sandwich shops, nail salons, and I even saw one that was a puppy store.

Not good for the brand indeed.

As a DQ franchisee, I can tell you that when this type of thing occurrs it definately DOES impact the neighboring franchisees who remain in the brand. Without question it forces consumer to question the concept. They question everything from the strength of the brand, the tastiness of the food (in this example), and even the cleanliness of the other stores.

In my opinion it is ESSENTIAL for brands to completely demark so that every traceable sign of the former brand is extinguished. Franchisors who get lazy about this hurt their concept.

Of course, I participated in the discussion and added my views accordingly: Let’s not forget the resale value as a franchised brand as opposed to selling the business as an independent and all that goes along with it including attracting more potential buyers, proven business sytem, training, support for the new franchisee, advertising commitments, etc.

All go a long way especially if having to carry some paper is the only way to make the deal happen. Which might very well be the case in today’s economic environment.

Certainly the seller would feel more comfortable financing part of the deal if the business was still a franchise as he knows there are systems to follow and reporting to home office that will somewhat keep the business in line. As an independent, there’s no telling what direction the new owner would take and for how long. What condition would the business then be in if the business needed to be repossessed and operated again by the previous seller?

…It’s just flat out suicide!

I also added the following statement: Personally, the chance of total failure would be far greater as an independent. If the decision is made to take down the franchise sign, then why not solicit franchisor’s assistance to sell the business and then use the proceeds to open as an indpendent. If necessary, negotiate with the franchisor to waive non-compete, etc.

Quite frankly, I believe no one would take this route because they probably feel it’s just easier to operate the current business as an independent because the business is already up and running. In the end, most decisions to de-identify is a matter of not wanting to pay royalties. So, I say, live up to the franchise agreement and if so desired, exit with dignity and your reputation in tact.

An interesting note: The large majority of responses were submitted by franchise consultants. Although most of the consultants were former franchise company executives or franchisees. Only a couple of responses, and brief ones at that, were from current franchise company executives. As stated above, it’s another one of those things that make you go hmmm…or, if they don’t, they should.

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Media Can Make or Break a Franchise

April 22, 2009April 22, 2009 · 1 Comment ·

The following is an informative article submitted by Guest Author, Gini Dietrich, Chief Executive Officer at Arment Dietrich PR. The article focuses on building relationships with the media and provides tips for communicating and interviewing with reporters. Gini fully understands franchisors’ public relations and communications needs and will be speaking at the upcoming Franchise Finance and Development Conference in Las Vegas. Recently, while participating in the International Franchise Association Convention in San Diego, Gini was interviewed on The Franchise Show, where she discussed communication tactics using social media to develop new business and networks for company growth. Arment Dietrich PR is among the country’s fastest growing boutique public relations agencies. Their motivation is a relentless drive to find new and better ways to help clients boost their businesses and bottom-line results.

Media Can Make or Break a Franchise

I have people say to me all the time, “any ink is good ink, right?”

Wrong! Please see AIG, Merrill Lynch, any of the automakers…pretty much any Wall Street company in the past year. Any ink is NOT good ink. You must think strategically through which media outlets make most sense for your franchise, build relationships with those reporters, and provide them with content, interviews, and access to executives they couldn’t otherwise get on their own.

Media can make or break your franchise and it’s VERY important you treat every reporter you come in contact with as if they are your most important VIP, regardless of how you feel about their past or current reporting.

Paul asked me to think about some tips for helping you with your communication needs. These are some of the tips we give to our clients when we train them on how to work with, talk to, and respond to reporters.

• If a reporter calls, wanting to interview you for a story, ask them what they’d like to discuss and what their deadline is; then promise to get back to them in less than 24 hours or in enough time to meet their deadline.
• Call your PR firm for a quick key message refresher. If you don’t have a PR firm, think about what you want the story to say about your franchise after it’s told and write down two or three things you don’t want to forget to tell the reporter.
• If the reporter submitted questions (we always ask for questions in advance), write down your answers. I do this and I have years and years of experience, working with reporters every day. Don’t ever go into an interview blind.

A few interview tips that can help in any situation:

• Be honest—A lie to the media can be very damaging. If you don’t know, say so.
• Be believable—Credibility is vital to getting your message across.
• Be personal. Use the interviewer’s name once or twice in the course of the interview and look at him/her.
• Anecdotes play well, but only if you have a story that makes a good point for your side.
• Be concise—Remember that a 10-minute interview may wind up being 20 seconds on the air or three lines in a newspaper. It is essential to crystallize your thoughts in a few hard-hitting sentences.
• Eliminate extraneous words and phrases. Do not be verbose. If a reporter is silent, do not keep talking. They likely are trying to write down what you just said. Let them do that before they ask the next question.
• Do not answer hypothetical questions.

And, above all, NEVER, EVER SAY NO COMMENT! If I hear from Paul that you were quoted as saying “no comment” or that you were “unavailable to comment,” I will come to your office and yell at you myself.

What media interview tips do you have that can help readers here?

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New Laws Threaten Multi-Unit Owner Growth and Expansion

April 21, 2009April 21, 2009 · 1 Comment ·

The following article was recently published in the International Franchise Association publication, Franchising World. The article addresses future franchise growth as potentially being affected by several bills expected to be considered by Congress. If the bills become law, the negative effects could be dramatic.

New Laws Threaten Multi-Unit Growth and Expansion
“Perfect storm” of organized-labor legislative proposals is aimed squarely at multi-unit owners.
By Matthew Shay
as published in Franchising World April 2009

Multi-unit franchise ownership continues to increase in popularity as a growth strategy for franchising. Data show that since 2004, multi-unit operators control almost half of franchised units and about 20 percent of franchisees are multi-unit operators. Industry-research firm FRANdata expects the growth to continue as more franchisors embrace multi-unit operators, and the established field of professionally-managed and sizable franchisee-owned companies gains popularity.

This growth, however, could be threatened by a “perfect storm” of three separate organized-labor-related bills expected to be considered by Congress. If enacted into law, these measures could derail the franchising industry’s ability to provide jobs and boost economic output to their local communities. The eye of this coming storm is aimed squarely at multi-unit restaurant owners.

The Employee Free Choice Act, known as “Card Check;” the Healthy Families Act; and the Re-Empowerment of Skilled and Professional Employees and Construction Tradesworkers Act, called “RESPECT” by its proponents, all sound harmless enough. However, despite the use of words like “choice,” “healthy” and “respect,” these bills, if passed, could result in the largest expansion of government interference into the free enterprise system since the New Deal.

Card Check would eliminate secret-ballot elections and require only signatures on cards to organize any segment of workers in a business, even in just one store. This means that you could walk into one of your stores on a Monday morning to find that a simple majority of your clerks had signed union cards over the weekend. Congratulations! You are now bound to a union such as the International Brotherhood of Teamsters and you only have a few weeks to negotiate a contract before a government bureaucrat imposes one.

The Healthy Families Act would require employers with as few as 15 employees to provide seven days of leave—with pay—annually to all full-time employees and a pro-rated amount of leave to part-time employees. Employees could take the leave in increments as small as six minutes with no notice and no documentation, and workers would be entitled to the leave almost immediately. Employees would be allowed to report to work an hour late in 56 different instances or be 15 minutes late for 224 days. In many cases, employees could do so without any notice, and the employer could not discipline the employee or require documentation. If this is enacted, you would either have to hire additional employees to be sure your shifts are always covered or not be able to service your customers’ needs adequately.

The RESPECT Act would change the statutory definition of “supervisor,” effectively making your managers and staff, who you rely on to manage your daily operations, members of a union. Your managers or supervisors would become part of a bargaining unit potentially making staffing decisions based on union membership rather than merit, ability or your established staffing policies.

IFA certainly supports an employee’s right to unionize and to be treated fairly and equitably, but these laws would jeopardize the basic tenets of franchising—being able to establish uniform processes and operations throughout systems. And if you own multiple units, you could very easily be affected differently from unit-to-unit, wreaking havoc on your company.

The likelihood of these laws being passed is high. To defeat their passage or make them less onerous, the franchising industry—franchisors and franchisees together—must work harder than ever to ensure that lawmakers in Congress understand the severe consequences on small businesses.

We are actively developing educational programs and other member services to better meet the needs of multi-unit operator-members of IFA in all franchising sectors. And our new Franchise Congress will be designed to step up our grassroots efforts by providing the tools and information needed to get all members more engaged politically.

It is more important than ever to have single and multi-unit franchisees involved in IFA to help defeat laws that restrict the virtues of the franchise model. As the old adage says, “there is strength in numbers.” That’s the key to success for all in franchising.

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Acceler8Success Cafe

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Author: Paul Segreto

Employee Training: The Key to Controlling Workers Compensation Cost

Changing Sign From Franchise to Independent and the “After-Effect”

Media Can Make or Break a Franchise

New Laws Threaten Multi-Unit Owner Growth and Expansion