9 Ways to Motivate & Lead Millennials

Leading talented people is challenging. Managing Generation Y (‘Millennial’) people – typical those between the ages of 18 and 25 – has many older managers frustrated and confused!

One style definitely does not fit all! And given that Millennials will soon make up the largest share of the working population, if you aren’t managing a Millennial person yet, you soon will be….

Based on some latest research – and our own personal experience of working with Millennials here are our top 10 tips on how to manage Millennial people successfully.

1. They want feedback in real time

Millennials are used to constant feedback, from social media ‘liking’ to gaming where incorrect strategies can have immediate results…Not unreasonably, they therefore want regular ongoing feedback from their managers, not just a couple of times of year during a performance review. Keep in mind that they have been raised with continuous (usually supportive) feedback from their Generation X parents and teachers. So – they have a desire to know exactly how they are doing at all times in the mind of their manager. Are you doing this – for example either face to face or through real-time dashboards?

2. They ARE money motivated – but there is more to it than that…

It’s easy to assume that Millennials aren’t ‘all about the money’ compared with their 1980s -1990s Generation X predecessors but recent research suggests this isn’t the whole picture. Millennials are money motivated (especially given the rising price of housing in most cities!), but they have other motivations too…. probably linked to the rapidly changing world of technology.

For example, Millennials are more likely than Generation X people to worry about their personal development – they have grown up in a world where then can clearly see that today’s skills and knowledge won’t work tomorrow. So show them and help them build transferable skills they can use in the future as well….

3. On-the-job training

If your training programmes consist of people sitting in a room and listening to a lecturer or following a non-interactive e-learning course, it is unlikely to be effective. We find that Millennials are very action-oriented – even more so than previous generations – and prefer experiential learning (again think gaming) in other words, doing it rather than reading about it. They are used to learning things rapidly and immediately putting those skills to use.

4. Tell me what to do, not how to do it

Millennials want very clear objectives and want to know specifically what you expect from them. But they do not want to follow a rigid process or one way to achieve their goals. We find that they just love to try out their skills in short, frequent role-play or real-play situations so that they can come up with their own style that feels authentic to them. Telling them what to say and how to say it feels “fake” and ineffective to them. Think “mentor,” rather than “micro-manager.”

5. They are not necessarily “job jumpers”

While Millennials in general have been tagged as “job jumpers,” that isn’t necessarily the case. A 2012 Vorsight and The Bridge Group research study found that 75% of Millennials answered “yes” to the question, “Do you see yourself at this company in 2 years?” Their study showed that this was the same percentage as Generation X and Boomer respondents. However, you do have to make sure you are discussing career growth with them on a consistent and regular basis to earn this loyalty.

6. They want your job

Yes, Millennials are impatient and many feel they should be a Manager or even Director after a year of experience. The key is to channel that ambition to get the most out of them. Use that thirst to challenge them with more and more responsibility. Find additional areas and ways for them to continue to learn new things and grow.

Millennials are about “fairness,” not “seniority.” They do not believe in “paying dues” or ‘time serving’ to get advancement, rather, they expect their skills and performance to merit promotion. So let them know exactly what is expected of them in order to move up and advance in the company.

7. They are risk averse

We continually hear about Millennials and how they are natural entrepreneurs. This doesn’t mean however, that they are natural risk takers – many are actually risk averse. This probably stems from having ‘helicopter’ parents to catch them when they fall (or even before they fall!) and also from seeing the effects recession on their parents. For instance this generation of sales professionals tends NOT to be comfortable with commission-only compensation. They want a base so that they know their basic expenses are covered.

8. Reward me

Remember that this is the “Trophy Generation” that has been raised (in some parts of the world at least) on being rewarded just for participating. Money is therefore not enough. Millennials respond to rewards that are personalised – a day extra vacation – or a later start in the morning might be even more valuable than cash. Some creativity may be needed here. We know of call centres where reaching a certain target is rewarded with time away from the phone for gaming. Or you can choose to reward them by boosting their visibility within the company to help them become more marketable internally rather than externally.

9. Build the relationship

Millennials want to have a strong relationship with their manager. They want to look to their boss as a mentor and someone who is genuinely interested in them as a person and the success of their career. You have to be available to them and build trust. Yes, they are digital natives, but they need face-to-face contact, not just emails.

Of course the best way to know exactly what your Millennial people want is to ask them. Take the time to find out their expectations, needs, motivations, career aspirations and you'll be able to successfully manage these talented young people and harness all the energy and talent that they bring to your business. 

10 Reason to Consider Outsourcing Your Bookkeeping

Professional services businesses I’ve worked with have low volume, but high-value transactions. These businesses average 20-50 transactions at most each month, making outsourced bookkeeping a smart alternative to in-house.

Nearly 30% of all large businesses in Europe and the US now favor outsourcing bookkeeper functions. Since 1990 when the outsourcing movement first emerged, the growth in the US (according to Harvard Business Review) has risen to an estimated US$318 billion.

If you’re in a services business and you’re not already outsourcing your bookkeeping, here are 10 reasons why you might want to consider doing so.

1. Cost savings

Expect to see a small cost savings by outsourcing, but don’t make this the primary goal. The savings is likely to be 10% to 20% of the base wage of an in-house operator. Your primary motivation for outsourcing should be getting better financial reporting and advice. One key piece of advice now could save you tens of thousands of dollars later.

2. Manage less

Most business owners can only effectively manage a handful of staff. Consider hiring as many people as you can manage to carry out revenue-generating tasks and outsourcing other functions, including bookkeeping.

The management activities required for each additional staff person you hire can add up to 100 hours of a manager’s time in training, directing, salary negotiations, firing and hiring. Outsource and the 100 hours can be reinvested elsewhere. A professional bookkeeping company will shoulder the responsibility of replacing bookkeepers who leave and conduct necessary training.

3. Own less

The things you own own you. Every additional computer or software license you own is one more you need to track and manage. Apart from the upfront cost of purchase, troubleshooting these systems will add expense and require the business to learn new non-essential competencies. Outsource bookkeeping and you outsource ownership.

You save more than salary by outsourcing. Factor in employer taxes, health insurance, travel insurance, worker’s compensation, vacation pay and retirement benefits.

4. Increase effectiveness

Counting money won’t make more money. If you have spare time to build in-house accounting teams, inject it into the areas of the business which make money like your sales team. Outsourcing is not a perfect system, but compared to the alternatives its far more effective.

5. Do what you love

Not enough emphasis can be placed on this. No client I’ve every spoken to went into business for the love of administration. There’s nothing worse than an unmotivated leader to bring down the morale of the whole crew.

If you are still doing the books each month, stop today. Maintain your passion and do what you love most. You will excel at what you love most and are more likely to remain motivated.

6. Value creation

By engaging an outsourced bookkeeper, you physically restrict the number of hours you are exposed to bookkeeping per month. For most services businesses, one or two days per month is adequate. Tasks take as long as the time allotted to them. A full-time bookkeeper will occupy part of your day, every day. Outsource and instead focus adding value to your client’s business.

7. Profit-per-square-foot

Rent constitutes one of the largest fixed costs for businesses. You want to maximise every dollar of this expense item and ensure the space is occupied by sales teams or producers who directly contribute revenue. If you pay S$6 per sq foot, how much do you make per sq foot?

8. Privacy

You may want to keep the books confidential. One of the most outsourced financial functions is payroll. This is because payroll is complicated and many firms do not want to share salary details with internal stakeholders. By outsourcing bookkeeping, the accounts are one step removed from your staff.

9. Unbiased advice

In times of financial crisis, tough decisions need to be made. An outsourced bookkeeper will be more impartial than an in-house person, and will probably give you unbiased advice. Suppliers are also easier to let go of than full-time staff.

10. Improved control

Despite how it may appear, an outsourced bookkeeping company should provide you more control. Choose the software you want to use, the date each month the service is performed, the location and how reports are accessed.

Source: Futurebooks

Now that you see how beneficial outsourcing your bookkeeping / accounting really is, the next step is finding the right one for your business. There are various accounting firms out there to assist you in taking control of the future of your business by delegating a little bit of your responsibility.

6 key trends affecting Australian SMEs

Since September 2014, Australia’s Scottish Pacifichas engaged specialist research firm East & Partners to conduct six monthly polls of 1200 small to medium enterprise leaders across all states and key industries.  

Donald Together they have produced the SME Growth Index which has been released today. Scottish Pacific CEO Mr Peter Langham said the latest results show that SME confidence has taken a hit despite the resilience of the sector, which according to ABS statistics employs almost half of the 10.7 million Australians in the workforce.

Here are six key trends affecting Australian SMEs

1. SMEs predicting positive growth now in minority

For the first time since the Index began, SMEs forecasting positive growth (48.4 percent) are outnumbered by SMEs forecasting negative growth or no change (51.6 percent). 24.2 percent forecast negative growth, compared with 16.8 percent last year.

“The current environment is clearly placing pressure on Australia’s small to medium business community,” Langham said.

2. Cash flow named as top small business concern

“SMEs nominated cash flow as the most stressful element of business. They cited credit conditions as a key barrier to growth," Langham said.

"With the Index highlighting that cash flow keeps 72.5 percent of respondents awake at night, it’s crucial for these leaders to find the right funding to support their business.

3. Small businesses increasingly looking to non-banks for funding

“Businesses are increasingly looking beyond the banks to fund growth and to help ease cash flow concerns. From this time last year, there has been a 30 percent increase in SME owners planning to fund their growth using a specialist non-bank lender, with one in five now indicating their intention to do so,” Langham said.

He said SME Growth Index surveying took place in July and August, in the aftermath of the Federal Election and UK Brexit referendum. While uncertainty around these events may have influenced some responses, the results were a timely reminder to governments, industry bodies and financial institutions of the importance of having the right regulatory and funding systems in place to stimulate and support the nation’s vital SME sector.

4. SME owners putting in long hours

A 50-plus hour week is standard for most SMEs (88.8 percent). Almost half of SME owners and senior managers (43.7 percent) are spending 60 to 80 hours a week working on their business, which equates to 12+ hour days, six days a week.

5. Double edged sword of technology

Almost half of SMEs (44.6 percent) believe mobile and digital technology has had a negative impact on their work/life balance. Only 15.7 percent of small businesses believe it has led to better work hours or flexible working conditions.

New products and services plans on hold – Almost half (48.9 percent) of SMEs report no plans to introduce new products and services during the second half of 2016, up from 33.7 percent a year ago. This may have been influenced by uncertainty following the Federal Election.

6. Entrepreneurs still positive

Australians are still keen to start their own business, despite barriers and tough conditions. The Index shows one in 10 SMEs are in start-up phase, a consistent figure since data was first collected in September 2014.

World Mental Health Day – what is it and why is it important?

Mental illness – a sad thing that happens to other people, but not something to worry your head about, right?

Wrong. According to the World Health Organisation, ‘if we don’t act urgently, by 2030 depression will be the leading illness globally.’

As someone who has bipolar disorder I suppose I have a vested interest in spreading awareness of mental health conditions but, the truth is, statistically speaking, either you, or a great number of your friends or family will be affected by them at some point.

Every October 10 is World Mental Health Day – a time to educate and raise awareness of mental Illness and its major effects on people’s lives worldwide.

Here’s everything you need to know.

What is World Mental Health Day?

It’s a day first celebrated in 1992 at the initiative of the World Federation for Mental Health, a global mental health organization.

The World Health Organisation recognizes World Mental Health Day on 10 October every year.

Every year has a different theme.

This year’s is psychological first aid and the support people can provide to those in distress.

What can I do to support it?

You can get involved in Tea & Talk – a national fundraising event which takes place today.

It’s pretty chill – friends, family or workmates get together, have tea (and possibly also biscuits or cakes), talk about mental health and potentially donate to mental health research charity, Mental Health Foundation.

Generally the day is on October 10 but you can organise one any time and request a pack with some ideas here.

Why is it important?

Suicide is the most common cause of death for men aged 20-49 years in England and Wales at present.

While suicide and self-harm are not mental health problems per se, they are obviously linked to mental distress.

Having said that, you shouldn’t assume that because someone has depression, or indeed any mental illness, that they are or have ever been suicidal.

Nevertheless, this awful fact shows how much still needs to be done – from improvements in mental health care provision on the NHS through to people having more open conversations about mental health, and beyond.

Some other recent stats to think about or discuss today –

1. Mixed anxiety and depression is the most common mental disorder in Britain.

2. As many as 10 per cent of people in England will experience depression in their lifetime.

3. The poorer and more disadvantaged are disproportionately affected by common mental health problems and their adverse consequences.

4. Ten per cent of mothers and six per cent of fathers in the UK have mental health problems at any given time.

5. One in five teens experience a mental health problem in any given year.

All statistics from The Mental Health Foundation.

While stats can be a starting point for a conversation, I think it’s the conversation – however it begins – that matters.

When you have a mental health condition it’s pretty s*** in itself, but to feel like you’re the only one going through it, and to deal with it alone, and to feel like it’s somehow your fault, something to be ashamed of, that you have to hide, can be just as bad I think.

5 Trends Changing the Financial Services Landscape

The FinServ industry does not look the same way it did five years ago. Gone are the days of industry behemoths solely competing with each other. Within the financial market, interest rates are extremely low, and while this may be good for people that want to buy a car or house, it is bad for the FinServ industry that relies on interest as a form of revenue. Along with low interest rates, market volatility in Asia and Latin America has thwarted merger plans and other business deals. There is a loss of brand loyalty in all industries, but especially in regards to banks and wealth management firms. Even though FinServ brand loyalty is down, financial awareness has increased, specifically among millennials. This, in part, is due to an increase in mobile phone usage.

Amid this overall landscape, five trends in FinServ have been identified that can create opportunities for organizations and their customers.

1. Fintech disruption

Fintech is technology that makes any type of financial service more efficient, but it typically exists in the form of a mobile app. FinServ companies used to be competitive with only big businesses (think Charles Schwab and JP Morgan) because the industry used to have a large barrier to entry – a company needed a lot of initial capital in order to become a key player. Now, other types of companies are entering the game.

These players typically fall into three sections of FinServ:

• Investing: Apps like Robinhood, Acorns, and Betterment use customer profile information to create an investment portfolio by using algorithms. Typical wealth management firms have people, not algorithms, managing the portfolios. The management fees are significantly lower with apps (around 0.5 percent with an app vs. 2-3 percent with a wealth management firm) since it’s an algorithm, and not a person, managing the account.
• Lending: Online-only lending is becoming a major threat to traditional banking, especially peer-to-peer lending services like SoFi and Lending Club. Peer-to-peer lending is when people apply for and acquire loans, and investors take on the risk of the loans instead of banks. This type of lending became much more popular after the 2008 Financial Crisis. SoFi underwrites about $1 billion per month in loans, making it the largest non-bank unsecured lender in the United States. The peer-to-peer lending industry had a revenue of $2.1 billion for the first two quarters of 2016.
• Payments: The peer-to-peer trend is showing up in payment Fintech as well. In an app like Venmo, people can pay their friend (or anyone, really) directly through their phone or laptop. PayPal and ApplePay also make payments faster and easier, but both of these apps are meant for people to link their credit and debit cards so all forms of payment are in one area, and you can pay an online store or trip to the supermarket instantaneously.

Companies can play within the Fintech game by building an app (Charles Schwab and Capital One have already done this) or update their mobile sites to mirror these new apps.

2. Single Customer View

A single customer view is a term used to describe the aggregate of multiple data sets into one unified database on each customer; this enables companies to derive the maximum value from existing customer relationships. Not only have FinServ competitors changed, but the recent economic climate has resulted in a tightening of banks’ lending criteria. Acquiring and retaining profitable customers is much more challenging now, and there is a heightened importance on gaining the maximum value from the current customers.

Mapping the customer journey is at the heart of a single customer view. Companies look at general profile information, services the customer is currently using, the length of time a customer is using these services, and on what platforms (mobile, computer, in-person). Companies can then use data analytics to sort and filter customer information, making it identical on all platforms, and use this organized data to determine additional services the customer may need.

A single customer view gives companies the opportunity for customer retention because companies can look at needs, wants, and grievances. It can help to determine additional services for the customer and also streamline business practices since information would be cohesive on all platforms.

3. Data Security, Specifically Blockchain Technology

Blockchain is a distributed public ledger where every person involved has a verified, secure identity. When information is added into the system, it is encrypted. Normal security technology would stop there, but blockchain breaks up the information into pieces, distributes, and stores the information on several different servers.

In order to change the information, a person must know what pieces of information are where, and he or she must have the account number. Blockchain technology is also safer because it’s a public database, so everyone can theoretically see the details of the transaction. Currently, most data is on a central server where one person can hack into and falsify the information.

If you’ve ever read or seen any of the Harry Potter series, think of Voldemort (excuse me, “He-who-must-not-be-named”) and the seven horcruxes. That’s essentially how a blockchain works.

4. Better Financial Transfers

“Banking now is like sending a letter; you send the transfer, and you don't know if it reached there. [A blockchain transfer] is more like sending an iMessage. You send it, and you immediately know it got there.” – Chris Larsen, CEO of Ripple

Blockchain technology is not only for customer security. It can also allow for easier and faster financial transfers.

Currently, the two most common ways to transfer money in the United States are through:

• A wire transfer: The name is self-explanatory, but a person can “wire” money to the intended party. It's the closest thing to an instantaneous transfer, but banks initiate transfers every 15 minutes, and the transfer can take up to 3 hours. There is usually a fee associated with this type of transfer, around $20 - $50. In order for the transfer to occur, a person must know the account number, routing number, the intended party’s name on the account, explanation of funds, and the monetary amount. If anything is left blank or mistyped, the transfer can be delayed or sent to the wrong person.
• Automated Clearing House transfer (ACH): This type of transfer is done through the Federal Reserve Bank (the Fed) and takes 72 hours to complete. The transactions are processed in batches on somewhat regular intervals rather than immediately as the transactions occur. This system dates back to the early days of the Fed. There is a new rule that will put ACH payments on a same-day delivery schedule, but the rule won’t be fully implemented until March 2018.

Both of these types of transfers are time-consuming and costly. Instead, banks like Santander, UBS, and CIBC are among others experimenting with Ripple, a start-up that uses blockchain technology for overseas transfers. Ripple specializes specifically in international transfers because most are of low monetary value, and banks can end up with a net loss because of the effort involved. Since Ripple is using blockchain technology, transfers can be instantaneous while still being secure, and Ripple claims that the transfers can be done at two-thirds of the cost of normal transfers.

As more FinServ companies experiment with blockchain-backed transfers, movement of money can become much safer, faster, and cheaper.  

5. New Regulations

Current events have opened up discussion about stricter FinServ regulations.

The continuing prevalence of terrorist groups has brought up discussion about stricter Anti-Money Laundering laws (AML) laws. Money laundering is the process of making illegally-gained transfers (i.e. "dirty money") appear legal (i.e. "clean"). Terrorist groups are using offshore shell companies to launder money and fund violent attacks. The United States created stricter AML laws after 9/11, but countries are being pressured to come out with tighter restrictions for FinServ companies.

Along with AML Laws, the outcome of Brexit will affect the FinServ industry. Many FinServ institutions used to use London as a pathway into the European Union (EU). The outcome is still uncertain, but FinServ companies will most likely have to make individual trade deals with each country in the EU.

Although impending regulations can be burdensome, FinServ companies can use these laws to improve customer relationships. Underlying these regulations is the notion of improved accountability, transparency, and trust. Making these three values a priority can result in more faithful, happier customers.

How Does Donald Trump, Narendra Modi and Elon Musk Influence The Public?

Donald Trump, Narendra Modi and Elon Musk: Three individuals so unlike each other, yet so similar. While Musk plans to shape the destiny of mankind with a dream that looks remarkably futuristic, Trump plans to shape the destiny of a nation with a dream that looks unusually inward-looking. Modi, meanwhile, is working on fulfilling a dream that looks extremely inspirational.   

However, there is one thing common to them: All three understand the power of emotions and instincts. And they use this power extremely well to their benefit.

Let’s understand these powers.

First, let’s understand ourselves. The human brain isn’t a homogenous lump of mass: it actually has three distinct layers:  

1. The innermost part - the instinctual brain - is responsible for basic survival instincts like food, breathing and autonomous movements. All reflexes and instincts are an outcome of this layer.
2. Surrounding the instinctual brain is the emotional brain that is responsible for emotions, and behavioural response.
3. At the outermost part is the logical brain that is responsible for logic, intelligence, analysis and rationale.

Now, here is the catch: Stimuli from the sense organs reach the brain in the reverse order: i.e. they are first screened by the instinctual brain (for survival threats) and emotional brain (for emotional content and responses) before being processed by the logical brain (for logical action). This makes the responsiveness of the instinctual and emotional brain a lot quicker than that of the logical brain.

Such a brain structure leads to below outcomes:

• While the logical part of the brain is the most intelligent, the emotional and instinctive parts of the brains are the most influential parts of a human brain.
• They are, in fact, so powerful that in every situation deemed an existential or emotional threat and they will hijack the logical brain and dictate the responses.
• The stronger a message appeals to the emotional brain, the lesser the threshold of logic required to appeal to the logical brain. Whether the emotions are positive or negative is immaterial to the emotional brain.
• Once the emotional brain has accepted something as true, the logical brain tries to find supporting reasons to justify this emotional position.
• The longevity of a message depends on the strength of its emotional connect as opposed to the strength of its logic.

Add all these together and it becomes clear that the message that resonates with the emotional brain complemented with supporting logic will influence the listener quicker, stronger and longer than content that resonates only with the logical brain.

Trump, Modi and Musk (and scores of influential communicators) understand this really well. However, they use it for altogether different purposes.

Trump’s manifesto reveals an emotionally charged message of fear and nationalism (illegal immigration killing Americans, death tax, China stealing jobs etc all indicating injustice against and harm done to Americans). These are precisely the kind of messages that appeal to the emotional brain. Individuals whose emotional brains resonate with this message now need a far lower threshold of logic to accept the message. Note that these people are not illogical: they emotionally connect so deeply with Trump’s pitch that the supporting arguments sound very logical. However, for those who haven’t emotionally accepted the manifesto, the very same supporting messages appear totally illogical. This explains the huge polarization caused by Trump.

Modi used the same powers in 2014 when he spun an emotional dream of “India on the rise” (corruption free economically advanced nation, set to reclaim its powerful status in the world order) to the aspiring Indian middle class: an agenda that helped him get to the Prime Minister’s post with a thumping majority.

Musk has a vision for humans that is highly emotional in content (driverless zero-emission vehicles leading to zero vehicle fatalities; homes and businesses that draw power from the sun and store it in batteries for later use; “machine that builds the machine.”). To a layman, there is virtually no logic in these statements. But so emotionally convincing is the vision and its outcome to Musk that no amount of logic can dissuade him from pursuing it. Musk obviously finds investors who are sold to this vision knowing fully well that ALL inventions and advances in mankind have been an outcome of such visions sold to the emotional brain.  

While Modi, Musk and Trump are using the SAME technique, the emotional sub-text is different. While Trump relies on negative emotions of fear and hate, Modi and Musk use positive emotions like hope and success. It is worth noting that once a message resonates with the emotional brain, the logical mind doesn’t differentiate between positive and negative emotions while providing supporting logic. That explains why all three create such a deep impact with their target audience and why this messaging technique works all the time. Everywhere. And why it can be used by anyone.   

You and I might not start the next Tesla or vie for the top job in our countries. However, knowing the functioning of the brain can help us get desired action in any audience interaction: in campaigns, promotions, presentations, pitches, debates or even routine discussions. Here is the how we can use the same technique used by Trump, Modi and Musk:

• Emotional Positioning: Appeal first to the emotions of the audience. Emotional connect provides the audience with a “why” to act. This is the most important point to be considered in every audience interaction. Appealing to logic without emotional connect is equivalent to putting the cart before the horse. Your influence with the audience is in direct proportion to the emotional connectivity of your message with them.
• Logical supporting statements: Back your emotional position with sound logic. Emotional content with no logical case will lead to either a confused audience with questions or an audience with blind faith. They will know what actions to take, but not know why. “Why” will come from emotional positioning.     
• Stickiness: If you don’t repeat your message long and strong enough, it will create initial euphoria but will soon die down. The audience will know what to do and why but won’t act. Repetition strengthens the bond and leads to sustained action.

Influence and communication is less of an art and more of a science. This trinity of Emotion, Logic and Stickiness provides the base to achieve effective communication.

What do you think?  Have you used these principles in your communication? How have you achieved influence and effective communication in situations in your life? Maybe you can start incorporating them in your life.