Every Company Needs to Have a Sexual Harassment Policy
I think every business owner or company leader wants their employees to enjoy the time they spend working, and great efforts are made to make work fun, engaging, and satisfying. But, as the saying goes, "Hope for the best, plan for the worst", a company must prepare for fun to turn ugly. Companies that have a plan of action and procedures to follow for such events like, sexual harassment, are better able to address an event or a negative behavior of an employee more quickly, and hopefully return the workplace to an atmosphere that people appreciate and enjoy.
A Call No One Wants to Receive
This week I received a call from the Kansas Human Rights Commission. The representative from the KHRC called to inform me that a past temporary employee had filed a complaint about the treatment she received while at a client jobsite and her perceived opinion that we were at fault with our response to her claim. The incident she filed a complaint with the KHRC occurred during her placement on a job dating from July 2008 to October 2008.
I informed the KHRC rep that I had started working for the company this last August, almost a year after the incident occurred and that the two staff employees who handled her original claim of harassment were no longer with the company. I explained that I had her file in hand, some documentation of her claims, and some documents from the staff about the actions taken, but that I still needed to review the information before I could adequately speak on the situation. He explained that his position is not to advocate for either side, only to act as a mediator. I asked him what I needed to do if I wanted to dispute her claim. He gave me a brief explanation and examples of how to dispute the charges and also explained the other option of settling the case by paying a sum of money to the claimant. He went even further by informing me that our client where she worked had already paid a settlement and that she may also be willing to do the same with us. Telling me that our client got a great deal and that it may not take much to settle this case, but he did not go as far as to say exactly how much money he was referring to for a payout.
What to Do When the Cart is Before the Horse?
I have always worked for large enough companies that already have policies and procedures for handling situations of harassment. This would be the first time as a manager/business owner I would have to handle a charge such as this without knowing exactly how these complaints were handled or how to untangle the web of information of what was documented to dispute a case.
I first, requested a copy of the past employee's complaint from the KHRC, which was quickly faxed to my office. I then read the complaint and claims made against us and our client. After reading the document carefully, I met with my brother to hear his side of the story and to help sort through all the documents our office had regarding the matter. I then, independently read her employee file thoroughly, reviewing her performance and/or behavior write-ups and reading again all the documentation of the incident of harassment she reported to our company. I then, met with my brother again and explained my perceptions of the events. I described the timeline with the course of actions taken during her time in our program and her placement at the jobsite. I had my brother explain any holes I indentified and asked questions to further explore the environment and the actions that took place. After all my investigative work, I decided it was in our interest to dispute the charge against us. It was my belief that, once Fresh Start was made aware of the behavior and treatment of the employee at the location, they had taken appropriate actions to remedy the situation and most importantly provide the employee a safe and comfortable work environment.
I used all of my notes and the information in the employee's file to write a letter to the KHRC. I first wrote, about the timeline of the employee's placement through our service and the events leading to the employee's complaint of harassment and the actions taken by staff once the complaint was made. Second, I described the employee's decision to voluntarily discharge herself from our program. Then I explained the performance of the employee while in our program and of the write-ups she did receive for violating company policies. Lastly, I restated the employee left on good terms and that it was her decision to vacate the residence by self discharge. It was our understanding that the employee no longer wanted the help of our service to provide her employment and residence.
I sent my letter via fax back this week to the KHRC rep, asking him to let me know what other documentation would be necessary to clear up the matter. I have yet to hear what if any further action will be required on our part. While I truly believe that my brother and his staff at the time did work in the employee's best interest and took appropriate actions to resolve the matter. I did come to the realization that our company lacks a formal process to address complaints as serve as sexual harassment and that steps need to be taken as soon as possible to have a thorough and adequate procedure in place for any future complaints.
To Do's for Putting a Sexual Harassment Policy and Procedures in Place
If your company does not have a formal policy and procedure in place to address issues of a hostile work environment, I recommend taking the following steps.
1. Visit your state's Human Rights Commission webpage and review the state's laws on discrimination.
It is also advisable to review the steps that the HRC will take once a complaint is files and proceeds with an investigation. This information is helpful for the company to determine all the documentation required to dispute and future charge.
2. Consult your legal advisors or a human resource professional.
An attorney or a human resource professional with a PHR or SPHR will be able to answer any questions on creating a policy that covers all legal requirements and review any documents created addressing the proper procedures in handling such complaints.
3. Train your entire staffing, including managers and support staff.
All employees in their orientation should receive diversity/sexual harassment training, and the policies should be refreshed and reviewed with all staff every two years. It is important to stay current on all legal requirements and routinely remind employees of the law and the company's policy/attitude towards such behaviors.
4. Make filing a claim of harassment as comfortable and clear as possible.
Employees should not fear addressing any concerns for their well-being. It should also be clear as to whom the employee is to address their complaints. Have the necessary hierarchy of the company explained to every employee, and those in that hierarchy should be trained in implementing an investigation. All managers need to have an open door, especially if the employee's immediate supervisor is the one they feel threatened by, then the employee will be aware of whom they should speak to about their situation.
5. Document what you do, do what you document.
Put everything you do into a written document and have the documents signed by you and a witness. Staff members may leave the company or attitudes about the company may change. In the event, that an employee is no longer employed at the company the document they filed is retained, and if the employee later changes their story, then the document helps you argue the discrepancy.
6. Be aware.
No manager should turn a blind eye or participate in such behavior that is against the law or company policy. While, it is impossible to know what is going on at all times, it is important your employees know communications channels open. If you hear something that is disturbing, then you need to investigate it yourself.
Taking these steps is important to creating the fun, engaging, and satisfying workplace you desire. When teams play or compete against each other, it is important to know the rules of the game and the consequences for violating the rules. Think of a time you played a game and an argument broke out about what was out-of-bounds, what counted as a scoring play, when someone could call a time out, and why something drew a foul? The game may have started out as a fun spontaneous game, but once it became clear no one knew the rules or it seemed one side changed the rules to favor them, then the game was no longer fun and seemed pointless or unfair. That is the same with creating a comfortable workplace. Employees need to know the rules of the game in order to have fun. If these rules are not in place or not applied the same to everyone, then your workplace will turn as ugly as an unruly playground.
For more information on actually writing a sexual harassment policy visit:
http://www.ehow.com/how_2140066_create-sexual-harassment-policy.html
For information becoming an HR professional visit:
http://www.shrm.org/
Saturday, October 17, 2009
Saturday, October 3, 2009
Behind a Good Brand is a Good Story
Every Company Has a Story; you should want to talk about it and people should want to listen
Over a month ago I spoke to a friend I knew who worked at a local news station in Wichita. He was happy to see me back in town and was curious as to what would bring me back from Kansas City.
I began to tell him about how the softening economy had affected my then brother's business, and that he asked me to join him in rebuilding the company and putting new procedures in place to ensure growth or prevent further damage. I also told him what makes our company so different, truly unique, to any other labor staffing firm in the city, state, even region. I explained that we served people who had no other place to go, that we provided them a studio apartment, we worked to find them employment, and then we provided them with transportation to and from the jobsite.
His first reaction was that we were a social service and thought our funding came from the state or federal government. Most people have that perception when I tell them our purpose and our mission. However, we are a 100% private for profit company. When people hear this their second question/thought is, "How do you make money helping those who have hit rock bottom or have difficulties in their lives where they need your service?" The truth is that people are not disposable, while some to the majority of people seeking our service have created their own difficulties, once in that tailspin it is difficult to them to recover if no one reaches out to give them a hand up. Fresh Start's motto is "Giving a Hand up, Not a Hand Out". People in our program seeking residence and employment enter our program voluntarily. They need to be ready to seek help and have the drive to take full advantage of the service we provide.
For profit companies typically do not target the demographics we aim to serve. I believe this segment of our population is desperately under served, and that their is money to be made in acting socially responsible, while finding a niche to fill for a product that people will demand. So to answer the question, "How do we make money?" We look for men and women who are ready and willing to work and work hard in labor or light industrial industries. When someone enters our program they sign a contract requiring them to agree to work for us at one of our client companies. Upon entering the program they do not have to pay a security deposit or pay any rent upfront. In their contract they agree to begin paying rent once they begin working and they have agreed to work a set number of hours in order to honor their leasing agreement. The goal is to find them a good stable position, so they can meet the terms of their contract through us, and then begin rebuilding their lives, by leaving our program and rejoining their family and/or support network. We see ourselves as a short-term solution, which will need to lasting results for those who want to make the changes necessary in their lives.
The other side of our business is our staffing agency. We serve companies in and around the Wichita, KS metro area who are in need of labor or light industrial employees. We offer temporary to long-term solutions, by providing companies with an affordable and flexible option to meet their staffing needs. Our clients get the benefit of knowing the employees we supply have adequate housing, dependable transportation, and a disciplined and supervised living situation. This is what makes us so unique from other staffing firms. When a company employs the help of another agency, the agency is not able to guarantee to the company that their temporary help has stable housing or reliable transportation, nor will they step in to solve this problem if it is discovered the employee is without these resources.
Our client companies also know that they are doing well by the communities they serve. When they employ us to fill their positions, they are giving someone a chance to make a change for them self and for their loved ones. People who were without a home and a job are given the opportunity to end their downward spiral, and if the person proves that they are not ready, we are able to quickly identify those individuals and give another individual this opportunity. I do believe there is a place for government in serving our disadvantaged population, so I would never advocate that any government involvement is a bad idea. However, I do believe that company leaders need to look at our entire population and decide how they serve as many people as possible and in a responsible manner. Fresh Start is not able to help everyone, so other companies or government programs are necessary. Yet, when an individual loses their home and their job, and seeks help at a shelter, they may only find a safe place to sleep and food to nourush their body. If that individual is willing and able to work, then someone needs to step in and be the method of delivering the nourishment of employment as well. Few companies will consider employing someone who lives in a shelter and/or does not have their own transportation, so that is where we act as an advocate. We solve this necessary concern employers have and then ask them to trust that we will do our best to supply only the individuals deserving of this opportunity.
So after telling my friend about the interworkings of Fresh Start, he paused and said, "This is amazing. I never knew something like this in Wichita existed." I told him, "I don't think it exists anywhere else." I asked somewhat jokingly but seriously if he thought this was news worthy. He stated he thought it was and that he would pitch our company as a news story to the producers at the station. I soon received word from my friend that the producers were indeed interested, and just two weeks ago a business reporter visited our location. The reporter interviewed my brother and I, had a cameraman take shots of our office, our residential facility, one of our client jobsites, and at a site where some of our unemployed residents were volunteering with Habitat for Humanity. Last Tuesday, the story aired. This has to be one of my proudest moments in my life. I was proud of what my brother was able to do accomplish on his own after my uncle passed away last year. I was proud of the work our staff and residents put in to clean up and organize our operation. I was also proud that we had outlet and opportunity like this news story to help brand our company. I believe we have a story to tell, and this is just the beginning of getting that message out.
Company owners and leaders need to have a passion and a story of why they are in business.
· Be proud of what you do,
· Know what sets your apart,
· And tell anyone that will listen.
People love a good story, so create your own. I truly appreciate having a friend who allowed me to bend his ear and made this news story possible, but even if you do not have this channel to communicate to the masses you still need to have a message. If you struggle to excite others about what you are doing, then now is the time to address this dilemma. If you are excited, then don't bottle it up. Let it out! Get your 15 minutes of fame, and then once you have captured the moment; build on it. Rest is for the weary; results are for the determined.
To watch our featured news story on KSN Channel 3 News click on the link below
http://www.ksn.com/mediacenter/local.aspx?videoid=1475@ksnw.web.entriq.net&navCatId=22
For more information and resources on Brand Storytelling visit
http://www.fastcompany.com/blog/melinda-partin/work-tank/brand-storytelling-connecting-your-audience
Over a month ago I spoke to a friend I knew who worked at a local news station in Wichita. He was happy to see me back in town and was curious as to what would bring me back from Kansas City.
I began to tell him about how the softening economy had affected my then brother's business, and that he asked me to join him in rebuilding the company and putting new procedures in place to ensure growth or prevent further damage. I also told him what makes our company so different, truly unique, to any other labor staffing firm in the city, state, even region. I explained that we served people who had no other place to go, that we provided them a studio apartment, we worked to find them employment, and then we provided them with transportation to and from the jobsite.
His first reaction was that we were a social service and thought our funding came from the state or federal government. Most people have that perception when I tell them our purpose and our mission. However, we are a 100% private for profit company. When people hear this their second question/thought is, "How do you make money helping those who have hit rock bottom or have difficulties in their lives where they need your service?" The truth is that people are not disposable, while some to the majority of people seeking our service have created their own difficulties, once in that tailspin it is difficult to them to recover if no one reaches out to give them a hand up. Fresh Start's motto is "Giving a Hand up, Not a Hand Out". People in our program seeking residence and employment enter our program voluntarily. They need to be ready to seek help and have the drive to take full advantage of the service we provide.
For profit companies typically do not target the demographics we aim to serve. I believe this segment of our population is desperately under served, and that their is money to be made in acting socially responsible, while finding a niche to fill for a product that people will demand. So to answer the question, "How do we make money?" We look for men and women who are ready and willing to work and work hard in labor or light industrial industries. When someone enters our program they sign a contract requiring them to agree to work for us at one of our client companies. Upon entering the program they do not have to pay a security deposit or pay any rent upfront. In their contract they agree to begin paying rent once they begin working and they have agreed to work a set number of hours in order to honor their leasing agreement. The goal is to find them a good stable position, so they can meet the terms of their contract through us, and then begin rebuilding their lives, by leaving our program and rejoining their family and/or support network. We see ourselves as a short-term solution, which will need to lasting results for those who want to make the changes necessary in their lives.
The other side of our business is our staffing agency. We serve companies in and around the Wichita, KS metro area who are in need of labor or light industrial employees. We offer temporary to long-term solutions, by providing companies with an affordable and flexible option to meet their staffing needs. Our clients get the benefit of knowing the employees we supply have adequate housing, dependable transportation, and a disciplined and supervised living situation. This is what makes us so unique from other staffing firms. When a company employs the help of another agency, the agency is not able to guarantee to the company that their temporary help has stable housing or reliable transportation, nor will they step in to solve this problem if it is discovered the employee is without these resources.
Our client companies also know that they are doing well by the communities they serve. When they employ us to fill their positions, they are giving someone a chance to make a change for them self and for their loved ones. People who were without a home and a job are given the opportunity to end their downward spiral, and if the person proves that they are not ready, we are able to quickly identify those individuals and give another individual this opportunity. I do believe there is a place for government in serving our disadvantaged population, so I would never advocate that any government involvement is a bad idea. However, I do believe that company leaders need to look at our entire population and decide how they serve as many people as possible and in a responsible manner. Fresh Start is not able to help everyone, so other companies or government programs are necessary. Yet, when an individual loses their home and their job, and seeks help at a shelter, they may only find a safe place to sleep and food to nourush their body. If that individual is willing and able to work, then someone needs to step in and be the method of delivering the nourishment of employment as well. Few companies will consider employing someone who lives in a shelter and/or does not have their own transportation, so that is where we act as an advocate. We solve this necessary concern employers have and then ask them to trust that we will do our best to supply only the individuals deserving of this opportunity.
So after telling my friend about the interworkings of Fresh Start, he paused and said, "This is amazing. I never knew something like this in Wichita existed." I told him, "I don't think it exists anywhere else." I asked somewhat jokingly but seriously if he thought this was news worthy. He stated he thought it was and that he would pitch our company as a news story to the producers at the station. I soon received word from my friend that the producers were indeed interested, and just two weeks ago a business reporter visited our location. The reporter interviewed my brother and I, had a cameraman take shots of our office, our residential facility, one of our client jobsites, and at a site where some of our unemployed residents were volunteering with Habitat for Humanity. Last Tuesday, the story aired. This has to be one of my proudest moments in my life. I was proud of what my brother was able to do accomplish on his own after my uncle passed away last year. I was proud of the work our staff and residents put in to clean up and organize our operation. I was also proud that we had outlet and opportunity like this news story to help brand our company. I believe we have a story to tell, and this is just the beginning of getting that message out.
Company owners and leaders need to have a passion and a story of why they are in business.
· Be proud of what you do,
· Know what sets your apart,
· And tell anyone that will listen.
People love a good story, so create your own. I truly appreciate having a friend who allowed me to bend his ear and made this news story possible, but even if you do not have this channel to communicate to the masses you still need to have a message. If you struggle to excite others about what you are doing, then now is the time to address this dilemma. If you are excited, then don't bottle it up. Let it out! Get your 15 minutes of fame, and then once you have captured the moment; build on it. Rest is for the weary; results are for the determined.
To watch our featured news story on KSN Channel 3 News click on the link below
http://www.ksn.com/mediacenter/local.aspx?videoid=1475@ksnw.web.entriq.net&navCatId=22
For more information and resources on Brand Storytelling visit
http://www.fastcompany.com/blog/melinda-partin/work-tank/brand-storytelling-connecting-your-audience
Saturday, September 19, 2009
People Are Still Buying
As Clients Become More Particular; a sales person must stay savvy.
Everyday I make between 20-30 sales calls on leads I have found through various sources. I may actually connect with five people who have the authority to make a decision, a buyer. Of those five calls, three to four of those buyers are trying to end the call as quickly as possible and one or two may actually engage in a conversation. The important thing to remember is that you must try to capture a sale on every connection, and not allow yourself to think everyone is not buying today.
When I was in retail I received tons of training in sales, and it seemed like everyone wanted to try to reinvent the wheel on how to sell to a customer. Yet, when the training was completed and I began to practice the methods taught, it always came back to the same principles.
• Acknowledge the customer,
• Ask how you can help,
• Listen to what they say,
• Read nonverbal cues,
• Offer a solution,
• And close the sale.
Yes, customers are more educated on products or services then ever before, but these principles still apply no matter how little or how much the customer knows about the product or service you are selling. Customers do not want to be sold, they want to buy. If a sales person stays to these principles they can avoid coming across as pushy or as someone pitching the latest must have kitchen gadget. Now keep in mind closing a sale does not always mean that you convinced the customer to buy today. Do not consider the call a failure if you hang up without an order. However, you have failed, if you have a great conversation with a decision maker and you end the calling saying "okay well I'll call back in a month or two". Why are you calling back in a month or two? Towards the end of the call a sales person should have received some information about the customer's need or interest in buying now or in the future, or should have been clued in on what is best next step to take towards getting the sale.
If you say, "I'll call back in a month or two." What you are really saying to the customer is that you are going to call them again and try to sell them again. Now when the customer hears your voice on the line they know you are making a SALES call. It is like giving them permission to say, "I still don't need anything, but thanks for calling." This is not the relationship you want with your customer. I suggest you tell the customer what you are going to do next and give them a reason to look forward to your next call.
Here is an example:
"Okay, well I understand you do not have a need now, so I am going to send you my card in the mail for you to keep on file. What is the address I should send that to or do you prefer email? Great, well I'll get that over to you quickly, then I'll call back next week to make sure you received it. You don't have anymore questions for me, do you? Okay, well when I check back next week maybe we can talk about meeting in person, of course call me if something changes before then, bye!"
In this example I stated what I was going to do next: I am going to send him or her my card/information, and then I am calling back to make sure he or she received it. And, I also gave my next call a purpose; it is to discuss the possibility of meeting each other. Now my customer knows when I call back, I am calling to learn more about him or her or their business and whether they realize it or not it’s a sales call, but it doesn’t feel like a SALES call.
Back to Basics
Right now, people are fearful and sales people have been demoralized by the down economy. I think its better not to try to reinvent the wheel, in order to reenergize yourself or sales team. Instead, use the wheel (make sure you are practicing the principles) if not, keep them in front of you and start a new habit (put the rubber to the road). If you or your sales team are facing difficulties go back to these principles, it’s what we should have been doing all along.
If you are interested in tips on selling in a down economy I recommend visiting http://ezinearticles.com/?7-Tips-For-Selling-in-a-Down-Economy&id=1710811 for seven quick tips. These tips are good to follow whether the economy is in a recession or customers are flooding through your doors.
Everyday I make between 20-30 sales calls on leads I have found through various sources. I may actually connect with five people who have the authority to make a decision, a buyer. Of those five calls, three to four of those buyers are trying to end the call as quickly as possible and one or two may actually engage in a conversation. The important thing to remember is that you must try to capture a sale on every connection, and not allow yourself to think everyone is not buying today.
When I was in retail I received tons of training in sales, and it seemed like everyone wanted to try to reinvent the wheel on how to sell to a customer. Yet, when the training was completed and I began to practice the methods taught, it always came back to the same principles.
• Acknowledge the customer,
• Ask how you can help,
• Listen to what they say,
• Read nonverbal cues,
• Offer a solution,
• And close the sale.
Yes, customers are more educated on products or services then ever before, but these principles still apply no matter how little or how much the customer knows about the product or service you are selling. Customers do not want to be sold, they want to buy. If a sales person stays to these principles they can avoid coming across as pushy or as someone pitching the latest must have kitchen gadget. Now keep in mind closing a sale does not always mean that you convinced the customer to buy today. Do not consider the call a failure if you hang up without an order. However, you have failed, if you have a great conversation with a decision maker and you end the calling saying "okay well I'll call back in a month or two". Why are you calling back in a month or two? Towards the end of the call a sales person should have received some information about the customer's need or interest in buying now or in the future, or should have been clued in on what is best next step to take towards getting the sale.
If you say, "I'll call back in a month or two." What you are really saying to the customer is that you are going to call them again and try to sell them again. Now when the customer hears your voice on the line they know you are making a SALES call. It is like giving them permission to say, "I still don't need anything, but thanks for calling." This is not the relationship you want with your customer. I suggest you tell the customer what you are going to do next and give them a reason to look forward to your next call.
Here is an example:
"Okay, well I understand you do not have a need now, so I am going to send you my card in the mail for you to keep on file. What is the address I should send that to or do you prefer email? Great, well I'll get that over to you quickly, then I'll call back next week to make sure you received it. You don't have anymore questions for me, do you? Okay, well when I check back next week maybe we can talk about meeting in person, of course call me if something changes before then, bye!"
In this example I stated what I was going to do next: I am going to send him or her my card/information, and then I am calling back to make sure he or she received it. And, I also gave my next call a purpose; it is to discuss the possibility of meeting each other. Now my customer knows when I call back, I am calling to learn more about him or her or their business and whether they realize it or not it’s a sales call, but it doesn’t feel like a SALES call.
Back to Basics
Right now, people are fearful and sales people have been demoralized by the down economy. I think its better not to try to reinvent the wheel, in order to reenergize yourself or sales team. Instead, use the wheel (make sure you are practicing the principles) if not, keep them in front of you and start a new habit (put the rubber to the road). If you or your sales team are facing difficulties go back to these principles, it’s what we should have been doing all along.
If you are interested in tips on selling in a down economy I recommend visiting http://ezinearticles.com/?7-Tips-For-Selling-in-a-Down-Economy&id=1710811 for seven quick tips. These tips are good to follow whether the economy is in a recession or customers are flooding through your doors.
Friday, September 4, 2009
Negotiating a Good Deal for Both Parties
Clients Want a Good Deal; some want too good of a deal.
This economy is really shaking things up and rattling a lot of vendors. I experienced this myself this week, when a current client who has two of our general laborers onsite, called in asking for a plumber. I said, “we have such a worker available and he is a licensed journeyman (someone who can pull all his own permits) and he would be billed at $13/hour”. The client was surprised that we would charge more for a plumber, than for our general laborers. To him a laborer is a laborer. I asked him what he felt was a fair price and he replies, "$8.75". The fact that he is getting laborers from us at $8.75 is an amazing deal, almost too amazing. It was a deal that was set-up before I started with the company. Even knowing that, I was not willing to send out a worker with his experience at such a low rate. The client feels he has the upper hand knowing that business is down, and his opinion is that we should be grateful to get any order at all. In fact, as a power move he threatens to release the two workers we currently have out at his company. So what's the next move?
Know the Behaviors of a Good Negotiator
1. Planning- You should know your product/service well and the costs involved in providing the product/service. You should also know as much about the client as possible, like what is it that they do and who is their customer? Also what is the personality of the decision maker/negotiator?
When the other party is more prepared than you, you're likely to get steamrolled and you will not have the confidence to convey your position. I know it’s painful, but ROLE-PLAY! Go to a teammate or better your boss, by role-playing with a person of higher authority you will gain knowledge of how much flexibility you will be allowed to work with the customer.
2. Thinking Long-Term not Short-Term- The best negotiators think long-term. The short-term goal is to close the sale or get the deal, but what precedent does the transaction set on future deals or sales.
In this down economy, people know that the buyer has more control, but will this customer pay more or stay loyal when the economy turns around? Make sure you think about what this customer means to your business, not just the one order. Be sure to ask yourself, can you truly satisfy the needs of the customer beyond this transaction, and does the price/transaction make good business sense? Both parties should walk away feeling satisfied.
3. Set Limits- In your planning you should know your range that you are willing to negotiate within.
Do not throw out an off-the-wall high number just to see if the other party will bite. Insulting someone by offering them an unreasonable number will turn them off and likely make you appear untrustworthy. Your first offer should be fair, not the lowest price, but in line with the market price. If it’s above that, be ready to explain what differentiates your product or service from others on the market. Most importantly, you should know the market demand for your product or service! Chrysler and GM are two companies who have seen their market price for its products fluctuate dramatically. If your competitors are more in tuned to these market changes, they may have the upper hand and they may make your clients aware of it. Also, know your walk away point. It is better to acknowledge that you can not meet the client’s expectations and walk away from a deal, then to close a sale that is unrealistic and not viable for your business.
4. Do Not Use Language that Causes Irritation- This is a hard habit to break.
Do not say things like, "Let me be honest" (Are your usually dishonest?), "This is a fair offer" or "a very generous offer" (Are you indicating that any offer below your quoted price is unfair?), and "this is the best deal around" (Are you disparaging their current vendor?) Try to avoid language that is self serving, the person on the other side of the table is not interested in your bragging rights. Instead stay neutral, say "After considering the market and the value of our product I can offer a price of ..." This allows the other side an opening for discussion about what they have experienced in the market or the prices they have received in the past, and it lets them know you have done your homework without saying this is your final price. If it’s a fair price they should recognize it, if you have wiggle room to go lower, than the door is open for discussion. They may just take your first offer if it truly is a good deal.
5. Listen. You made your small talk and you presented your offer, now shut up, and listen.
The side that talks the most reveals the most. Listen to their concerns and expressed needs, and read between the lines. Doing so may reveal how much more they need you, and this could give you the leverage you need. Do not verbally vomit all over the customer. We..., we..., we..., we... Instead, ask them questions, get them talking, and then only respond to what they have said. Too many people are not able to bare silence, so they add more and more fluff, then the other side realizes you’re desperate and you’re not closing the deal. Example: You say, "We can provide you the first order at $1.10 per unit, and any order after that over 10,000 units at $1.00, with half off the shipping costs." Then the silence happens, and you add "we have a great product, we are rated at a 95% satisfaction rate, we guarantee your order delivered on time or shipping is free, and we have customer service reps available 7 days a week..." Yikes! If the customer is not already aware of the services you promise by the time you make them an offer, you are in trouble. Instead make the offer, and then let silence happen. After 15-30 seconds they'll break, they'll say something. Then you can respond, and only to their true concerns.
Lastly,
6. Both Parties Leave Happy. Both sides should walk out of a closed deal smiling; feeling as though both sides won something.
For example: They received free shipping when they order 15,000 units; you got the customer to agree to ordering over the 10,000 unit goal you set. They get $.10 discount on orders over 10,000 units; you earned a new customer and stole them away from your biggest competitor. However, if they demanded free shipping on orders of 10,000 units or more and instead of a $.10 discount, they wanted $.25, and they said it’s these terms or no deal and you accepted feeling they broke the bank, well you should have walked away. Maybe you got a new customer and you stole them away from your biggest competitor, but what happens when a new customer gets a deal that is more beneficial financially to your company. Your company's current clients or new clients who pay a fairer price are going to get better service and will be a higher priority. Worse your new customer may talk, and if word spreads to another client of the great deal another customer is receiving, how do you save that sale? If the negotiated deal puts your company at a financial disadvantage, then its not a win-win and you should have walked away.
So What Happened with my Customer?
I made my offer at $13/hour for a skilled plumber. I know the market is depressed, but plumbers are still in high demand and would charge a much higher rate if contacted outside my staffing firm. The customer demanded an insultingly low rate of $8.75. Not surprisingly, since at the time when my company had first negotiated with this customer they gave him control over the pricing and he walked away much happier than us. Now he expects that relationship to continue. Knowing that he was not ready to negotiate, I ended the phone conversation by saying, "I needed to look at the numbers again and talk with the president to see what other offer we could present." I spoke to my brother and he agreed that we would counter offer at $12/hour, and if the customer was still unwilling to compromise on his position, then we would walk away. We were prepared to lose the customer.
I called the customer back, and presented the counter offer. Again, he demanded the $8.75 rate or no deal, and if we were not agree he would end the assignments of the two employees we had out at his company. I listened; I responded to his complaints of past dissatisfaction with employees we had assigned. I reminded him that on any employee he reported dissatisfaction with on that employee's first day we did not bill him for those hours. He complained that we were charging different rates on the same product. I reminded him that just like a retail store we offer different products. Someone skilled in assembly work is a different price than someone with plumbing experience. He asked if we were making money on people not working. I stated that we have to ensure that our bill rate is able cover payroll taxes, unemployment insurance, and workers compensation insurance. He stated he was not going to pay $12/hour, I stated that was his decision and I respected it. He then stated we had nothing left to talk about, so I thanked him for considering us for the order and if he changed his mind I would love to work with him. He then called back later, not walking to talk to me, and told our office manager to end the assignments of the two we had working at his company. I walked away knowing that I may have lost the client, but also knowing the deal would have left me unhappy and my company in a position to take a loss on supplying a worker.
I am Not an Expert by Any Means
I know I was not as confident about my product as I should have been. I did not know all the details on our past relationship with this client. I was not prepared for his abrasive personality and it put me on my heels. However, I was able to recognize quickly that the first conversation was not headed in the right direction, so I made the decision to stop negotiations and call him back when I was better prepared. Don't be afraid to do so, if you are caught the same situation. Not every negotiation is successful the first go around. When the client is asking questions and laying out details you are not educated on, its better to recognize that and politely reschedule another conversation. I also used language causing irritation. Try not to get defensive, stay on the offensive. When dealing with a client who demands too low of a price, do not respond, "$12/hour is a great deal, it’s more than fair." Remember stay neutral and say, "I think the market justifies $12/hour." Let the other party try to justify a lower price. Lastly, walk away, but leave the ball in the customer’s court. Tell the customer you understand their opinion and you hope that you are able to work together, and that the door is open if they decide to start a new conversation later. Leave happy knowing you made the right decision. I recommend that you only work with clients whom mutually want your business and theirs to do well.
If you want more information on negotiation tactics I recommend checking out this website:
http://it.toolbox.com/wiki/index.php/Negotiating_Skills
Or for the more advanced negotiator read:
The Skilled Negotiator: Mastering the Language of Engagement (Paperback)by Kathleen Reardon (Author)
This economy is really shaking things up and rattling a lot of vendors. I experienced this myself this week, when a current client who has two of our general laborers onsite, called in asking for a plumber. I said, “we have such a worker available and he is a licensed journeyman (someone who can pull all his own permits) and he would be billed at $13/hour”. The client was surprised that we would charge more for a plumber, than for our general laborers. To him a laborer is a laborer. I asked him what he felt was a fair price and he replies, "$8.75". The fact that he is getting laborers from us at $8.75 is an amazing deal, almost too amazing. It was a deal that was set-up before I started with the company. Even knowing that, I was not willing to send out a worker with his experience at such a low rate. The client feels he has the upper hand knowing that business is down, and his opinion is that we should be grateful to get any order at all. In fact, as a power move he threatens to release the two workers we currently have out at his company. So what's the next move?
Know the Behaviors of a Good Negotiator
1. Planning- You should know your product/service well and the costs involved in providing the product/service. You should also know as much about the client as possible, like what is it that they do and who is their customer? Also what is the personality of the decision maker/negotiator?
When the other party is more prepared than you, you're likely to get steamrolled and you will not have the confidence to convey your position. I know it’s painful, but ROLE-PLAY! Go to a teammate or better your boss, by role-playing with a person of higher authority you will gain knowledge of how much flexibility you will be allowed to work with the customer.
2. Thinking Long-Term not Short-Term- The best negotiators think long-term. The short-term goal is to close the sale or get the deal, but what precedent does the transaction set on future deals or sales.
In this down economy, people know that the buyer has more control, but will this customer pay more or stay loyal when the economy turns around? Make sure you think about what this customer means to your business, not just the one order. Be sure to ask yourself, can you truly satisfy the needs of the customer beyond this transaction, and does the price/transaction make good business sense? Both parties should walk away feeling satisfied.
3. Set Limits- In your planning you should know your range that you are willing to negotiate within.
Do not throw out an off-the-wall high number just to see if the other party will bite. Insulting someone by offering them an unreasonable number will turn them off and likely make you appear untrustworthy. Your first offer should be fair, not the lowest price, but in line with the market price. If it’s above that, be ready to explain what differentiates your product or service from others on the market. Most importantly, you should know the market demand for your product or service! Chrysler and GM are two companies who have seen their market price for its products fluctuate dramatically. If your competitors are more in tuned to these market changes, they may have the upper hand and they may make your clients aware of it. Also, know your walk away point. It is better to acknowledge that you can not meet the client’s expectations and walk away from a deal, then to close a sale that is unrealistic and not viable for your business.
4. Do Not Use Language that Causes Irritation- This is a hard habit to break.
Do not say things like, "Let me be honest" (Are your usually dishonest?), "This is a fair offer" or "a very generous offer" (Are you indicating that any offer below your quoted price is unfair?), and "this is the best deal around" (Are you disparaging their current vendor?) Try to avoid language that is self serving, the person on the other side of the table is not interested in your bragging rights. Instead stay neutral, say "After considering the market and the value of our product I can offer a price of ..." This allows the other side an opening for discussion about what they have experienced in the market or the prices they have received in the past, and it lets them know you have done your homework without saying this is your final price. If it’s a fair price they should recognize it, if you have wiggle room to go lower, than the door is open for discussion. They may just take your first offer if it truly is a good deal.
5. Listen. You made your small talk and you presented your offer, now shut up, and listen.
The side that talks the most reveals the most. Listen to their concerns and expressed needs, and read between the lines. Doing so may reveal how much more they need you, and this could give you the leverage you need. Do not verbally vomit all over the customer. We..., we..., we..., we... Instead, ask them questions, get them talking, and then only respond to what they have said. Too many people are not able to bare silence, so they add more and more fluff, then the other side realizes you’re desperate and you’re not closing the deal. Example: You say, "We can provide you the first order at $1.10 per unit, and any order after that over 10,000 units at $1.00, with half off the shipping costs." Then the silence happens, and you add "we have a great product, we are rated at a 95% satisfaction rate, we guarantee your order delivered on time or shipping is free, and we have customer service reps available 7 days a week..." Yikes! If the customer is not already aware of the services you promise by the time you make them an offer, you are in trouble. Instead make the offer, and then let silence happen. After 15-30 seconds they'll break, they'll say something. Then you can respond, and only to their true concerns.
Lastly,
6. Both Parties Leave Happy. Both sides should walk out of a closed deal smiling; feeling as though both sides won something.
For example: They received free shipping when they order 15,000 units; you got the customer to agree to ordering over the 10,000 unit goal you set. They get $.10 discount on orders over 10,000 units; you earned a new customer and stole them away from your biggest competitor. However, if they demanded free shipping on orders of 10,000 units or more and instead of a $.10 discount, they wanted $.25, and they said it’s these terms or no deal and you accepted feeling they broke the bank, well you should have walked away. Maybe you got a new customer and you stole them away from your biggest competitor, but what happens when a new customer gets a deal that is more beneficial financially to your company. Your company's current clients or new clients who pay a fairer price are going to get better service and will be a higher priority. Worse your new customer may talk, and if word spreads to another client of the great deal another customer is receiving, how do you save that sale? If the negotiated deal puts your company at a financial disadvantage, then its not a win-win and you should have walked away.
So What Happened with my Customer?
I made my offer at $13/hour for a skilled plumber. I know the market is depressed, but plumbers are still in high demand and would charge a much higher rate if contacted outside my staffing firm. The customer demanded an insultingly low rate of $8.75. Not surprisingly, since at the time when my company had first negotiated with this customer they gave him control over the pricing and he walked away much happier than us. Now he expects that relationship to continue. Knowing that he was not ready to negotiate, I ended the phone conversation by saying, "I needed to look at the numbers again and talk with the president to see what other offer we could present." I spoke to my brother and he agreed that we would counter offer at $12/hour, and if the customer was still unwilling to compromise on his position, then we would walk away. We were prepared to lose the customer.
I called the customer back, and presented the counter offer. Again, he demanded the $8.75 rate or no deal, and if we were not agree he would end the assignments of the two employees we had out at his company. I listened; I responded to his complaints of past dissatisfaction with employees we had assigned. I reminded him that on any employee he reported dissatisfaction with on that employee's first day we did not bill him for those hours. He complained that we were charging different rates on the same product. I reminded him that just like a retail store we offer different products. Someone skilled in assembly work is a different price than someone with plumbing experience. He asked if we were making money on people not working. I stated that we have to ensure that our bill rate is able cover payroll taxes, unemployment insurance, and workers compensation insurance. He stated he was not going to pay $12/hour, I stated that was his decision and I respected it. He then stated we had nothing left to talk about, so I thanked him for considering us for the order and if he changed his mind I would love to work with him. He then called back later, not walking to talk to me, and told our office manager to end the assignments of the two we had working at his company. I walked away knowing that I may have lost the client, but also knowing the deal would have left me unhappy and my company in a position to take a loss on supplying a worker.
I am Not an Expert by Any Means
I know I was not as confident about my product as I should have been. I did not know all the details on our past relationship with this client. I was not prepared for his abrasive personality and it put me on my heels. However, I was able to recognize quickly that the first conversation was not headed in the right direction, so I made the decision to stop negotiations and call him back when I was better prepared. Don't be afraid to do so, if you are caught the same situation. Not every negotiation is successful the first go around. When the client is asking questions and laying out details you are not educated on, its better to recognize that and politely reschedule another conversation. I also used language causing irritation. Try not to get defensive, stay on the offensive. When dealing with a client who demands too low of a price, do not respond, "$12/hour is a great deal, it’s more than fair." Remember stay neutral and say, "I think the market justifies $12/hour." Let the other party try to justify a lower price. Lastly, walk away, but leave the ball in the customer’s court. Tell the customer you understand their opinion and you hope that you are able to work together, and that the door is open if they decide to start a new conversation later. Leave happy knowing you made the right decision. I recommend that you only work with clients whom mutually want your business and theirs to do well.
If you want more information on negotiation tactics I recommend checking out this website:
http://it.toolbox.com/wiki/index.php/Negotiating_Skills
Or for the more advanced negotiator read:
The Skilled Negotiator: Mastering the Language of Engagement (Paperback)by Kathleen Reardon (Author)
Tuesday, August 25, 2009
Eating a Piece of Humble Pie: The process of repairing a client relationship
Your Client has Written You a Fuming Letter, now what?
My brother called me last night to inform me that one of our current clients had written a letter stating that they were unhappy with the company's approach and attempts to collect on a past due balance. Also the letter spelled out the amount of business we lost for future orders due to their decision to no longer use our services.
I haven't even started my first day and I am already having to jump in to try to save an account. The mistake our company made was not having a formal agreement as to the payment terms for invoices. Relying on phone conversations and handshakes is not adequate when doing business. Memories become very hazy when money is involved. Had we informed them in writing our terms and required review and approval, our client would have known that invoices are due within 10 days of being received. Now that the economy has taken a turn for the worse, clients are trying to stretch the amount of time they have to pay invoices. This leaves us at the mercy of the client, since we didn't have something in writing. Phone calls are made to collect, but the person you need to speak to is never available and does not return messages left. My brother made the choice to take further action, after the promises the client made for repayment were not met.
It is always difficult as a business to put pressure on a client for payment, when it may jeopardize any relationship. However, obligations and agreements must be kept, even verbal promises. If the client would have been more honest, explained their own situation and made realistic promises they could keep, then the situation would not have escalated to the breaking point.
The client has agreed to pay the remaining balance, but vows not to do business with us again. The fact is we made the mistake, so I'll be eating humble pie. My first reaction after reading a letter that charges us with "biting the hand that feeds us", made me very defensive and I wanted to give them a piece of my mind. We employees, who completed the work, and then our client did not fully pay us. My brother had to drag the client kicking and screaming to pay, so how are we to blame?
Again, we did not set up the terms with them, our communication was not clear when we began developing the relationship. It is our responsibility to assess our client's needs. If paying an invoice within 10 days is not agreeable to them, then we should have discussed that before we provided our services. This all could have been avoided, if the client had terms that needed to be adjusted beyond what we could deliver, then we could have made the decision not to do business. Sometimes a company's eagerness to close a deal and get some money in, blinds them to look into the details. This hurts us and it hurts the client.
Today, I wrote a letter in response.
Tips:
1. Be sure to read and reread a letter and make sure your head has cooled before putting anything into words (emails, faxes, letters).
2. Make sure you understand or acknowledge each of the points/arguments they make.
3. Address each point/argument, don't over explain just restate, so they know you got the point.
4. Calmly explain your perspective, don't remind them of the bad, state how you operate or wish to operate.
5. Find common ground, such as how you want your customers to feel about the service they receive or how your mission statements are similar.
6. Acknowledge things should have been handled differently, and how they should have been handled. Ask for their advise or that you want to discuss this further.
7. State what you see as the root cause. (In this case we did not have a signed agreement. The problem was not getting payment, but the root was us not going into this relationship fully aware of the needs of our client.)
8. Express your sincere attempt to repair the relationship, ask for their business back. (If there is hope, be sure to dot your i's and cross your t's this time.
Swallowing Your Humble Pie
Here is an excerpt of the closing paragraph of the letter I wrote. Sometimes swallowing a big bite of humble pie is the hardest part. The name censored to protect our client's privacy.
Mr. ######, I do want your business. I know that Fresh Start has a valuable product that can help you in your effort to meet your customers’ needs while minimizing the costs of labor. Fresh Start provides its workforce with a structured and disciplined residential program. In this program we provide transportation to and from the work site, and if an employee is not meeting our client’s expectations, they can be replaced the same day. Our employees are in a position where they need an opportunity to turn their life around, and clients like you who give them that opportunity provide a great service to them and the community. Our mission is to provide “a hand up and not a hand out”, and in the spirit of that philosophy I expect to earn my clients business, not just get their business. Please let me know if there is any further discussion we can have in order to repair our relationship, at best I would like you to know my sincerity over this matter. I do not want to walk away from this issue, without acknowledging what I have learned from you from your letter.
Explore This Further
For information on Relationship Marketing visit http://www.cd-vm.com/e-relationship-marketing.htm
This site does include tips on how to take current relationships with clients and make them lifetime fans, with a small section discussing how to repair damaged relationships.
I hope to focus more on making lifetime fans, then repairing relationship, but both are equally important.
My brother called me last night to inform me that one of our current clients had written a letter stating that they were unhappy with the company's approach and attempts to collect on a past due balance. Also the letter spelled out the amount of business we lost for future orders due to their decision to no longer use our services.
I haven't even started my first day and I am already having to jump in to try to save an account. The mistake our company made was not having a formal agreement as to the payment terms for invoices. Relying on phone conversations and handshakes is not adequate when doing business. Memories become very hazy when money is involved. Had we informed them in writing our terms and required review and approval, our client would have known that invoices are due within 10 days of being received. Now that the economy has taken a turn for the worse, clients are trying to stretch the amount of time they have to pay invoices. This leaves us at the mercy of the client, since we didn't have something in writing. Phone calls are made to collect, but the person you need to speak to is never available and does not return messages left. My brother made the choice to take further action, after the promises the client made for repayment were not met.
It is always difficult as a business to put pressure on a client for payment, when it may jeopardize any relationship. However, obligations and agreements must be kept, even verbal promises. If the client would have been more honest, explained their own situation and made realistic promises they could keep, then the situation would not have escalated to the breaking point.
The client has agreed to pay the remaining balance, but vows not to do business with us again. The fact is we made the mistake, so I'll be eating humble pie. My first reaction after reading a letter that charges us with "biting the hand that feeds us", made me very defensive and I wanted to give them a piece of my mind. We employees, who completed the work, and then our client did not fully pay us. My brother had to drag the client kicking and screaming to pay, so how are we to blame?
Again, we did not set up the terms with them, our communication was not clear when we began developing the relationship. It is our responsibility to assess our client's needs. If paying an invoice within 10 days is not agreeable to them, then we should have discussed that before we provided our services. This all could have been avoided, if the client had terms that needed to be adjusted beyond what we could deliver, then we could have made the decision not to do business. Sometimes a company's eagerness to close a deal and get some money in, blinds them to look into the details. This hurts us and it hurts the client.
Today, I wrote a letter in response.
Tips:
1. Be sure to read and reread a letter and make sure your head has cooled before putting anything into words (emails, faxes, letters).
2. Make sure you understand or acknowledge each of the points/arguments they make.
3. Address each point/argument, don't over explain just restate, so they know you got the point.
4. Calmly explain your perspective, don't remind them of the bad, state how you operate or wish to operate.
5. Find common ground, such as how you want your customers to feel about the service they receive or how your mission statements are similar.
6. Acknowledge things should have been handled differently, and how they should have been handled. Ask for their advise or that you want to discuss this further.
7. State what you see as the root cause. (In this case we did not have a signed agreement. The problem was not getting payment, but the root was us not going into this relationship fully aware of the needs of our client.)
8. Express your sincere attempt to repair the relationship, ask for their business back. (If there is hope, be sure to dot your i's and cross your t's this time.
Swallowing Your Humble Pie
Here is an excerpt of the closing paragraph of the letter I wrote. Sometimes swallowing a big bite of humble pie is the hardest part. The name censored to protect our client's privacy.
Mr. ######, I do want your business. I know that Fresh Start has a valuable product that can help you in your effort to meet your customers’ needs while minimizing the costs of labor. Fresh Start provides its workforce with a structured and disciplined residential program. In this program we provide transportation to and from the work site, and if an employee is not meeting our client’s expectations, they can be replaced the same day. Our employees are in a position where they need an opportunity to turn their life around, and clients like you who give them that opportunity provide a great service to them and the community. Our mission is to provide “a hand up and not a hand out”, and in the spirit of that philosophy I expect to earn my clients business, not just get their business. Please let me know if there is any further discussion we can have in order to repair our relationship, at best I would like you to know my sincerity over this matter. I do not want to walk away from this issue, without acknowledging what I have learned from you from your letter.
Explore This Further
For information on Relationship Marketing visit http://www.cd-vm.com/e-relationship-marketing.htm
This site does include tips on how to take current relationships with clients and make them lifetime fans, with a small section discussing how to repair damaged relationships.
I hope to focus more on making lifetime fans, then repairing relationship, but both are equally important.
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