Resolve Conflict. Different Ways.

If you're human, you inevitably encounter conflict in your lives. At work, it can involve relationships with co-workers, clients, vendors, and candidates. One typically expects the people will work through the differences to an amicable solution.

There are times however where people simply reach an impasse where one party is being very unreasonable. In these cases, I've always advocated the people involved should invite a third party mediator to help clear up the problem resorting to legal action. This mediation, or Alternative Dispute Resolution (ADR) as it's sometimes called, gets the parties together to present their argument to a neutral third party. The parties separate into different rooms and each have an opportunity to visit with the mediator about their version of the facts. The mediator normally points out the flaws associated with the legal claims, and the cost and uncertainty of going all the way to trial.

Having litigated employment disputes for years as an employment lawyers, can tell you first hand the parties usually walking away from mediation with a sense they "lost." That's considered a good result, actually. If both parties feel they lost something, it means they both had to give up something to resolve the conflict. If one party senses they are a real winner, and the other a loser, then it's probably not a result that will stand. It sounds counterintuitive, but I've seen it happen so many times, I understand the experience. The point - once the emotions are taken out, everyone has to give a little. This allows everyone to move on to bigger and better things. If you don't know anything about mediation, or ADR, and want to learn more, or learn more about my personal experiences in this area, feel free to give me a call.

Know Yourself - Job Seekers

Know yourself.   Examining your personality, and all that involves, would go along way to avoiding disappointment candidates experience through rejection from prospective employers.  I understand most of us can't just do whatever we want and hope to make enough money to support ourselves, let alone our families.  Think starving artists.   But that's not to say you shouldn't engage in some serious introspection as to what makes you tick.   For example, are you more of an introvert (ie, you recharge from alone time), or extravert (ie, get charged from social involvement)?  We all are some of both, but where does your personality predominately fit?  And what types of jobs generally fit your personality?  Outplacement services can help, but most people don't have the money.  They need to elucidate what they can on their own through self-analysis and talking with friend, family, and peers.   No doubt this process is ongoing and evolves over time, but just forcing yourself to do the exercise (write on white board identifying where your strengths and personality intersect with available jobs) will perhaps help avoid expending huge amounts of time chasing jobs that may be more trouble than what they are worth - meaning your sanity.   

What if Your Client Cuts Your Consultants' Hours?

Have any of you had a client mandate a reduction of hours for your consultants?  This is typical for clients struggling with the economy.  They're opting to retain good consultants in lieu of terminating their engagements.   There's a knee jerk temptation to cut the consultants' pay since your firm's margins just suffered a hit.   Cutting the consultants' pay only exacerbates the problem, however   For example, if you're required to reduce their hours by 20%, say 40 hours to 32 a week, the consultants make 20% less money.   If you try to pass along an additional reduction on the pay rate in an effort to preserve some margin, the consultants end up losing well more than 20%.   Obviously, you need to make a prudent business decision, but since the consultants may already be looking for new gigs due to the 20% reduction in hours, it seems you almost ensure their eventual departure if you inflict an additional reduction in the pay rate.   This isn't to say you should take a loss on the engagement (although at times that too may be advisable to preserve the relationship), but it's probably more important for everyone to share as equitably as possible the pain of a poor economic climate. 

Contract Payment Terms with subcontract 1099 firms?

Does your staffing firm enter into independent contractor agreements with subcontracting firms?  Do these firms typically ask for net 30 payment terms (or less)?  In a commerical setting (ie, subcontractor supplies you a contractor that you put on a commerical client site), these terms are pretty customary.   But if you supply talent to prime contractors on government contract this "net 30" language can be problematic.  Specifically, your staffing contract with the prime may say "you don't get paid until we [prime contractor] get paid by the government end client."   In that case, you naturally don't want to pay your subcontracting firm until you get paid by the prime contractor.   This way everyone shares the risk in the government's lag.  

There are instances, however, where we agree to "net terms" in the subcontract - even in the face of our own contract with the prime that doesn't pay us until the prime is paid by the government client - when our client's track record has consistently demonstrated payment on a net 30 basis.  Of course, even then, we propose "net 45" to allow us time to receive payment.   It's never a smooth process, and each deal stands on its own, but I'd at least start with the position of paying the subcontractor within 10 days of payment by your client.  Most of these subcontract firms are aware of the limitations associated with the government contracts, and oblige.  At time they don't and you'll have to judge the risk on an individual basis.   If the 1099 is a one person shop, we usually just pay every two weeks and take the risk.   Good luck. 

New Year's Resolution - Be More Efficient and Productive

Happy New Year!   A business publication noted this morning privately held companies of less than 500 employees employ half of the American workforce.  It said their clients were paying slower, and there may be more belt-tightening.  With that in mind, employees and business owners alike need to adopt an even more acute laser focus in 2010 to maintain client retention and satisfaction.   Everyone on the team has a vested interested in the company's continued success.   I remember quite well the tech bust in 2001, the real estate problems in the 80s, and the inflation issues of the 70s.  In each instant, small business represented the backbone of society, and the recovery rode on their shoulders.   But it won't be easy.  The excesses of the 2000s have left many disillusioned and unprepared.   I submit a simple recalibration and committed focus on your core business competencies, coupled with an eye on expenses (I wouldn't cut back on client entertainment), will lead to leaner, more productive business activity in 2010.  This will lead the recovery.   When small companies are more flush with cash, they'll start hiring again, and taking on more risk.   Have a great 2010!