The High Cost Of Stress

Stress response was meant to be a temporary reaction to a life-threatening situation, but unfortunately, more and more employees are finding that the stress of everyday living combined with on-the-job stress is having an impact on their lives.

“Stress generally refers to two things: the psychological perception of pressure, on the one hand, and the body’s response to it, on the other, which involves multiple systems, from metabolism to muscles to memory. Through hormonal signalling, the perception of danger sets off an automatic response system, known as the fight-or-flight response, that prepares all animals to meet a challenge or flee from it.”

Psychology Today

Stress Within The Workplace

Owner-managers may not be able to control an employee’s personal life stress. However, they must be sensitive to stress points that trigger employees’ unhappiness, both within and outside the workplace environment and work towards assuaging the stress points.

Stress within the workplace is an expensive hidden cost to the employer:

  • Absenteeism increases create higher payroll cost.
  • Productivity is reduced when employees are absent.
  • Illness, both physical and mental in nature, drive up the cost of health premiums.
  • Employee turnover results in higher training cost and lost productivity.
  • Costly litigation may result if employees challenge the dismissal.
  • Individuals under stress may have reduced ability to make critical decisions, as their thought process
  • is clouded with personal issues that lead to errors.
  • Interpersonal skills may deteriorate, as individuals under stress may not filter comments, thereby offending co-workers or clients.
  • Other workers are negatively impacted thereby reducing effectiveness and creating job dissatisfaction.

REDUCING EMPLOYEE ON-THE-JOB STRESS

Identifying and counteracting on-the-job stress is not an easy task for the owner-manager. Perhaps the best approach is for the owner-manager to put themselves in the worker’s position to try to understand the stress points of the job.

It is not suggested that management needs to become an “Undercover Boss” as depicted on the television series, but adopting the concept certainly would help management identify stress points within a job classification and better enable them to address the areas that require attention.

Consider these practices to help your employees reduce their stress on the job:

  • Have an open-door policy with the assurance of confidentiality that allows employees to discuss workplace-related issues as well as personal issues that are causing anxiety. (Only 23% of Canadian workers had enough confidence to approach management and seek help with stress issues.)
  • Address job-related problems and or employee concerns (bereavement, divorce, illness, moving home and financial) in a timely fashion. An individual’s stress is an overlay of personal and work-related problems and not understanding and working with the employee to address issues amplifies their stress level.
  • Ensure that managers know how to reprimand and provide constructive criticism without humiliating or degrading employees.
  • Never tolerate aggressive physical, emotional or vocal bullying tactics.
  • Institute empathy and interpersonal skills training for all employees.
  • Prepare employees for changes in the work environment or upcoming projects through dialogue. Management receives feedback and thus a means of judging the demands that will be placed upon employees, available employee skills, project hours and timeline required. This, in turn, will assist in normalizing the project into a manageable process and thereby reduce stress.
  • Owner-managers want employees that work as hard for the company as they do. Ensure that employees do not take on more than they can handle. Encourage employees to take coffee breaks, lunch breaks, full vacation and statutory holidays to allow time to let go of workplace responsibilities.
  • Provide training in time management that educates employees not only to manage their time but also to recognize that taking on multiple projects that cannot be completed within given time frames leads to poor job performance, anxiety and stress.
  • Monitor employees and management to make more effective use of time. Spending time on non-essentials tasks when a major project is underway creates anxiety and stress. Focusing on what is important directs employees to what is the priority.
  • Ensure that upper management and team leaders can vent their concerns by having regular meetings to discuss concerns about projects, employees or management issues. Second-in-command individuals are unable to discuss issues with employees and thus need a means to express frustration and anxiety that they may be feeling about the job.
  • Reward employees by letting them know their work is valued and appreciated. Regular reviews, and not just for raises, are required to let employees know when they are doing well and when there is need to modify their approach, or to gain more experience, additional training or education.
  • Involve employees’ spouses and children so they have an appreciation of job functions, environment, and co-workers and thereby have a better understanding of what goes on during the workday. Consider family days, bring your child to work days or company events to create a family environment.

Canadian statistics indicate that 500,000 Canadians miss work each week from stress-related issues. Forty-seven percent of individuals indicate that work is the most stressful part of their life.

Consider that work-related stress costs the Canadian workplace approximately $20 billion per year – isn’t it time that your business made every effort to reduce stress within the workplace and positively enhance the bottom line?

Disclaimer:
Avisar Chartered Professional Accountant’s blog deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.

Although every reasonable effort has been made to ensure the accuracy of the information contained in this post, no individual or organization involved in either the preparation or distribution of this post accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.

Maintaining Safety In The Workplace

It is the owner and manager’s responsibility to ensure that the workplace is safe for employees or subcontractors.

Not only does safety protect the worker from injury or death, but a consistent record of safety also lowers payment to WorkSafeBC and lessens the cost to employers by ensuring that injuries to workers are minimized to guarantee that quality workers are not prevented from performing an essential company task.

Management should take it upon themselves to conduct personalized workplace walkarounds to identify areas that may potentially pose a safety hazard and determine whether safety procedures that have been put in place or mandated by safety boards are working as they should.

Going through a job site or the manufacturing factory also allows management to assess if the project or floor managers, as well as employees, are following safety practices that have been mandated. After all, corporate safety manuals may mandate wearing safety glasses or a safety harness, but employees may disregard the mandate for sake of comfort or expediency.

Conduct Thorough Safety Inspection

A proper safety inspection should be planned. However, notifying department heads that a safety inspection is imminent provides a forewarning that may set up a utopian result that a surprise walk-around could not mimic.

Regardless of whether the walkaround is a surprise or a joint effort with department heads, owner-managers may wish to consider the following:

As a precursor, management should take courses that help them identify safety issues on the job. Many courses are offered both by provincial/federal and private sectors, but should cover the outline provided by the Canadian Centre for Occupational Health and Safety:

  • Introduction to Health and Safety Training for Managers
  • Safety Principles and Risk Management
  • Legislation
  • Hazard Recognition and Control
  • Emergency Preparedness and Fire Prevention
  • Occupational Hygiene
  • Ergonomics
  • Workplace Inspection and Accident Investigation
  • Program Development and Implementation

Management should also familiarize themselves with the project or department to understand what equipment is used, the stage of development, the number of workers on-site, and who has oversight for the project or department. Ensure you complete a thorough safety review by completing the following:

  • Review previous safety inspections and reports that were provided in-house or by outside agencies.
  • Review WorkSafeBC injury claims for the last few years.
  • Review WorkSafeBC billings for the last few years. Not only will this provide insight into the type of injury and wherein the process injury occurred; it also indicates the cost associated with accidents and by default motivates a business to continue safety efforts to reduce cost.
    • If specific areas are constantly targeted or found deficient, review these areas to see if appropriate changes have been made. Determine the areas that are to be inspected and the safety equipment that is needed. Ensure that you are knowledgeable about the necessary safety equipment and how to wear it. Your credibility is on the line. You won’t be taken seriously if you are not projecting the need for personal safety.
  • Engage workers that have been injured on the job. Find out why they were injured and what steps have been taken, both by the company and individually, to improve workplace safety.
    • Ask if there are additional safety issues that the employee feels would enhance safety within their working environment. Make it plain to the employee that this is not a witch hunt to lay blame, but rather that, as a concerned employer, you are always interested in ensuring the welfare of employees within the workplace environment.
  • Observe workers in action.
    • Are they lifting the above-suggested guidelines?
    • Is the job repetitive and monotonous?
  • As with all reviews, it is imperative that notes be taken as you progress through the review to capitalize on the issues while they are fresh. Notes should identify the issues, observations and potential solutions for later review.
  • There are areas of safety concern that even a novice should be able to identify. If you have taken a safety inspection course it should be easy to spot tripping hazards, blocked or locked exits, frayed or exposed wires, slippery floors, missing machine guards, shoddy housekeeping, or equipment that is long in the tooth and may not meet standards. Further, if walls are damaged or doors dented, it implies that drivers are not as diligent as they should be. Such lack of diligence may endanger not only the operator of the equipment but the workers as well.
  • If employees are not using company-mandated safety equipment, ask for an explanation. Explain to them that not only are they jeopardizing their own safety, they also risk putting fellow employees and the company at risk should the company be shut down or face fines that will complicate future cash flow. It would seem appropriate at that moment to insist that the worker wear the clothing or remove them from the floor to establish your commitment to safety.
  • Observe workers as they perform their job.
    • Do they lift heavy objects?
    • Do they stand/sit in positions that are not compatible with the machinery they are operating?
    • Are they performing repetitive motions?
  • When necessary take pictures to document issues for future reference.

POST-INSPECTION FOLLOW UP

Post-inspection follow-up is important to establishing your credibility as an employer committed to improving any identified safety issues.

Once the review is completed the impetus for change must be continued. Identified weaknesses should be categorized and accompanied with a plan establishing corrective action to be taken, the timeline for the changes, and potential costs for implementing the safety procedures.

If it is not possible to make wholesale changes – as complex issues require further investigation or engineering studies to achieve completion – management will have to determine what intermediary safety changes must be made to minimize potential injury.

Not only will this step maintain worker safety, but it will also provide evidence that the company was aware of the issue and was taking positive steps to correct the safety concern initially identified.

Feedback to employees showing what was determined as a result of your safety walk-around, and what process is being put in place to address concerns that may have arisen, provides confidence to employees that your company is committed to ensuring they can go home injury-free after their shift.

Owner-managers recognize their legal and moral responsibilities to provide a safe work environment for all employees. As such management involvement in identifying and correcting issues that may compromise the integrity of the workplace and negatively impact both the financial and public perception of their organization is of paramount importance.

Disclaimer: Avisar Chartered Professional Accountant’s blog deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.

Although every reasonable effort has been made to ensure the accuracy of the information contained in this post, no individual or organization involved in either the preparation or distribution of this post accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.

Clear Expectations

Avisar’s people are always looking for ways to improve the firm. Case in point, our managing partner, Bernie Zacharias, came across an article on LinkedIn recently that he felt resonated with Avisar’s culture; Clear Expectations Help People Meet Your Standards. Avisar’s partners have incredibly high standards and they constantly challenge their team to get a little bit closer to perfection with every client interaction – and the team accepts this challenge head-on.

It hasn’t always been this way though. Years ago, before a transition of leadership, it felt like everyone did their own thing and went their own way. Avisar’s clients were being served, but not by a team of like-minded individuals pulling in the same direction. The leadership group saw this and recognized that if they wanted to take Avisar to the next level their team needed direction. The team needed clear expectations. They needed to know what kind of firm the partners wanted Avisar to be and what their client interactions should look like. Each staff member needed to have clearly defined expectations of their role and responsibilities within the firm.

These days, each member of Avisar’s team has a clear understanding of how they can positively impact every interaction with the clients they serve. The partners communicated clear expectations and now, the team is working together to get a little closer to perfection every day.

Disclaimer: Avisar Chartered Professional Accountant’s blog deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.

Although every reasonable effort has been made to ensure the accuracy of the information contained in this post, no individual or organization involved in either the preparation or distribution of this post accepts any contractual, tortious, or any other form of liability for its contents or for any consequences

Complacency

Every owner-manager has experienced new employees enthusiastically jumping head-first into the task at hand — only to see that enthusiasm for their job morph into complacency over time.

Complacency on the job not only lessens the performance of an individual employee; it can also lead to accidents or legal issues if workers become used to the status quo and don’t recognize situations that fall outside the normal operational procedures.

Managing complacency is an ongoing process. Can you recognize its symptoms? Social scientists have identified 10 common traits that suggest an individual is complacent at work.

10 Common Traits Of Complacency

  1. An individual may seem disengaged from their work. They may not show enthusiasm for new projects, consistently applying themselves just enough to fill the day until it’s time to pack up for home.
  2. An employee may stop coming up with new ideas or adding their ideas to the project or task at hand, and simply nod in agreement. It might feel as if they don’t want to become involved in the process and are focused only on wanting to get the job done.
  3. If employees have stopped thinking about projects — evidenced perhaps by their not contributing comments or efforts — it’s a sign that they want to distance themselves from the job. This lack of involvement can have a negative impact on their co-workers.
  4. Most people want to be successful and proud of their achievements in the workplace. If you notice that the staff member is no longer interested in learning new job skills or taking courses that enhance existing skills, it’s a sure sign of possible issues.
  5. Individuals have their own style of accomplishing tasks or interacting with clients and fellow employees. If a person loses their sense of identity, they start to doubt how well they work in harmony with others. Thus, they may hesitate to get involved, choosing to withdraw from the process instead.
  6. If you conclude that an employee is not following procedures, not paying attention to detail or constantly making small errors, it implies that they are “resting on their laurels,” and have given up the desire to move beyond their current level of effort. Failing to follow corporate procedures or policies creates risk for the corporate entity that employs them, and reduces a team’s and business’s productivity.
  7. Risk-taking — that is, calculated risk-taking — is a regular part of everyday operations. If employees are not willing to reach out with new ideas or processes, and instead stay with the tried-and-true, it may be a sign that they have lost the desire to accept and deal with change.
  8. Consistently showing up late for work, delaying projects, taking longer-than-normal breaks, or maximizing time off from work is a strong indicator that someone has lost their passion for what they do at the workplace. In essence, they have lost the drive to perform their duties and could be on a downward spiral in terms of job performance.
  9. A disgruntled employee who consistently complains about company process or the job they are doing is often unhappy because the life and work decisions they made have led them to this juncture in their career. Rather than approaching management for other opportunities or accepting that this is their situation, their negative approach risks sowing a toxic and uncomfortable attitude within the broader workplace.
  10. If an employee spends an inordinate amount of time on the Internet, or in the coffee room griping about management or their differences with colleagues, they have likely fallen into a rut in their career. Employees in this stage are not only hurting their own prospects, they will also negatively impact on the morale of younger, more driven employees.

If you’re a manager, understand that complacency in the workplace is engrained in human nature. It is easy in all areas of life to continue on the same path without feeling the need to change. But it’s you who are responsible to keep employees motivated within the work environment, so you can ensure productivity, creativity, efficiency and harmony.

TIPS FOR COMBATTING COMPLACENCY

These practices can be your tools to help manage a complacent employee:

  • Offer incentives based on individual performance. People embrace working towards rewards, whether they are financial (as a bonus), material (think company watch), intangible (time off afterward to acknowledge a tough timeline) or the chance to advance in the future.
  • Provide constructive feedback that acknowledges a job well done — not just for new employees, but also the long-timers that we already expect are doing a good job. If you are dissatisfied with how they handled a process, outline clearly your expectations for improvement.
  • Arrange support if employees are feeling overwhelmed. When necessary, call in other team members to help, or seek temporary outside help. Such an approach not only indicates that you are empathetic to a specific problem but also promotes the concept that each employee has responsibility for other team members.
  • Always have an open-door policy that is highly geared toward engaging the employee’s feedback — whether or not the comments are positive. Moving forward depends on understanding how individual employees see the process and letting them provide input into how they believe things in the company should work. Let’s face it … even managers get complacent with the way things are and can start losing sight of new ideas.
  • Embrace team spirit. Encourage comradery among all employees, where it promotes a work process that builds on everyone’s ideas and contributions. Constantly reinforce the goals of the company and how each employee is an integral part of making it happen.
  • Provide opportunities for training that they feel will enhance their abilities and their value to the company.

Reducing complacency in the workplace is essential to maintain staff motivation and productivity, and to create a positive environment that provides all employees with the opportunity to contribute—not only to the organization but to their individual self-worth. If you want to reduce staff time off and turnover and provide a solid footing for an organization to move forward, use these insights to foster a team environment that encourages employees to meet the challenges at work while receiving constructive feedback and appropriate rewards along the way.

Disclaimer: Avisar Chartered Professional Accountant’s blog deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.

Although every reasonable effort has been made to ensure the accuracy of the information contained in this post, no individual or organization involved in either the preparation or distribution of this post accepts any contractual, tortious, or any other form of liability for its contents or for any consequences

Being In Control Comes With Its Own Responsibilities

Henri Fayol, a French mining engineer, published one of the first principles of management guidelines in 1914. This was one of the more memorable principles:

“Control of an undertaking consists of seeing that everything is being carried out in accordance with the plan which has been adopted, the orders which have been given, and the principles which have been laid down. Its object is to point out mistakes in order that they may be rectified and prevented from recurring.”

Henri Fayol

By necessity, owner-managers are required to be in control of every aspect of their business, since they’re ultimately responsible — and potentially liable — for matters including:

  • sales and receivables
  • purchases and payables
  • banking and borrowing
  • ensuring workplace and employee safety
  • withholding and paying taxes
  • collecting and remitting HST
  • protecting data security and confidentiality
  • addressing labour disputes
  • co-ordinating a union

But what are the possible consequences should management be unable to fulfill all of these responsibilities?

SALES AND RECEIVABLES

Not monitoring sales or collecting accounts receivable may mean going to small claims court to seek payment for receivables up to $25,000 (in Ontario). The cost of gathering data and time presenting yourself in court or hiring a paralegal may cost more than the amount that you’ll ultimately be writing off.

PURCHASES AND PAYABLES

Decide that you don’t want to pay an outstanding invoice with a supplier and you may be denied further service or product, which could bring your business to a standstill. At the very least, expect annoying collection calls — at the extreme end, you could face legal action that will swallow up your time and money while you defend yourself.

Continuously bounce cheques, and suppliers may demand cash-on-delivery or reduce your credit status, thus also hampering your ability to produce products or deliver services.

BANKING

If you do not control your bank balance and are routinely going into overdraft, you may have to manage with a poor credit rating, interest and overdraft charges, and holds put on your deposits.

BORROWING

Borrowing for any business asset puts the business and owner-manager at risk if the loan’s terms and conditions are not met.

Caveats in lending contracts that are broken may result in the loan being called, creating a cash crisis in the business.
Failure to repay a loan on a secured asset will result in the asset being seized — try running an operation without one of your key pieces of equipment.


If you have signed a personal guarantee on a business loan, your personal assets may be subject to seizure as well.

SAFETY

The consequences of neglecting safety within the workplace are multifaceted:

Your business will be subjected to fines and penalties from WSIB (Workplace Safety and Insurance Board).
Insurance and borrowing rates will increase in light of an accident.
In severe situations, your worksite may be shut down for failure to comply with safety rules.
If there is catastrophic injury or death, your business and you may be held personally liable as an officer or director of the company.

WITHHOLDING TAXES

Income tax, Canada Pension Plan (CPP) contributions and employment insurance (EI) premiums are considered “funds collected and held in trust by an employer.” Because this money belongs to your employee, the Canada Revenue Agency takes a hard line for businesses who are not remitting:

“If you do not fulfill your obligations or comply with our payroll requirements, you may be assessed a penalty, interest, or incur other consequences.
If you do not comply with the deducting, remitting, and reporting requirements, you may be prosecuted. You could be fined from $1,000 to $25,000, or you could be fined and imprisoned for a term of up to 12 months.”

CRA: Employer’s Guide—Payroll Deductions and Remittances

GST/HST

Not filing GST or HST (Goods and Services Tax or Harmonized Sales Tax) will not only mean penalties and interest levied to your business, it will no doubt result in a visit from the CRA to review your business operations to determine if there are deficiencies within your accounting system contributing to your failure to file. Since you are really collecting GST/HST funds from your clients on behalf of the government, the CRA takes strong exception to the fact that they have not received those funds.

INCOME TAX

Not filing corporate income tax can mean fines and penalties if corporate taxes are owing, and potentially worse consequences. Although rare, jail time can result if demand for filing is made and the business does not comply.

If taxes have not been filed for several years, the CRA may arbitrarily file a tax return and send the business a Notice of Assessment that says funds are owing. This usually encourages corporations to file their returns on their terms.

When tax returns have been filed, but income tax owing has not been paid, the CRA will freeze your corporate bank account. This effectively limits your ability to use that account to operate your business. Payroll, automatic deposits, automatic payments — in effect, all bank transactions — will come to an abrupt halt.

DATA SECURITY/CONFIDENTIALITY

Organizations that are required to collect personal information as part of their normal operating procedures must also, “protect information against loss or theft as well as safeguarding the information from unauthorized access, disclosure, copying, use or modification.” These requirements apply regardless of the format in which the information is stored.

Once this information is obtained, many private-sector businesses within Canada are required to follow the guidelines laid out in the Personal Information Protection and Electronic Documents Act (PIPEDA — note that different provincial privacy legislation may apply in Alberta, British Columbia, and Quebec).

One section of this Act gives people a right to access their personal information held by your company. Employers are required to provide this information on request, so it is incumbent upon them to be able to access and provide it. There are some exceptions, so check with your legal counsel if you are not sure.

LABOUR DISPUTES

Becoming involved in unresolved labour disputes is an employer’s worst nightmare, and it results in the provincial Ministry of Labour or its equivalent getting involved in the dispute process. Management must be aware of employment standards, as well as those that apply to workplace health and safety.

UNION NEGOTIATIONS

Employers make a serious error if they fail to treat unionized employees fairly, or do not submit deductions for union dues and other employee deductions required under a collective bargaining agreement. Not only will such an approach give rise to legal action for collection; it could also mean a union refusing to provide employees for projects that require unionized workers. The bottom line? Your business income suffers.

A successful owner-manager understands that, while they have the appearance of being in charge and in quasi-control of their company, that control is only valid if their operation complies with the multiplicity of third-party plans that have been adopted, external orders they have been given and third-party principles laid down in laws or regulations.

How can an owner-manager rectify and prevent the continuous invasiveness of third parties and thereby maintain control over their operations? It is only by fostering a culture of process and procedures within an organization that follow external rules and regulations.

Disclaimer: Avisar Chartered Professional Accountant’s blog deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.
Although every reasonable effort has been made to ensure the accuracy of the information contained in this post, no individual or organization involved in either the preparation or distribution of this post accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.