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RETHINKING PERFORMANCE MANAGEMENT – WHY YOU NEED A CONTINUOUS FEEDBACK LOOP FOR REMOTE WORKERS

Mark Seemann, CEO and founder StaffCircle

 

Many UK businesses are having to finely balance at-home workers, office-based and non-desk-based staff in a time of complex lockdown restrictions that differ by region, potentially affecting employees on the same team differently. This creates new challenges for managers and HR leaders when trying to manage teams in the “new normal”. Employees need clear communications on any updated protocols with coordination requiring new feedback mechanisms to keep everyone in the loop.

By accessing hard employee and business performance data leaders can make decisions instantly, while creating a network in which continuous feedback ensures employees get things right quickly, avoiding costly and time-consuming mistakes.

recent survey from Robert Half into the experience of professionals working from home – and how they feel about returning to the office – offers some important insight; 77% of employees are working from home, with a majority [60%] believing their work-life balance has improved due to the lack of commute, and 63% realising their job is doable outside of the office.

This shifting mentality around the topic of remote working has impacted sentiment regarding returning to the office. This radical reappraisal of office versus remote working represents a huge shake-up for the business community. But it also offers the potential to uniquely reshape how things are done moving forwards, introducing new processes which could significantly improve your bottom line.

 

Mark Seemann

Implementing a reliable and continuous feedback loop

Whether you’re setting transparent objectives or tracking an employee’s progress towards personal goals, implementing a reliable and continuous feedback loop is essential to identify problem areas and take action before any damage is done. Being able to offer constructive feedback in a timely manner helps to bolster a high-performance culture where accountability is driven by data.

Performance management tools bring managers directly into contact with their remote workforce and to communicate on the issues which matter most in an instant. Regular feedback boosts engagement and should be a core mechanism, so using a system which offers real-time feedback while allowing managers to schedule regular one-to-ones and check-ins  ensures a continuous feedback loop is maintained.

Team leaders and managers should focus frequent but brief meetings on near-term work, making sure they recognise any recent good performance, focus on strengths and acknowledging weaknesses, while avoiding giving the feeling that the employee is being micro-managed. It’s also important that these chats are not 100% dedicated to work: taking the time to ask how they are feeling, or if they are experiencing any problems coping with working from home, can help you address any concerns they have promptly before they lead to more serious issues.

 

Tracking and analysing employee sentiment

Without raw data to track and analyse, it can be difficult to fully understand if the systems your business has put in place to motivate and engage your teams is having a tangible effect on performance and job satisfaction. To leverage the best results possible from your staff, you need to implement a method for gathering data on employee sentiment in a way which is both consistent and reliable.

Regular feedback is a powerful tool for understanding and monitoring employee sentiment and boosting engagement, and these can be supplemented by integrating an Employee Net Promoter Score (eNPS) survey into your performance management tools.

With managers especially blind to any potential issues employees working from home might be experiencing, tracking employee sentiment via feedback and eNPS surveys gives raw data on the workforce’s engagement and loyalty, and also provides off-site staff the means to raise personal and professional issues to be addressed.

 

Motivating teams and individuals with daily recognition and rewards

Dealing with a workforce which is either 100% remote or split between remote and office working brings new challenges in keeping your staff inspired and motivated.

Performance management tools put recognition at the forefront to cultivate a culture in which employees are visibly appreciated for their hard work, tracking their ongoing performance individually and within teams so that rewards can be offered in a timely manner. Manager-to-peer recognition can be accompanied with peer-to-peer recognition, and employee achievements can be logged and tracked.

This data has an additional benefit to employers looking to spot new talents and improve employees’ overall skill sets, illuminating members of staff who might be better suited on a different project, or working in a different department.

By allowing employees to receive recognition on a daily basis through a shared platform, managers needn’t worry about being unable to communicate this much-needed positive reinforcement to remote workers. And with everyone in the company granted the same access to these tools, celebrating achievements can be done instantaneously, strengthening your company’s culture and bringing teams and individuals closer together.

 

Business

GOING GLOBAL: 7 TIPS TO GET STARTED

The idea of selling your products or services to new markets across the globe is an attractive prospect for any business, large or small. But while reaching new customers and unlocking the potential for further growth can seem exciting initially, adapting your business to foreign markets is no small feat. Factors such as cost, communication and cultural differences can all affect your business’ success when going global. This guide will explore some of the key considerations to make when you’re thinking of expanding your business overseas.

 

Evaluate Your Finances

One of the main questions to ask when looking to go global is whether or not your business can afford to do so. Crossing borders can be a complicated and expensive process which can take away time and resources from other opportunities at home. Growth for businesses abroad is often a slow process; establishing products and services in other countries takes time, so you will need to factor this into your planning. Thorough analysis of domestic and international markets should always be undertaken before making the decision to expand your business overseas.

 

Location, Location, Location

Choosing the right location is crucial to the success of your business expansion. International business network Going Global Live says that taking your business to the right countries initially can save you money on excessive marketing and advertising, putting you face-to-face with your target market from the outset. You should weigh up the pros and cons of potential locations, such as the likelihood of being able to fill your new HQ with prime, homegrown talent, as well as access to desired markets aided by foreign investment bodies. It is also important to consider the relevant laws and regulations laid out by national and regional governments.

 

Ensure You Have the Right Infrastructure

Making sure your business has the right infrastructure to handle expansion abroad will put you in a good place going forward. Implementing a clear management strategy, both locally and centrally, will set your business up for a smooth and successful launch overseas. Having up-to-date IT and communications systems at the centre of your business will allow you to share information and data securely. When it comes to shipping, choosing the best – and most efficient – transport and storage providers will give you the peace of mind that your products are safe in transit. Companies such as S Jones are ideal for businesses looking for more information on storage solutions for shipping overseas.

 

Build a Strong Team

Appointing a strong team to oversee your expansion is crucial to your company’s success in new markets. Hiring people with a good knowledge of your target market, as well as a focus on your business’ interests, is key when establishing your overseas HQ. Working with local partners can help you to communicate your business’ unique selling point in a meaningful way. Having an experienced partner or mentor that you can trust to oversee the expansion will allow you to stay focused on the bigger picture and ensure that your attention isn’t taken away from your core customer base.

 

Have Faith

Once you’ve made the move to globalise your business, be sure to have faith in your ideas and don’t be deterred by slow progress. Dr Shai Vyakarnam of the Cranfield School of Management says that while there is a fine balance between faith and stubbornness, you’ll need “incredible levels of self-belief and faith in your idea” to succeed, and that you “only need to be able to turn a few key people in your favour and the others will follow”. Making well-informed decisions quickly will allow you to stay on track and will nullify the threat of any lingering self-doubt. While progress may be slow at first, be sure to remain patient and be prepared to build personal relationships to gain the trust of your new partners and customer base.

 

Consider the Impact of New Ideas

When implementing new ideas for your business as whole, consider how they will be received by your new international customers, as well as by your existing customer base at home. What might be seen as a positive idea in your home country could be perceived as offensive or alienating by your customers abroad. Factors such as differing time zones, languages and cultural appropriateness should always be taken into consideration when making key decisions to eliminate the risk of alienating foreign customers and damaging your reputation overseas.

 

Be Adaptable

While it is important to have faith in your business and be patient initially, you should also be willing to make changes as things develop. Acting on the advice of experts is key to navigating new markets successfully. It may be that your products and services require innovation to meet demand, or that cultural differences lead you to make changes to your marketing strategy. Being adaptable will give you the best chance of meeting consumer demand on a global scale.

When trying to expand your business to an entirely new customer base, try to bear in mind some of the above points. As long as you remain patient and open-minded, then you should have little difficulty in marketing your business globally.

 

Sources

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WHY HIGH NET WORTHS SHOULD BE LOOKING AT ANGEL INVESTING IN A NEGATIVE INTEREST RATE ENVIRONMENT

By Oliver Woolley, Envestors

 

As England gets through its second lockdown, Bank of England policymakers report the UK we may be headed for negative interest rates. This would be the for the first time this has happened in the bank’s 326-year history.

With interest rates already at 0.1%, central bank officials announced an additional £150bn stimulus package, in an attempt to boost consumer spending during the second wave of the pandemic.

Despite news of a vaccine, the BoE has taken the total stimulus to £895bn, as double-dip recession forecasts emerge.

In the event of negative interest rates becoming a reality, banks would have the incentive to lend more by making loans cheaper, but account holders would likely be asked to pay to hold money in a savings account.

While plans for negative interest rates are pending, government bonds are already selling at a negative yield of -0.003%, with investors hoping for the safe haven of government issued bonds paying out to get their money back in three years.

Between negative returns on savings accounts, lower yield on bond holdings, a volatile stock market and a projected dip in property prices, investors don’t have many options to diversify their portfolio in a negative rate interest environment.

However, for investors who are comfortable with risk, early-stage investing may be the answer. Angel investors support early-stage companies through financial backing, typically in exchange for equity in the company. An additional benefit for angel investors is the generous tax reliefs offered under the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS).

 

Oliver Woolley

What is angel investing and why is it attractive?

An angel investor (also known as a private investor, seed investor or angel funder) supports early-stage enterprises by providing funding and getting actively involved in the business. Typically, the amount invested is between £5,000 and £50,000 per investment.

Early-stage investments are high risk as the number of early-stage businesses that grow through to an exit is low. Previous research suggested that 56% of investments in early-stage companies went bust. This is why experienced angels aim to build a diverse portfolio of 20+ investments.

While angels usually have to wait a number of years before recovering their initial investment, returns can be considerable. Due to the high risk nature of angel investing, high net worth individuals are usually looking for a 2.5x Return of Investment (RoI).

When first starting out, an investor should look for a well put together business plan with a defined exit strategy. Many angels choose to join an angel network when starting out, where investors can pool investment capital and invest alongside like-minded, experienced investors.

 

Tax relief through EIS and SEIS

In order to encourage investment in start-up companies which play a vital role in the economy, the UK government has launched several tax relief programmes, including the Enterprise Investment Scheme (EIS). This scheme, which makes investing in early stage enterprises tax-efficient, has encouraged £22bn in investment in 31,365 companies.

By investing in an EIS eligible company, angels receive income tax relief of 30% of the amount subscribed for eligible shares. Investors can put in up to £1m per tax year in EIS qualifying companies for the tax relief; this cap rises to £2m if investing in knowledge-intensive EIS companies.

In order to qualify, companies have to be trading for less than seven years and can raise a maximum of £12m.

Through EIS, angels receive a Capital Gains Tax (CGT) exemption, carry back and loss relief which can be offset against CGT or Income Tax.

Looking at a practical example:

If an angel invested £10,000 and the company failed, their actual loss would only be £7,000, due to the 30% income tax relief. However, a top rate income taxpayer paying tax at 45% will be able to claim loss relief on their tax liability at the 45% level. In this example, they’re eligible for further relief of £3,150, making their actual loss £3,850.

The success of EIS led to the introduction of the Seed Enterprise Investment Scheme (SEIS), promoting investments in riskier, earlier stage companies. About 80% of UK angel investors seek relief through EIS or its sister scheme, SEIS.

SEIS allows HNWIs to invest up to £100,000 and receive 50% tax relief on their investment. In order for companies to be eligible for SEIS, they have to have been trading for less than two years and cannot have more than £150,000 in previous investment.

 

Hot investment sectors

Reports from the British Business Bank and the UK Business Angels Association reveal that many investors are still seeing positive returns during the pandemic.

While angels are battling economic uncertainty, around three quarters are optimistic about the market bouncing back within the next 12 months.

Healthcare, Digital Health and MedTech, BioTech, Life Sciences and Pharmaceuticals are the leading sectors in terms of investor engagement during the COVID-19 crisis.

Software as a Service and FinTech have fared well throughout the pandemic and are still attracting a large number of investors.

Getting started with angel investing is now easier than ever, with an array of angel networks that can provide advice and support. Industry-association, the UKBAA, offers an Angel Investment Accelerator which is designed for those new to early-stage investing.

In order to choose the right angel network, HNWIs should look for the most active networks; Research body Beauhurst recently published a list of the most active networks in the UK.

Active networks will present a greater array of screened opportunities as well as connecting new investors to more experienced ones.

The best networks cover a variety of regions, sectors and investment sizes, and they’re forthcoming with examples of previous investments, so first-time angels can make the right choice on how to grow their portfolio.

So, while looming negative interest rates may require a rethink of current investment strategies for many – it might also open up a new and exciting investment class that offers much more than just financial gains.

 

ABOUT THE AUTHOR

Oliver Woolley is CEO and co-founder of Envestors. Envestors’ digital investment platform brings together entrepreneurs and investors across geographies, communities and sectors – creating the single marketplace for early stage investment in the UK.

Envestors partners with accelerators, incubators and angel networks to provide a white-label platform empowering them to promote deals, engage investors and connect to other networks.

Founded in 2004, Envestors has helped more than 200 high growth businesses raise more than £100m through its own private investment club.

Envestors is authorised and regulated by the Financial Conduct Authority.

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