I’m not talking about computers, software, or physical security (although that is an aspect) of your offices.  I’m talking about your people, the human assets on which your company is able to operate.

While I’m not specifically talking about people poachers, market swings, bad employees, bad managers, morale or company culture; they all play a part in protecting your people.

I am talking about health.  I am talking about things you can do within your office to mitigate certain health issues that will not be considered Orwellian or even Bloomberg-ism to your staff.  Simple policies that can have an untold positive effect on the morale and well-being (past the psychological effect) of the staff.

Simple Policy Changes

Flu season is peaking late this year.  The common cold and maladies can strike at any time.  In fact, the ten top communicable diseases include not only the previous two, but strep throat, pink eye and something I never heard of until doing some research for this article, Fifth Disease.

“Fifth Disease is caused by a virus, called parvovirus B19, which tends to spread among children in elementary school. It is most prevalent in the winter and spring, but it can spread at any time and among people of any age.” Says healthline.com.

So what policy changes can you make to protect your staff?  Intelligent use of sick time and remote/telecommuting policies.

Having a sick employee staying home protects all your employees.  Ben Franklin said in 18th century, “An ounce of prevention is worth a pound of cure.”  That paradigm is still true.  There is no reason to risk having the entire office because an employee feels they must come to work sick because of guilt, policy or economic repercussions.

A simple change in a policy like this can go along ways (but not entirely) in relieving some of the second easiest fix a company can do, stress reduction.  While there will always be stress, there are a myriad of steps a company as a whole can do to help reduce stress.

Stress reduction decreases the chance for heart attacks, hypertension and stroke.  Moreover, while there are scores of other triggers for these diseases, a less stressed employee is a more productive and accurate employee.

What can you do?  Enforce breaks, taking lunch/dinner, even a mid-day walking club.  Something that gets your employee away from their daily routine and allows them to just plain relax.  Try it, it does work.

My question to you?

If your company is not talking about these programs, why are they not seriously considering them?

Too much money – the loss of productivity from sick employees and diminished work far outweighs the costs of these simple programs.  A happy workforce is a more productive and loyal workforce.

Lastly, what can affect the staff can affect the bosses, so it’s in their best interest as well!

The Event

“I received a first email this week from our CEO advising of intention to send a wire that day. Then got a second email an hour later with wire details. Bank of Philippines.”, wrote John P. Hart Vice Pres – CFO at Nova Pressroom Products, LLC on Proformative.com, a social media and education site for financial and other professionals.

Jim followed up on that request.  He wrote, “I asked him [the CEO]– in person – why we needed to send $75,400 to an individual in the Philippines!” “WHAT?” he said.”

The Issue accounting controls

Sadly, this seems to be a more and more common swindle that the criminal element is using to bamboozle the overworked accounting department.

Finding out who the CEO for many companies is quite easy, and spoofing their email address – that is child’s play for these people.

They are just betting on your staff, fellow employees or you to be sloppy. Hey, the CEO is the boss, and if he asks for money to be wired, he knows what he/she is doing, right!

WRONG! So wrong! Dangerously Wrong! Especially from the accounting control perspective.

The Solution – Accounting Controls

Every check that is written, wire that is sent, ACH entered into the banking system needs to be processed by a previously documented set of rules.  Rules may vary a bit, but all of them have the same basic tenants:

1. Backup documents to clearly and explicitly stipulate what the payment is for (services/products)
2. Signatures that attest that the documents have been read and approved
3. Dates
4. Standard addresses and bank accounts (if any) that the vendor uses (preferably sent via a secured methodology and counter-signed)
5. Mandatory voice verification of e-mail requests for wires that
6. Are over a certain threshold (with or without backup documents)
7. That contain different banking information
8. Are being sent to a “new” entity

Epilogue

Just as we have made rules not to open documents from unknown sources, have installed and up to date virus protection, we must now be vigilant on just assuming every e-mail is real.

Just as the fraud where you get an e-mail from someone who is on vacation, is mugged and left penniless asking that you send money to a Western Union address, you need to sit back and think about the contents of requests that just seem wrong.

Think about it, does the IRS call you saying that you owe money and ask for payment over the phone?  No, the IRS would never call you.  They send regular US Mail.  You can independently verify the letter by calling the IRS directly (if in doubt, do not use the telephone number they provided on the letter).

Today, the term caveat lector should become as popular as caveat emptor.  Let the reader beware!

 “Another classification issue that received a great deal of attention in 2015, and which will continue to be a thorn in the side of employers, is the distinction between employee and independent contractors. In 2015, the Department of Labor (DOL) issued guidance on the determination of whether a worker is an employee or an independent contractor. Specifically the report analyzed the FLSA’s definition of “employ” and the application of the “economic realities” test, used by federal district courts. The DOL’s guidance is important as the misclassification of independent contractors has significant financial implications.

The FLSA defines “employ” as “to suffer or permit to work.” The economic realities test focuses on six factors to determine if the worker at issue is economically dependent on the employer or is actually in business for him or herself.

The six factors which make up the economic realities test are:
1. Whether the work performed is an integral part of the employer’s business;
2. Whether the worker’s opportunity for profit or loss is affected by this managerial skills;
3. The extent of the worker’s investments relative to those of the employer;
4. Whether the work performed requires special skills and initiative;
5. The level of permanence in the relationship; and
6. The degree of control the employer exercises or retains over the workers.

The DOL has emphasized that all six factors must be considered and that no single factor is dispositive of a worker’s employee status. Interestingly, the sixth factor, the “degree of control” is the common law test; nevertheless, the DOL has advised that it should not be given “undue weight.”

Employers must be aware of all six factors and cognizant that despite a written agreement and regardless of label given to the individual, the working relationship must satisfy the economic realities test. Best-practices mandate that the employer reevaluate their independent contractor relationships for continuing compliance. Finally, employers must know that employee status under the FLSA is broadly construed in favor of the worker being considered an employee. “

I was negotiating a contract with a major player in the on-line e-commerce space.  They sent us their boilerplate contract to sign.

I read the contract.  Not to re-hash everything that a friend of mine Bart Eagle, Esq. wrote in his article “Look before you leap” you really need to read that contract and object where objections are warranted.

I went about highlighting aspects of the contract I did not like.  Then the California corporate attorney (sorry, it was not you Bart) went through the contract and re-wrote both my issues and some that he had.  The modified contract was sent back to the Vendor and there is sat.

Two or so weeks later, we forced them act.  On a conference call between three of their people and myself yielded this type of conversation:

Me: Your contract wants me to assign to you the ability to modify trademarked logos that I don’t own.  I don’t have the legal right to do that.

Them: All our clients sign that clause.  Sometimes we need to re-work the trademarked logo.

Me:  Why would I give you permission, which puts me in jeopardy of losing a lawsuit when I know better?

Them:  Are you being difficult?  Because if you are we don’t need to work with you.

Me:  I’m not being difficult, I’m being smart, smart about the law, smart about protecting my company and negotiating contracts that are fair and not one-sided is my job.

Them:  You know the contract is just a formality.  Once we sign it, we put it in the filing cabinet and never look at it again.

Me:  Let me talk with the CEO, and I’ll get back to you.

There were other issues discussed, met by the same type of logic, the vendor was the big boy and what they said went.  Sometimes you need; in the words of Kenny Rodgers “know when to hold them and know when to fold ‘em”.

That was the end of that relationship.

Lesson of these stories is do not be bullied.  Yes, the deal may fall through and yes, it might hurt the bottom line.  However that “yes” to the deal, may turn sour and that contract you were bullied into signing, that was so lopsided in their favor will come back the haunt you…

Moreover, that haunting can cost you way more than you could ever make with the deal in the first place!

Sometimes the risks are just not worth the effort!

Received this via InMail looking for clients:

“My name is <name removed>.  I’m a former New York Jets player that is now working as a Recruiter. I have over 20 million resumes for all different industries. Do you have any job opening at your company? If so, Can I send you over a resume?”

What does being a pro ball player have to do with recruiting? I am neither impressed nor care that you were a ballplayer, but that’s me and I digress, my apologies dear reader.

20 million resumes – really? What type of service do you offer either the candidates or your clients? What are you going to give me, a keyword search?

Hint: I can do that myself, here on LinkedIn and probably get a better selection.

Have you talked to any of these 20 million candidates!?  Are they a) real, b) still looking, c) able to work legally?  Have you also vetted them to some extent as to whether they are the requisite knowledge to perform the jobs to which they are applying (not degrees, not post nominal letters, real-life verifiable experience!)?

Next up in my critique of your email (some may say rant and they would have some credence to that claim) is your total lack of any investigation of my company.  You asked if I have any openings. [Rant – correct English would be job openings plural, not singular].

You didn’t even spend the time to investigate my company and see what we are about, what our needs might be or even limit your offer to key types of positions that all companies would employ (remember you have “20 million resumes for all different industries”).

I’m not sure what the value proposition is here for my company.  Is it that you are a former pro-ball player?  Is it that you have a database of unknown quality of resumes?  Is it that you didn’t spend any time to figure out what type of company I am?

If this was Marketing 101 (by the way, I was a college adjunct for 10 years, so I’ve graded enough exams and papers) and the assignment was to write a blind e-mail to sell your business (yourself) to a potential customer, I’d have to give you a failing grade.

I hope you have learned something and wish you luck in your new career.

bad marketing