Conflict in the workplace is inevitable. Many people perceive conflict a negative issue. However, what you learn through dealing with conflict can result in both personal and organizational growth. Though, if conflict is not managed effectively, it can be devastating to an organization.

The first step in improving your conflict management skills is understanding the different conflict styles and then determining your preferred style. Though we all have a preferred conflict style that we will habitually use, we also have the ability to change our style depending on the situation. There is no right or wrong conflict style, each one has its own strengths and weaknesses.

What is your conflict style? There are five main conflict management styles:

1. Competing (win/lose) – The competing style is assertive and uncooperative. When using the competitive style the person is putting his or her own concerns before anyone else’s interests. This style is effective when quick decisive action is required, in the case of an emergency or any other critical situations.
   
2. Collaborating (win/win) – The collaborating style is assertive and cooperative. When using the collaborating style the person tries to work with the other party to find a solution that satisfies both sets of concerns. Collaborating is effective when you want to gain commitment from others and resolutions must address all perspectives.
   
3. Compromising (win some/lose some) – The compromising style is both assertive and cooperative. When using the compromising style the person is concerned with finding a solution that settles on a middle-ground. Both parties will only partially be satisfied with the resolution. This style is often effective when there is a time constraint on finding a settlement.
   
4. Avoiding (no winner/ no loser) – The avoiding style is unassertive and uncooperative. When using the avoiding style the person will not address the conflict. He or she will either ignore the issues completely or temporarily, not taking part in finding a solution. This style can be effective in a situation where both parties need a cooling off period before they can hope to resolve the conflict.
   
5. Accommodating (lose/win) – The accommodating style is unassertive and cooperating. When using the accommodating style the person sacrifices their own concerns for the other persons’ needs. This style can be effective in conflict situations where the other party is determined to win at all cost. The accommodating person will compromise in order to keep the peace.

Approaching conflict management using these five styles provides more flexibility in the resolution processes. A manager, for example, can try different conflict styles if they find that their original strategy failed to resolve the conflict. In determining your conflict preference you can see how your strength can quickly become your weakness if the style is over-used. A leader’s goal should be to understand which style he or she uses most often and which styles should be strengthened.

There are two additional strategies that can help you to improve your conflict resolution. The first was introduced by Steven Covey in Seven Habits of Highly Effective People, habit five suggests to “seek first to understand, then to be understood”. If we listen and understand the other side first, then they will be more apt to listen to our side.

The second strategy is based on the book Getting to Yes by Roger Fisher and William Ury, they suggest that for wise conflict resolution people need to focus on their interests rather than their positions. When focusing on positions, we tend to emphasize the disagreement. When we concentrate on interests, we actually find some common ground. The book explains that each person must fulfill his own interests and needs, neither side should attempt to change the other person’s position.

In conclusion, we know that conflict is inevitable, but it doesn’t have to be destructive. Deal with conflict head on and encourage productive change in the workplace.

As the owner of your company, you are always looking for innovative ways to motivate your employees. Rewarding people for their contribution to your company’s success is a powerful tool. By using performance-based rewards you get the best effort from each of your employees.

The trap that many employers fall into when developing a bonus plan is an across-the-board mentality. You may think this is the easiest and fairest way to share the profits. The fact is, there is nothing fair about the equal treatment of unequal performance. This type of plan sends the wrong message to both underperformers and your top performers. Your bonus plan should send a message about what your organization values. You get what you reward.

Another problem with the across-the-board bonus plan, they are quickly viewed by employees as an entitlement. In no time at all, the bonus becomes a right and is no longer motivating. In leaner times, if the amount of the bonus decreases it is look on as a punishment and actually becomes de-motivating.

The new compensation trend is moving towards distributing gains through bonuses that reward actual goal attainment. When the team and individual goals are directly linked to corporate objectives and values, everyone wins.

The bonus plan needs to be meaningful to your business. The first step is determining your specific goals. What do you value most in your business? What work culture do you want? What targets do you hope to meet this year? Next step, is communicating these goals to your employees and explaining that their bonus levels are directly tied to the attainment of these goals. To encourage a team environment, a portion of the bonus should be awarded based on team accomplishments.

From the employees perspective, they tend to find performance-based bonus plans less subjective and more empowering then the traditional bonus programs. They feel a connection to the corporate objectives and see that their contributions have a direct impact on obtaining these goals. They also appreciate that their individual reward is determined by their own performance levels and the efforts of their team members.

It is always surprising to me, as a human resources consultant, that more business owners don’t take full advantage of performance-based bonuses. They can be a very powerful way to achieve your business objectives and to ensure that you retain your top talent.

What’s the most effective way to motivate people? There’s no simple answer to the controversial question of what effectively motivates people. Different things motivate different employees. For some it’s the lure of a hefty pay cheque that really gets them excited. While others are motivated by a genuine need to help others, to have the opportunity to solve a problem or to learn something new.

The way in which you motivate employees can have a profound effect on employee retention. Learning and understanding each employee’s individualities are the first steps in motivating your workforce. It’s important to be aware that when it comes to employee motivation, one size does not fit all.

From working with managers and employees on motivation problems for many years, I have determined that the following are the best way to motivate people and inspire peak performance:

• Employee participation in setting goals and determining the steps to reach them.
• Share the vision, people want to see the big picture and where they fit in.
• Provide all employees with the tools and training necessary to succeed.
• Pay a competitive rate for all positions in your company.
• Give clear, concise directions that can be easily understood.
• Provide clean and safe work environment.
• Empower people to make decision related to their jobs.
• Be accessible. Listen actively and empathically. Respond promptly.
• Give ongoing credit and praise for a job well done.
• Treat employees fairly and with respect.
• Encourage people to acquire additional knowledge and skills.
• Keep people engaged, challenged and excited about work.
• Value all employee ideas and suggestions.
• Promote the careers of all interested employees.
• Make each person an integral part of the team.
• Keep people informed about how they’re doing on the job.
• Encourage your people to do their best and support their efforts.

You can determine the best motivators for your employees by getting their feedback. Ask them what approaches they like and dislike and implement changes based on your findings.

Finally, in one word the most powerful motivator that I have seen is -- ‘empowerment’. We’ve all heard this buzzword but what exactly does it mean? Empowerment means you share your power with the people over whom you have power. This is easier said than done. Some leaders don’t want to give up their power - and some people don’t want to take the responsibility that goes with power. However, managers must establish a strong corporate infrastructure that supports empowerment, if the organization is to succeed. As the former CEO from 3M put it, “The mistakes people make are of much less importance than the mistakes management makes if it tells people exactly what to do.”

A company owner sits slumped over his desk. The monthly sales figures are down again and the prospects are bleak for the months ahead. “I’m going to be forced to lay some people off,” he said. “I’ve tried cutting costs but it’s not enough. This is a small business and everyone that works for me are like family. How am I going to decide who stays and who goes?”

Many small business owners are facing a similar scenario. They must answer the difficult questions: How can I cut payroll costs without destroying employee morale and trust? Should I let my employees know the company is hurting? What if the economy bounces back?

Here are some strategies to consider:

• Tell your employees how the business is doing, during good times and bad. Many managers feel if they’re honest with their employees about the company’s financial position, that the employees will either ask for more money or leave. Surprisingly, the facts don’t support this common belief. Employees that are made aware of the company’s position feel respected and are more inclined to help out where they can.
• Ask employees where they see opportunities to cut costs. They are often the first ones to notice the areas that need trimming. Too often, the first place owners make cuts are in the head counts. If you make every attempt to cut expenses, to avoid layoffs, employees are much more willing to reduce other expenses.
• One method to reduce costs is pay cuts, as the owner you should be the first to take a cut before asking others to do so. When employees see that you are making ever attempt to reduce costs they will willing to help. One company owner was shocked when the employees offered to take unpaid time off.
• Meet with employees to brainstorm creative ways to find new sources of revenue. Don’t forget to ask current and past customers for their input. During tough times, many companies chase new customers and miss the opportunities right under their noses with their old customers.
• Other alternatives to layoffs include work-sharing and early retirement. The work-sharing strategy enables teams to stay together. Employees work few hours and often retain their full benefits. Another way to minimize the number of employees laid off is encouraging older workers to retire early.
• If you must cut employees, give them as much notice as possible. Treat them with respect, give them as much severance pay as you can afford. Provide either in-house or outsourced options for career transitioning. Some companies offer laid-off employees a rehiring bonus in hopes that when the company recovers these employees will return to work. How you treat laid off employees will have a huge impact on the morale and loyalty of the surviving employees.
• If you hope to re-hire the laid-off employees make sure you keep in touch with them. Let them know that you still consider them part of your team. Keep them posted on the company’s situation. It’s more cost effective to re-hire than to train new employees.

The decision to layoff or downsize is never easy. Talk to employees about the financial situation the company faces. Good or bad, employees want to know how the company is doing.

Does your company want a competitive edge? Then pay close attention to the people side of your business. You know what I mean ... the scary ‘touchy feely’ HR stuff. HR, also known as human resources or human resources management can be broken down into two key activities:

• Attracting/hiring the best employees
• Keeping your best employees

HR isn’t rocket science, it’s based on good old common sense, decency and doing the right thing. These are five HR practices that you can implement right away that will prepare your company for future growth.

1. Always be on the lookout for top talent
Do you have a limited recruitment budget? Then consider building your own database of talented people. The next time you meet someone who impresses you with their superior service level or expertise ask them for their contact information and put them in a database. When it’s time to hire you’ll have a database full of talented people that you have already pre-screened.

2. Learn interviewing skills
You can’t fly by the seat of your pants when it comes to interviewing. This is one area that requires some specialized training to be effective. Take a course on behaviour interviewing, or at the very least, obtain a list of behaviour-based questions to use when interviewing.

3. Competing with larger employers for top talent
How can you compete against the ‘big guys’ for the best people? Small companies can be more flexible with compensation packages and non-monetary benefits than a large company.

Here’s a list of low/no-cost perks:

• Option to work at home
• Summer hours - Friday off or half day
• Flextime and casual dress days
• Child care and elder care
• Coffee/snacks and subsidized lunchrooms
• Tuition and professional memberships

4. Be a better leader
The number one reason people leave a company is their relationship with their managers. As a manager, you must be a good leader. A good leader needs to motivate and inspire his or her team to meet their shared objectives on the job.

You need to …

• Treat your employees like customers
• Lead don’t commanding
• Wear all the hats - coach, leader, strategist, supporter and motivator
• Get employee(s) feedback
• Conduct annual performance reviews

5. Be clear
If you want to retain top performers you need to have a clear and well-run company.
Suggestions on how to keep the communication lines open:

• Have policies and procedures in place
• Don’t skip the orientation of all new employees
• Get people involved in making decisions
• Communicate with your people on an on consistent ongoing basis
• Be clear about the company culture, goals and philosophies

People who have a dream of building a great company know the key to their success is getting and keeping the right people. In Jim Collins book Good to Great, the chapter “First Who … Then What” suggests to get the right people on the bus, in the right seats and the wrong people off the bus, then figure to out how to take the bus somewhere great.

In Part 1 of “Eight Hiring Mistakes to Avoid”, we discussed why it’s important not to rush the process; why you should get to really know the position; what type of interview questions to ask and not to ask.

These are the final four hiring mistakes commonly made:

5. Talking more than listening

Another common error interviewers make is talking more than the candidate. I’ve seen managers monopolize the whole interview talking about the company, the position and even themselves. As a result, they have learned next to nothing about the candidate and afterwards they don’t have the information needed to make a good hiring decision.

Active listening skills are vital to effective interviewing. You need to listen carefully to what the candidate is saying - and not saying. The only way to get a clear understanding of the candidate’s qualifications is by asking questions and really, really listening to their answers.

6. Not providing a realistic job preview

Don’t make the position out to be a perfect ‘dream job’ if it’s not. A realistic job preview provides candidates with information about all the aspects of the job … both the positives and negatives. The preview can improve employee job satisfaction, reduce turnover, and provide realistic job expectations.

If you over-sell the position and the candidate joins your organization, once they discover the negatives, they may quit. Which leaves you having to start the whole process all over again.

7. Verify … verify … verify

The candidate has presented you with a slick resume and has interviewed very well. Before you make a decision, you should check references and verify their information.

It’s shocking how many managers completely ignore this step. In recent years many companies have been advised by their legal teams to avoid giving references for fear of defamation suits. Companies may limit their responses to confirmation of employment dates and some generic information about job responsibilities. Because of this, some organizations don’t bother to check out potential employees. This often turns out to be a costly mistake.

Be creative when doing reference checks. Ask probing questions and interpret the responses. Read between the lines. It’s important that you get as much information as possible before making that hiring decision.

8. Making hiring decisions based on “gut feelings”

A hiring decision based on feelings, stereotypes, biases or gut feelings is risky business.

It’s often said that the decision to hire or not hire is often made in the first 30 seconds of the interview based on the first impression of the candidate. A good first impression can create a halo effect: Don’t let some superficial aspect of the candidate cloud your judgment on their real capabilities.

Gut feelings do have a place in the interviewing process. If for instance, you have a gut feeling that something just doesn’t seem right - ask more probing questions.

Don’t ignore your ‘gut’, it’s trying to tell you something.

That said … you will have far greater success if you listen to your ‘gut’ while interviewing and use logic to make your hiring decisions.

The hiring process is as much an art as it is a science. By avoiding these 8 common mistakes, you will make effective hiring decisions and get high quality people.

Hiring good employees is not only important to a small business - it’s essential. Poor hiring decisions can lead to decreased profits, lost sales, low productivity and customer dissatisfaction -costly mistakes for any employer. A study by the Society of HR Management (SHRM) estimates the average cost of a bad hire is 2.5 times the employee’s salary. YIKES! Who can afford that?

In this two part article we discuss the most common hiring mistakes made and provide tips on how you can prevent these expensive errors.

1. Hiring out of desperation

Any “warm body” will do, right?

Wrong. Lowering the bar as your desperation levels increase is a big mistake. You may assume you can train marginally qualified people to at least become satisfactory workers. But the time, energy, and money spent rarely pays off. It’s far better to use other team members, employ a temp, or outsource the work.

Take your time - and get qualified people. You won’t regret it.

2. Not understanding the job

If you don’t fully understand what the position needs how will you know what qualities to look for in a candidate?

Before you start … take the time to do a job analysis and an organization analysis. A job analysis lists all the duties and responsibilities, including education, work experience and physical skills that are required. It should also include a ‘success profile’ section detailing the key behaviours and attributes needed to perform the job successfully. Having the education and experience has long been the only measuring stick used when hiring. But more and more research is finding that another form of intelligence - emotional intelligence or emotional quotient (EQ) - is equally, if not more, important in hiring a successful employee.

The next step is to conduct an organizational analysis which provides you with information about your own company, its culture, mission and vision statement. This information helps you decide what type of person will be the best fit for your organization.

3. Not asking the right kinds of questions

One of the biggest mistakes interviewers make is ‘winging it’. They sit down for an interview and hurriedly scan the resume and then proceeds to ask whatever questions that come to mind. This sporadic exchange of questions and answers makes it impossible for either side to make a reasonable decision.

A better approach is a structured interview where you ask open-ended questions developed from the ‘success profile’ of the job analysis. The majority of the questions should be behavioral-based. For example, if the position requires the person to handle customer complaints, you could ask the candidate to give an example of a time when they handled customer complaints in the past.

In a structured interview, your questions should flow in a logical order. You need to ask all candidates the same questions for consistency. This makes it easier for you to evaluate all the interview answers and compare each candidate. One word of warning, resist the temptation to make the interview too structured, it stifles creativity.

4. “You can’t ask that!”

Every day some interviewer in some company - maybe yours - asks an illegal question. Why? Often it’s ignorance of the law, which (by the way), is not an acceptable defense. Most illegal questions asked in interviews or on an application come under human rights violations. They include questions about age, sex, marital status, disability and so on. Make it your business to learn what the laws require. Visit the Federal Employment Standards and Provincial Human Rights Commission websites for more information.

In Part 2, we’ll discuss active listening; why it’s important to provide a realistic job preview; reference checking and hiring decisions. Stay tuned!