February 2024 - Bay of Plenty Business News

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20 BAY OF PLENTY BUSINESS NEWS February 2024 Initial franchisee training a crucial foundation for success There are a lot of things you only get to do once, like taking your first steps, your first words, or perhaps that first kiss. Not surprisingly, most of these will rarely be our best effort, but there is another first that you can and should be much better prepared for – this is the initial training you will receive before starting or taking over a franchised business. A franchised business can be an exciting and potentially rewarding venture. However the pathway to success in a franchised business is intricately tied to the effectiveness of the initial training provided to, and successfully completed by, the franchisee. This foundational phase sets the tone for the entire franchise operation, influencing business practices, customer service, and overall success. The franchise model offers entrepreneurs a proven business concept, operational support, and brand recognition in exchange for adherence to established standards and practices. For the franchisor-franchisee relationship to flourish it is imperative that the franchisee receives comprehensive training right from the outset. This training is not merely a formality but a strategic investment in the success and sustainability of the franchise system. Good franchisors understand that the success of their brand depends on the success of each individual franchisee. Consequently, they invest significant time and resources into crafting comprehensive and effective initial training programs. First and foremost, initial training serves as the bridge between the franchisee’s existing skills and the unique operational requirements of the franchised business. While franchisees may possess entrepreneurial spirit and business acumen, the specific processes of the franchise need to be imparted through systematic training. The initial training offered by a franchisor is a structured process designed to transfer knowledge and skills critical for running the business. The franchisee is equipped with the tools needed to replicate the success of the established business, ensuring a seamless and consistent experience for customers across all locations, and critically the basis of a successful business for the franchisee. Practical, hands-on training experiences are invaluable. Pairing new franchisees with experienced mentors or providing on-site training opportunities FRANCHISING BY NATHAN BONNEY allows for real-world application of theoretical knowledge. This mentorship model accelerates the learning process and instills confidence in franchisees. The initial training acts as a risk mitigation strategy, providing a standardized learning experience that minimizes the chances of errors and operational challenges. Through hands-on training, franchisees gain practical insights into potential pitfalls and acquire the skills to navigate them successfully. The success of a franchised business is intrinsically linked to the relationship between the franchisee and the franchisor. The initial training period also establishes the foundation for this relationship, fostering open communication, mutual understanding, and a shared commitment to success. The franchisee gains insight into the franchisor’s expectations, and the franchisor gains confidence in the franchisee’s ability to uphold the brand’s integrity. Franchisees who undergo thorough training are more likely to identify with the values and vision of the franchisor. This alignment fosters a commitment to maintaining brand integrity and upholding the standards set by the franchisor, ultimately contributing to the overall success and growth of the franchise network. Nathan Bonney is a director of Iridium Partners. He can be reached at nathan@iridium.net.nz or 0275 393 022 Donations – the often forgotten tax benefit By and large, we New Zealanders are a giving bunch. Whether we are giving our time, money or things we no longer need, we do so without expecting anything in return. And when times are tough it seems that this brings out the best of us, with Givealittle reporting an 18% increase in donations in the 2023 year compared to 2022, with a total $43.5m of donations. The Government recognises the good work that charities do in our communities, so to encourage greater giving of cash donations it allows a tax break for companies, individuals and Māori authorities that make them. Companies and Māori authorities are allowed a tax deduction against their income for cash donations to registered charities, up to the level of their taxable income. Because the donations will be recorded in their books, the claiming of this deduction will not usually be overlooked. Individuals however are a different story. We are able to claim a donation credit of 1/3 of the qualifying donation amount, but need to file an IR526 donation credit form separate from our income tax return to claim the credit and it seems a lot of people are either unaware of this, think it is too hard to make a claim or don’t know how to do so. In the 2022 tax year, Inland Revenue paid out a total of $308m of donation credits to individuals, representing a total donation amount of $925m. While there are no readily available statistics on the total amount of qualifying cash donations made by individuals, it is commonly understood that there is a large amount of Government money left on the table by individuals that do not make the claims that they could. The general criteria for claiming a donation credit are: The recipient must be an approved donee organisation – Inland Revenue has a searchable database of these, but generally these will be New Zealand registered charities or schools, plus some specifically named overseas charitable organisations; The cash donation must be more than $5; A signed and dated receipt from the charity must be held and include certain information; and The total amount of donations claimed cannot exceed your taxable income for the relevant year. Inland Revenue reviews donation claims quite closely, and some of the areas of concern for them are where the donor receives some benefit back from the charity in return for making the payment (as this would not be a true donation), or where amounts are paid to schools for goods and services (such as tuition, camp fees, stationery etc) rather than as a true donation. So as we get closer to the end of the tax year on 31 March, now is the time to think about the donations that you have made during the year and to make sure you take advantage of the credit available to you. If you use an accountant to prepare your tax returns, make sure you TAXATION BY ANDREA SCATCHARD send them copies of the donation receipts so these can be claimed. If you do your tax return yourself, or are not required to file one, it is very easy to file your donation claim yourself. Just log into MyIR, enter the details of the donation and upload a copy of the receipt (a screenshot or photo of it from your phone is fine). You will need to do this for each donation made. Once your income tax return has been filed, or your income confirmed if you don’t need to file a return, Inland Revenue will process the donation claim and refund the credit to you. And while you are digging out this year’s receipts, keep in mind that you can file a donation credit claim up to 4 years after making the donation, so you can still file a claim for donations made in the tax year ended 31 March 2020. As always, you should seek professional tax advice if you need assistance. Andrea Scatchard is a Tax Partner at Deloitte, based in the Bay of Plenty. She can be contacted on ascatchard@deloitte.co.nz
February 2024 BAY OF PLENTY BUSINESS NEWS 21 CREATING AN EXCEPTIONAL ONBOARDING EXPERIENCE Recruiting top talent doesn’t end with an offer letter. Often the critical stage of onboarding candidates is overlooked. Onboarding is a key step and can be considered ‘phase two’ of the recruitment process. It involves much more than where the new employee sits and learning the ropes of their new job. It’s about laying the foundations for a strong and productive working relationship and preparing your new employee to succeed in their new position. As recruiters and managers, we invest considerable time and money in finding the right person. Therefore, we want to give our new employees the best start possible, so those first few weeks and months of them starting are crucial. According to Gallup analytics, one in five employees either reports that their most recent onboarding experience was poor, or that they received no onboarding at all. When onboarding goes wrong, you’re leaving your business at risk, both financially and competitively, and it puts both performance and the new employee’s retention at risk. Gallup notes, 70% of employees who had exceptional onboarding experiences say they have the best job. These employees are also 2.6 times more likely to be extremely satisfied with their workplace and consequently, far more likely to stay. Therefore, it’s critical for employers to create a thorough onboarding process to help new starters embed into the culture and equip them for success. To help create an exceptional onboarding experience, we have identified some key recommendations to assist with creating a valuable and engaging journey for your new employee. Meaningful relationships Onboarding is all about connection. For many employees, the people element is the most valuable aspect of their onboarding experience. Being introduced to new people, forming social ties, learning from other colleagues, being shown around the workplace, and having the organisational structure explained are all practical examples of relationship development. New employees want to create relationships that make them feel supported, included, and respected. This area of the onboarding experience is all about meeting lots of people, asking lots of questions and receiving mentoring from colleagues who genuinely care. You can consider incorporating a social gathering into the onboarding plan during a new recruit’s first week. This will provide an opportunity to help them understand the motivations of the team and its culture and establish a relationship building environment. Another way to do this is by connecting your new person with a mentor and creating a ‘buddy system’. The buddy can be anyone in the organisation who serves as their key go-to person and points them in the right direction. Understanding contribution to the organisation HUMAN RESOURCES BY KELLIE HAMLETT When the new starter joins your business, they will crave answers and learning experiences that will help them reach their full potential. They will join with a range of questions so giving them the understanding of how they can contribute personally to the success of your organisation is key. Gallup research shows that valuable learning experiences offer far more than role-specific training. Thorough onboarding programs should discuss the history, culture, and origins of the company and most importantly how the new employees’ position and efforts link to the greater mission and purpose of the organisation. When employees understand why and how their job fits into the bigger picture, they can start contributing to the business success. A good onboarding experience can boost overall employee experience, especially if training is provided from the beginning, welcome videos from team members are shared and courses or modules on company fundamentals are offered. These can all help new employees feel connected, empowered, and confident. Clear expectations and processes One of the most common mistakes employers make is confusing training and onboarding. ‘Training’ is defined as systems, and terms of business, and is given on the businesses’ products and service, whereas ‘onboarding’ should focus on the building blocks of the company – the vision, values, culture, and relationships. These are two very different concepts. For many employees, the most valuable aspect of an onboarding journey is how it is organised and delivered. Create an onboarding journey that is comprehensive and understandable, but not too complex, otherwise it can become overwhelming. Employees want clear expectations for training and orientation, a well-defined onboarding structure, and a pace of learning that makes them feel well-prepared. However, when it comes to exceptional onboarding, there’s no one-size-fits-all approach. It is recommended to tailor your onboarding program to suit the demands of the role and the new employees’ needs. Investing time and energy Onboarding isn’t a quick tick box exercise and is not complete within a day. A thorough process begins the moment the new employee signs their employment agreement and continues for at least 3–6 months into their employment. Small details can go a long way. For example, making a quick phone call, or sending a welcome email the week before the new employee starts, to go over the basics such as where to park on their first day, what time to arrive and what to wear, can settle new job nerves and let them know you value their arrival to your workplace. Often job seekers have other opportunities in the pipeline when they accept a role. So, if you don’t take the time to ensure they’re welcomed appropriately, settled-in and excited to be part of your organisation, you could find they’re lured away by another job opportunity. Managers’ involvement Onboarding creates the perfect opportunity for relationship building and Gallup research shows that when managers take an active role in onboarding, employees are 3.4 times more likely to feel like the process was successful. Clarifying job expectations, regular check-ins and talking to new employees about career development plans are all imperative and show you are investing in them as a person and their career journey with your organisation. First impressions Research shows that employers have 44 days on average to “make or break” a new employee. Onboarding and personal relationships play a key role in making a good impression. Therefore, making sure your new team member has a space, a workstation and equipment they need to do their job is an obvious step, but it’s often overlooked. Little things matter – i.e. making sure their PPE clothing or uniform is ready, that they have the required tools, stationery and technology needed, that meetings or introductions with key contacts are organised etc. A ll these details make their first impression and the welcome for your new employee professional and reflect well on your organisation. Put importance on onboarding, ensure you differentiate it from training, and give it the time and attention it needs as such an important and impactful part of your new employee’s journey. Make sure to cover the basics and include a people element to create a true sense of welcome and connection. Talent ID are Recruitment Specialists and can support you through your recruitment process. Please feel free to talk to us about this by calling 07 349 1081 or emailing kellie@talentid.co.nz
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February 2024 - Bay of Plenty Business News

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