Business is Simple but no-one said it was going to be easy!
by Warren Myers CMP Recruiter and Credit Services Advisor

Being in business as an Owner or Manager you know the “Simple but not Easy” theme so well
because at times it is easy but to make it easy you need to get through the tough parts.

But not only do you need to:

1) make sure the business works and all is in order
2) manage and assist your people
3) develop new business and deliver on your promises

Just to mention a few of the many balls you are juggling at any one time and trying to have a life of your own.

Just a reminder “CASH FLOW IS KING” but you know this already!

April is a short working day month and that then leaves two months till the end of the Financial Year!
OMG it’s here all-ready is going through your head!

NOW IS THE TIME TO PUT THE DEBTORS LEDGER UNDER THE MICROSCOPE
If you haven’t already done this!


CMP CREDIT TEMPS CAN BE THE ANSWER;

• They will clean and tidy the ledger
• And improve your cash Flow
• Sort any doubtful debts
• Reconcile accounts and solve problems

But most of ALL they will Collect on your invoices and keep your clients and customers happy.
 
CMP can deliver expert Credit people with the right skills to fit your business.

NATIONAL INNOVATION AND SCIENCE AGENDA - IMPROVING CORPORATE INSOLVENCY LAW

28 March 2017 | Exposure Draft

As part of the National Innovation and Science Agenda (NISA), the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer, has released draft legislation which reforms Australia’s insolvency laws and an accompanying draft explanatory statement for public consultation. The draft legislation will amend the Corporations Act 2001 to promote a culture of entrepreneurship and innovation and help reduce the stigma associated with business failure. This will help drive business growth, local jobs and global success.

The amendments will create a ‘safe harbour’ for company directors from personal liability for insolvent trading if the company is undertaking a restructure in certain circumstances. This will drive cultural change amongst company directors by encouraging them to engage early with financial hardship, keep control of their company and take reasonable risks to facilitate the company’s recovery instead of placing the company prematurely into voluntary administration or liquidation.

The amendments will also make ‘ipso facto’ clauses unenforceable if a company has entered into a formal insolvency process. Currently, ‘ipso facto’ clauses allow contracts to be terminated solely due to an insolvency event. The aim of this reform is to prevent these types of clauses from reducing the scope for a successful restructure or preventing the sale of the business as a going concern.

The Government has also released a further explanatory document setting out the types of contracts and contractual rights which are expected to be excluded from the broad stay on the operation of ipso facto clauses. These excluded contract types and rights will be formalised through forthcoming regulations, with the stay on ipso facto clauses becoming effective on 1 January 2018. The Minister welcomes feedback on the appropriateness of the proposed exclusions and whether further exclusions may be warranted.

The Attorney-General is the responsible Minister for the proposed reduction of the default period of bankruptcy from 3 years to 1 year, which was announced along with these reforms, and will be legislated separately.

MORE INFO:

5 Reference Check Questions - You Want to Ask But Shouldn’t!!

 Warren Myers CMP Recruiter likes this post by Christy Hopkins HR Consultant


While we don’t like telling people what not to do, we are going to do it here. Remember to NOT ask these questions because they can land you in hot water legally.

1. Why did you let (insert name) go?
This is the number one no-no reference check question. No matter how much you are dying to know, never ask this. First, it’s possibly illegal depending on which state you operate in, and could land you in hot water. Second, you should have asked the candidate about this during the interviews and learned the answer straight from the horse’s mouth.

2. What incident/problem/issue was most prevalent during (insert name)’s time
working at your company?
Stick to performance – repeat that in your head. Stick to performance, and do not open a door for a company or yourself to get in any legal trouble while conducting a reference check. We highly recommend using performance-based questions above asking about negative things.

3. Have they ever lied to you?
This should be something you can think to yourself but not something you should ever ask out loud. If you really think a candidate might be lying, give them a test project (paid, of course) or an assessment to complete that is relevant to their skill set (like a Microsoft Excel test problem) versus asking their old employer.

4. Does (insert name) have any home or family commitments that prevented
them from doing their job?
This is a question that could lead into discrimination territory (e.g. gender or age). If you are worried about a candidate’s priorities, you should ask them directly in such a way that is relevant to the job, like, “Bob, we need someone who can travel 50% of the time. Are you able to manage that?”

5. Can I see (insert name)’s HR file? 
Never ask for files on a potential employee or access to their past performance reviews or records. There are laws around privacy here, and it’s unprofessional.
 
There are some important professional guidelines to follow while doing a reference check. While these are not laws, they are more of a code of conduct and following them will get you better results and keep your employer brand (both personal and professional) up to snuff.
Always ask the candidate for permission to check references (and for the people they want you to talk to)
You should always ask your candidate for permission to check references and for the contact information of the people they would want you to speak to. You can ask them for manager references, co-worker references, or for at least one from their current role. But just ask them first.
What if you get them fired because you call their current employer without asking? Now, that would be bad! So ask!
Never ask for inappropriate information.

You probably know not to ask about a candidate’s religious affiliation, their marital status, or other things that could be considered discriminatory. Beware if the conversation with a reference begins to get casual and they start to overshare. Keep the conversation simple, and stick to your set questions.
Reference should add colour to a situation…but not paint the picture
Some employers do reference checks no matter what, even on the candidate that is 100% awesome, checks all the boxes, and everyone likes. And then a reference check goes mediocrely, and they reconsider the offer. In most cases, this doesn’t make sense!

A reference check should add colour to a picture that has been nearly completely painted. Go with your gut on your candidate, and don’t make employment decisions solely based on references. In fact, this leads us to our next tip.
Ask the candidate if a reference check went poorly.

If a reference call does not go as well as expected, ask the candidate about it. For example, you could call them and say, “Hey, Samantha. I just spoke to Ken at XYZ and I wanted to ask you about a few things he said that surprised me. Are you available to speak now?”

Give the candidate, especially if they are your top choice for an open position, a chance to tell you about the situation the referee disclosed. There are two sides to every story.
If you still feel like you want more information on a candidate, you can also run a background check.

Calling vs emailing a reference check
The phone is generally best if you want to have a conversation with a referee.
Email may be OK if you just want a green light, red light response.

If you do email the reference, remember to write a good subject line such as “Quick reference check for Samantha Jones” and then introduce yourself. If you are friendly and honest, you are more likely to get a response. You should also add that the reference can always call you (provide a number and some good times to call) if that is more comfortable for them.

Reference checks are an important part of the hiring process, especially if you have a candidate who is say, 70-80% there, and you want to make sure you can train them.

However, reference check questions aren’t the be all and end all, and they do require a professional code of conduct, both unwritten and by state laws, that you should follow.
 
CMP Recruitment & Credit Services