ceo’s think tank by Tracey-Ann Wisdom
CEO’s Think Tank Staff Efficiency 2.0
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n the last issue, our CEO, Tyrone Wilson, shared his views on what makes a recession-proof employee. This week, we continue to look at the general topic of employee efficiency, this time focusing on how employers can get the most out of their staff by merging responsibilities. “Looking back at the recent recession, we’ve seen where companies in Jamaica had to lay off employees to cut costs based on predictions of losses in income. This is a lesson for small businesses,” Wilson states. “We have to carefully assess our operations before taking on an employee and we have to know how to merge responsibilities, for example, administration with sales.” Even if a company is not planning to downsize or restructure, merging job responsibilities is a good way to lower operational costs and improve efficiency. However, employers should ensure that the jobs they are combining have similar characteristics or are related in some way. For example, a sales representative position could also include aspects of customer service, since the employee will be interacting with clients on a regular basis. If a company’s sales staff is trained in providing excellent customer service, it doesn’t have to create a separate department to address this need. “We have to at all times ensure that our staff is super-efficient. This is the only
way we’ll achieve great results that will ensure the growth of the companies,” Wilson emphasizes. Even before the start of the global economic recession in 2007, many major companies were cutting jobs to prevent steep losses or hold on to meagre profits. Below are some local and international companies that have downsized since the start of the recession:
Company
Tyrone Wilson CEO of eZines Limited
CEO Think Tank is a weekly discussion between Your Money reporters and our CEO, Tyrone Wilson. It will focus on pertinent business issues that are discussed on a regular basis among corporate executives, entrepreneurs, small business owners, political leaders and other key leaders in our society.
Country Year
International Walmart Citigroup General Motors (GM) Toyota Local Alpart Air Jamaica Digicel Grace Kennedy
Jobs Cut
USA USA
2010 2007
11,200 17,000
USA UK
2009 2010
47,000 750
Jamaica Jamaica Jamaica Jamaica
2009 2010 2009 2009
1000 110 90 80
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Sagicor Life Jamaica
Fosters Upward Mobility for Young Professionals
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oung people usually graduate from college with big ambitions and high aspirations, ready to take on the world. However, many often find that the job market is a barren landscape, unreceptive to their plans and goals, so they end up in dead-end jobs, where their dreams wither and die. This is not always the case though, as some companies do take pride in recruiting and nurturing young professionals who go on to make great strides in their industries and contribute to national development. One such company is Sagicor Life Jamaica, which, on March 16, 2011, demonstrated its commitment to growth and development when a cadre of newcomers and young professionals were awarded for their contribution to the company’s success. The night’s big prize, Employee of the Year, went to Wayne Thorpe, a former Trainee Underwriter, who was promoted to Junior Underwriter just two weeks prior to the awards ceremony. The Rookie Trophy awarded to new agents who have the highest number of settled cases, went to Arlene Hewitt, who was chosen from a long list of newcomers who were eager to earn the prestigious honour. Sagicor has several opportunities for upward mobility available to employees. With their succession planning initiatives, the company facilitates an environment where longstanding employees mentor less experienced workers, ensuring that all Sagicor employees are well equipped to step up in the event that higher positions become available. This initiative has fostered
the overall champion branch for 2010. The branch was described as “a model of consistency throughout 2010”, by MC and former Public Relations Manager, Tommy James.
(from left) Dr. Edward Chung, Sagicor Chief Medical Officer, Mrs. Lorna Salkey, Manager Underwriting, Claims and Paramedics with Employee of the Year, Wayne Thorpe
“I highly recommend Sagicor as a starting point for younger professionals. I am not an anomaly in this company; my team has a high percentage of young people and they are continually progressing.” loyalty within the company, as can be seen in the 33-year career of Albert Lyons, who was awarded the position of this year’s Chairman of the Production Club, a position given to the agent who made the highest premium income from insurance cases for the year. The Production Club is also responsible for encouraging all Sagicor agents to increase their own productivity by creating and managing employee incentives. Sagicor’s incentive-based sales system has become a magnet for many seeking tangible results and recognition for their work.
The Liguanea branch perhaps best exemplifies Sagicor’s openness to young professionals. The division houses a significant quota of young agents, demonstrating the ease with which younger executives may progress to advanced positions within the corporation, as the young Branch Manager, Chris Lawe, affirms. “I highly recommend Sagicor as a starting point for younger professionals. I am not an anomaly in this company; my team has a high percentage of young people and they are continually progressing.”
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The standout winners of the evening were the team members of the Liguanea Branch, who walked away with the Michael Fraser Trophy for the most new business, the Olivine Barnes Trophy for the branch settling the most cases for the year and the President’s Trophy for yourmoney ezine
insights by Tracey-Ann Wisdom
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The High Cost of dying without a will
oo often, people pass away without preparing for the distribution of their estates and their families are left in limbo to not only handle their final expenses but to divide the assets equitably. This situation is known as intestacy – dying without making a proper Will. Neither you nor your surviving relatives have any control over the distribution of your assets as it is all left up to the courts. “Once you die intestate, a legislation comes into play, [the] Intestate and Property Charges Act. Under this legislation, we’re going to [play a similar role to] what an Executor would have done,” explained attorney-at-law Denise Henry James. The primary beneficiary identified under this Act is your surviving spouse from a legal marriage or common-law union. In the latter case, you had to have lived together for at least five years and the surviving spouse has to get a court order declaring him/her as such. The spouse will receive the majority of your estate – personal items plus any vehicles and money not related to your business ventures, if applicable. He/she will also receive a cash gift of $10,000 or 10% of the net value of your estate, whichever sum is greater, plus 10% interest on that figure. Your spouse will also receive the entire remainder of the estate if he/she is the only surviving relative. If you have one child, the spouse gets two-thirds of the estate. If there is more than one child, the spouse gets half while the other half is divided among the children. If there are no children, the estate will be shared with your parents. If they are deceased,
have never remarried. Children are also covered under this Act, including stepchildren, adopted children, children over 18 who have medical conditions or disabilities and unborn children, if woman is pregnant when her partner dies. She will then make a claim once the child is born.
Even if you die intestate, relatives not covered in the above list, such as nieces and nephews, can make claims against your estate if you were supporting them financially. Interestingly, this also includes former spouses once they have never remarried.
The Rights of Spouses Act might also be used to ensure that your surviving spouse has a roof over his/her head. He/she will receive half of the family home as long as it wasn’t owned as a joint tenancy with someone else. However, Mrs. Henry James pointed out, this is voided if there is a prenuptial or postnuptial agreement.
your siblings will benefit, then your half siblings, then grandparents, then aunts and uncles. All other relatives like nieces, nephews and cousins are totally disinherited. If there are no eligible relatives, your assets become the property of the government. The second piece of legislation that comes into play is the Inheritance (Provisions for Family and Dependants) Act, which was drafted to cover persons who have been left out of their relatives’ Will. Even if you die intestate, relatives not covered in the above list, such as nieces and nephews, can make claims against your estate if you were supporting them financially. Interestingly, this also includes former spouses once they yourmoney ezine
insights
Japan Disaster Could Cripple Local Auto Industry
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n March 11, 2011, the world looked on in horror as sections of northeast Japan were devastated by the twin disasters of an 8.9 magnitude earthquake and a resulting 30-foot tsunami that wiped out several villages, killing an estimated 10,000 people. On top of that, radiation levels from two stricken nuclear plants in have also been rising, currently affecting food supplies in the vicinity. While the disaster unfolded, the global economy was sent reeling with major stock markets recording massive declines as investors rushed to unload their options in Japanese companies. In the equities market, the blue chip Nikkei Stock Average plunged almost 11 per cent while the broader TOPIX Index fell 16.3 per cent within the week of the catastrophe. Locally, the news was received with much trepidation as Japan is one of Jamaica’s major international trading partners. So far, the BOJ has forecast that the disaster will drive up Jamaica’s fuel bill by some US$30 million (J$2.58b). Fears have also been expressed about the impacts on the automobile and coffee industries. It is still too early to calculate the extent to which the Japan tragedies will affect the global and local economies, but Japanese Ambassador to Jamaica, Hiroshi Yamaguchi, has said the fallout will have minimal effect on trade relations between the two countries. However, there are sure to be some ripple effects, especially in the auto industry, which imports 90% of its merchandise from Japan. The three largest manufacturers, Toyota, Honda and Nissan, have already announced plant shutdowns and suspended production at some
to ease the restrictions on the importation of older vehicles, up to six years old, which are cheaper and could assist the flagging industry. Coffee exports could also face a slight decline as Japan accounts for 85% of Jamaica’s market. However, Ambassador Yamaguchi has reported that only about 10 per cent of exports would be affected as the coastal towns damaged are not the primary markets for Blue Mountain Coffee in Japan.
Locally, the industry has been having its worst season yet, due to the economic recession; the Japan disaster will only cause further declines. of their locations. The effects of the shortage of vehicles have already been felt in the region as used car dealers in Trinidad and Tobago have reported being charged as much as US$700 more per automobile as suppliers in Sendai and Tokyo have hiked up their prices. Locally, the industry has been having its worst season yet, due to the economic recession; the Japan disaster will only cause further declines.
Jamaicans will now have to wait and see the extent to which the economy will be affected due to these issues.
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According to Lynvalle Hamilton, president of the Jamaica Used Car Dealers Association, merchants will face costly delays due to the suspension in production at the major manufacturers as well as the fact that fewer Japanese will now be selling their vehicles. “Car prices are going to go up due to scarcity,” he said. “Smaller dealers will be running out of stock and unable to replenish.” Mr. Hamilton is calling on the government yourmoney ezine
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Building a Strong
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Customer Service Culture
omplaints about poor customer service abound in business operations across Jamaica from fast food restaurants to banks to government agencies. It often seems that good customer service is non-existent; however, the importance of treating clients and potential clients with courtesy and respect cannot be overstated. Customer loyalty and repeat business are essential to the success of virtually every business, so it is important to start your company with a strong culture of customer service. Here are five tips to get you started: • Create a Customer Service Code – Put your company’s customer service values in writing and make sure your employees are knowledgeable about them. Incorporate these principles in training sessions and regularly evaluate employees on them. • Pay attention to the customer’s needs – The saying “the customer is always right” is true, no matter how indecisive, demanding or downright rude the person may be. Find out what the client is looking for and deliver it to the best of your ability. It is also important to listen carefully to what the customer wants, not recite your tried-and-true sales pitch. For example, if you are in the retail business, you’ve probably heard the words “just looking” too many times to count. However, ensure that you don’t hound the customer or hover nearby. Be attentive so that you are able to close the sale when he/she has made a decision.
tomers feel like their business matters to your company, they are more likely to spend their money with you and even bring in other potential clients through word-of-mouth advertising.
It is also important to listen carefully to what the customer wants, not recite your tried-and-true sales pitch
• Address all problems promptly – University of Missouri business professor Richard Proffer suggests thinking of dispute resolution as a five-step process called the Five A’s: Acknowledge the problem. Apologize, even if you think you’re right. Accept responsibility. Adjust the situation with a negotiation to fix the problem. Assure the customer that you will follow through. Bear in mind that word of mouth can be both positive as well as negative, so always try to satisfy your customer.
• Bring expertise to the table – The most important way to serve your customers is to know what you are doing. Any inefficiency in your product or service delivery is a mark against your company, so ensure that you and your staff are knowledgeable and fully equipped to carry out your tasks. For instance, if your company builds websites, you must be able to help your clients with troubleshooting should they have any problems using the site. • Show Appreciation – Reward your customers when possible. Offer discounts, specials or sales and don’t be afraid to give loyal customers special treatment. These are simple ways of saying “thank you” to the people who spend their money with you. If your cusyourmoney ezine
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