The New Normal - Tax Increases on Business

As states of all shapes and sizes scramble for more tax revenue, TEC 44 member, Dan Chaudoir, president of Central File Marketing, ran into the long arm of the tax collector in, of all states, Texas. Central File has a one person sales office located in Dallas.

First, Dan learned that because they had an office there the company was required to pay a “franchise fee” of $3500 per year to do business in Texas. And, they wanted two years worth of fees to go away.

Then, the state came after him for sales taxes on all sales shipped to customers in Texas from their production facility in Wisconsin. They didn’t just want two years worth of back taxes to go away this time. They wanted all nine years that the one man Dallas sales office had been in existence. Central File was able to settle for an amount that did not put them on the brink of a negative Z Factor Score. But it was not insignificant.

The point here is, if a “business friendly” state like Texas can become this aggressive with small out-of-state companies like Central File, imagine what the really desperate states will be like. For more on this “heads up” relative to state revenue collectors reaching into the pockets of Wisconsin companies, please contact Dan Chaudoir at dan@centralfileinc.com.

Emotional Job Security

The downturn in the economy left many employees dazed, confused and mistrusting of management. With the economy working its way out of the recession, how can business leaders repair the damage done and rebuild a healthy, productive work environment? In short, how do we address the basic emotional job-security needs of our workers?

Several years ago, when a company I co-owned was dealing with some difficult labor-management issues, our attorney suggested a little book called Discipline or Disaster: Management’s Only Choice. The book outlined four principles that served us well then and apply now at every level of employment.

First, tell your people what is expected of them in terms of job performance. This rule goes well beyond the gobblygook of the classic position description. Force yourself to ask, in clear terms, do my employees know exactly what they are expected to do on the job? Metrics help.

Next, advise your people whether or not their job performance is meeting expectations. This is not the annual performance evaluation. This is direct, personal, regular, face-to-face feedback. While managers tend to avoid these potential confrontations, employees actually welcome the accountability. They want to know where they stand.

Treat all employees fairly and impartially. People know when one person is held accountable and another is given a pass. They also know that something is wrong with the system.

Finally, base your judgments on facts rather than opinions. Metrics help here, as well. But application of the principle still requires management judgment – judgment based on facts, not opinions.

As companies begin to hire once again, your best workers – those who may have been staying in a less than ideal situation out of fear – will have other options. Companies that meet the emotional job-security needs of their people will have a significant competitive advantage.