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When to Finance Instead of Paying Cash

Last Updated: August 28, 2024

There is a widespread perception that taking out a loan to pay for something is always a worse option than paying for it upfront in cash. That is largely due to the belief that debt is a bad thing, and in many cases it really is.

However, there are times when it simply won’t be possible to pay all of the cost of a purchase right away and when it will be necessary to finance it. In some situations – when buying a home for example – it is by far the most common and sensible strategy.

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When Financing will be the Best Option
The Pros and Cons of Finance
The Pros and Cons of Paying Cash

When Financing will be the Best Option

The term ‘financing’ just means a loan from a credit union or bank that you will pay back in installments with added interest. There are several different instances where taking out finance to purchase something will be a smarter choice.

One example of this is when you are buying a house. Not many have the sort of cash to be able to pay the cost of a house upfront, which is why most people take out mortgage financing to buy their first home.

Choosing to finance will also be a good idea when there is a loan available with very low rates of interest. This is often the case with car purchases, as the majority of these loans are repaid so they are low risk for lenders.

Financing the purchase will leave you with money that can potentially be invested. If you can earn higher sums from investing than the loan interest repayments, financing could actually help you make money – which is why so many rich people use it.

One thing that will hurt your chances of getting financing is a bad credit score. However, there are places that will offer lower loans for small items like car tires and regular repayments of these loans can be used to rebuild your credit rating.

The Pros and Cons of Finance

The single biggest plus point to using financing to pay for something is that it will leave you with money that can be invested. With the right investments, you can have enough to comfortably repay the loan debt and still end up with more than you started out with.

Secondly, finance lets people afford things that they otherwise would not be able to, such as property. Being able to pay sizeable costs over a longer period is often the only reason people are able to afford a home for their family.

The single biggest drawback of financing is that there is always the possibility that you will not be able to repay the loan. If your economic circumstances change – say, you lose your job – that can seriously impact your ability to pay it back.

In that situation, you would lose the home; car, or whatever other item was being paid for via a loan.

The Pros and Cons of Paying Cash

Paying for something in full using your own money means that there are no debts or interest payments to worry about. It also ensures that you own the thing outright so it cannot be repossessed.

Furthermore, although financing will leave you money to invest, there is no certainty that these investments will pay off. In that situation, you could lose your money and be faced with repaying the cost of a loan.

It is at times when you have a very strong investment opportunity that choosing cash payments will be a drawback. They could rob you of the chance to significantly increase your cash reserves.

Financing can be a fantastic opportunity and can help you earn money, but you must be sure you can afford to pay back any loans you take out.

Advantages of an Autocratic Leader

Last Updated: August 28, 2024

Most organizations follow autocratic leadership as it makes decision-making easier. The leader is accountable for any problems as he is the final decision-maker. It allows better accountability and reduces the risk of mistakes by new employees. While many people might not like autocratic leadership because of its authoritarian style, sometimes it is inevitable. Every leadership style comes with some pros and cons for the organization, leaders, and workers. Let’s tell you about the advantages of an autocratic leader in a company.

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What is an Autocratic Leader?

An autocratic leadership style is authoritarian, where the leader gives instructions and makes decisions. Unlike laissez-faire leadership, this kind of leadership style does not give power to the employees. All the subordinates and workers wait for instructions from the manager and act upon them. The leader has high control and supervision over the employees to make steady work possible. The employees are expected to work according to the instructions without innovation. This style of leadership is also known as the leader-centered leadership style.

Advantages of an Autocratic Leader

Quick Decisions

An autocratic leadership enables quick decisions within the organization. The workers in an organization with such leadership do not have to inform any administration levels. Instead of various leaders in the organization system, the subordinates report to only one leader. This reduces the time of going through a long hierarchical process of waiting for multiple approvals.

Improved Communication

When there are fewer people to take instructions from, the communication between different people in an organization improves drastically. Autocratic leadership allows one-way communication to avoid such issues. Autocratic leaders convey the details to their workers instead of at different levels. It avoids the alteration of information through various means.

Efficient Crisis Handling

It is common for problems to arise in an organization. However, it is vital to find the best way to combat the crisis. An autocratic leader is experienced in his leadership tactics and knows to handle such situations efficiently. They can propose better solutions as they are the only ones handling the issues. Their experience allows them to make autocratic leadership advantageous during crises.

different styles of leadership in project management

Improves Productivity

This structure of leadership improves productivity within the organization. Under such leadership, the workers perform more efficiently and deliver their tasks on time. Better communication and timely delivery of the tasks positively impact the company’s working atmosphere.

Focused Targets

Autocratic leaders give proper and focused targets to the team to achieve. Open communication allows the team members to work their best and perform well. They work towards a combined goal by following the leader’s instructions to produce desired results. It is one of the most efficient ways to achieve targets in less time.

Reduces Employee Stress

An autocratic leader is responsible for the decisions in a department or organization. The employees do not have to worry about making challenging decisions. The workers are not expected to put their input into solving problems. The leaders take accountability for their team’s actions in front of the higher hierarchy. Reducing employee stress is one of the most critical advantages of an autocratic leader.

Professional Growth

While some leaders do not guide their teams, an autocratic leader does not only guide their team but also gives proper instructions. The thorough instructions by the leader enable the employees to learn through their experience. This leadership works well when the management does not have a lot of time for a particular project. So, instead of following a matrix structure of an organization or giving independence to team members, this method of leadership is preferred.

Easy to Adapt

This leadership style is easy to adapt and has been followed for many decades. It is an orthodox leadership style, yet an excellent choice to get work done on time. It does not require much training like modern leadership techniques. Autocratic leadership is easy to adapt and makes your workers follow your lead.

The Bottom Line

Autocratic leadership is an authoritative orthodox leadership style. Autocratic leaders pass on instructions to their subordinates and make decisions. While it does not allow room for innovation, it has its pros and cons. The advantages of an autocratic leader include easy communications, quick decisions, focused targets, easy adaptation, and reduced employee stress. It is best for tasks and projects where you are short on time for modern leadership model implementation.

How Small Businesses Inadvertently Drive Customers Away

Last Updated: August 28, 2024

Every small business needs a steady base of regular customers in order to stay afloat. As such, it’s in the best interest of every small business owner to keep patrons happy and incentivized to keep coming back. However, without even realizing it, some small businesses drive patrons away by exhibiting a host of undesirable behaviors. If you wish to prevent your business from suffering the same fate, be vigilant about avoiding the following customer service blunders.

Refusing to Make Amends for Mistakes

Few things are more frustrating than seeking customer service from a business that utterly refuses to acknowledge its own mistakes, missteps, and miscommunications. We’ve all dealt with people who believe that they’re always in the right regardless of how much evidence there is to the contrary – and unsurprisingly, we try to avoid interacting with these individuals at all costs. Even if they’re close friends or family members, dealing with people who refuse to acknowledge their own faults under any circumstances can prove mentally draining.

That being the case, any business that adopts this type of approach to customer service is liable to find itself bereft of satisfied customers. So, if you or any of your team members immediately go on the defensive, attempt to deflect blame, or get outright angry in response to customers who report certain mistakes, you shouldn’t be surprised by noticeable downticks in repeat business. Frankly, there’s little wonder as to why people would seek to separate themselves from businesses that regard themselves as infallible.

On the flipside, acknowledging flaws on the part of your business, offering sincere apologies, and vowing to make things right can go a long way towards mending fences with dissatisfied patrons. So, whenever a customer reaches out to you with a grievance, make a point of calmly hearing them out and making no effort to minimize their concerns. Next, apologize for any role your business may have played in creating this situation, and let them know you’ll work to avoid letting it happen again. Lastly, inform the patron that you’ll do everything in your power to set things straight and regain their goodwill.

Refusing to Meet Customers Halfway

As anyone who’s worked in customer service can attest, not every request or grievance that comes your way is going to be reasonable. Despite the adage “The customer is always right,” certain patrons can be unreasonably demanding and/or downright unpleasant when making requests of small businesses.

Suffice it to say, you’re not going to agree with every request a customer puts before you. Still, this doesn’t mean that it’s okay to ignore such requests entirely. So, the next time a customer comes to you with a request, carefully weigh the pros and cons of meeting them halfway. If doing so won’t prove emotionally taxing or financially strenuous, simply give the customer what they want – or some approximation of what they want. Customers who see that you’re flexible with regard to requests are liable to favor your business over businesses that vehemently refuse to alter established policies in any way.

Refusing to Provide Timely Responses to Important Inquiries

No customer enjoys being kept waiting, particularly in the age of instant satisfaction. If responses to inquiries aren’t provided in a timely and professional manner, many modern-day consumers won’t hesitate to give their business to one of your competitors.

Whether an inquiry is received via phone, email, text, or social media, it should be answered before the end of the day – provided, of course, it’s received on a business day. Furthermore, inquiries that are made after-hours should be regarded as a high priority the following business day. Answering inquiries in an expedient fashion not only illustrates your reliability but also shows your customers that you value their input and want them to feel heard. As an added bonus, paying close attention to the nature of the inquiries you receive can provide you with constructive ideas for changes to established policies. Dependable cloud-based CRM can also prove helpful in this area.

Although no small business actively seeks to drive customers away, many of them inadvertently do just that. While some businesses are well aware that their approach to customer service needs work, others are completely unaware of this fact. Unsurprisingly, customers are unlikely to care whether missteps on your end are accidental or intentional, as the end result is the same. That being the case, you should always be mindful of certain behaviors exhibited by yourself and your team members – especially the ones discussed above.

How do you Differentiate Between a Checking and Savings Account?

Last Updated: August 28, 2024

Before opening a bank account, there is a need to assess the various available types of accounts. However, most individuals do not know the difference between a checking and savings account. However, the checking vs. savings account is different in terms of its functionality, rates, terms, and benefits. According to the experts at SoFi, “Checking accounts are designed for frequent banking transactions such as monthly bills, while savings accounts are not usually accessed as often.”

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Differences Based on Functionality

A checking account is used for direct deposit and withdrawals of cash. The account holder must make a minimum number of transactions every month. Otherwise, the bank may charge a fee or close the account. On the other hand, a savings account saves money and earns interest. There are no requirements for making transactions in this type of account.

Difference Based on Rate

A checking account may have a lower rate than a savings account because it has higher transaction requirements than a savings account. On the other hand, an interest rate for a savings account depends on its amount. However, the interest rates are generally higher than those applicable to checking accounts due to this type of investment and the risks involved.

Difference Based on Terms

A checking account has various fees attached, which vary with different banks and states. For example, some banks may charge monthly maintenance fees, while others may impose fees after several transactions have been made in one month. In addition, some banks charge an overdraft fee for the overdrawn amount. The bank does not charge any fee for the transactions in a savings account.

Difference Based on FDIC Insurance Coverage

A checking account is covered by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per depositor. If a person deposits $250,000 in his checking account and is lost or stolen by someone else, this amount will be reimbursed. However, a savings account is not covered by FDIC insurance. This means that if a person deposits $250,000 in his savings account and it is lost or stolen by someone else, he will not be able to get his money back unless he has insurance coverage of at least $250,000 on all his accounts combined.

Which Account will Best Suit Who?

The best way to determine if a particular account is right for you is to ask yourself these questions:

How much money do you Spend on your Monthly Expenses?

A checking account may be better if this amount is less than $2,000 per month. However, if this amount exceeds $2,000 per month, a savings account may better suit you.

Do you have any Debts that you Need to Pay off Every Month?

If yes, the best way to help pay off your debt will be through a savings account. If no debts are taken care of through this method, it will be better for you to use a checking account. However, it will be best to keep your money in an FDIC-insured bank because of its protection against theft or loss of money.

Whether you select either the savings or checking account, make sure you have the right bank. The best way to find the right bank for your needs is to contact the bank and ask what they can do for you. If they cannot help, it will be best to look elsewhere. If this is too much for you, look no further than SoFI Invest (SoFi Bank).

Laissez-Faire Leadership Advantages and Disadvantages

Last Updated: August 28, 2024

While every leader works to bring out the best in their team, each leadership role is different. Most leaders push their team through strict deadlines and instructions. Alternatively, some empower their team by welcoming their suggestions.

The Laissez-Faire Leadership model, also known as the Free-rein Leadership Style allows the workers to work more efficiently considering their reliance and trust in them. Such leaders guide their team members and give them the power to make decisions. However, it also has some disadvantages. Let’s tell you about Laissez-Faire leadership’s advantages and disadvantages in depth.

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What is Laissez Faire Leadership?

The term Laissez-Faire literally translates to “let it go” or “let it be.” So, the Laissez-Faire leadership style focuses on letting go. It refers to letting go of the responsibilities and power as a leader. The managers do not get too involved in the tasks and allow their employees to use their creativity and experience. Such leaders are confident in the skills of their employees. They offer to lead their team by enabling them to give their input. Free-rein Leadership Style leaders provide guidance and take responsibility for their team’s tasks. Yet, many times the managers do not guide their workers properly, leading to issues within the team.

Characteristics of Laissez Faire Leadership

Some of the basic characteristics of Laissez-Faire Leadership include

More input from the teammates
Enabling employees to make decisions
Access to tools and resources
Guidance from the leaders
Leaders taking responsibility for their team’s actions

Laissez Faire Leadership Advantages

Encourages Personal Growth

When working with Laissez-Faire leaders, the teammates get to move forward in their profession more efficiently. Laissez-Faire Leadership allows the employees to experience the processes first-hand. The workers gain more skills by understanding the processes and working on them directly without managerial pressure.

Creates More Leaders

Giving people an opportunity to work on their own enables the employees to gain leadership skills. Many members of the team work together towards one objective. This combined input brings out the potential in each person. Some of them come up as leaders who guide and help the rest of the team. Free-rein Leadership Style has the potential to climb up the ladder to gain managerial-level positions.

Offers Independence

One thing a workplace must teach you is independence and decision-making. It is one of the most noticeable laissez-faire leadership advantages. This leadership model pushes the teammates to give their suggestions and make decisions where needed. Many people in such arrangements like to work on their own, and the absence of pressure from their seniors gives them that working space. They can work on their own, learn better, and excel in their career.

Encourages Innovation

Typically managers and leaders are the final decision-makers in a centralized organization system. Thus, the working style of a department remains the same throughout the years. Yet, when Laissez-Faire leaders encourage the employees to think creatively, they come up with many innovative ideas for the company. These suggestions may sometimes prove highly beneficial for the organization.

Enables Quick Decision Making

Another Free-rein Leadership Style advantage is how it facilitates quick decisions. This leadership model does not only offer independence and decision–making powers to the workers. It also makes sure everything runs smoothly and quickly within the company through faster decision-making. The absence of micromanagement in the Laissez-Faire management system eradicates the need for approvals.

Provides Job Satisfaction

It is no news that people get tired of their bosses bossing around. Reports show that 82% of workers would consider quitting their jobs because of a bad manager. One of the best laissez-faire leadership advantages is that it makes the employees love their workplace. It instills a sense of ownership in the people, and they work towards company success wholeheartedly.

The disadvantage of Laissez-faire Leadership

Lack Of Leadership Role

Laissez-Faire Leadership is considered a passive leadership approach as it enables the team members to act as leaders. It fails to designate the role of the decision-maker to one person. Sometimes, the employees might not be sure of their role in the team and not use their abilities to the best. Often the decisions may not be the most suitable either.

No Guidance

Typically, the managers of a Free-rein Leadership Style do not guide new teammates, unlike functional, project, or matrix organizational systems (Check its pros and cons). The lack of guidance may allow older employees to manipulate the new ones into their choice of tasks.

Low Accountability

Laissez-Faire management enables the employees to make decisions without waiting for the manager’s approval. While it speeds up the process, it also increases the chances of mistakes. As the new people in the team are sometimes not given proper guidance, they do not hold themselves accountable for the wrong decisions. The lack of accountability affects the morale of other team members.

Isolation Within Team

This structure also brings along some disadvantages of laissez-faire leadership. When each team member is allowed to work within their comfort zone, they might prefer working individually. They may get habitual to working on their own terms and not want to work cohesively with the team when needed.

Leadership Abuse

At times, the employees do not use this leadership structure to their benefit. Instead, they abuse leadership which is the worst laissez-faire leadership disadvantage. In such situations, the leaders do not supervise and motivate the employees. Meanwhile, the team members also do not feel like putting effort when they are not acknowledged.

How to Improve Laissez-Faire Leadership?

Laissez-faire leadership is an excellent leadership model if implemented correctly. Here are a few tips to improve the implementation of laissez-faire leadership in your organization.

Motivate your team members and acknowledge their efforts.
Keep an eye on the activity of the employees and give feedback.
Guide newcomers to help them understand their role better.
Offer incentives to deserving employees based on their performance.

The Bottom Line

Laissez-Faire Leadership is perfect if your company prefers flexible, growth-oriented organizational structures. It allows your employees to work independently, make decisions, gain leadership skills and enjoy what they do. However, Laissez Faire Leadership or Free-rein Leadership Advantages And Disadvantages go hand in hand. A few cons of this leadership format include the lack of leadership and role clarity, lack of accountability, and abuse of leadership by the managers. It is best to weigh the advantages and disadvantages of Laissez-Faire Leadership before implementing it in your company.

Advantages and Disadvantages of Job Specialization

Last Updated: May 27, 2022

Today, most companies hire candidates who specialize in a particular field. This allows the organization to put that person to the best use for the company’s progress. Job specialization is not a new concept. People have always been working in their field of expertise. However, now companies invest in grooming and specializing the employees to the fullest in a particular area.

Though job specialization helps organizations to grow, there are various advantages and disadvantages of job specialization. We have put them together in this article to help make the right decision.

Let’s have a look at them.

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What is Job Specialization?

Monash defines job specialization as the process of focusing one’s occupational concentration on a specific area of expertise.

Job specialization refers to improving your expertise and skills in a particular domain. It allows the employees to become masters of their craft and provides more skilled workers to the company. Specialized employees working in a department can handle tasks more efficiently and conveniently than others.

Job specialization requires training and experience. Though, the workers become adept at their tasks eventually. It reduces the period of resolving a complicated task and gives you a mastered force. Whereas, sometimes, the work can be monotonous and tiring for the workers. The pros and cons of job specialization are as follows.

Advantages of Job Specialization

Boosts Productivity

One of the most significant advantages of job specialization is improved productivity. Dividing the jobs between workers according to their specialization allows them to work fast. A professional understanding a particular subject in detail can find a better way of performing the task than others.

For example, an unspecialized person will need to research the problem from scratch to find a solution. On the other hand, a specialized person already understands the issue. It enables them to solve the problem steadily.

Lesser Risks

When a person performs the same task repeatedly for an extended period, they are less likely to make mistakes. They may also assess risks beforehand to avoid loss of resources. One example of this advantage of job specialization is someone who manages accounts. Someone who has taken education in finance and has been working in the department for years would be better at it. Conversely, a person with a degree in marketing might not be the best fit for the job.

Saves Time

Doing something every day makes employees good at their job, and they take less time to perform the function. At the same time, the non-specialized workforce will take more time to understand the task and act accordingly. That is why companies invest in workshops to improve the skills of their workers. They help improve production in less time.

Less Supervision Need

When a set of experienced experts in the same domain work together, the company trusts them more. They do not require extensive direction and supervision. Choosing the right person for the right task through job specialization gives them the liberty to work independently.

Reduced Costs

Lesser risks and improved productivity eventually reduce the cost. It helps minimize wastage and diminishes the costs of covering mistakes. Job specialization helps you in the long run by recruiting the right people for the task that proves beneficial for the company.

While specialization proves favorable to the organization, both the advantages and disadvantages of job specialization are crucial. Let’s talk about the disadvantages of job specialization.

Disadvantages of Job Specialization

Monotony

Performing the same tasks every day can become monotonous, and the workers might feel drained. While job specialization improves productivity, sometimes monotony may decrease it. Tedious work for a long period tires mentally and physically.

Dependency

When employees of a particular department are adept at one kind of job only, they are more dependent on others. They cannot sort out other issues that do not fall in your domain. Thus, some tasks may face a delay in the absence of workers with a different specialty.

Inflexibility

Specialized professionals are also inflexible and may not sometimes prove beneficial for a company. Let’s say that a company focuses on job specialization. They might face difficulties when they have to cut down the number of employees as specialized employees cannot fit well in other departments.

Less Job Satisfaction

The same environment and tasks regularly can be quite boring. The workers may sometimes need a break from their daily tasks, or it can lead to less job dissatisfaction. If they continue to work for a long time without a break, they might think about shifting to another job.

Isolation

Employees in an office like a harmonious environment and interact with other people. Sometimes, specialized jobs restrict you to an area away from other workers and disconnect from the rest of the process. Isolation also causes an increase in frustration among employees.

Increases Cost

Job dissatisfaction may lead to a higher turnover rate, increasing the demand for more recruitments. When recruiting specialized persons, you may also have to pay them higher for their expertise. Moreover, arranging interactive activities for isolated employees adds to the organizational budget.

The Bottom Line

Job specialization is being widely adopted in organizations to have the experts on board. However, the advantages and disadvantages of job specialization go hand in hand. While it improves productivity, it may also tire the workers mentally and physically. On the one hand, it reduces the need for supervision. On the other hand, job specialization may isolate some of the employees. It often reduces costs owing to enhanced production. Yet, it may sometimes increase the costs of recruitment.

Why HRP is Important

Last Updated: August 28, 2024

Loyal and hardworking employees are the asset of and company. But, how do find and retain them?

Employees are the most important part of a company’s production and management. Your organization can become one of the best if the employees take pride in working for the company. It is made possible by recruiting the right kind of people in the right amount at the right time. This is called Human Resource Planning HRP. HRP allows you to have a steady supply of employees or workers per need, which is why HRP is important.

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What is Human Resource Planning?

Human resource planning is the implementation of “demand and supply” rules for human resources. It means forecasting the need for employees in the future. HR may either hire new people for a particular role or expand the working horizon of the existing employees. HRP also enables the company to achieve objectives in time successfully by making the best use of available human resources. It is also known as workforce planning.

Human resource planning begins with the assessment and auditing of the human resource in the company. The Human Resource department makes changes in the workforce according to the company’s needs. It may involve promotions, new hirings or say goodbye to some old employees. HRP is essential for the long term to provide adequate solutions in times of crisis.

Challenges of Human Resource Planning

Human resource planning involves planning the incoming and outgoing employees to ensure you have enough people at one time. While it seems simple, it is not so. HRP involves several challenges like:

Employees often make sudden decisions about moving to another place. Respecting their decision is HR’s job. The challenge arises when you have to substitute another person within the available time frame.
Finding the right employees is another major problem in HRP. Recruitment is a tough process as you have to be very careful and choose the most appropriate person for the particular role.
Human resource planning also involves retaining the right employees for a long time. So, HR also has to motivate and plan how to retain the employees by giving them appreciation, increments, and other benefits.

Importance of Human Resource Planning

Utilization of Manforce

Human Resource Planning enables HR to utilize the available human resources in the best possible way. You can shift, add or remove roles from a personnel’s job description to improve efficiency and productivity. It is essential to make changes in the company in the sudden absence of an employee to ensure the product does not suffer.

Future Workforce Needs

Human resource planning does not only allow you to make the best of the present manforce but also to analyze future workforce needs. It saves your company from a sudden employee crisis when an important worker goes on leave. Thus, HR can start the recruitment process before the 11th hour to find the most suitable candidate.

Recruitment of Suitable Employees

As mentioned above, human resource planning is essential for recruiting suitable employees. HRP allows you to understand the human resource inventory and look for the right people at the right time. If you do not analyze and access the present workforce situations, you might have to recruit personnel in haste.

Training and Workshops

The human resource department’s job is not restricted to generating a job post and interviewing a candidate only. They ensure a smooth onboarding and work to provide the best opportunities to their employees. You may add workshops and training sessions to develop your employees’ soft and hard skills. The importance of HRP also lies in the fact that it helps them perform better and become an efficient part of the department.

Adaptation to Change

Human resource planning is critical to cope with the change resulting from external factors. It helps you suit your organization’s work to changing political, social, or economic changes. You can reduce the impact of the socio-economic and political changes by assessing and making changes in your organization accordingly.

Risk Management

Having a plan is an excellent way to reduce risk. Similarly, human resource planning also saves you from potential damage by lacking resources or recruiting too many people for the company. HRP lets you create the best plan for your organization’s welfare. It also saves you from the reputational risk that may occur due to a lack of resources within the company.

The Bottom Line

Human resource planning allows a company to perform its best without being influenced by external factors. The HR department recruits the right people in the right number at the right time for the smooth running of company operations. HRP is highly important for any organization that wants to stay at the top of its game. Ignoring the importance of HRP can cause functional issues.

FAQs

What are the features of human resource planning?

The objectives and features of human resource planning include adjusting the demand and supply network, keeping manforce inventory, determining human resource reeds, and creating a proper work environment.

How many types of human resource planning are there?

Human resource planning is of various types. The most important three types of HRP are tactical, operational, and strategic planning. Strategic planning is the most common one in companies nowadays.

What are the 5 steps in human resource planning?

The five crucial steps in human resource planning are analyzing organizational objectives, keeping an inventory, assessing supply and demand, matching the supply per demand, and creating an action plan.

Six Ways to Save Money

Last Updated: August 28, 2024

Unless you’ve been living on a deserted island, you’ve probably been affected by inflation. Whether it’s the cost of groceries or filling up your tank, you might be coming up short at the end of the month. The thing is, you’re not alone. Many are struggling with the ever-increasing cost of living. So, when it comes to finding ways to lower your cost of living, you need to be proactive, not to mention intuitive. If you’ve been looking for ways to cut corners, you’ve come to the right place. Here are six money-saving tips you might have overlooked.

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Refinance Your Loans

Most financial gurus will tell you to consolidate your high-interest rate credit cards into one to save money. However, did you know you can also refinance your outstanding student loans too? High-interest students can drain your bank account without even making a dent in the principal. But when you refinance, you can usually save by cutting years off your education debt payments, while paying less interest over time.

Cut Your Own Hair

You love the look of a custom cut but the price leaves something to be desired. You can easily save tons of cash each year simply by learning how to cut your own hair. There are plenty of free how-to videos online that can teach you how to trim your bangs, snip off dead ends, and even now use an electric buzzer. Just be sure you feel confident in cutting your own hair before you give it a go. At the very least, you can learn how to ward off split ends in between trips to the salon.

DIY Your Mani-Pedi

Similar to cutting your own hair, giving yourself a manicure or pedicure saves money as well. Since these beauty treatments can cost upward of $50 or more each time, you can keep that money in the bank and do it yourself. You can find all the same must-have tools and polishes at your local drug store to help you get started.

Barter With Your Buddies

Relationships in a Professional Capacity

Long ago, people bartered for what they needed. They didn’t need to rely on wads of cash to get them through. If you have a group of close friends, you can start a bartering group to save money. You could babysit in exchange for a manicure. Alternatively, you could cut your friend’s lawn in exchange for a car wash. It’s a win-win situation for everyone.

Learn How to Sew

How many times have you replaced an item simply because you didn’t know how to sew? Mending a pair of ripped jeans or a hole in a sweater really takes no time at all, and it can save you big bucks. There are plenty of free videos online that teach everything from threading a needle to becoming a master tailor. Eventually, this might become a profitable hobby too if you choose. There are so many online sides hustles these days, you could use your sewing skills to create a product and sell it online via platforms like Etsy or Shopify.

Research Free Entertainment

Just one night out can cost hundreds, especially if you include dinner and drinks. If you go out every weekend, it’s easy to spend thousands each year without even thinking about it. You can cut entertainment costs by researching free things in your community. From jazz festivals or art exhibits, there’s always something happening for free.

10 Benefits of Video Marketing for Small Businesses

Last Updated: August 28, 2024

Video marketing is no longer a novel concept, and many small businesses seem to have a hold on this type of marketing. With the gradual decrease in the price of video equipment and software, it has become much easier for any small business to foray into video marketing. If you are new to video marketing, you need not worry about it being an expensive and complex affair.

Some initial planning and a dose of original creativity are all it takes to create videos that appeal to viewers. Undoubtedly, video marketing is here to stay. With businesses of all shapes and sizes jumping onto the video marketing bandwagon, the quality of your videos plays a huge role in attracting and retaining viewers. In this blog, we list out some of the benefits of video marketing for small businesses:

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10 Benefits of Video Marketing for Small Businesses

1. Higher Ranking on SERP

YouTube is the second most visited website after Google and can be termed the second most popular search engine. There are close to 2 billion users on this free video platform. Little wonder then that YouTube is a sought-after video platform by marketers. To put things in perspective, YouTube has the potential for unmatched reach to a broad global audience that directly translates to potential buyers searching for your product or “solution.”

It is an established fact that most search engine users never go past the first page on SERP. To increase your chances of landing on the first page of Google results, it is a good idea to add video content on YouTube. This increases your probability of being discovered by new users as search engines are known to prioritize video content on the SERP.

2. Increased Brand Awareness

One of the best ways to increase brand awareness through video marketing is to upload videos on YouTube. With close to 2 billion users and a watch time of 250 million hours every day, the power of video marketing on the free video platform is unmatched.

Once your content gains traction on the platform, it can do wonders for your brand awareness and sales thereafter. Such videos can be easily made with an online video maker that comes with an interactive and beginner-friendly interface.

3. Best Medium to Acquire Information

Today, people are completely involved in their fast-paced lifestyle and do not have the luxury of time. This has resulted in diminishing attention spans, where people are averse to written content and are more inclined to watch videos.

Regardless of the complexity of the subject, a combination of audio and video provides an immersive experience that provides much better knowledge retention than any other medium. This makes it the best medium to disseminate information and provides better insight and a refined view of the product. The best way to make such impactful videos is through an online video maker with good UI and UX.

4. Improves Digital Presence

Currently, it is tough for a small business to survive without an online presence. With the help of video marketing, a small business stands a much better chance of being seen and heard by the audience. Video not only improves brand recall but can also prompt viewers to take action after they view the entire video, often even before the video ends. There are options to prompt viewers to share the video link of the content, vastly increasing the digital presence of the brand and the associated product.

5. Increases the Click-through Rate

It could seem tempting to attach the video content to your email campaign. However, the increased size of the email would get it filtered into the spam folder. Instead, create a thumbnail of the video and redirect the customers to the source of the video, which could be your website or landing page. This is one of the best ways to increase click-through rates.

6. Improves Social Engagement

In recent times, it has become increasingly pertinent for the brand to have a social presence. The bigger the presence, the better the brand awareness. To increase social media presence, it is prudent to create videos for different video platforms to enable the customer to connect directly with the brand and product. Furthermore, if they like the product, there is always the prospect of the brand’s word spreading far and wide. In case you are wondering how to make such videos, they can be easily made with an online video maker available from several new companies.

7. Promotes Trust

The great advantage of video marketing is that it can directly appeal to the audience’s emotions. This is vital for a small business to create that all-important connection with the audience. Such connections can reinforce trust in the brand and create loyally and repeat customers. There are numerous ways to cement this trust, including testimonials, behind-the-scenes perspectives, etc.

8. Improves Understanding of the Product

There are many concepts or products that cannot be explained well with a text or any other medium. With such products, it is always a safe bet to create videos, specifically product demo videos. This gives the audience a chance to better understand the product before they make the purchase decision.

Another way of doing this is through explainer videos where you explain how your product solves the problem and fits into the overall picture. Increased understanding will naturally translate to improved sales.

9. Increases Sales

There are validated figures that point to the fact that companies that carry out video marketing outshine the companies that don’t. Video content has the potential to convert a cold audience through landing pages, email campaigns, or social media presence. Although the initial capital investment tends to be high in some cases, the company can easily recoup the amount once they have the video marketing in motion.

10. Video can Provide Critical Metrics

Having created your video marketing campaigns, it’s natural that you would be eager to measure its performance and impact. All video platforms come with analytics that allows you to delve into the performance of the video in close detail. Such data points will allow you to fine-tune and refine your future strategy and give insights into the target audience.

Final Thoughts

Video marketing is a strategy that is not going away anytime soon. So, if you are a small business, do not wait to start with video marketing. Else, there is a good chance of your competition doing it better and grabbing the lion’s share of the market. That being said, it is also pertinent for marketers to think originally and come up with concepts that leave a mark and strike a chord with the audience without which it is hard to succeed with video marketing.

Instagram Marketing: Note These Principles Down Before Starting

Last Updated: August 28, 2024

Business and marketing go hand in hand. These days, the best platforms to market products or services are social media platforms. Particularly, Instagram has risen to be a great app for all things business, advertising, and brand awareness. And if you know how to maximize the platform, you will get plenty of conversion benefits.

Instagram marketing is all about promoting your brand on Instagram to increase awareness and improve sales. It is the strategy by which businesses can reach their target audience.

Understanding how Instagram works will put you in a better position to run and market your small business successfully on the platform. Before you start your business on Instagram, you should acquaint yourself with some principles.

These principles will steer you in the right direction.

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Instagram Marketing Principles To Note Before Starting Your Business

1. Research

It’s a jungle out there on the streets of Instagram and only the informed survive. Thankfully, all the information you need about your potential clients is readily available. You just have to do some research to find them out and channel them for your brand growth on Instagram.

Start by studying your industry, and then learn about your target audience. Figure out what people want from your brand. Running surveys is a good tactic to do this.

Ideally, you want your products and services to proffers solutions to the problems your customers face. But the only way to find out about your customers’ problems is by researching. Study the demographics that suit your brand. Also, the age range of your target audience, their gender, and their location matter, especially when you’re about to run targeted ads.

Another important tactic is to find out about your competitors and see the things they do differently. Make notes about the mistakes and positive actions taken by top brands. And make sure to use them while designing your own Instagram marketing campaigns.

2. Listen

After proper research and survey, you need to listen to your target audience. It’s useless to research only to ignore all your findings, especially those you can use to help your audience. Remember that you are there for your followers, not just for yourself or your personal gain.

From the notes, you make while researching, see how you can implement steps to cater to your audience. For example, if people complain about poor customer service, then you should make sure your brand provides a quick and helpful response to customers.

2. Participate or Interact

Instagram accommodates communication and interaction between users. Before the social media era, there was a limitation to brand-customer interaction. You either had to send an email or make a long inconvenient call to a customer care service. However, things have changed and it’s way easier to reach brands via their DMs and get quick replies.

To successfully run a business on Instagram, you must interact with your audience. Comments and DMs shouldn’t go without a fast reply from you. Like, share, and comment on your follower’s posts especially if they relate to your brand. Your captions should encourage your audience to participate or give their opinions in the comment section.

Customers want brands that they can reach out to or connect with. So to become that brand, you must increase participation and interaction with your audience.

3. Build

This principle is not mandating a brick-and-mortar location. Nope! It simply means that you should build a community for your brand. Your business needs a loyal customer base, also called a community, that will support your business.

A brand community will help you gain more awareness. Imagine you have an amazing following that shares your posts or tags friends to follow you, your growth will be explosive! This is why some users buy Instagram followers and likes. It increases their community and also their engagements and gets them the favor of the algorithm.

4. Reward

Rewarding your consistent customers or loyal followers can give you headway. People have the motivation to interact or make purchases when there is something more to gain. Giveaways and discounts are excellent marketing strategies. They bring practical results as you will see in follower counts, engagement rates, and sales.

Occasionally, make giveaway posts to encourage your audience’s participation. Ask your followers to tag their friends and follow you. Give discounts on products and services. You will find that more people will make purchases because an item has a 20% discount.

5. Measurements and Analytics

Businesses, regardless of their mode of operation, always need to analyze their performance. Measuring your progress will guide you in designing future strategies. From analytics, you get to see what works best and what doesn’t.

You should evaluate how well your content on Instagram reaches the right audience. All these will help you see how you can turn visitors into customers. The task of analysis will be easy if you work with an analytics platform or software. Already, Instagram has the insight feature that is an asset in this area.

6. Empower

As your business grows on Instagram, it may become tedious to run it all by yourself. As such, you should consider hiring people with social media management skills. Empower your business with the necessary skill sets.

Since Instagram is a visual platform, you can invest in a camera, a professional photographer, and a graphic designer. As you grow, make your Instagram posts better.

Not every business can afford to employ a social media manager or designer. If your business is a small one with a little budget, don’t worry. There are other things you can do to improve your Instagram page. Here are some helpful tips:

Look out for Instagram updates so that you can use the latest business features.
Bring into play editing apps and software like VSCO, Snapseed, Lightroom, etc.
Graphic design apps like Canva can be beneficial.

6. Collaborate and Partner

To thrive on Instagram, you must consider partnerships with other brands and creators. This is where influencers can help. Instagram influencers can help you make sales and increase the reach of your brand.

By venturing into a partnership, you are opening doors for more followers and engagement. Even as a small business, you can partner with nano-influencers. Do Instagram stories takeover, collab posts, paid partnerships, etc.

7. Share and Promote

Your brand needs recognition and awareness to generate leads and make conversions. Sharing and promoting your brand in any way possible can bring the awareness you desire. Let people know that you have a business. Below are two tips to help you with business promotion:

Run Instagram ads or campaigns: ads are well targeted to ensure that the right demographics see your sponsored posts. Examples of Instagram ads are image ads, carousel ads, video ads, stories ads, and shoppable or collection ads. Choose an ad type based on your ad objective. If you wish to boost sales, try out shoppable or collection ads.

Promote your Instagram page on other social media sites, blogs, and websites: On your Twitter, Facebook, or Pinterest profiles, you can put in your Instagram profile URL. Users on these platforms can connect with you on Instagram using your link. If you have a blog or website, you can also embed an Instagram post in your blog content.

In Conclusion

Your marketing strategy can make or mar your business on Instagram. For this reason, you need to employ the best methods and approach.

Listen, engage, partner, analyze and share. Also, be open to new updates and trends from Instagram and see how to use them. As you start your Instagram business, make sure you tick all principles we have highlighted.