Top 3 valued employee skills

While the majority of today’s job roles do require employees to have some form of qualification or specific skill set, there are other certain attributes many of today’s employers consider to be just as important.

Here are three valued skills employees should work on developing to help them stand out from the crowd when applying for jobs:

Self-discipline
Many employers are beginning to move away from a supervisory model towards a more team-oriented approach. Therefore, they are on the lookout for people who are capable of working independently. This means employees need to have the ability to prioritise, plan, problem solve, organise and make decisions. As departments continue to shrink as a result of improved IT systems, employees who don’t need to be supervised often are becoming highly sought after.

IT skills
The rise in technology use over the years has created a bigger demand for employees who have a high degree of proficiency with computer software and technical knowledge. The ability to write reports, build and maintain databases, access and analyse data all require computer software skills. And with more people working remotely, it is a big plus for those who have the technological skills to troubleshoot and problem solve without the help or guidance from their employer.

Communication skills
The ability to communicate effectively with people within and outside a business is high on the list of an employee’s desired skills. Being able to liaise effectively with clients or customers and contribute successfully to a team requires strong interpersonal and communication skills. Being able to actively listen to those around you while also being able to contribute is a talent that helps a business grow and succeed.

Money habits that limit wealth creation

Even high earners can make very stupid (and avoidable) money mistakes.

Use the below examples as a way to look objectively at your money behaviour and how it might be limiting your wealth creation.

Not having a budget
Some people think nothing of spending $1500 on a weekend away, or $800 on a new outfit. But even if you earn $400,000 a year, spending a substantial amount of money each month on purchases and experiences adds up. Not preparing and sticking to a budget is a common mistake among high earners, as many believe that a budget isn’t necessary, given their high level of income. Regardless of how much you earn, individuals need budgets to know where their money goes and what needs to be set aside to achieve their goals.

Peer pressure
Peer pressure isn’t just experienced by teenagers. Don’t be the partner who drowns in non-deductible debt, but takes an overseas holiday once a year or owns the latest model car just because that’s what other partners have and do in your businesses.

Sunk cost fallacy
Avoid being the kind of investor who invests in a project regardless of potential returns. It is quite common for an individual to want to hang on to an investment that is doing badly because they feel both financially and emotionally invested, resulting in them being unwilling to sell.

Paying attention to the buying process

Understanding customer behaviour in regards to purchasing products and services is crucial to improving a business’s marketing strategy and increasing its sales and profits.

And while business marketing techniques and strategies have changed over time, the decision-making process customers undertake before making a purchase has generally remained the same.

Understanding how this decision-making process applies to your business and its customers, can help business owners create a marketing strategy that provides customers with the right information at the right time.

Stage 1: Problem identification and evaluation
No matter the industry or business type, the buying process always begins in the same way: the customer realising that they have a need. Once a customer’s need has been identified, they usually begin seeking information to find a way to address that need. This is where business owners should step in to provide valuable help and resources in order to establish trust and authority.

Stage 2: Narrowing down and decision-making
Customer decisions are based on a number of factors. Businesses need to identify those factors to understand what would make a customer choose their products over others, so they can present those reasons to customers during this stage.

Stage 3: After purchase
A business’s marketing strategy should not stop after a customer makes a purchase. Building and maintaining customer loyalty involves staying in contact with customers after they have made a purchase to ensure that their experience with a product is a positive one. Some customers may feel unsure after making a purchase, so it is important for the business to reinforce that their purchase was a good one. The better a customer’s experience of your product or service, the more likely it is that they will recommend you to others.

Transitioning to retirement pension in an SMSF

The transition to retirement income pension is quite straight forward, however whether there are clear benefits depends on an individual’s personal circumstances.

When an individual starts the transition to retirement income pension (TRIP) once they reach preservation age and are still working, they receive an income stream from their SMSF.

Their existing account balance in their SMSF simply becomes a pension account, and any future contributions will go to a new accumulation fund in the same SMSF.

The minimum income an individual is required to receive each year is 4 per cent of the balance of their pension account. The maximum income stream they can receive is 10 per cent of the balance of their pension account.

When an individual starts their TRIP, they must instruct their employer to reduce the amount of salary received, and instead salary sacrifice this amount into their SMSF. The maximum salary sacrifice that can be made is $35,000 a year. This includes any employer contributions, such as the compulsory 9.5 per cent employer contribution.

The main benefit of a TRIP is to do with reducing tax. Reducing take home salary means reducing assessable income (which is taxed at an individual’s marginal tax rate). Converting to a TRIP and changing your SMSF to a pension account also means tax on any income your pension account earns, including CGT, will be reduced to zero.

In a lot of cases, implementing a TRIP can mean a significantly higher retirement balance, so it is something everyone should investigate.

Family trusts

While the ATO continues to crack down on its tax minimisation strategies, quite a few legal pathways to paying less tax while preserving wealth for retirement or estate planning purposes still exist.

Family trusts have significant tax-saving abilities, and can save high-income earners a fair amount of money over a few years by apportioning wealth to members in lower income brackets via a strategy called streaming.

Streaming income allows trustees to place a high proportion of the trust’s earnings into the names of their adult children (who are subjected to a lower marginal tax rate). Using the kids’ $18,200 tax-free threshold also means the investment income is not be taxed, and franking credits would are refunded. However, if children are below the age of 18, it may not to use this strategy since any investment income they earn above $416 attracts a much higher tax rate.

While streaming is a great option for minimising a family’s overall tax burden, it is not always a straightforward practice and may warrant professional advice. Here are two tips when using the family trust structure for tax purposes:

Take advantage of the tax-free thresholds: Make sure to take advantage of the $18,200 tax-free threshold if you have younger members in the trust, by transferring a higher allocation of the trust’s investment income to them.

Put capital gains and franking credits with low-income earners: Placing a higher proportion of profits to low-income earners can result in huge tax savings.

Tips for creating email campaign content

Sending out an email campaign for the first time may seem a bit daunting to those who have never engaged in marketing before. But simply following best email marketing tips and practices can help create successful email campaigns that keep readers engaged and eager for more. Here are three tips to creating the content for an email campaign:

Use the 80/20 rule: The principle of the 80/20 rule is that 80% of the content in an email should be purely for educational or informative purposes, while only 20% should be content that promotes the firm. Email subscribers are more likely to engage with a campaign that provides information they are interested in. Campaigns that only focus on content that tells readers to purchase products or services may overwhelm or annoy readers, which can result in higher rates of opt-outs and unsubscribes.

Include expectations: Make sure you inform new subscribers exactly what they can expect from receiving your email newsletters when they use the signup form. Don’t forget to include the type of content they will receive, and the frequency in which they will receive it. Setting newsletter expectations early can lower email opt-outs as readers know exactly what they are getting.

Use an irresistible subject line: Many people don’t realise that an email campaign’s subject line is one of the most important aspects of an email’s content. Using a compelling or creative subject line will make readers want to read the content. Don’t settle for overused lines like ‘February newsletter’; use language that will engage readers to read further.

Why you should get out of the office

Taking a well deserved day, week or even month off from work could be the very thing your business needs to thrive. Here are four reasons why taking time off away from the office can have a positive effect on your health and your business.

Breaks up the routine
While the same old routine can make a difference between floating around the office and actually accomplishing tasks and projects, everyday routines don’t inspire innovation or change. Sticking to the same routine will produce the same results. Taking a break and creating the space to be able to come up with new and inspiring ideas can help fix any issues that hold your business back.

Gives your quiet time to think
Sometimes your brain needs to take a break in order to think more clearly in the future. Allowing yourself some quiet time to think provides the opportunity to learn, self-critique and identify what your business should and shouldn’t be doing.

Opens you to new ideas
Taking the time to think and analyse your performance in all areas of the business can help you identify, learn or even re-learn new things and great ideas. If you’re not allowing yourself time to observe and witness other people doing great things, you may be inspired to do them yourself.

Helps find purpose
Successful people know what they’re doing, why they are doing it and where they want to go next. It can be difficult to find this kind of purpose when you’re stuck behind a desk all day. Don’t lose your ability to determine what you’re doing and where you want to take your business next; take some time off to find your purpose.

Develops staff initiative
Sometimes not being in the office can be good for your staff as well. When you’re not available to answer questions or manage tasks, staff have the chance to develop their own autonomy through making decisions and working with the rest of your team.

Employment law myths

Employment law is an ever-changing landscape that most businesses struggle to navigate. Here is the truth behind four common employment law myths:

– An employee must be given three warnings before dismissal
There is no specific requirement under employment legislation that employers must give 3 warnings before dismissal. A series of warnings is likely to be appropriate when the disciplinary action relates to poor performance. Ultimately, the appropriate sanction depends upon the circumstances, and any policies or procedures that are in place.

– No contract in writing means no contract
Although a written contract is required by law, even a verbal agreement contract is binding. However, often it can be hard to prove what was agreed upon unless it is in writing.

– Serious misconduct allows for an immediate dismissal
Serious misconduct will often result in summary dismissal; however, employers must comply with the usual disciplinary procedures. This requires employers to invite the employee to a disciplinary hearing, allowing the employee an opportunity to respond.

– Deductions can be made from an employee’s wages for things such as lack of notice or covering business losses
The employee must consent to the deductions and are able to withdraw consent by giving notice in writing at any time.

Working from home deductions

Those who produce some form of assessable income at home or incur expenses from using that home as a workplace can claim for expenses and tax deductions.

Individuals can claim deductions for their home if it is used for income earning activities but isn’t a place of business, or if it is being used as the main place of business. The tax implications vary depending on which of these circumstances applies to an individual. Expenses individuals can claim generally fall into the following categories:

Depreciation on equipment: Deductions can be made for depreciating items like electrical tools and devices, desks, computers or chairs. Those who use the depreciating asset solely for business purposes can claim a full deduction for the decline in value. If individuals also qualify as a “small business entity” (make less than $2 million a year turnover), they can immediately write off most depreciating assets that cost less than $1,000. Using the depreciating asset for non-business purposes means individuals must reduce the deduction for decline in value by an amount that reflects the non-business use.

Running expenses: Running expenses are viewed as costs from using facilities in the home to help run the business or home office. These include electricity, gas, phone bills and perhaps even cleaning costs. A way of working out how much of these running expenses are used to run the business could be to use your floor to measure what was used e.g. if the floor area of your home office makes up 10% of the total area of your home, you can claim 10% of heating costs.

Occupancy expenses: Occupancy expenses can only be claimed by those who use their home as a place of business, not just work there from time to time. These individuals must have an area of their home dedicated exclusively to business purposes only. Occupancy expenses are expenses paid to own, rent or use this area. They include rent or mortgage interest, council rates, land taxes and house insurance premiums.

Customising your super strategy

Adjusting your super fund strategy so you can have a more active role in managing your retirement savings can often result in a number of rewards and benefits.

However, it is important for those who opt to take more control of their super fund’s asset allocation to consider aspects in the long-term, rather than react to any short-term financial changes.

The typical investment strategy options for super accounts are cash, conservative, balanced, growth and high growth. Most default funds combine members who are still saving for retirement into the same balanced option. But while conservative and growth assets tend to deliver the best long-terms returns for most members, it is worth considering if these investment options suit a member’s personal wants and needs.

Key life events, such as marriage, starting a family, or approaching retirement, are often good opportunities to consider and review superannuation investment strategies.  Fund members should also take into consideration what stage of life they are at when deciding the kind of investment strategy they want their super in.

Changing the level of risk in a super fund can be as easy as selecting a new option online or over the phone. And while most funds don’t charge members for changing their investment strategy option, it is always a good idea to check with your super fund if this is the case. There can also be a slight difference in investment fees between strategies. While higher growth and more active strategies can be more expensive, these costs can become inconsequential when compared to the value of being in the right strategy.