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Cal Wilson / January 26, 2022

The hidden power of compliments.

Despite the often-sincere goodwill behind compliments, some of us are nevertheless nervous about giving and receiving them. However, research shows that there are real benefits to being on both ends of a compliment.  

In this issue of the Pulse, we are looking at the hidden power of compliments, and examining how they might have an impact on your workplace and working relationships. 

Anxiety prevents us from giving compliments.  

If you’re being genuine, all compliments come from a good place. However, the natural human anxiety surrounding how others perceive us can hold us back from letting others know how we feel.  

If I tell them I appreciate their work, will they think I’m being patronizing? Will they think I’m a suck up? Worries like these silence us from saying what we feel. We can all remember a time when we held back from sharing a complimentary sentiment for fear of how it would be interpreted.  

However, new evidence suggests that our fears are unfounded, and that by keeping our compliments to ourselves, we are missing out on significant benefits to our relationships.  

Psychologists are paying more attention to compliments.  

In the past decade, researchers in the field of psychology have begun to take a closer look at the power of compliments.  

One of the big ideas to come from studies over this period is the idea of reciprocity. This means, an act of kindness like a compliment allows for mutual goodwill, and generally makes the recipient more likely to follow a compliment with a helpful deed.  

Think of the English phrase, “paying a compliment.” This implies that compliments are in nature transactional, even when we mean them sincerely. Although this may seem like a jaded way to describe compliments and praise, if we break it down, this is a communication tool to help us uplift each other and strengthen our relationships.  

Compliments break down social discomfort.  

Research has also found that actively engaging in giving compliments can disprove some of our social anxieties.  

In studies where participants are asked to randomly pay compliments to strangers or pre-existing relationships, results found participants both underestimated how happy the recipient would be to hear praise and overestimated how awkward and uncomfortable they would feel during the experience. Consequently, participants found the exchanges surprisingly pleasant.  

Researchers have tied this phenomenon to the human perception of our own social competence. When challenged to compliment a friend or stranger, we worry we will not come across competently; whether due to poor articulation or incorrect tone.  

As it turns out, most people don’t care if you deliver a compliment clumsily. The compliment itself makes them feel seen.  

Compliments in the workplace.  

The science behind compliments and the concept of reciprocity is directly linked to the way positive feedback is a powerful tool in the workplace. In fact, it may be one of the most powerful tools employers and managers have at their disposal.  

For example, a study by Intel and Duke University found that verbal praise is a more powerful motivator for workers than even a cash bonus.  

What does this tell us? If you’re in any kind of supervisory or collaborative role in your job, it’s important to pay attention to the language you use. Do you effectively communicate praise and positive feedback? If not, you could be missing an opportunity to motivate and bond your team.  

So how do we pay compliments? 

The answer is: authentically. There’s no need to overthink it. If you have praise to deliver, deliver it.  

At the same time, don’t feel the need to lay it on thick. Over-complimenting may come across as insincere. Avoid this by giving credit where credit is due, and not digging for reasons to pay compliments.  

Stick to the kind of compliments that convey the recipients’ social value, to you, your workplace, friendship, team, etc. 

In conclusion… 

Compliments hold power; the kind of power we often let go unutilized because of our own anxiety in giving compliments. Whether a work, family, or social relationship of any kind, giving compliments to those you value is important. Don’t miss an opportunity. 

Cal Wilson / January 17, 2022

What will 2022 look like for VoIP phone systems?

Voice over Internet Protocol (VoIP) helps businesses across the world better manage phone systems which need a growing number of lines, virtual solutions, worldwide capacity, and more. In comparison to traditional analog phone systems, VoIP phone systems tend to have lower costs and higher reliability.  

For these reasons, VoIP is becoming increasingly popular with businesses. This trend isn’t slowing down in 2022; in fact, it’s picking up speed. In this article, we look at the future of VoIP technology, and what you can expect to see from providers this year.  

The industry is growing.  

With the digitization of communication still going strong, the VoIP industry is seeing the benefits. One provider, RingCentral, reported its subscription revenue grew 34% since pre-pandemic sales. Experts predict the industry will grow by at least 55 billion USD by 2025. This is due in part to the technology’s large expansion into previously untapped markets.  

For years, specialized business phone systems were used mainly by larger enterprises with hundreds of employees. Nowadays, the cost and customizability of VoIP has made it accessible to all businesses, whether you’re an office that needs a few phone lines or a call center requiring hundreds.  

The VoIP industry’s growth will include exciting new trends that take the convenience and mobility of this tech forward into a new era.  

VoIP is part of the rise of UCaaS.  

In 2022, we will likely see VoIP expanding as one part of a larger Unified Communications as a Service (UCaaS) product. UCaaS platforms offer services like VoIP along with a suite of other cloud-hosted communication services, such as video/web conferencing, instant messaging, faxing services, and collaboration tools.  

As TrustRadius explains, “one large benefit UCaaS brings is the ability to centralize virtually all online communication within one platform. Rather than having to purchase a separate video conferencing tool, instant messaging application, and voice solution, companies can invest in one product that has it all.” 

One of the trends that will continue to grow in 2022 with UCaaS is integrated communications apps, which host all the communications tools, including VoIP, from a single application. This prevents the frustration of having to switch between multiple apps or overload your devices with several different communications software running.  

As UCaaS continues to save enterprises time, money, and hassle, VoIP will continue to grow alongside it.  

5G capability will expand VoIP’s accessibility.  

With the number of 5G compatible devices being sold on the rise in North America, VoIP systems will inevitably be impacted.  

5G compatibility for devices with a VoIP phone installed could potentially solve two of the biggest concerns that hold some back from making the transition from traditional phone systems: 

  • Call latency leading to dropped calls. 
  • Quality of service on 4G networks.  

While VoIP is an improvement on traditional phone systems in a lot of ways, we all know internet connectivity can be spotty, especially in high traffic environments. Luckily, 5G promises significant improvements. While VoIP services on 4G networks can take 10 milliseconds to connect to a network, creating some latency, 5G is reported to speed this up to less than one millisecond.  

Likewise, because of the capabilities of newer devices and stronger networks, many VoIP providers now support applications on iOS and Android, alongside the typically desktop/softphone solutions. This has huge benefits for companies with remote or travelling workers.  

VoIP will be integrated with AI.  

In 2022 and onwards, we will see increasing integration of VoIP with AI customer service technology. 

With AI’s propensity for analysis, automation, and convenience, the combination of AI and VoIP will seriously change the way many businesses do customer service. It enables companies to: 

  • Set up advanced call routing. 
  • Use auto attendants to handle incoming calls.  
  • Speed up communications for customer service lines and reduce wait/hold times. 
  • Create smarter digital assistants that will conduct real-time analysis that gathers a customer’s emotional state and other information.  
  • Use Natural Language Processing (NLP) tech to translate voice or video calls in real time.  
  • Prevent fraud for businesses of all sizes 

The potential benefits of this technology are endless and will result in quicker interactions and less customer frustration.  

VoIP and CRM integration.  

Some companies have already made the smart move of integrating their VoIP solutions with their CRM data. Going forward, this will become increasingly standard practice.  

When VoIP and CRM are integrated, whenever a known customer or client number calls, the system automatically loads all their information, saving time and confusion on both ends of the interaction. In sensitive industries, such as banking, this can also prevent mistakes and data breaches from happening.  

The Education Industry is tapped for VoIP adoption.  

While enterprises were early adopters of VoIP across industries, 2022 is looking to be a big year for VoIP and UCaaS integration within the education world 

The rise of remote learning has created a need for virtual communication platforms that are accessible to teachers, staff, and students alike.  

A good UCaaS system would provide a host of benefits to a school doing in person, remote, or hybrid teaching. This includes: 

  • Adding supplemental learning sessions, enrichment classes, labs, and more virtually.  
  • Offer tutoring to the curriculum hosted online.  
  • Allow staff, students, and parents to request equipment, forms, books, and more in an automated, trackable way.  
  • Allows teachers to send bulk emails, announcements, and voice messages to students. 

While post-secondary institutions are leading the adoption of this tech, it seems that UCaaS is the future of education across the board.  

In conclusion… 

2022 is projected to be a great year for business phone system providers, whether that be just VoIP or UCaaS as a whole. Global circumstances, tech advancements, and more have created the perfect environment for the rapid growth of virtual communications solutions, which means a lot more opportunities for businesses to find services that fit their needs.  

Related articles: 

Cal Wilson / January 12, 2022

Is the office evolving for a new era of work?

For generations, the office has been both an important physical space of work and a symbol of North American working culture. It has dictated our daily lives – the way we work, socialize, and how we represent our working culture in the media.  

However, a post-pandemic landscape has the future of the office looking a lot different than the space that has occupied our working expectations for decades. In this issue of the Pulse, we look at the projected direction of the office, and whether or not it’s truly homeward bound.  

Did 2020 change the office forever? 

Two years on, and it still feels like we are grappling between a supposed return to normalcy and a bigger push towards hybrid work. Can we really return to a traditional office setting? Many believe the answer is no.  

Square Enix’s hybrid solution.  

As reported by CBC, the Montréal location of Japanese video game developer Square Enix has approached the return to office on a person-by-person, voluntary basis. Beginning in September of 2021, it allowed staff to choose to return to the office or remain working from home.  

Of Square Enix Montréal’s approximate 150 employees, a mere 20 are working out of the office each day as of CBC’s report. The employees who did choose to return cited socialization, getting out of the house, and collaboration with colleagues as their biggest reasons behind their choice.  

While the initial office shutdown and transition to work from home presented challenges – as anyone who experienced this transition can empathize with – its current hybrid solution is what’s working best for the employees.  

How do downsized offices accommodate staff?  

Hybrid working solutions, like Square Enix has adopted, often mean a business can save on expenses by downsizing.  

In Square Enix’s case, one solution has been to reduce the number of machines and devices kept in the building. Since staff devices are largely kept at home, there is not a 1:1 ratio of devices to staff in the office. Instead, employees coming into the office book the use of a floating workstation for a given day.  

Believe it or not, there are even applications for enterprises that allow employees to collaboratively book workspaces and schedule days in the office.  

Canadian telco Telus is headed towards a similar setup when its offices reopen this year, with the vast majority of employees still expected to be working virtually.  

Telus’ director of people and culture, Jennifer Anquetil, told CBC that leadership is being encouraged to move toward a workplace environment where “the office is a place to collaborate and meet with team members, on whatever schedule ‘makes sense for the individual and their team.’” 

This will see huge changes for the company which employs 29,000 people across the country.  

What are the real estate implications? 

Downsizing offices might see a change in the way businesses rent or lease properties.  

typical commercial lease is signed in five- or ten-year periods. So, while not all companies who are looking to downsize their office spaces can immediately do so, many may be finding they’re looking for different spaces or solutions as their lease terms come to an end in coming years.  

What could this mean for the commercial real estate market? Could larger office buildings be sitting empty in the future?  

Not every company functions the same.  

While its important to listen to data and employees asking from virtual or hybrid solutions, your business does not have to conform to what others are doing play for play. As Forbes points out, the future of the office does not have to be a one-size-fits-all solution.  

Going fully or mostly virtual will not work for all companies, especially those with both highly collaborative and highly skilled roles.  

Likewise, Forbes says, “organizations that are more sales- and customer service-centric than many other industries need the human connection that makes their teams stronger and more nimble and promotes career growth.” 

A hybrid model of work is certainly the future of the workplace, but what that hybrid looks like should depend on what is best for your business and your staff.  

In conclusion… 

The future of the office is still uncertain. As many companies begin to downsize, re-imagine, or phase out the traditional concept of the office, others are still nonfunctional without this space. One thing is for sure, working culture is changing, and with that, so will the spaces it creates. 

Cal Wilson / January 4, 2022

What is the future of eSignature technology in a post-pandemic landscape?

After a period of wild growth beginning with the COVID-19 pandemic in 2020, eSignature companies are seeing a sharp drop in revenue as workplace habits begin to return to normalcy.  

What does a decrease in sales and stock value mean for the future of eSignature providers and the technology as a whole? In this article, we take a look at just that.  

The eSignature market experienced rapid growth in 2020. 

The sudden onset of social distancing and work-from-home mandates meant in-person interactions nearly disappeared for parts of 2020. Suddenly, companies that offered virtual and hybrid working solutions found their place in the market go from forward-thinking to vital necessity for many businesses. 

Companies like Zoom, WebEx, and more have unsurprisingly found success in this climate. eSignature providers are no exception. In fact, the number of businesses using eSignature has increased by 50% since the outbreak of COVID-19.  

The curious case of DocuSign.  

In early December, eSignature provider DocuSign Inc. announced a dramatic fall after a year and a half of considerable success.  

As reported by Bloomberg, on December 2nd, 2021, DocuSign “tumbled 30% in extended trading… after the e-signature company’s quarterly revenue forecast missed analysts’ estimates.” 

“After six quarters of accelerated growth, we saw customers return to more normalized buying patterns,” DocuSign CEO Dan Springer said in a statement. 

To put that in perspective, the company tripled in value in 2020, but grew only 5.2% in total over 2021, after the recent fall.  

DocuSign isn’t alone.  

DocuSign isn’t the only Software as a Service (SaaS) company to experience a dramatic dip in December. Adobe Inc. shares also sank to their worst performance in over 20 months on December 3rd, immediately following the DocuSign news.  

MarketWatch reported “Adobe’s stock fell 8.2% (on December 3rd), its steepest single-day percentage drop since March 2020… The move wiped away $26.3 billion in market capitalization, taking Adobe’s valuation lower than $300 billion.”  

This drop is surprising for Adobe because, unlike DocuSign, their suite of products is more comprehensive than eSignature technology. Analysts have chalked this up to a “knee-jerk reaction” to DocuSign’s own recent devaluation.  

What does this mean? 

DocuSign’s unfortunate Q3 results offer some interesting consumer insights. We spoke with Schooley Mitchell’s Manager of Research and Development, Greg Kelly, for his thoughts.  

“I’ve done some further reading since I first heard the news about DocuSign’s stocks decreasing. Of course, I don’t want any vendor to fail and cause loss of service, but it is interesting to see how they are trending after the pandemic.” Kelly said.  

“Businesses aren’t buying on reaction anymore. With transitions to remote work, there were many holes in workflows that were quickly fixed by purchasing software including DocuSign. DocuSign is still a great solution, but they are projecting less revenue. To me, that means many businesses are set up with the necessary remote work software and are cancelling services that are over-priced or unneeded – or they’re simply putting more thought into their workflow processes before fear-buying a new software.” 

“In these situations, changes to the service are inevitable as they try to regain lost revenue. Whether that comes as a new feature launch or a promo push to sign-up new customers, it will be a perfect time to negotiate rates and review current service levels.”  

The future of work-from-home software.  

As Kelly suggests, this is hardly the end for virtual and hybrid-focused SaaS providers.  

Not only has the pandemic caused businesses of all sizes to reconsider the future of the office, and rapidly adopt more hybrid solutions, but the need for fully virtual solutions isn’t going away. With new variants and an unpredictable future, pandemic-related work-from-home situations are still commonplace in office culture.  

While work-from-home products and companies might not see the same consistent quarterly growth as they did in 2020 and early 2021, their products are still widely used, needed, and opportune for innovation.  

In conclusion… 

While eSignature providers such as DocuSign and Adobe saw rough Q3 valuation, this is more a sign of a period of change in the industry than an end to its success. As 2022 progresses, we are likely to see new products and services that will make virtual and hybrid work easier than ever.  

Related articles: 

Cal Wilson / December 22, 2021

Practicing gratitude in the workplace.

We’ve all felt burnout, stress, and resentment at work; it happens, and it’s natural. However, holding onto these emotions for too long – no matter how warranted they may be – can have a negative impact on your mental and physical health.  

Without allowing for our boundaries to be disrespected, or ignoring harmful emotions, how can we advocate for our health and work on a mindset that helps us thrive through difficult workplace situations? The answer may be in practicing gratitude.  

It might sound corny, but gratitude has documented effects on our brain, our mental health, and our social and professional relationships. In this issue of the Pulse, we investigate how practicing gratitude in the workplace could benefit us.  

Gratitude changes our brains.  

Over the past fifteen years, there have been several studies on the long term effects of consciously practicing gratitude. Among the results are increased happiness and decreased instances of depression. This has also been found to include those who suffer from mental illnesses. The impacts are actually visible in brain scans.  

Why could this be?  

Practicing gratitude – writing weekly gratitude letters or journal entries, for example – does not solve problems or make issues in the workplace go away. However, what it does do, is train your brain to more easily focus on positive, uplifting emotions such as thankfulness and joy, rather than envy or resentment.  

If you’re having difficulty moving on after a disappointment in your job, or a conflict with your colleagues, this kind of brain training might ease the process.  

How can you practice gratitude?  

Practicing gratitude to help your own health and mindset in the workplace can be a completely independent task, if that’s what works best for you. While it is certainly a good habit to thank your coworkers more often, and express gratitude when you feel it, this can also be done privately.  

Gratitude has the same effects on your brain, even if you don’t share it with anyone. Studies have found  simply expressing the gratitude regularly is enough, even if you, for example, write a letter and never send it.  

The important part here is the expression. Whether that be a letter, a journal entry, a text, a phone call, or a voice note. Just make sure to incorporate the effort of focusing on your gratitude into your weekly schedule.  

One thing to keep in mind is this has to be a habit worked into your ongoing routine, not a one and done activity. Generally, the positive results of practicing gratitude regularly do not occur immediately, but are gradually accrued over time.  

Spread a grateful attitude at the office. 

No matter where you work, you can make small behavioral shifts to foster a grateful mindset for everyone. The more you practice being grateful, the more gratitude will naturally come to you and, hopefully, some of your colleagues.  

Here are some things you can try to enhance your workplace’s culture of gratitude:

  • Pay attention to the little things – if you can, make a list of three positives at the end of every workday. Whether these were personal accomplishments or a moment of gratitude for a colleague, take note.
  • Shout-out your coworkers – especially when things are busy and potentially overwhelming. Noticing and commenting on their accomplishments and strengths is a great way of showing them gratitude, but also for you to keep in mind the positives in your environment.
  • Write thank you notes – to clients, networking contacts, colleagues, etc. A simple note of thanks on a post it, or through a text, can go a long way!
  • Create a special email folder – each time you receive an email that makes you feel grateful, appreciated, proud, or just makes you smile, save it in a special folder. When you’re feeling down or having trouble practicing gratitude, scroll through it to keep yourself going.

In conclusion… 

Practicing gratitude is not a cure-all for workplace stressors and conflicts. However, it can have long term positive effects on your mental health and the overall culture of your workplace. These effects have been documented and proven definitively. Gratitude takes time and effort – but it’s worth a shot. 

Cal Wilson / December 13, 2021

What does the end of 3G mean for fleets with electronic logging devices?

In the United States, the roll out of 5G networks and compatible devices is ushering in a new generation of technology. For businesses that manage fleets, this shift is leading to potential compliance complications with the Federal Motor Carrier Safety Administration (FMCSA). In this article, we take a look at why.

Many electronic logging devices (ELDs) run on 3G.

As per the FMSCA, many fleets must follow the federal regulations calling for the use of ELDs. An ELD is a piece of electronic hardware attached to a commercial vehicle engine to record statistics such as driving hours, odometer readings, and engine power-up.

All commercial vehicles – defined as a vehicle that is a truck, tractor, trailer or any combination of them that has a registered gross vehicle weight in excess of 4500 kg or a bus that is designed and constructed to have designed seating capacity of more than 10 persons, including the driver – must use an ELD.

In compliance with the law:

  • Roadside inspectors may ask for an ELD record to be emailed to a supplied address.
  • ELDs must have an onscreen display to show inspectors at roadside.
  • Fleet compliance must have real time access to the ELD data.
  • ELDs must provide GPS tracking and capture drive time automatically.

Due to the nature of these devices, they rely on network connectivity. Many of them are 3G compatible. With 3G being phased out, this leaves many fleet managers in a time crunch to replace their fleets’ tech.

This must be done in the next calendar year.

On November 19th, 2021, FMCSA issued a reminder for commercial fleet managers to replace or upgrade 3G-reliant ELDs.

Over the course of 2022, all major American carriers will be ending their 3G networks. The shutdown dates are:

  • AT&T: Feb. 22, 2022
  • Sprint (T-Mobile): March 31, 2022
  • Sprint LTE (T-Mobile): June 30, 2022
  • T-Mobile: July 1, 2022
  • Verizon: Dec. 31, 2022

“Once a 3G network is no longer supported, it is highly unlikely that any ELDs that rely on that network will be able to meet the minimum requirements established by the ELD technical specifications, including recording all required data elements and transferring ELD output files,” said the FMCSA statement.

For companies managing a fleet, this means the date you need to replace or upgrade by is entirely reliant on what provider you are currently using.

What can fleet managers do?

Don’t panic. If you’re not sure if you have to replace your ELD, or whether or not it works on a 3G network, the first thing to do is contact your ELD’s provider. There is a chance your device runs on 4G, in which case no action is needed on your part.

If you find your devices do rely on 3G, ask your provider what their plans are for upgrading or replacing devices, and how they can complete the necessary actions as soon as possible. It is very important for businesses reliant on this technology to take these steps promptly, to avoid reaching the end of 3G support and risking downtime or possible non-compliance.

According to trucknews.com, “If an ELD stops working in the U.S., a carrier has eight days to replace the ELD, unless an extension is granted”.

Not all 3G supported ELDs are out.

Not all devices will be dysfunctional without 3G. Some of the older 3G compatible models by Isaac, for example, are supported via local WiFi inside the truck itself.

If your device operates like this, make sure it follows all the FMCSA regulations before making a decision to upgrade it or not.

What about Canadian trucks?

Trucks operating only within Canada do not face the same deadline as U.S fleets; however, border crossing trucks that rely on 3G connectivity will need to upgrade.

Canada’s ruling on ELDs won’t come into effect until June 12th 2022, but commercial vehicles travelling continent-wide still must comply with U.S. laws. For these fleets, it will be important to contact your provider and make sure that your device is up to U.S standards, or find a solution that will be by the respective cut off dates.

Supply chain issues are an obstacle.

One reason for both Canadian and American fleets to get a head start on upgrading ELDs is the supply chain crisis. Component shortages – especially computer chip shortages – could leave fleets that wait until the last minute to upgrade temporarily out of compliance or out of commission.

In conclusion…

3G is being phased out in the U.S, and this could have some big ramifications for commercial trucking fleets whose devices run on 3G networks. Sooner rather than later, it’s important to review your ELD environment, and make sure your devices are up to regulations.

Related articles:

Cal Wilson / December 8, 2021

The most fascinating tech innovations of 2021

Schooley Mitchell is not paid by, sponsored by, or affiliated with any of the companies or products mentioned in this article in any way.  

One of the wonderful things about the modern world is the sheer scale of technological innovation we get to witness – and 2021 has been no exception. From healthcare to software, this year has seen a lot of new developments.  

In this issue of the Pulse, we reflect on some of the most interesting tech inventions and innovations of the past year.  

Workplace & Collaboration.  

Work from home culture has expanded a lot since the outbreak of COVID-19 in early 2020. Unsurprisingly, a lot of development has gone into technology that makes remote working as seamless as possible.  

Some examples of this include: 

  • The Meeting Owl Pro – a collaborative tool designed for enterprise, which includes a 360-degree camera, mic, and speaker combined into one device. It creates the experience of in-person participation for hybrid teams with an 18-foot audio pickup radius and an automatic zoom that responds to who is speaking at the time. It is compatible with Zoom, Slack, Google Hangouts and other platforms.  
  • The BenQ InstaShow S WDC20 – a presentation system designed for large conference rooms which can connect to almost any device and operating system. It allows for plug-in and present instant collaboration without an app or software download needed, up to four-way split screen for multiple presenters, and comes with enterprise-grade security.  
  • KUDO Marketplace – A conferencing solutions provider that automates the booking of language interpreters 24/7 across a wide variety of platforms.  

Tech inspiring the future.  

2021 has been chock-full of new technologies that could take us remarkably far in our problem-solving and re-thinking of the way we interact with the world. These innovations bring to mind endless possibilities.  

Some highlights include: 

  • ICON’s Vulcan 3D Printer Technology – This construction system was designed and engineered by 3D printing firm ICON for volume 3D printing of homes with precision and speed. The Vulcan system allows for quicker production of homes and creates significantly less waste than traditional construction. The applications of this technology could be game-changing for the construction industry.  
  • The Geopress Filter by Grayl – This 24oz water bottle includes a press filtration system that cleans water and makes it drinkable. Not only is this great for active outdoorspeople, but Grayl is working to bring this technology to communities with limited access to drinking water. Systems like these are affordable and can do important work around the world!  

Medical breakthroughs. 

Although a lot of focus in medical news has been about the response to COVID-19, there have been other breakthroughs in 2021, as well. For example, the World Health Organization has approved a new vaccine to help fight malaria that is being rolled out in Africa. Likewise, advancements in telemedicine have made it easier than ever for people across the world to access healthcare.  

In conclusion… 

Although these are just a handful of the exciting innovations and inventions of the past year, they go to show what advancements we are seeing in all walks of life. From seamless virtual meetings, to instantly clean water, to progress fighting one of history’s biggest killers, 2021 has been a great year for breakthroughs!  

Schooley Mitchell is not paid by, sponsored by, or affiliated with any of the companies or products mentioned in this article in any way.

Cal Wilson / November 29, 2021

What are variable expenses and how can they impact your business’ bottom line?

 

When creating a budget for your business, it is helpful to separate and account for fixed versus variable expenses. Mistaking the latter for the former can cost you, and the better you understand all your expenses, the better chance you have of optimizing them.

If you’re unfamiliar with the concept, the best way to describe the difference is that fixed expenses are costs that stay the same from month to month, whereas variable expenses are ever-changing and harder to predict.

Fixed expenses.

Fixed expenses often represent the largest part of your budget. For a business, your fixed expenses are going be costs such as rent payments, insurance premiums, property taxes, and so on. While these are not easy to optimize, they are easy to work into your budget, as they are unchanging and paid at a consistent frequency.

If you can lower these expenses – say, by finding a different insurance plan that works for your needs – you automatically save more money each month or pay period.

In business budgeting, it is important to remember that all your fixed costs must be paid, regardless of your sales that pay cycle. If you’re starting a business, making sure you can cover these expenses for a period before you start bringing in revenue is crucial to staying afloat.

Variable expenses.

Your variable expenses are going to represent the costs incurred by how a given month or pay period goes for your business. How many credit cards you swipe, how much electricity you use, or how much waste you generate; all of these are going to incur a bill that varies every cycle.

Some of these expenses can be harder to reduce than others. How much heating you use to keep your office warm, for example, may be more difficult to lower than the amount of waste your organization is generating. However, in many cases, these expenses are in areas that you can strategize or work with professionals to identify savings, creating a more predictable monthly bill.

Employees can represent either kind of expense.

Depending on how you staff your business, your employees can be either a fixed or variable expense. Anyone hired on full time, who is guaranteed a forty-hour work week, will be a fixed expense, whereas a seasonal or part-time employee will likely be a variable expense, as their hours are subject to change month to month.

Budget with these expenses in mind.

When you’re budgeting, it’s important to separate your fixed costs and your variable costs. If you’re able to determine what you absolutely will be spending in your fixed costs, then it is easier to identify and strategize areas to save with your variable costs.

Month to month, keep track of your variable expenses. Maybe one month you allotted too little to certain expenditures and went over budget. If you keep a closer eye on each cost category, you can do a better job budgeting and planning for the future going forward.

Don’t settle on expenses.

The lower you can keep your costs, fixed or variable, the better the results for your bottom line. If you don’t have experience negotiating rates or deciding what expenses are fair in comparison with the rest of the market, don’t settle. Explore your options, bring in consultants, and work with professionals who can guide you in the right direction.

Especially for the fixed expenses you will be locked into for some time, this could be a make-or-break decision for your business. Why pay more than you have to?

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Cal Wilson / November 24, 2021

Tips for passing on financial literacy to children and teens

November is Financial Literacy Month! While we at Schooley Mitchell have spent the month reflecting on good financial habits for business owners, we would be remiss not to note that an important part of financial literacy is passing on our knowledge to the entrepreneurs and professionals of the future.

In this issue of the Pulse, we share some advice for teaching school-age children and teens a few principles of financial literacy, so that they can build good habits going forward into the rest of their lives.

Children lack necessary financial fundamentals.

If you’re a parent, your child might come home from school with information about the quadratic formula, the biology of a cell, and a ton of Shakespeare, but there is less of a chance they’ve received dedicated education relating to financial literacy. This education is not only lacking at school, but at home, too.

The truth is, nearly half of parents report they miss opportunities to talk to their children about finances. A quarter feel a small to extreme degree of reluctance to have these discussions. At the same time, half of children are eager to learn.

It is better for children to learn financial literacy from their parents, rather than later in life, potentially after having made a costly mistake.

Start with the basics.

Sam X Renick has been teaching children about money since 2001, and uses his storybook character Sammy Rabbit to do so. Renick says the earlier you can start teaching children about financial literacy, the better. Renick recommends starting before the age of seven, because by seven, research has found money habits and attitudes have begun to form.

For young children, money lessons should consist of very basic things:

  • Introducing them to the different values of coins and cash.
  • Explaining how money works.
  • Showing them how purchases are made with cash or card.
  • Showing them receipts when appropriate.

If you’re wondering at what age to introduce a child to a specific financial principle, TD Bank offers a wonderful online guide that can help direct you.

Make saving a habit.

Because a lot of money related lessons will include spending, it is equally as important to show children the foundations of saving.

“Saving teaches discipline and delayed gratification,” Renick told Forbes. “Saving teaches goal-setting and planning. Saving stresses being prepared. Saving builds security and independence.”

Simple teaching tools like a piggy bank or savings jar, reinforced by positive statements about savings, can go a long way in building good future habits.

For younger children, teach the value of savings by working towards a short-term goal, such as a new toy they want. As they age, you can begin introducing longer, harder goals. Parents who employ tactics such as matching their child dollar for dollar, or by a certain percentage, are also often successful in encouraging good savings habits.

Show that savings can grow.

Once you’ve instilled them with a sense of savings, one of the rewards can be to watch the way savings can grow. Savings accounts with compounding interest, such as a certificate of deposit, is one such safe way to do this. Likewise, you can calculate and add interest to your children’s savings yourself.

Some banks offer custodial investment accounts for minors. If you’re comfortable taking that kind of step, that is another excellent opportunity for you and your child to take a small amount of money and watch it grow.

Allow children to earn their money.

Children need to have money of their own to learn to use it correctly, but they must also have the opportunity to earn that money.

“Just about everyone values money they earn differently than money they receive,” Renick said.

Basing allowance amounts on household chores, for example, is one way to teach this.

Gamify the experience.

All children have different learning styles. Some will do well talking and working through different concepts with you, and others may thrive if you gamify their learning. There are many board games and apps out there that can help kids learn some of the basic tenets of finance. You can even design your own!

The takeaway here is, while finances are a serious subject, making financial education fun can help children better process this information and apply it properly in the future.

Don’t forget to teach them about debt.

Many young adults find themselves in credit card debt once they’re out on their own, unaware of how they got there or how to manage it. This is an unfortunate situation, and one most are unprepared to face.

If you’re already building good savings habits, that’s half the battle. However, debt repayment and interest accumulation is another important lesson.

One solution can be to emulate a debt situation with your child. Let’s say you loan them $15 for a purchase, but require they pay one dollar a week in interest until the loan is repaid. Each time your child misses a payment, they owe an additional fifty cent penalty.

Showing children that there are consequences to loans, and that maintaining a good payment schedule is best practice can be done from a young age and could save them a lot of hurt later.

In conclusion…

Children do not get the education they need about finances. Consequently, many go on to become young adults who make uninformed decisions. This Financial Literacy Month, and always, invest in your children’s financial future by having these conversations and instilling good habits from a young age

Cal Wilson / November 15, 2021

Five tips to minimize card processing expenses

As businesses are racking up debt and supply chain issues are increasing material expenses, cutting costs is more important than ever. With many businesses offering online shopping as an alternative to in-store, you might find your payment processing environment has changed or become more expensive.  

If this sounds like your business, here are five tips for reducing your credit card processing fees, and making the most of your revenue.  

1. Keep an eye on your rates.

Complete monthly audits of your merchant services statements to check for billing errors and avoid rate creep. Processors usually offer seemingly standard contracts, but many contain provisions that allow them to increase your rates. This often comes with the caveat they must notify you first — but those notifications could appear in small print on one of your statements. Be sure to read your statements for notification of rate increases and periodically check your rate to see if it has mysteriously increased. Often, all it takes for them to waive the rate increase is a phone call to object. 

2. Swipe cards and answer questions.

Credit card fees are primarily based on risk. This means you’re better off swiping or inserting a card than entering the number manually. Whenever a number is entered by hand, your processor considers it a higher risk transaction and may charge a higher fee. However, not all organizations have the resources to physically swipe or insert a card. If you’re inputting the card number manually, answer as many of the processor’s questions as possible. Providing information such as the customer’s zip code, debit vs. credit, and the three-digit or four-digit code on the back of the card are all designed to lower the risk of fraud. By entering as much information as possible and lowering the risk, you’ll see reduced transaction fees! 

3. Use an address verification service.

An address verification service (AVS), is a solution that verifies the cardholder’s billing address with the card issuer. It takes your payment services a step further in preventing fraud and has been a big benefit in the world of e-commerce, including limiting chargebacks. 

It works when during the checkout process, the customer enters their address, which is compared to the address on file with the issuing bank. Once the comparison is made, the issuing bank sends an AVS code to the merchant, who can then use the code to authorize or reject the transaction. 

Many major card issuers, including VISA and MasterCard, support AVS. 

4. Make sure PCI Compliance is up-to-date. 

A vendor will incur monthly fees from the Payment Card Industry (PCI) if its compliance questionnaire is not completed annually. These fees will continue to build up indefinitely until compliance forms are completed. The online questionnaire usually takes less than 30 minutes and saves hundreds of dollars every year. By completing the questionnaire, you assure your credit card processor that you are taking the proper steps to keep customer information safe and minimize the risk of fraud. 

5. Hire a professional.

An independent merchant services consultant will find you the lowest rates possible in your area, and can also track your rates going forward to make sure you’re never paying more than you should. For example, Schooley Mitchell looks out for your best interests by providing objective advice to reduce your electronic payment processing spend and improve service. 

Systematic analysis and auditing will: 

  • Uncover and eliminate hidden fees 
  • Identify and recover overcharges and billing errors 
  • Select and apply appropriate rate categories 
  • Ensure government legislation is properly applied 

In conclusion… 

Now is not the time for your business to be spending more than it needs to on credit card processing fees. In reducing costs and growing your bottom line, we hope these tips will be of aid to you.  

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