Glossary – Zippia

Compressed Work Week: What Is It? (With Examples)

Caitlin Mazur — Mon, 01 Aug 2022 13:53:59 +0000

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What Is a Compressed Work Week Schedule?
The Benefits of a Compressed Work Schedule
Considerations for Negotiating This Type of Work Schedule
How to Implement a Compressed Work Arrangement Successfully
Final Thoughts
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Working a four-day or short week might sound like a pretty good deal. Working a shorter week provides you with a longer weekend and more of a chance to recharge for your next week at work. However, those who hear “four-day week” may not know that most people working this work schedule are working a compressed workweek. A compressed workweek doesn’t mean that individuals are working less. It means that they are squeezing in the standard 35 to 40-hour workweek into a shorter timeframe. This model is something that many people find to be a more sustainable and realistic schedule for their needs, especially if they have many personal responsibilities or dependents they need to care for and manage. Of course, a compressed workweek comes with its own pros and cons, and it’s essential to understand them before you have a conversation with your employer to discuss if this is truly an option for you. Below we discuss what a compressed work schedule is and what you need to know. Key Takeaways:

A compressed work week usually includes the same number of hours as a traditional work week, but on a different schedule.
The benefits of a compressed work schedule include work-life balance and higher efficiency, but it may not be feasible for all positions.
When transitioning to a compressed work week, it’s important to pre-determine what expectations will be and make sure that everyone is on the same page.

What Is a Compressed Work Week Schedule?

A compressed work schedule is a schedule that allows employees to work the traditional 35-40 hours in a shorter number of days. The conventional workweek is five days long, Monday through Friday, with employees usually working core hours from 9 a.m. to 5 p.m. with lunch in the middle. A compressed work schedule can vary, depending on what you negotiate with your employer. For example, someone who is working full time can work four 10-hour days instead of the usual 8-hour days. An employee could choose to spread those work hours out how they see fit, some days being longer than others. For part-time employees, it could be a little tricker, but not unrealistic. Additionally, employees could choose to work 9 hours per day and then take off one full day every other week. Certain professions, such as nursing or firefighting, may require 24-hour shift coverage and ask their employees to regularly work three 12-hour days, with four weekdays off. It all depends on what you are willing to do with your schedule and if your employer is willing to work with you on your hours. Chances are that if you can figure out how to make it work for you, your employer will be on board for a system that ultimately makes you more productive in your work.

The Benefits of a Compressed Work Schedule

There are a few different benefits to operating on a compressed work schedule. Having more time off work opens up a variety of possibilities for your personal life that may not be realistic on a typical five-day schedule.

More time for personal responsibilities. Having an extra day off from work will likely improve your work-life balance. Being a working parent or a caretaker with more free weekdays can open your schedule up to attend school events or doctor appointments.
Having an extra weekday off is ideal for running errands. Stores are typically less crowded on weekdays and can offer a much more pleasant experience. It allows more time for household chores or other priorities or interests you might want to explore on your off time. If you’re a student, you could use this time to catch up on schoolwork or even take an extra class.
Opportunities for long-weekend vacations. Work-life balance also means more time to get away, perhaps for a long weekend or even a staycation by yourself or your family at home. Taking vacation time can sometimes be stressful, but having an extra day built into your schedule means that you can take that three-day weekend getaway without feeling guilty.
Minimal or no traffic. A compressed work schedule means your hours will be different, but this also means you’ll be allowed to arrive at the office early or leave the office late. This means you’ll skip the typical work traffic you see in your morning or afternoon commute.
Keep full pay and benefits. As an employee working on a compressed schedule, you’ll have more time to yourself without sacrificing your salary or benefits you may receive from your company. This is important to reduce stress across the board and ensure that you have the best schedule to be successful without worrying about losing the important benefits that come with your employment.
More efficiency. By coming in early or staying late, employees will have fewer interruptions during the off-time of non-regular office hours. Employees may be more productive during these periods. Additionally, having more time to work on one thing can allow you to put your head down and power through any given project.

Considerations for Negotiating This Type of Work Schedule

Although there are plenty of benefits, the following list highlights other things to consider when you’re thinking about implementing a compressed work schedule:

Not all jobs are created equal. You should consider that not all jobs can function with this type of schedule because of the increased risks of injuries or errors. It’s natural to need a break after the typical 8-9 hour period of working. Some professions do not recommend working longer than those hours per day because your brain simply needs a restart the next day for your best work.
Workload. It’s essential to be self-aware and realistic about what you can handle based on your company, manager, and workload. Some individuals may not be able to be productive if they work too many hours. For many people, rest after 8-9 hours of work is important. Additionally, if your manager or teammates aren’t there during off-hours, and you need them to complete a task, it might be challenging to implement a compressed workweek. Consider all of these things before you commit to a compressed workweek.
Transportation. Depending on the hours you set, transportation might be another consideration to think about. Access to public transit could be a barrier to getting to and from work on time.
Dependent care. Care for any dependents you may have during off-hours might make it trickier to implement this type of schedule in your life. Most childcare businesses are typically only open for work-day hours. If you are a caretaker for an older individual or disabled individual, you may run into similar problems with their care facilities.
Team management. By taking an extra day off from work, you’ll need to be mindful of your other teammates who will still be working on those days. For one, working only four days may make it more difficult to schedule meetings, especially if your calendar is packed.
Additionally, you’ll need to coordinate closely with your teammates so that they can pick up on things you may not be there for on your day off.
Leave time. For an individual taking advantage of a compressed workweek, vacation, health, and personal leave will vary based on how your schedule is set up. When you are granted these benefits, the employer typically counts the number of scheduled hours you work to accrue your paid time off. This means that your leave times and holiday pay will not vary since you work the same amount of hours. However, similar to adjusting to having a shorter workweek, taking leave or holiday will also require some planning.

How to Implement a Compressed Work Arrangement Successfully

Depending on your company, you may need to submit a formal request for a compressed workweek. If you’re part of a company that offers a compressed workweek as part of their regular benefits, implementing this might be more simple, especially if there is already a process in place. However, the chances are that your employer doesn’t offer this a typical perk for employees. You can make the business case for this type of arrangement by documenting how you perform your job and proving how you can complete your goals in a shorter work cycle. If you explain that your productivity increases based on a compressed workweek, you can sell your company on this. To successfully implement this type of arrangement, the employee and department they are part of should work on a few things. First, pre-approve the hours to be worked, if the employee is an hourly wage employee. To avoid overtime concerns, the employee and department should figure out what kind of time off is necessary in these cases.

Final Thoughts

Compressed schedules are beneficial for both the employee and the employer. It provides employees with crucial time off and extends the operational hours of the business simultaneously. For employers who are considering this type of schedule for their employees, it’s easy to track their productivity from the start of the arrangement and keep your eye on it as time goes on to ensure efficiency does not decrease. You may be surprised at how efficient your employees can be on a compressed workweek schedule.

How To Calculate Total Variable Costs: Examples And Formulas

Caitlin Mazur — Sun, 31 Jul 2022 10:41:01 +0000

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What Are Variable Costs?
The Formula for Variable Costs
The Most Common Variable Costs
Variable vs. Fixed Costs in Decision-Making
Example of Variable Costs
What Is the Average Variable Cost Formula?
Break-Even Analysis
Frequently Asked Questions
Final Thoughts
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Cost is one of the most significant factors to determine success when running a business. If you want your business to be profitable, understanding variable costs is a key component to ensuring that happens. However, variable costs can sometimes be too abstract for people to wrap their heads around at first glance, especially if they are new to their business endeavors. It can also be tricky for seasoned business professionals, so don’t get frustrated if it hasn’t clicked yet. Below, we discuss what variable costs are, why they’re important, and how you can calculate them.

Key Takeaways:

Variable costs are entirely dependent on the organization’s volume of production.
The formula for total variable cost is: Total Variable Cost = (Total Quantity of Output) x (Variable Cost Per Unit of Output)
Cost of materials, utilities, and commissions are all examples of variable costs.
It is important to consider total variable costs in decision making, particularly if an organization is looking to expand.
The formula for average variable cost is: Average Variable Cost = [(Total Variable Cost Product 1) + (Total Variable Cost Product 2) + etc…] / (Total Number of Units Made)

What Are Variable Costs?

Variable costs are defined as the expenses incurred to create or deliver each unit of output. This means the variable costs change depending on various things, including, but not limited to, goods, services, or other products. Your total variable cost is equal to the number of units produced multiplied by the variable cost per unit. These costs are entirely dependent on the organization’s volume of production and will vary based on the amount a company is able to produce. So, if the company produces more or less, the cost will increase or decrease proportionally. For example, Uber pays its drivers for every single ride they complete. This is a variable cost and the primary expense for the company. Variable costs are different from fixed costs. Fixed costs stay the same regardless of production, and you can generally count on them staying that way. Understanding the total variable costs and the fixed costs of your business is important for a variety of different reasons. It will heavily impact your decision making in different ways.

The Formula for Variable Costs

Now that we understand better what a variable cost is, the next step is to figure out how to calculate it. This formula can be used to calculate the total variable cost for any particular period of time:

Total Variable Cost = (Total Quantity of Output) X (Variable Cost Per Unit of Output)

Here’s how to use this formula in action when determining your organization’s total variable cost. First, identify all variable costs that may be associated with the specific production of the unit. This can include the cost of labor, materials, and overhead costs. Next, add all of these costs together so that you have one single unit. This will allow you to get to the total variable cost for one unit of production. Once you have that unit, multiply it by the total number of units produced in the time period you’re working with. Once you’ve done this, you’ll have your total variable cost. Don’t forget to consider costs for production equipment (including computer software), employee wages, commissions, any packaging or shipment costs, translation fees, in addition to the others listed above. It’s a good idea to make a list of these costs so that you can revisit them later when you run through this exercise at a later date.

The Most Common Variable Costs

You can think about variables this way – if a cost varies depending on the volume of any given activity, it can be considered a variable cost. Here are some of the most common variable costs:

Direct materials. If the cost object is a product that must be manufactured, the direct materials are a variable cost. This means if you are using one pound of material for each unit, the direct cost is variable.
Direct labor. The determination of direct labor as a variable cost can depend on the type of industry you work in. If you can’t reduce the number of labor employees or their hours worked, this may be classified as a fixed cost.
However, if you have a fixed number of employees regardless of the output, the number of labor hours may vary depending on the day and the demand. This is classified as a variable cost.
Transaction fees. This is an expense that businesses must pay every single time it processes a payment for a customer transaction. This might vary across service providers and may vary depending on the volume or any given order, making it a variable cost.
Commissions. Commissions are payments for someone who does something, whether artwork, service work, or sales numbers. For example, if an organization pays a 5% sales commission on every sale they make, the expense will be a variable cost.
Utility costs. Utility costs include any expenses incurred by using utilities like electricity, water, sewage, or heating. Utility costs can vary on usage, making them one of the most common and easily identifiable variable costs out there.
Staff wages. The more products you create, the more employees you’ll need to handle the workload. This means that your payroll will increase, making this a variable expense.
Packaging and shipping costs. Packaging and shipping of your products may happen by the unit. This means that depending on the number of sales you receive, your variable cost for this will increase or decrease.

Variable vs. Fixed Costs in Decision-Making

As mentioned earlier, business costs consist of both fixed and variable costs depending on your work line, type of business, and industry. Variable expenses do not remain consistent if the output product changes. Fixed costs are different because they remain constant regardless of the output. These costs are fundamental to ensuring you take strategic business decisions based on cost. Depending on the type of business you run, you may have fixed or variable costs that could impact a monumental decision, such as adding new products or closing the doors to a business. For example, suppose you were thinking about adding a new product to your product line but needed to make sure it made sense financially. In that case, you need to have a decent idea of not only your fixed cost for the business, but what the variable cost for a new product might look like. This could include things like research and development, new materials, packaging, shipping costs, as well as a commission for your salespeople, varying labor units, and more. This would heavily impact this business decision, especially if the cost of variable expenses outweighed your return on investment. It will, of course, depend on your business, financial flexibility, and customer appetite. Regardless, understanding variable and fixed costs for your business is the most important piece of running a successful business.

Example of Variable Costs

For businesses looking to calculate their total production cost, variable costs must be understood and calculated close to the dollar to ensure adequate and intelligent business strategies and decisions. So, how do we do this? Let’s consider a small business that’s selling t-shirts. This process takes time, labor, materials, and essential production equipment. Let’s assume that it costs $10 in raw materials and $20 in direct labor to create a single t-shirt. Additionally, let’s assume there is a fixed business expense for the equipment used to print the shirt at $200. The table below outlines expenses based on the number of t-shirts made, or the variable in this equation.

T-shirts	Raw materials	Direct labor	Variable costs	Fixed costs	Total costs
1	$10	$20	$30	$200	$230
5	$50	$100	$150	$200	$350
10	$100	$200	$300	$200	$500
20	$200	$400	$600	$200	$800
50	$500	$1,000	$1,500	$200	$1,700

This table illustrates how the variable cost will always increase the total cost as the production amount increases, irrespective of the fixed cost. This is an important concept to keep in mind for any business. It’s significant to understand how much money will be spent based on demand and production ability. Still, it’s also vital to understand the most important cost so that a business owner can ensure they’re not breaking even on their expenses.

What Is the Average Variable Cost Formula?

Average variable cost is found by dividing the sum total variable costs of all products by the total number of units made:

Average Variable Cost = [(Total Variable Cost Product 1) + (Total Variable Cost Product 2) + etc…] / (Total Number of Units Made)

Average variable cost is useful when your business sells a wide variety of products or services. Let’s take a look at an example:

XYZ Inc. produces widgets at a variable cost of $10/unit. They also produce gizmos at a variable cost of $5/unit and whatsits for $20/unit. They produce 25 widgets, 50 gizmos, and 15 whatsits. Using the formula from above: Average Variable Cost = ((10 X 25) + (5 X 50) + (20 x 15)) / 90 Average Variable Cost = (250 + 250 + 300) / 90 Average Variable Cost = 800 / 90 Average Variable Cost = $8.89

Knowing your average variable cost is extremely important. If a business’ average revenue per unit is lower than its average variable cost, then producing more goods will only put the company in further financial trouble. A firm in such a situation would either need to increase the prices of its products, reduce elements of its variable costs (cheaper materials, less comprehensive services, etc.), or shut down. There are a whole host of more complex applications of average variable cost that economists use for policy-making.

Break-Even Analysis

A break-even analysis is a point in which total cost and total revenue are equal. This point analysis can be used to determine the number of units or dollars of revenue necessary to cover total costs – both fixed and variable. To calculate this number, you need to understand and calculate both your fixed costs and variable cost per unit. The formula for break-even analysis is as follows:

Break-even quantity = Fixed costs / (Sales price per unit – Variable cost per unit)

This is an important number to have as a business owner so that you can understand the minimum amount of any unit of product to cover the expenses for the month or even the year.

Frequently Asked Questions

Is total variable cost the same as variable cost?

No, total variable cost is the not the same as variable cost. A variable cost is any cost that changes with the production amount. Total variable cost is the sum of all variable costs. Make sure when you refer to variable costs to specify whether it is the total variable cost.

What is another name for variable cost?

Unit-level costs is another name for variable costs. Variable costs depend on the costs incurred for production. Therefore, you can break down variable costs as cost incurred on a unit basis.

Final Thoughts

Second Shift: What It Is, Examples, And Hours

Jack Flynn — Wed, 27 Jul 2022 12:53:24 +0000

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Second Shift Hours
Examples of Jobs that Have Second Shifts
Second Shift Benefits and Drawbacks
The Different Shift Types
What Shift Works for You?
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Whether you just started job hunting or already have a schedule for your new position, you might come across the term “second shift.” This article will explore what a second shift typically looks like, its benefits and drawbacks, and the various other types of other work shifts. It will also explain how to choose the right shift hours for your lifestyle when given the option. Key Takeaways

Typically, second shift hours are from 4 p.m. to 12 a.m.
Many people enjoy working the second shift because they get to sleep in, avoid traffic, and have time for doctor’s appointments and errands.
Some of the drawbacks of working the second shift include disrupted circadian rhythms, dietary issues, and mental health problems stemming from the unusual hours.

Second Shift Hours

While second shift hours can vary based on the position you’ve been hired for, the shift will typically start in the afternoon and end at or before midnight. Generally speaking, the most common time frame for a second shift will be 4 p.m.-12 a.m. This shift will immediately follow the morning shift, otherwise known as the first shift, so you won’t have to head to work early in the morning. Additionally, the common hours for a second shift will only stray from the usual 4 p.m.-12 a.m. if you work at a job that is open to the public 24 hours a day, or one that opens/closes earlier or later in the day than most other businesses. For the most part, a second shift entails working 8 hours during the afternoon, through dinnertime, and partially into the night.

Examples of Jobs that Have Second Shifts

Many jobs offer second shifts, but here are a few of the most common ones that do this:

Hotel front desk clerk
Security guard
Grocery store stocker
Bartender
Warehouse worker
Janitor
Nurse
Doctor
Emergency Medical Technician (EMT)
Emergency dispatcher
Police officer
Firefighter
Flight attendant

Many of these positions may adjust their shift hours based on the organization’s scheduling needs, but you can generally find plenty of second-shift opportunities in these roles.

Second Shift Benefits and Drawbacks

Just like anything, there are both benefits and drawbacks to working second shift.

Second Shift Benefits

If you’ve been assigned to second shifts or are looking into making some schedule changes, here are some benefits to having a second shift:

Sleeping in. Unlike your average morning shift, working a second shift allows you to sleep in as much as you like. After all, if you have nothing to do before your shift, you don’t have to feel pressured to rally yourself awake and get going right away. This can be a huge stress reliever and help you distance yourself from coffee and energy drinks.
Easier appointments. When you’re not sleeping in, you’ll find that it’s much easier to schedule important appointments. Doctors, banks, and government buildings will all be open in the morning when you don’t have to work. Overall, your morning availability will make scheduling much easier.
Time for errands. When you’re always free in the mornings, you’ll have time to do chores like grocery shopping, visiting the post office, or picking up prescriptions.
There are almost no businesses that will be closed during your free time. Working the second shift can also make it easier to make an appointment with the doctor or visit a place during the week.
Helpful when you have young children. If you’re a parent and your child doesn’t attend school yet, a second shift can allow you to take care of your child during the day.
Additionally, because first shifts are more popular, your partner may be able to come home from the first shift and take over childcare duties. In this way, you’d save money on daycare costs and have more time with your child.
Easier pet care. If you’ve ever had a dog, you know that sometimes your life revolves around their needs. You have to think about their feeding schedule, daily walks, and training sessions.
Luckily, even if you live in a location where the sun sets at 4 p.m. in the winter, having a second shift will allow you to walk your dog during the day and prepare them for naptime before you leave.
Less traffic. Due to the popularity of morning shifts, there is often a high traffic volume during the morning and afternoon. However, if you work the second shift, you’ll likely arrive at your job before the biggest wave of rush hour traffic hits. Even better, when you leave, you’ll barely have to deal with traffic at all.
Fewer workplace distractions. In general, morning shifts can be busier and more chaotic. The higher-ups will often be working on paperwork or other important tasks in the morning, and you may have a manager or two breathing down your neck.
With that in mind, working the second shift may allow you to focus more on your current projects and worry less about customers, managers, and any other distractions.
Pay differentials. Because morning shifts are more popular, companies will often offer pay differentials for second shift employees. This means that commonly, second shift workers earn slightly higher wages than first shift coworkers.
Even if the differential is only a few cents, it adds up with over time. Besides, more money for the same work is always a plus!

Second Shift Drawbacks

While second shift does offer some attractive benefits, shift work, in general, comes with a few drawbacks to think about:

It’s bad for your circadian rhythm. In general, people are meant to go to sleep when it gets dark and wake up when it gets bright. Obviously, we break that to varying degrees all the time, but working a second shift pretty much guarantees you’ll be sleeping in well past sunrise. Even if you wrap up work at a generous 11 pm, you still have to get home and unwind a bit before diving straight to bed.
It can harm your brain. When you get less or lower quality sleep, your brain stops working to its fullest potential. In particular, second shift workers have more problems with memory and their ability to process new information.
It can lead to diet problems. Dinner is when most Americans have their biggest meal of the day, but when you’re working the second shift, there’s no chance to cook a meal for yourself. Of course, smart food prep can help you avoid grabbing fast food or ordering delivery every time you’re working a second shift.
It can bring about mental health problems. Employees working second shift are constantly disrupting their circadian rhythm, which in turn affects the release of hormones like serotonin and dopamine. This can lead to depression and other mood disorders, especially for people who are already prone to mental health issues.

With all these cons, it’s important to remember that your lifestyle choices outside of work can all work to counteract the negative aspects of working late. As long as you enter into your new job with a plan for minimizing the downsides of working a second shift, you can still have a rewarding job working later in the day. That might mean staying up late 7 days a week and maintaining the same schedule on weekends or your days off.

The Different Shift Types

Even when companies are closed to the public, they usually need workers for various tasks 24/7. After all, for companies to be efficient, there must be many cogs meshing together behind the scenes, even after hours. With that in mind, work shifts are designed to organize labor and optimize business functionality. Typically, shifts overlap slightly, which allows new employees to replace old ones from the previous shift harmoniously. Sometimes part-time workers or supporting staff may work random shifts, but companies usually prefer to assign specific shift types to individual workers. Here are two examples of how people may be assigned shift types:

Fixed shift. If you work full time, you may more than likely have a fixed shift. Employees with this shift schedule work the same shift-type every day. For example, if you work second shifts on a fixed schedule, you’ll always have second shifts.
Rotating shift. While this shift type is more common with part-time workers and supporting staff members, there are also full-time employees with this schedule. When an employee works a rotating shift schedule, their shift types will vary day-to-day. For example, they could work the first shift one day, then the second shift the next day.

Many people tend to prefer fixed shifts because they can better schedule their lives outside of work. If you’ve been assigned a fixed shift, or are thinking about having one, here are some common shift types companies utilize:

First shift. If you’ve ever associated working with the term 9-5, this shift time is where that expression comes from. As the most traditional shift type, the first shift typically runs from 8 or 9 a.m. to 5 or 6 p.m., with one hour provided for lunch. With this shift type, you’ll start working in the morning and finish working in the afternoon.
Second shift. As mentioned in this article, this shift usually runs from around 4 p.m. to midnight. Regardless of the exact timing, when you work this shift, you’ll start working in the late afternoon and be home late at night.
Third shift. This shift, otherwise known as the night shift or graveyard shift, usually starts around midnight, keeps you up through the night until sunrise. A typical night shift may have you working from 12 a.m. to 8 a.m.
Split shift. This shift entails working two separate shifts on the same day. For this to be legal, the two shifts are separated by a longer than usual lunch break.
While these shifts aren’t super common compared to the others, you may come across them in a few different industries. For example, a restaurant worker may clock in for the lunch rush, take a break, and then clock back in for a dinner rush. Split shifts are also common in the TEFL/TESL (Teaching English as a Foreign/Second Language) industry. Many teachers educate adults who have jobs and can only attend classses before and/or after work.
Weekend shift. Common with students and other part-time workers, someone who works weekend shifts will work on the weekend instead of the weekdays.

What Shift Works for You?

Finding a job with a shift schedule that suits your needs and preferences is an important decision, as your shifts will have a significant impact on how you live your life. Each shift type has unique pros and cons you should consider, and ultimately, you should think about what fits your current lifestyle and preferences. You wouldn’t get a border collie if you’re a couch potato, so don’t go for morning shifts if you’re a night owl! Know yourself first. With that in mind, here are some things you should consider:

Pay differentials. Often, less popular shifts will have slightly higher pay as an incentive for people to work them. For example, a third shifter may receive a dollar more per hour than a first shifter. If you need extra money, you should calculate the pay differences between various shift types and see what works for your budget.
Know your sleep schedule. When you’re looking at shift types, knowing your preferred sleep schedule is a must. If you’re a natural early bird, perhaps working the first shift would be ideal for you.
On the other hand, a night owl might struggle to wake up for morning shifts and regularly sacrifice valuable sleep time. Even if night shifts pay more than morning shifts, it may not be worth the exhaustion.
Evaluate your social life. If you’re a social butterfly and enjoy spending time with your friends, weekend shifts and night shifts may not be the right fit for you. Certain shift types can be incredibly isolating, so you should consider that before you choose one.
Scheduling potential. If you have a rotating shift schedule or work certain hours, it may be more difficult to plan future activities or schedule appointments.
For example, someone who works the first shift may struggle to find time to go to the bank, or someone with a rotating schedule may not know when they can schedule their Halloween party. When choosing your shift schedule, you should think about how that shift will impact your normal schedule.
Personal responsibilities. If you have children or pets, your shift type can affect how you’re able to care for them. While it might be easier to care for a child that attends school with a first shift, it may also be easier to care for a baby with a second shift.
Consider how you usually take care of those you’re responsible for and how your shift hours may alter that schedule.

How To Calculate Annual Net Income (With Examples)

Amanda Covaleski — Wed, 27 Jul 2022 11:40:23 +0000

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What Is Annual Net Income?
How to Calculate Annual Net Income
What to Include in Your Annual Net Income
How to Calculate Annual Net Income From a Paystub
Example Annual Net Income Calculation
Annual Net Income for Credit Card Application
Determining Annual Net Income for a Business
Frequently Asked Questions
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Before you make any career decisions, it’s important to have an understanding of your finances. One key element of knowing your finances is being able to calculate your net income, or NI. Determining your net income is crucial to understanding your financial situation. While net income is related to your salary, it takes other factors into account, so you have a clearer idea of your actual earnings. This number becomes a better figure for you to plan your budget around since it takes your regular expenses into account. Centering your budget and other financial planning around this number is better than just relying on your salary figure. Knowing your annual net income also helps you in financial situations. Accountants, banks, credit card companies, and other institutions will ask about your net income to understand your financial stability.

Key Takeaways:

Annual income is the difference between your total or gross income and all the expense incurred during the year.
The formula for annual net income is: Annual net income = Gross income – Expenses + Additional income.
Gross income is the combination of all income including salary, investments, and interest on savings.
Expenses include deductions like local, state, and federal taxes, pre-tax healthcare premium payments, and social security.
Knowing your annual net income is smart for financial decision making. For example, most credit card applications ask for your net income.
Businesses also need to know their annual net income for financial decision making. They calculate it with the formula: Business annual net income = Gross revenue – Expenses.

What Is Annual Net Income?

Annual net income is the money you take home over a year, after taking expenses like taxes into account. You can calculate net annual income for an individual or a business using basically the same method. Personal net income is a more accurate representation of your finances since it accounts for mandatory expenses. Unlike your income or salary, also known as gross income, net income includes routine deductions from your paycheck, giving you a more accurate picture of your take-home pay. Gross income is just how much you earn pre-taxes and other deductions, and it will always be a larger amount than your net income. Knowing your annual net income helps you budget and understand how much money you actually have. It more accurately represents what’s at your disposal than the untouched gross income amount. It’s a good number to have on hand when you want to make big purchases or financial decisions, like applying for a credit card or a loan. Annual net income can also help you set a budget and make sure you’re spending your money wisely.

How to Calculate Annual Net Income

To calculate your personal annual net income, start by figuring out your total revenue over the year. Then, subtract regular deductions from your paycheck. Types of income that count toward your total revenue include:

Base salary
Positive returns on investments
Interest from savings or checking accounts
Freelance/contract work
Income from part-time job(s)
Royalties
Gambling earnings
Shared income by a spouse (for credit card applications)

Gross income deductions include things like:

Local, state, and federal taxes
Pre-tax healthcare premium payments
Social security
Retirement contributions
Medicare payments

You can work with your employer or your company’s HR department to understand exactly what is subtracted from your gross income. Think of it this way: gross income is the number you and your employer decided on when you accepted your job. The gross income deductions are the costs taken from your paycheck whenever you’re paid to go toward certain services. You never get the full amount of your salary when you get paid, so you need to account for that in your financial planning. Knowing what’s taken from your paycheck is necessary for calculating your net income, so don’t be afraid to talk to your employer if you’re not sure what’s being deducted from your salary.

What to Include in Your Annual Net Income

There are other incomes that you can include in your annual net income besides your gross income. If you have any other sources of income besides your salary, you can add that to your annual net income. Consider other income sources, like stock market investments, royalties from any published work, retirement payments, social security funds, part-time job income, freelance income, or trust fund payments. You can also consider other payments like income from a spouse, grants, scholarships, or military allowances to add to your net income. You can see now why annual net income is more accurate than just using your salary figure to calculate your financial standing. It’s a comprehensive figure that takes more of your routine earnings and expenditures into account. This is what makes annual net income a better figure for planning your finances than just considering your salary. You get a more accurate calculation of the money you actually have to work with than just the salary number, which differs from what you see in your bank account. It’s a good idea to keep your net income figure on hand, so you know how much you’re earning and spending on a regular basis. It’s one part of having a good understanding of your finances and being financially responsible.

How to Calculate Annual Net Income From a Paystub

Now it’s time to put everything together and calculate your annual net income. Here it is in a few easy steps:

Determine your income. This is the same number as your gross pay or the amount of money you and your employer agreed upon for your salary. Remember, this number is bigger than your actual income and the money that gets put in your bank.
Find your annual income. To calculate your annual net income, you need to know your pay schedule. Do you get paid weekly, bi-weekly (every 2 weeks), semi-monthly (on 2 specific dates each month), or monthly? That will change how you calculate your annual income since you need to know how much you get paid in a year.
If you’re paid weekly, multiply your salary by 52. If you’re paid monthly, multiply your salary by 12 to get your annual gross income. Do you only know your hourly pay rate? Take your hourly rate and multiply it by 2080 if you work 40 hour weeks throughout the year to get your annual income. Note that the results of your calculations might not be entirely precise, as work hours in a year, month, or other pay period can vary, along with company policy for paid and unpaid holidays. Here’s a more detailed article for calculating your gross annual income.
Find your expenses. What recurring deductions are taken from your paycheck? Look for things like taxes, social security, medicare, and retirement contributions. You should be able to find most of these numbers on your paystub.
Otherwise, remember to check in with your employer or HR department if you’re unsure what expenses are being taken from your paycheck. You’ll need to know these numbers as accurately as possible to get a clear annual net income.
Add any other income. Don’t forget about other income or sources of money, like social security payments or income from part-time jobs. Of course, if taxes or other deductions are also taken from these forms of income, be sure to calculate these rates individually as well. The results can then be added to the calculation of your annual net income.
Do the math. At this point, you have all the numbers you need to calculate your annual net income. Start with your gross income and subtract your expenses, then add back any additional income.

Annual net income = Gross income – Expenses + Additional income

Example Annual Net Income Calculation

Let’s take a look at an example scenario of a person who has one steady full-time job and a side business. Here’s how this person would calculate their annual net income:

Amir negotiated an annual salary of $55,000. He’s paid bi-weekly, and the gross income on his paycheck reads $2,115. But, between state and local taxes, Amir pays $350. Another $150 goes to social security and medicare. $125 goes toward his health care premiums. He also puts $100 per paycheck toward his 401(k). So his expenses ($350 + $150 + $125 + 100) total $725 per paycheck. Amir’s take-home, net pay is: $2,115 – $725 = $1,390 Amir then multiplies this number by 26 (the number of times he’s paid each year). $1,390 x 26 = $36,140 That’s Amir’s annual net income from his primary job. Let’s say Amir also teaches English online as a side job. He earns $8,000 a year doing this, and has to pay a 15.3% self-employment tax on that. This leaves him with $6,776 from this side job each year. $36,140 + $6,776 = $42,916 Amir’s annual net income is $42,916

Annual Net Income for Credit Card Application

For most credit card applications, you won’t need to provide your net annual income. Creditors are more interested in your annual gross income. If the application doesn’t specify which annual income they require, you can safely assume they want your gross income. In fact, banks and credit card companies usually encourage you to consider all forms of income. These institutions are usually happy to accept your best estimate for annual income, as long as you do your best to be accurate and truthful. Never lie on a credit card application — even though the chance of an investigation is slim, being approved for a larger credit limit won’t do you any favors. Remember that your annual net income gives you a better picture of your monthly budget than your monthly credit limit does. Also note that, as of 2013, you can include your spouse’s income on credit card applications. If your spouse earns more than you, this might help to make you more credit-worthy to credit card companies.

Determining Annual Net Income for a Business

Just as we all have personal incomes and expenditures, companies also have recurring payments that affect their financial health. Businesses can also calculate their annual net income and get a good idea of how their company is performing. This is a useful number to have on hand since it can help you tell the story of your business in a succinct data point. You can pitch your business to investors or ask for other support with your annual net income as a key data point. It’s also useful for financial and legal documents, so it’s a good idea to know your company’s annual net income. Calculating an annual net income for a company is very similar to finding your own net income. You need to start with the company’s total revenue, or gross revenue, and find any recurring expenses. When getting your total revenue, focus just on the money you brought in from sales and other transactions. Don’t take any costs into account in this step. Next, figure out all of the planned expenses for the company that you have. Think about all the little expenditures that you have monthly and annually. Here’s a list of the most common expenses you should consider:

Salaries for employees
Overhead costs (rent, software licenses, shipping costs, utilities)
Operating expenses
Employer contributions to health insurance, social security, and other programs
Federal, state, and local taxes
Loans and interest

These are not the only things that factor into company expenses, so talk with your accountants and anyone who deals with company finances. The more accurate figures you can get, the better picture of your company’s financial standing you’ll be able to get with an annual net income. Like a personal annual net income, you can calculate a company’s annual net income with some simple math. Take the company’s gross revenue and subtract all of the recurring expenses, and there you have your business annual net income. Business annual net income = Gross revenue – Expenses Since companies involve many more moving parts, expenses, and people accounting for financial numbers, net income can become exaggerated (both inflated and deflated). It’s essential to be aware that net income can be manipulated slightly to produce certain results and make a company look like it’s doing very well or not so great. When dealing with a company’s net annual income, don’t be afraid to ask for specific numbers and evaluate their credibility. Most of the time, annual net income is a reliable figure, but it doesn’t hurt to take it with a grain of salt.

Frequently Asked Questions

How do you calculate annual net income on tax return?

Calculate your annual net income on a tax return by subtracting your total tax from your taxable income. Your annual net income on a tax return will show how much you made after taxes. Sometimes, the amount you paid in taxes is less than the amount you owe in taxes. If this is the case, you will have to pay additional taxes, further decreasing your annual net income.

What is meant by net income?

Net income is the difference between gross income and expenses. Your net income can be thought about like your total profit. After you calculate all your income and expenses, you should, hopefully, be left with a sizeable amount of income. However this is not always the case, which is why it is important to constantly be aware of your annual net income when making financial decisions.

How do I find my total annual income?

Find your total, or gross, annual income by knowing either your hourly wage or salaried paycheck amount on a weekly basis, and then multiply by the amount of weeks you work in a year. For example, if you work 40 hours a week at $20 an hour, and you plan to work 50 weeks in the year, your total annual income will be: 20 x 40 x 50 = $40,000. However, note that this calculation does not include deductions like taxes and benefits, and therefore this is NOT your net income.

How To Use The Pomodoro Technique To Increase Productivity

Chris Kolmar — Tue, 26 Jul 2022 11:16:46 +0000

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Pomodoro Technique Core Process
Where Does the Pomodoro Technique Come From?
Tips for the Pomodoro Technique
Why the Pomodoro Technique Works
Popular Variations of the Pomodoro Technique
Pomodoro Technique FAQ
Final Thoughts
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It’s critical to utilize time management techniques created and tested to help us work more efficiently. The Pomodoro technique is one such method that has proven itself so successful that it’s used by CEOs and millions of other professionals. In this article, we’ll explain what the Pomodoro technique is, exactly how to use it, and how it can benefit your life and career. Key Takeaways:

The Pomodoro technique breaks work time down into 25-minute units with short breaks in between, and is designed to help eliminate distractions and interruptions.
Planning ahead with a list of tasks you intend to accomplish during your Pomodoros will help you to be as efficient as possible.
The Pomodoro technique is particularly useful for people who work from home and manage their own time, and there are different variations of the structure that you can try.

Pomodoro Technique Core Process

Although there are variations of the Pomodoro technique, the basic process is extremely simple:

Decide on the task at hand.
Set a timer to 25 minutes.
Work solely on the task.
When the timer rings, end work and put a checkmark (one Pomodoro) on a piece of paper.
Enjoy a short five-minute break.
After four checkmarks (one set), take a longer breaker of 15-30 minutes to recharge. Cross out the checkmarks and return to step 1.

In the context of the technique, a “Pomodoro” refers to each interval of unbroken time spent working. A “set” constitutes the combination of four Pomodoros and their accompanying breaks. If you complete a task before the Pomodoro ends, the remaining time should be devoted to activities such as:

Review and edit the work just finished.
Review the activities from an improvement perspective: What was learned? What could be done better or differently?
Review the upcoming tasks for the next Pomodoro. Begin planning or updating those tasks.

Where Does the Pomodoro Technique Come From?

The Pomodoro technique is a time management method developed in the early 1990s by the author Francesco Cirillo. Cirillo was struggling to focus on his studies, overwhelmed by the variety and length of the work in front of him. He decided to commit just ten minutes to focused study time, using a Pomodoro (Italian for tomato) shaped timer. This cleared Cirillo’s mind of distractions, enabling him to effectively complete the tasks at hand. Seeing potential in his new method, Cirillo further developed it into the Pomodoro technique. Now, the technique is taught and used by millions of professionals around the world. It’s championed by designers, programmers, and others who have to meet regular deadlines.

Tips for the Pomodoro Technique

The Pomodoro technique’s goal is to reduce any interruptions to one’s focus or flow while working. Thus, there are a few key guidelines to follow when planning and practicing the technique. These are:

Break down complex tasks. Any tasks that require longer than four Pomodoros to finish should be divided into smaller, actionable tasks.
Fuse small tasks together. Individual tasks should ideally take as close to a single Pomodoro to complete as possible. If tasks are too short, then combine them into a single Pomodoro.
For example, “check new homework,” “upload assignment,” and “read instructions” could likely be done in one 25 minute session.
Plan ahead. Plan the day’s tasks at the beginning of the day or the night before. Make a to-do-list of each task and estimate how many Pomodoros they’ll take. If you have 12 or more tasks, consider postponing some to the next day.
Use low-tech. It’s recommended to perform the Pomodoro technique using a low-tech approach, such as with a mechanical kitchen timer, pencil, and paper. The physical act of winding the timer and marking each Pomodoro enhances your determination to start and continue the task.
The clock’s ticking externalizes the desire to complete the task, and the ringing clearly announces a break. Research shows that your brain will begin to associate these stimuli with increased flow and focus.
Avoid screens while on breaks. Rather than scrolling through your phone during a break, perform physical actions such as moving, stretching, or looking outside the window.
Your break will be much more mentally refreshing and you’ll have fewer lingering thoughts when the next Pomodoro begins.
Once a Pomodoro begins, it must ring. The Pomodoro is the smallest indivisible unit of time in the technique.
If you finish early, do not use the remaining time to start the next task (preparation is acceptable). But it’s best to focus solely on improving the original task at hand. Review what you’ve done, reflect on possible improvements, and note what you’ve learned.
Use the INSC method when interrupted. When interrupted, Cirillo recommends employing the following method:
1. Inform. Let the distracting party let you know you’re working on something.
2. Negotiate. Give a time when you can get back to the other party about the distracting issue in a timely manner.
3. Schedule. Schedule the follow-up immediately.
4. Call back. Reach out to the other party when you complete the Pomodoro and are ready to tackle the issue.

Why the Pomodoro Technique Works

Don’t let the lighthearted nature of using tomatoes as stand-ins for units of time lead you to underestimate the serious effectiveness of the Pomodoro technique. The method directly targets the common pitfalls of procrastination and loss of focus in a few clever ways:

Makes complex tasks less intimidating. One of the greatest contributors to procrastination is one’s perception of how long and arduous a task is.
Many people are also perfectionists and struggle to break out of the mindset of “If I can’t do it perfectly, I shouldn’t even bother.” By breaking complex work into small, bite-sized portions, the Pomodoro technique eliminates these factors and makes it easier to simply get started. The method’s focus is on the consistency of action rather than on accomplishing perfection every time.
Combats distractions. Once you’ve been interrupted from your flow state, it’s often challenging to regain it.
It doesn’t help that with our phones and laptops, there’s a constant stream of information tempting us in the form of social media, emails, and websites. By limiting you to a short, urgent length of time to complete a task, the Pomodoro technique forces you to power through these temptations and remain focused.
Fights boredom. Other people are the exact opposite of procrastinators, focusing too long on a single task. To combat this issue, the Pomodoro technique forces you to take short, frequent breaks.
The frequency of breaks reduces mental fatigue, while their brief length limits your risk of becoming distracted for an extended period of time.
Simplifies self-regulation. It’s extremely easy to self-justify behavior such as “I’ll only take a quick peek at my messages.” Such small actions inevitably lead to reading one’s inbox or browsing the internet, eventually resulting in hours of wasted time.
The Pomodoro technique’s rules are set in stone, eliminating your ability to self-justify even these small time-wasting behaviors.
Reveal where your time goes. Most people tend to vastly underestimate how much time they need to complete major tasks. This is often called the planning fallacy.
The Pomodoro technique reveals how quickly you’re able to complete different forms of work, enabling you to plan more effectively in the future.
Gamifies productivity. Breaking large workloads into Pomodoros allows you to measure out concrete goals for improvement.
You can compare how much work was finished in one Pomodoro when compared with the last, or how many distractions were present and how much focus was maintained. This makes it easier to identify exactly what areas need to be improved, motivating action.

Popular Variations of the Pomodoro Technique

The Pomodoro technique’s core strategy is to break complex tasks into more approachable ones and allow for refreshing breaks at predefined intervals. As long as these principles are maintained, feel free to tailor the technique to better suit your personal working style. Some popular variations include:

Change the length of each Pomodoro. It’s important to start with short Pomodoros to become accustomed to the technique.
If you find it too difficult to focus for 25 minutes, feel free to try 15-, 10-, or even 5-minute Pomodoro sessions. Once the method feels natural, many opt to work in 90 minute time intervals to reflect a more natural concentration cycle.
Change the length of the set. It’s perfectly fine to use sets of varying lengths of times to accommodate your schedule.
For example, one may work a two-hour set during the period between work meetings and then use longer periods after work-hours before the dishwasher finishes.
Constantly assess and improve. Monitor your periods of naturally high productivity and use this data to inform how else you can adjust the Pomodoro method to work best for you.

Pomodoro Technique FAQ

Why does the Pomodoro Technique work? The Pomodoro Technique works because it structures your work and breaks time into natural intervals of concentration. While attention endurance is by no means equal across individuals, the general idea of formatting your day around short breaks and sprints of highly focused activity is effective for most people.

The Pomodoro Technique makes it easy to get started, combats distractions, and allows you to see precisely how you spend your workday.
What do you do during a 5-minute pomodoro break? Good things to do during a 5-minute pomodoro break include:
- Walk around and stretch
- Tidy up your workspace
- Make a cup of coffee, tea, etc.
- Practice meditation
- Read a newspaper or magazine article
- Play with your pet (if remote)
Is the Pomodoro Technique good? Yes, the Pomodoro Technique is good. Scientific studies and anecdotal reports from successful individauls both indicate that the method is very effective in increasing productivity.

The Pomodoro Technique is especially useful for freelancers and other contractors who charge at an hourly rate. It helps ensure that your rate is equitable and profitable.

That being said, the standard Pomodoro Technique might not be perfectly suited for your attention span, so be sure to play around with different pomodoro and set lengths.
What do you do during pomodoro long breaks? Good things to do during a long pomodoro break include:
- Take a walk around the neighborhood
- Do something artistic (that doesn’t involve screens)
- Make a snack or grab a quick meal
- Read a book, magazine, newspaper, etc.
- Call a friend or chat with coworkers (as long as they’re also not working)
- Work on a hobby
How many pomodoros can you do in a day? You can do 14 pomodoros in a day, assuming you work an 8-hour day and use the standard Pomodoro Technique. Here’s the breakdown:
- Pomodoro 1: 9-9:25
- Pomodoro 2: 9:30-9:55
- Pomodoro 3: 10-10:25
- Pomodoro 4: 10:30-10:55
- Pomodoro 5: 11:10-11:35
- Pomodoro 6: 11:40-12:05
- Pomodoro 7: 12:05-12:30
- Pomodoro 8: 12:30-12:55
- Pomodoro 9: 1:30-1:55
- Pomodoro 10: 2-2:25
- Pomodoro 11: 2:30-2:55
- Pomodoro 12: 3-3:25
- Pomodoro 13: 3:30-3:55
- Pomodoro 14: 4-4:25
Note that this would be a pretty intense workday if followed strictly. We recommend starting with between eight and ten Pomodoros to start.

Final Thoughts

You may be skeptical of time management strategies, and we wouldn’t blame you. Countless websites tout all sorts of miracle methods. However, consider the millions of successful professionals who testify to the Pomodoro technique’s effectiveness. The method is cleverly designed to be extremely simple to perform, while at the same time targeting the core cause of procrastination: loss of focus. No matter what you’re doing, breaking complex tasks into simpler ones is a solid habit for organizing your work.

What Is Percent Yield And How To Calculate It? (With Examples)

Sky Ariella — Tue, 26 Jul 2022 10:11:05 +0000

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What Is Percent Yield?
Why Is Percent Yield Important?
What Is Theoretical Yield?
How to Calculate Percent Yield
Examples of Calculating Percent Yield
Final Thoughts
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When taking the pharmaceuticals that bring us back to full health, we rarely stop to think about what went into making them. Before becoming a tiny white pill that obliterates a headache in a matter of hours, a series of chemical processes took place first to create it – under the observation of a trained chemist. During creation, chemical reactions take place in these products, which provide a specific amount of usable results. Post-reaction, chemists use a formula called percent yield to calculate how much product they should have derived theoretically versus the amount they actually obtained.

Key Takeaways:

Percent yield is the percentage of an actual result to an expected result and reveals the success of the situation in question.
The formula for percent yield is: (Actual Yield / Theoretical Yield) X 100 = Percent Yield.
Percent yield is used in chemistry to evaluate how successful a chemical reaction was in reality, compared to the maximum result expected.
Percent yield can also be used by different disciplines when comparing actual results to expected results.

What Is Percent Yield?

Percent yield is a formula used by chemists in the process of evaluating chemical reactions. For every chemical reaction they deal with, there is an expected result. Even with an anticipated result in mind that should happen chemically, this doesn’t end up being the case the vast majority of the time. The percent yield formula shows the chemist a percentage of how successful the reaction was in reality, compared to the maximum result they were expected. The formula for percent yield is:

(Actual Yield / Theoretical Yield) X 100 = Percent Yield

Why Is Percent Yield Important?

While the percent yield formula is used to better understand chemical reactions, it’s also valuable for other reasons, such as finances. A company that creates a chemically-based product uses the percent yield formula to evaluate their finances and productivity in product creation. A low percent yield describes a reaction that is extremely far off from the expected result. That means that the production is being completed inefficiently. A lack of productivity destroys even the strongest companies because it wastes money and time.

What Is Theoretical Yield?

Theoretical yield refers to the maximum possible mass of a product that can be made as a result of a chemical reaction. Using stoichiometry, chemists are able to determine precisely how much should result, however actual chemical reactions almost never occur exactly as these formulae predict. There are unavoidable experimental errors, side reactions, or incomplete chemical reactions in the real world. Companies that deal in chemical production of any sort have a huge interest in eliminating these factors as much as possible to achieve a yield as close to the theoretical yield as possible.

How to Calculate Percent Yield

With a basic understanding of what the percent yield value is demonstrating after a chemical reaction, it’s time to get into how to break down the somewhat unnerving formula, piece by piece. Below are the steps for how to calculate the percent yield.

Understand the formula. To begin any math problem from basic addition to advanced trigonometry, start by taking in the formula. Although mathematical and chemical formulas are dreadful when you’re unsure of what every portion means, they’re much more straightforward after analyzing each piece of the puzzle.
In the percent yield formula, two values need to be figured out and plugged in. These are the actual yield and the theoretical yield.
Find the value of the actual yield. The actual yield is the result that was achieved from this rendition of the chemical reaction. Regardless of what science says should happen, this value is what actually did happen.
Find the value of the theoretical yield. The theoretical yield is the expected result after a reaction. Chemistry explains it as the maximum anticipated result.
This could mean a lot of different things depending on what chemical medium you’re working with. For example, how long it takes a chemical substance to dissipate after being heated at a particular temperature. The theoretical yield of a particular reaction can be uncovered with research.
Divide the theoretical yield by the actual yield. Once the values of actual yield and theoretical yield are discovered, following through with the rest of the equation becomes fairly easy.
The actual yield should go on the top of the division, and the theoretical yield goes on the bottom. Insert each value into its respective place in the division and solve. This leaves you with a decimal that represents the unrefined percent yield.
Multiply the result by 100. With the decimal form of the percent yield answer, the last thing to do is multiply this result by 100. After multiplication, a whole number is formed. This is the percent yield.

Examples of Calculating Percent Yield

Percent Yield Example 1:

A chemist is observing the reaction of potassium carbonate (K₂CO₃) to produce soap for a large manufacturer. In this particular test, he’s timing how long the inorganic compound takes to dissolve under a heat lamp pushing out temperatures of 37 degrees celsius. The theoretical yield of this reaction is 17 minutes. When the experiment is performed, the actual yield ends up being 13.2 minutes. He needs to find the percent yield of this particular chemical reaction to report back to the soap manufacturer on the process’s productivity. He reviewed the equation for percent yield, which is: (Actual Yield / Theoretical Yield) X 100 = Percent Yield He already knows the values of the reactions’ actual yield and theoretical yield. He plugs those values into the equation. The equation now looks like this: (13.2. / 17) X 100 = Percent Yield Next, he divides the theoretical yield by the actual yield. He does this action first because this function is between parentheses. The result of the division is 0.776. This is the unrefined percent yield of the reaction. The equation now looks this: 0.776 X 100 = Percent Yield Finally, the chemist multiples the unrefined percent yield by 100 to get the final percent he needs to pass along to the soap manufacturer. The result of this is 77.6%. This is the percent yield. What it means: In a laboratory setting, it’s nearly impossible to create the perfect sequence of chemical reactions to achieve the theoretical maximum yield. Generally, any percent yield value over 60% is considered effective and fairly impressive. Since the percent yield for this equation was 77.6%, this describes a result that was close to the theoretical yield, which means it’s productive.

Percent Yield Example 2:

A major healthcare company produces hydrogen peroxide (H2O2), a chemical compound made up of hydrogen and oxygen used to clean out small cuts and scrapes. The company wants to conduct an experiment concerned with the decomposition of hydrogen peroxide to understand their processes’ effectiveness. The theoretical yield of the hydrogen peroxide decomposition is 54.3. After measuring the actual yield during the reaction, it is 23.7. The company’s chemist puts this information in the percent yield formula in the appropriate places. (23.7 / 54.3) X 100 = Percent Yield. The chemist divides 23.7 by 54.3 to arrive at the unrefined percent yield value of 0.436. He multiples this decimal value by 100 to get the actual percent yield. 0.436 X 100 = 43.6 The percent yield is 43.6%. What it means: This percent yield result isn’t nearly as encouraging as the one from the previous example. As stated earlier, any percent yield over 60% is generally considered to be positive productivity. 43.6% is clearly under this standard. However, this value isn’t necessarily terrible. It isn’t until a percent yield value is lower than 40% that it’s thought of as poor and unacceptable in terms of efficiency. While the percent yield result of 43.6% is cutting it very close to being negative, it is still considered acceptable.

Final Thoughts

Percent yield is an important element for chemical manufacturers around the world. The lower this number drops, the more the company is wasting on reactants. Not to mention the time wasted on inefficient processes. Note that while we’ve been discussing actual yield as always lower than theoretical yield, it is possible for your percent yield to be greater than 100%. This can happen if the reactants are impure and unexpected side reactions occur. When the percent yield is greater than 100%, it’s equally concerning for manufacturers as when their percent yield is below 60%. Even if you’re not a chemist, knowing what goes into production costs and affects the bottom line can make you a more savvy contributor to your team.

What Is Competitive Pay? (With Examples)

Matthew Zane — Tue, 26 Jul 2022 08:39:24 +0000

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What Is Competitive Pay?
What Does Competitive Pay Mean for You?
What Does a Competitive Compensation Package Include?
How to Negotiate Competitive Pay
The Importance of Offering Competitive Pay
Frequently Asked Questions
Final Thoughts
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The language of job searching is not always straightforward. Anyone who spends time going through job postings will see one phrase pop up fairly often: competitive pay. If you’re here, you’re probably wondering what the heck that means. Offering competitive pay is one way for employers to attract and retain top talent in their industry. Learning to evaluate what makes a pay rate competitive will work to your advantage through your job search, application, and negotiation processes.

Key Takeaways:

Competitive pay is a compensation package that is equal to or greater than the market rates for a position in a given industry and geographical area.
In Human Resources, competitive pay means offering a wage within +/-10% of the average market rate for a position.
Competitive pay is more than just salary considerations, it also includes paid vacation time, flexible schedules, more robust retirement plans, stock options, and more.
Competitive pay is determined by job title, industry, location, availability, and experience level.
Negotiate for competitive pay by knowing your goals and and worth ahead of time.

What Is Competitive Pay?

Competitive pay means a compensation package that is valued at equal to or greater than the market rates for a given position in a given industry and geographical area. The word “competitive” implies that the company uses its salary rates to compete with similar companies for top-quality candidates. It can also often mean that an employer is willing to negotiate salaries to lock down the best and brightest applicants. For those in Human Resources, competitive pay means offering a wage within +/-10% of the average market rate for a position. But competitive pay is about more than just base salary (the minimum monetary compensation an employee can expect to earn before adding bonuses and other forms of payment). It also include offering a competitive employee benefits package, which things like:

more paid vacation time
flexible schedules
more robust retirement plans
professional development opportunities
bigger bonuses or commissions
stock options
better health insurance plans

When determining competitive pay all of these items can factor into a competitive benefits package. Smaller firms may not be able to compete in terms of base salary but can still offer competitive compensation packages by boosting perks in other areas, monetarily or otherwise. In other words, the numbers don’t tell the whole story, so be sure to investigate what exactly makes an employer’s offer competitive.

What Does Competitive Pay Mean for You?

The meaning of competitive pay changes depending on market rates, which are affected by the following factors:

Job title. Your starting point for determining what competitive pay looks like for you is researching what the salary range is for your job title. Use resources like Zippia, PayScale, and the Bureau of Labor Statistics to determine the average market rate for your desired position. You can then assume that any salary that matches or exceeds this average rate is truly competitive.
Industry. The next aspect of competitive pay to consider is the industry. A great tactic to net you the highest possible salary is to apply for similar positions in different industries. To do this, you’ll need to dig deeper to see how each industry values your job. For example, the typical salary of an HR rep might vary considerably depending on if they’re working in the energy industry or education.
Location. Just as the cost of living and minimum wage rates differ from state to state, so does the definition of competitive pay. An employee in San Francisco should expect higher compensation rates than someone in the rural midwest, for instance. The more specific information you can uncover in your research, the better equipped you’ll be for identifying what pay packages are genuinely competitive in a given region.
Availability. Everyone knows the law of supply and demand: the rarer and more sought after something is, the more valuable it is, and the more common and less desired something is, the less valuable it is. This principle applies to the job market as well as anything else.
So if you have a highly specialized skill set that’s difficult to find and in high demand, competitive pay may imply even greater compensation than that +10% market rate we discussed earlier. On the flip side, if you have very basic skills and are one of dozens of qualified candidates, you can expect competitive pay to be on the lower end of the spectrum. Remember that location also affects availability. There might be many computer programmers in Silicon Valley, but the Rust Belt might not have such a deep pool of candidates. Tip: If you can find out how many other candidates are applying for a job and for how long the company has been trying to fill the vacancy, you’ll have a better idea of the supply and demand for the specific position in question.
Experience level. Entry-level applicants with little or no experience can expect lower compensation rates than those with a wealth of experience applying to higher-level positions.
Things like education level, certifications, awards, and practical experience all determine your experience level. When you’re researching salary data, incorporate your experience level for more accurate results and expectations of how competitive pay should look.

What Does a Competitive Compensation Package Include?

Besides a salary commensurate with the applicant’s experience level and expertise, American employees have certain expectations about what a compensation package should include. At a minimum, any job offering competitive pay should include the following in its benefits package:

Employer-sponsored health insurance. Health insurance consistently ranks as the most important benefit for employees in the United States. The cost of insuring yourself privately is exorbitant in the extreme, so having this expense reduced significantly through high-quality employer-sponsored health insurance is a massive boon.
Most companies also offer dental and vision insurance plans. Some even offer more advanced health care options, like flexible spending accounts.
Paid time off. Employees place a high premium on the ability to take time for themselves every now and then. Not having to worry about your income just because you want to take a vacation is a massive quality of life boost for employees.
Some companies offer unlimited vacation policies, which sound great in theory but do come with drawbacks (namely, not being paid for unused vacation days). Studies show that the average American has around 8 days of PTO each year, so offering more than this will be competitive for most job openings. Note that senior-level people can expect more days of PTO.
Retirement plan. Saving for retirement is tough, but with employer-matching programs that lower your pre-tax income (and your tax burden), it becomes easier to plan for the future. 401(k) plans are the most common, but some companies will set you up with IRA or Roth IRA plans. Competitive applicants expect a higher rate or cap on employer matching contributions to these plans.

Other common perks include things like:

Use of a company car
Bonuses and/or commission payments
Paid parental leave
Remote work options
Flexible scheduling
Disability insurance
Life insurance
Tuition reimbursement
Commute reimbursement
Free on-site meals, gym, childcare, or other facilities
Stock options
Relocation bonus

How to Negotiate Competitive Pay

Salary negotiations are always stressful and awkward, but if you don’t advocate for yourself, no one else will. Employers won’t pay more than they have to, so it’s up to you to convince them of your value. Remember that it isn’t just your initial pay that’s on the line – your starting salary determines the trajectory of your earnings over your career, so take this seriously and think long-term.

Determine your goals. The first step in any negotiation is determining what you want out of a compensation package. That means prioritizing: do you care most about earning a big paycheck, having competitive bonus structures, having a good health insurance plan, creating a flexible schedule, or something else?
Every individual will value non-monetary perks differently, so assess what your must-haves are before starting your research, let alone negotiations. You must also consider how much you’ll have to pay for health insurance if your prospective employer doesn’t offer generous plans or how much more you’ll need to dedicate to your retirement savings if the employer doesn’t provide a good 401(k) matching program. With this information, you’ll have a fuller picture of what various compensation packages are worth.
Know your value. Remember all that research you did on what typical pay rates are for your industry, position, location, and experience level? Time to put it to use. By knowing what the average salary is for a candidate in your situation, you’ll know what a competitive salary should look like – at or above that rate.
Aside from finding this number, you should also take time to self-assess. Reflect on your achievements and how your experience has boosted your value. This helps prevent you from selling yourself short on salary requirements and develop confidence walking into negotiations.
Stay strong. You have a list of wants and needs, as well as the data that supports why an employer should meet those conditions. Don’t lose sight of those two things. You’ll need to state your case, and while you should always be respectful, don’t cede ground on essential topics.
Employers have access to the same salary data you do (and then some), so showing them that you’ve done your research proves that you’re not so naive to think an offer on the low end of the salary range is genuinely competitive. Use your data to present your case and be ready for a compromise offer or an outright refusal. Consider the low end of what you’re willing to accept in the case of a compromise and determine whether the company is still meeting your minimum requirements. Also, consider the opportunities for advancement, because that’s worth something as well.
Keep up with trends. Even after you’ve successfully negotiated a truly competitive salary, the journey isn’t over. Your job’s responsibilities, market rates for similar professionals, and the value of new certifications or qualifications are all factors that change as your career continues. As you’ve seen, those changes all bear on what constitutes competitive pay for you.
Consistently reevaluate what constitutes a competitive salary, so you always receive compensation in line with what you’re worth.

The Importance of Offering Competitive Pay

For employers looking to attract and retain top talent in the field, offering competitive pay is paramount. Besides making recruitment easier, competitive pay also decreases turnover, boosts morale/productivity, and creates a more robust corporate culture. Put simply, competitive pay motivates employees to work to their full potential. As we’ve discussed, competitive pay involves many components. Even small companies that are unable to compete with larger firms in terms of pure cash compensation can offer perks like flexible schedules, more paid vacation time, or continuous training opportunities as a way of staying competitive. Just as we recommended that employees regularly reevaluate what constitutes a competitive salary for them, employers should also continually adapt compensation policies to keep pace with the job market and their employees’ needs. Losing employees to better-paying competitors has a cost of its own – projects might be delayed, and the processes of recruitment, onboarding, and training aren’t free. Not to mention that office morale takes a hit as people start departing for greener pastures. Overall, employers should view employees as appreciating assets, not expenses. With competitive pay, you ensure that investments made in your employees are worthwhile, both short-term and long-term. And when headhunters come around to poach your top talent, they’ll have a more challenging time wooing them away if you’re already paying them competitively.

Frequently Asked Questions

Is a competitive salary good?

Yes, a competitive salary is good. It is good for the employees and it is good for the business. With a competitive salary, employees will feel more valued. This can lead to greater job satisfaction and motivation.

In turn, the business will see greater productivity, so as long as the salaries are within their budget, the business will see a net gain.

How can I get competitive pay?

To get competitive pay, you first must do your research. Using online resources, calculate the median pay for your position. Also research the current job market and figure out if your job is competitive. Consider your geographical location as well and factor in cost of living expenses. Research pay structures based on experience.

When all this is said and done, then determine your goals. Set a salary for yourself and decide whether you would accept benefits in lieu of a higher salary. Finally be persistent and flexible without compromising your goals.

How is competitive salary calculated?

A competitive salary is calculated based on the position, industry, geographical location, and experience of the employee. A business will take all of these factors to consider how much to offer an employee. Businesses usually work within a budget for salaries and benefits, so they will also factor this into their considerations.

Final Thoughts

If you want to be compensated fairly, knowing what constitutes competitive pay for your work is the first step. Whether you’re asking for a raise because you feel you’re underpaid or your negoitating an appropriate salary after being offered a job, be prepared with data and a firm belief in the value of your contributions. Before you ask for more on your base pay, remember that other elements of your compensation package are also negotiable. A higher salary is great, but consider how much things like having more paid time off, a more generous health insurance plan, or a better path toward saving for retirement are worth to you before you disregard an offer that doesn’t meet the exact salary you had in mind.

What is Human Resource Development (HRD) in the Workplace?

Chris Kolmar — Sun, 24 Jul 2022 10:20:36 +0000

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What is HRD?
10 Best Practices with HRD
The Benefits of Good HRD
HRD vs. HRM
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The humans that make up a company are its most valuable resources, and they need to be nurtured and developed. Companies call this Human Resource Development (HRD), and it’s an important thing for an employer to provide. If you’re an employee wondering what you should be looking for in an employer or are an employer wondering what you need to be doing to better your workers, keep reading. We’ll talk about what HRD is, some of its best practices and benefits, and the difference between HRD and HRM. Key Takeaways

HRD is vital to helping employees feel valued and satisfied with their work.
Having good HRD benefits companies as well as individual employees.
HRD can be formal, such as official, company-sponsored training and development classes, or informal, such as mentoring and coaching between colleagues.

What is HRD?

Human Resource Development (HRD) is the collection of programs companies use to invest in the people who work for their organizations. HDR involves formal and informal training, classes, and other learning and development methods to help employees – and, by extension, the organization as a whole – build and enrich their skill set. This could include:

Career or performance development
Mentorship
Tuition assistance for college courses
Employee training programs
Any other activity, practice, or work intended to develop a workforce and help companies build necessary skills.

Formal HRD

Formal development could be any class training, college courses relevant to company objectives, or strategic business or organizational planning. These include workplace training seminars on topics such as diversity and inclusion, harassment prevention, safeguarding procedures, and supervisor training.

Informal HRD

Informal development includes internal training classes, employee coaching, internal work assignments, and manager or senior employee mentorship. This could involve assignment of more challenging work projects, self-study, book or discussion clubs, or company field trips. Informal training and development are critical for helping employees recognize and hone their strengths and create a stronger overall organization. Informal development works best when it is focused on content that will directly benefit and enrich a workforce. This keeps employees engaged and feeling as though they are putting their time to good use.

10 Best Practices with HRD

Give (and take) constructive feedback. Great managers and leaders of all stripes know that one of the most essential internal measures to help employees grow and refine their skills is consistent feedback. Good constructive feedback helps employees stay on target in their aims and approaches.
However, being able to receive constructive feedback is a skill that’s equally as crucial to practice. Request feedback from employees on the effectiveness of the development programs you implement. Their feedback is invaluable for helping you understand whether or not your HRD practices are optimal. Take the time to both give and receive feedback on internal development practices to work collaboratively and efficiently with your team and encourage free communication.
Encourage learning with positive reinforcement. People love to be recognized for their accomplishments and the things they do well. Use positive affirmations to help promote employee learning efforts. This could look like pointing out when someone has done something well, verbally congratulating or praising work, or rewarding certificates for program completions.
This will motivate employees to continue learning and growing their skill sets, but it will also set a precedent for communication. An organization or supervisor that is more praising than they are disciplinary helps employees feel happy and fulfilled about their work.
Involve high-level leaders. It’s vital that all leaders and managers within your organization, especially top-level leaders, are involved in some way in your HR business planning. Involving top-level employees in strategic HRD planning ensures that organizational aims and values are aligned and emphasized.
Being on the “same page” when it comes to HR planning helps make sure all programs are in sync with each other and learning is consistent across all levels of an organization. Involving high-level leaders also clarifies how HRD programs can help fit into the company goals and culture.
Have a variety of training and career development options. To bring out the best in your employees, remember that they are unique individuals with different needs and ways of learning. One employee may benefit most from a written assignment, another will be more enriched by a lecture, while a third employee may want “hands-on” learning.
Try to accommodate all different styles of learning for interesting and engaging HRD. Incorporating these varying learning styles also helps make a more enriching program for every individual, ensuring they’ll practice new skills in many different ways. Think about incorporating a variety of classes, coaching, challenging assignments, book or discussion clubs, and field trips depending on your organization’s needs.
Use trained facilitators. Hosting consistent internal meetings with a knowledgeable presenter is an easy and effective way of helping employees develop specialized skills. These work well when structured in a traditional, class-like way where employees can expect to meet consistently (for instance, weekly) for a predetermined period.
Find a presenter who brings information, skills, and practices that your specific organization could benefit from. Also, be sure to find someone who understands your organization, your company culture, and the language and communication styles you use.
Avoid information overloads. Don’t overwhelm with too much information or training work all at once. Keep training sessions at manageable lengths of time so that employees can better absorb and practice what they are learning.
Training sessions work best when held consistently over time, with enough time in between for employees to discuss and implement their learning. Slowly building on skills (as opposed to trying to learn all at once) allows for a deeper and more impactful understanding.
Consider the employee culture. The work environment plays a huge role in both work satisfaction and work effectiveness. Programs that facilitate communication and team building can help create an environment that suits your employees’ needs.
Improve morale by curating programs that fit the company culture and open new methods of communication amongst employees. Consider interpersonal development opportunities relevant to the relational needs of your organization.
Recreate, don’t replicate. It can be tempting to try the same old things over and over again or replicate programs of the past. But effective HRD takes the time to make sure its strategy is up to date and fits with the organization.
Make sure your HRD program aligns with your company, and you’re not just trying to force an old way onto your organization. Take time to understand your organizational motives and aims, and what your team needs most to succeed.
Measure the effectiveness. Before implementing strategies, measure their success. Also, be sure to collect data on any strategy after you’ve applied it. By measuring and recording HRD strategies, you can help strategically plan and decide which programs are most and least successful.
Track the impact of programs and strategies to ensure that you’re getting the most bang for your buck when it comes to employee satisfaction and work success.
Be adaptive. Be willing to change, and be adaptive and creative in your HRD strategy. You must be flexible in your approach in order to survive changing needs and external factors.
The most successful organizations have HR practices that are not rigid but are accommodating of change. Be open to feedback and adapting to changing market trends.

The Benefits of Good HRD

It motivates employees. Good HRD is one of the most significant motivating factors for employees. It shows them that the company cares about them, and it gives them opportunities to learn new things and enrich their professional and personal lives.
It attracts and retains employees. Good HRD not only can be used to entice new employees to join the organization but it also retains and develops current employees. This is good for both the workers and the company as a whole.
It increases employee and organizational effectiveness. Good HRD creates a more effective workforce by allowing employees to feel more committed to their job and their work. It also does this by facilitating new dialogue between employees, and between employees and employers, by inviting different communication methods.
It improves adaptability. Good HRD helps both individual employees and whole organizations become more adaptable by strengthening problem-solving skills. This helps employees handle changes and challenges more effectively, and it gives companies the framework to quickly cross-train and move employees as needed.
It moves the whole company forward. An organization is only as good as its people, and if its people aren’t growing, neither will the organization. Good HRD propels companies forward by helping their employees expand their skillsets, their mindsets, and their visions for the future.

HRD vs. HRM

Human resource management (HRM) involves employee-related programs, policies, and practices. Human resource management is often solely handled by a company’s HR department and involves duties like managing people, administering pay and benefits, developing workplace policies, and staffing. Human resource management is centered on the administrative and maintenance duties required to run a workplace, such as payroll and maintaining employee files. HRM provides financial benefits and seeks out productivity and efficiency from employees. HRM is distinct from human resource development (HRD) in that HRD is focused on learning, development, and enrichment of team members. HRD is not focused on efficiency but on helping employees find interpersonal development for the sake of organizational growth. Rather than incentivizing with pay and benefits, HRD incentivizes with the chance to gain knowledge and perspectives. Being given opportunities for personal development also helps employees feel like valued and respected members of a team. Finally, while HRM is the HR department’s responsibility, HRD is the responsibility of all company leaders. All managers are responsible for planning and organizing development opportunities for their workforce.

What Is a Non-Disparagement Clause? (With Examples)

Matthew Zane — Thu, 21 Jul 2022 16:44:30 +0000

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What Is a Non-Disparagement Clause?
Non-Disparagement Clause Examples
When Is a Non-Disparagement Clause Used?
Should You Sign an Agreement With a Non-Disparagement Clause?
What Happens if You Break a Non-Disparagement Clause?
Non-Disparagement Clause FAQ
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Confusing paperwork and contracts come with the territory of working in corporate America, and one aspect of this is the non-disparagement clause. You should never sign something you don’t fully understand, so we’ve broken down exactly what a non-disparagement clause is, when it’s used, and what happens if you break it. We’ve also included some examples of non-disparagement clauses from actual contracts so you can see what they look like. Key Takeaways

Non-disparagement clauses are commonly included in hiring and termination paperwork.
Non-disparagement clauses say that you can’t speak negatively about the company.
Non-disparagement clauses are enforceable, but they do have their limits.

What Is a Non-Disparagement Clause?

A non-disparagement clause is part of an agreement between employer and employee that states the employee won’t speak negatively about the company in any form of communication.

That means you can’t badmouth your current or former employer’s leaders, products, or services in any way. No telling your friends what a buffoon your boss is, no posting rants about the company on social media, and no talking to reporters about corporate practices that will reflect poorly on the company. A non-disparagement clause is known as a “restrictive covenant” along with non-compete and non-solicitation agreements. With a non-disparagement clause, you are restricting yourself from criticizing the business. Complying with this clause and making sure you don’t breach is part of the agreement between the parties: you get a job or a severance package, and the company gets your mouth zipped on anything negative you perceive during your time at the company.

Disparagement vs. Defamation

Disparagement is different from defamation. Disparagement includes truthful statements about the company, while defamation only covers false statements. In other words, if you say your company’s products cause cancer, and they don’t actually, you’ve defamed your company. If you talk about how your boss mistreats women in the workplace, and he actually does, you’ve disparaged your company.

Non-Disparagement Clause Examples

The following examples are from LawInsider.com. As with most contracts, they’re written in hard-to-understand legalese; just keep our advice from this article in mind to understand what they’re really saying.

Non-Disparagement. Executive shall not, at any time during the Term and thereafter, make statements or representations, or otherwise communicate, directly or indirectly, in writing, orally, or otherwise, or take any action which may, directly or indirectly, disparage the Bank or the Company or any of its subsidiaries or affiliates or their respective officers, directors, employees, advisors, businesses or reputations. Notwithstanding the foregoing, nothing in this Agreement shall preclude Executive from making truthful statements that are required by applicable law, regulation or legal process.

Non-Disparagement. Executive covenants and agrees that Executive shall not engage in any pattern of conduct that involves the making or publishing of written or oral statements or remarks (including, without limitation, the repetition or distribution of derogatory rumors, allegations, negative reports or comments) which are disparaging, deleterious or damaging to the integrity, reputation or good will of the Company, its management, or of management of corporations affiliated with the Company.

Mutual Non-Disparagement. Director and the Company mutually agree to forbear from making, causing to be made, publishing, ratifying or endorsing any and all disparaging remarks, derogatory statements or comments made to any party with respect to either of them. Further, the parties hereto agree to forbear from making any public or non-confidential statement with respect to the any claim or complain against either party without the mutual consent of each of them, to be given in advance of any such statement.

Mutual Non-Disparagement. The Company and subsidiaries agree, and the Company shall use its best efforts to cause its respective executive officers and directors to agree, that they will not make or publish any statement critical of the Executive, or in any way adversely affecting or otherwise maligning the Executive’s reputation. The Executive agrees that he or she will not make or publish any statement critical of the Company, its affiliates and their respective executive officers and directors, or in any way adversely affecting or otherwise maligning the business or reputation of the Company, its affiliates and subsidiaries and their respective officers, directors and employees.

When Is a Non-Disparagement Clause Used?

Companies typically ask employees to sign a non-disparagement clause in two circumstances: upon hiring them or terminating their employment.

Non-Disparagement Clauses When You’re Hired

Unless you read all of your contracts carefully, you might not realize you’re signing a non-disparagement clause when you’re being hired, because they are often incorporated into a more extended contract that also covers non-compete and non-solicitation agreements. Some additional places you might find a non-disparagement clause when you’re hired include:

Stock or benefits agreements
Your employment agreement
The employee handbook
Contractor agreements

Businesses like employees to sign these contracts as part of the hiring process because, at that point, the relationship is entirely positive, and the new hire can’t imagine speaking ill of their employer. They protect the company if the relationship turns negative down the road.

Non-Disparagement Clauses When Your Employment is Terminated

An organization may ask an employee to sign a separation agreement that includes a non-disparagement clause. These agreements are usually part of the process if you’re leaving the company on bad terms, whether you’re being fired, laid off, or quitting due to unfair workplace practices. Companies don’t ask you to sign non-disparagement clauses upon termination without offering an incentive. Usually, your severance pay and benefits are contingent on you signing a non-disparagement clause. If the company gives you a bunch of money to terminate you, they want to make sure you won’t go out and start talking smack about them. When your employment is terminated, check every document carefully to make sure you know what is being asked of you before you sign it.

Should You Sign an Agreement With a Non-Disparagement Clause?

There’s no right or wrong answer to whether you should sign an agreement with a non-disparagement clause. Consider a few things before making a decision:

Do you need to sign it to get the job? If signing an agreement with a non-disparagement clause is necessary to get a position, and you want that position badly enough to give up your right to ever talk negatively about the company, then you should sign it.
However, if getting the job doesn’t hinge on assenting to these terms, you’re better off not locking yourself into anything.
Do you need to sign it to get severance? If a company won’t offer you severance pay and benefits without agreeing to the terms of non-disparagement, you need to weigh what each option is worth to you. How much money are they offering, and how long will your benefits continue if you sign it?
If you value that severance package more than your ability to talk about your experience, then you should sign it. If you’ve consulted a lawyer and think a lawsuit against the company might yield more money than the severance package hush-money, then you can go with the litigation option instead.
Will the company agree to the same? One thing most people don’t consider with standard non-disparagement clauses is that most companies don’t agree to reciprocate the deal. In other words, they can still speak ill of you in the future if they so wish.
This is a big deal when you’re being terminated, considering you’re about to start a job search and need to know whether the company will vouch for you moving forward.
What time frame does the non-disparagement clause cover? A non-disparagement clause should only cover future communications. In other words, you shouldn’t be on the hook for all the badmouthing you did before you signed the contract. Make sure that the non-disparagement clause clearly lays out that it only applies to your conduct going forward.

We aren’t lawyers, and we can’t give specific legal advice. If you’re unsure about the specific terms laid out in a non-disparagement clause, seek the opinion of legal counsel. Look for an attorney who specializes in workplace fairness; they’ll be best equipped to communicate what exactly you’re agreeing to.

What Happens if You Break a Non-Disparagement Clause?

If you break a non-disparagement clause, the consequences will be mainly financial; the company will attempt to get back all or part of your severance package. This is only true if the money you received from the separation agreement was contingent on you agreeing to a non-disparagement clause (which it usually is). You might also have to pay damages if the company can prove that your words caused them financial distress. However, it’s challenging for companies to make this argument and assign a dollar value to the damage your words caused. That’s why many organizations will include a “liquidated damages clause,” which provides a set rate per violation of the agreement. So if you blast your former employer on three different platforms, you’d have to pay for each violation, in addition to returning your severance pay.

Limitations of Non-Disparagement Clauses

There are a few situations where an employee can legally disparage the company after signing an agreement with a non-disparagement clause.

If you need to file for a workers’ compensation claim. If your injury occured at work due to bad practices the company employed, you’re allowed to explain the situation truthfully.
If a government agency investigates the company. Whether the investigation is because of discrimination within the company or the company is flouting regulations from the FDA or EPA, then you’re allowed to talk to speak freely to that agency. In other words, a company can’t build an iron curtain around their policies by having everyone agree to a non-disparagement clause.
If you complain to a friend or family member who has no power to change what the company is doing. While non-disparagement clauses are legally binding and enforceable, they are rather difficult to enforce in certain situations. Obviously, if you tell your mom what a jerk your boss was, the company won’t find out. Even if they did, they’d be hard-pressed winning a court case.
Non-disparagement clauses aren’t meant to be so restrictive, and as long as you follow the spirit of the agreement in good faith, you should be fine. Just don’t go out and write a tell-all book on your former employer’s horrible practices.

Non-Disparagement Clause FAQ

Are non-disparagement agreements enforceable?

Yes, non-disparagement agreements are enforceable. Non-disparagement agreements are legal documents that hold as much weight as any other legal document that you sign. That is why it’s so important that you read and understand everything you sign regarding your employment – and anything you sign at any time.

If you sign a non-disparagement agreement and then write a post on social media about how your boss is a jerk, you are breaching your agreement, and you can be held accountable as specified in your contract. This can range from being terminated to having to pay substantial monetary fines.

It’s also key to note that not knowing or understanding what you’re signing is not an excuse. You’re expected to completely understand every legal document you sign.

While it’s true that a lot of people don’t take the time to read everything or thoroughly understand them, they are taking that risk on themselves by not being thorough, it is not the fault nor the responsibility of the other party to make sure you understand what you are signing.
What is a disparaging statement?

A disparaging statement is any negative statement. Disparaging statements can be absolutely true and even proven, and they can be false or supposition. They’re simply negative in nature.

In the world of business, a disparaging statement clause is typically in place to protect anyone from saying negative things about the company, their products, their practices, other employees, management, and sometimes even customers.

And it’s key to note that a disparaging statement doesn’t need to be vocalized; it can be written down or communicated in other manners – this can include videos and social media.
Are non-disparagement clauses enforceable in California?

Yes, non-disparagement clauses are enforceable in California, but there are limitations on what those clauses can cover. Of particular concern is the hiding of certain unlawful acts in the workplace with unenforceable non-disparagement clauses.

For instance, if an employee is being sexually harassed, a non-disparagement clause could theoretically prevent them from saying anything. But because sexual harassment is unlawful, the clause doesn’t apply to this, and the employee is free to complain and start a lawsuit against that person.

And it’s all unlawful acts that are not included in non-disparagement clauses, not just sexual harassment in California.
How do you prove disparagement?

Disparagement is proven with written or documented evidence, testimony, and recordings. Sometimes, disparagement isn’t easy to prove, especially in the past, because it becomes one person’s word against another. How does a company prove that Jimmy talked badly about his boss to Sally if Sally won’t tell what Jimmy said?

But with the implementation of social media, more people take their disparaging comments to that audience rather than just a trusted co-worker and friend. This makes it pretty easy for a company to prove that there were disparaging remarks made about them.

Screenshots, still-existing posts, saved videos, etc., are all used in court against people who have made disparaging comments.

What is Nonverbal Communication? (With Examples)

Kristin Kizer — Thu, 21 Jul 2022 11:21:25 +0000

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What Is Nonverbal Communication?
Examples of the 5 Roles of Nonverbal Communication
Types of Nonverbal Communication
Nonverbal Communication Skills
How to Read Body Language
How to Improve Nonverbal Communication
Using Nonverbal Communication in a Job Interview
Nonverbal Communication FAQ
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There’s a skill to nonverbal communication: Can you tell what someone is thinking just by looking at them? Have you lost their attention, or are they utterly rapt by what you’re saying? Sometimes nonverbal communication says more than your words do or ever can. This is why it’s so important to understand it, whether you’re the speaker or you’re in the audience.

Key Takeaways:

Nonverbal communication is the transmission of information with physical cues such as body language, hand gestures, and eye contact.
The 5 roles of nonverbal communication are: complementary, contradictory, accenting, repetition, and substitution.
Skills to communicate and understand nonverbal communication include paying attention and interpreting.
Practice to improve nonverbal communication.
A job interview is a crucial time to use your nonverbal communication skills.

What Is Nonverbal Communication?

Nonverbal communication is a way of transmitting a message without words. Typically, nonverbal communication includes things like eye contact, facial expressions, gestures, posture, and the distance between the speaker and the person listening. They’re integral parts of your communication skills toolkit and worthy of examining. It can be as obvious and as intentional as holding up two fingers when you want two tickets at the theater. Or your nonverbal communication can be totally unintended, like an eye roll when someone says something stupid.

Examples of the 5 Roles of Nonverbal Communication

Nonverbal communication has five roles that it performs when you’re listening and when you’re speaking. It adds to the words from both sides of a conversation or takes away from those words. Let’s look at the five roles of nonverbal communication and consider some examples of each:

Complementary. In this situation, your nonverbal cues are lining up with your words, and you’re emphasizing your point.

Example 1:

You say STOP! And you hold your hand up.

Example 2:

You tell someone that you agree with what they’re saying by either nodding while verbally telling them that you agree. Or by not even speaking, just nodding while maintaining eye contact.
Contradictory. You’re saying something, but your body language is communicating a totally different message.

Example 1:

The alleged killer is being cross-examined by a prosecutor and says, “I did not kill that person.” But while speaking, they are nodding in the affirmative. Meaning they’re saying they didn’t do it, but their nonverbal response is saying they did.

Example 2:

Saying to the dinner host, “Everything is so delicious,” while unknowingly grimacing.
Accenting. Hit the essential parts of what you’re saying in a way that pulls focus to those words.

Example 1:

Telling your team about the upcoming sales promotion and getting louder and speaking faster while you do. This draws their attention to your message and conveys excitement.

Example 2:

A pastor slamming their fist on the podium. The gesture and the sound it makes can wake up the congregation and pull their attention back to what’s being said.
Repetition. It doesn’t have to be the words you’re saying, but your body language can repeat your message, too.

Example 1:

Asking for five coffees and holding up five fingers. It’s an easy repeat of the number you just said and reinforces your verbal message.

Example 2:

“No, I don’t like mushrooms.” Said while shaking your head and making a face, you’re definitely going to get your point across here with all that’s going on nonverbally and verbally.
Substitution. This is similar to a contradiction and can often be confusing. Think of a contradiction as something that signals you might be lying, while a substitution signals there might be another answer. Or think of a substitution when nonverbals stand in place of words.

Example 1:

Asking your child where the candy bar went. The child says they don’t know, but they smile and touch their stomach simultaneously. Besides the fact that they have chocolate all around their mouth, you can tell from their nonverbal clues that they ate it.

Example 2:

“How was the haunted house,” you ask. Instead of any verbal response, your friend looks at you with wide, terrified eyes and opens their mouth, but nothing comes out. Here the words aren’t needed – you get the message.

You can see how your nonverbals can make you a more effective speaker and even a better listener. Or they can work against you and contradict what you’re saying and make the listener believe you’re lying. That’s some pretty powerful stuff.

Types of Nonverbal Communication

Understanding the power of your own nonverbal communication and body language is just as important as reading it in others. Let’s dive into the types of nonverbal communication:

Facial expressions. Obvious emotions are easy to spot; someone crying is typically unhappy. A laughing face is usually a happy one. But what about some more subtle facial expressions? What do squinting eyes mean? How about a raised upper lip?
These expressions can all have different meanings depending on the culture, region, gender, and even age of the person, so context is important.
Paralinguistics. This is the way you communicate with your vocal cords but not with words. Think of the uhm-hmm you say when you agree. Or it can mean the quietness of a whisper that conveys you’re telling a secret. The loud and sharpness of a yelled, NO! when you’re trying to stop someone from doing something dangerous.
Maybe it’s saying, “I’m fine,” in a clipped way that lets someone know you’re not fine at all. Although paralinguistics have to do with the voice, they are still considered non-verbal communication.
Eye contact. Are people looking at you or away? When they look away, are they signaling something, or are they just bored? What about eye rolls? There’s just so much that can be learned when you pay attention to where people are looking.
You’ve heard about shifty-eyed strangers; usually, it’s used in literature, but when someone refuses to look directly at you, it can tell you a lot. And then there are people who take it too far and stare with uncomfortable intensity to ensure that they’re communicating focus. An appropriate amount of eye contact is somewhere between 50-70% of the time for most Western cultures. It displays confidence and interest in others without making anyone feel like they’re being overly scrutinized.
Gestures. Waving your arms around is one way to emphasize your point, but it doesn’t have a ton of meaning except to call attention to your words. How about more explicit gestures like a nod, a shrug, or rolling your eyes?
In some cultures, gestures are an important part of story-telling and communication. Consider how Americans use the thumbs up, OK, and middle finger hand signals to communicate different emotions.
Body language. You can tell someone is yelling sometimes by just seeing them wave their arms around at a distance. Or, maybe it’s the more subtle signs, like a crossing of the arms or legs. There’s a lot of science behind body language and what it tells you about both speaker and listener.
There’s also posture and the way people carry themselves. Slouchers tend to be quieter, while those who stand tall are also typically more extroverted. Those with their heads tilted or their hands on their chins are often considering a problem or are perplexed in some way. People also tend to mirror the body language of people they’re trying to connect with. It’s not uncommon for job candidates to inadvertently mimic whatever their interviewer does with their hands or feet during the interview. For instance, crossing their arms or legs, touching their nose, or readjusting their seat.
Proxemics. This is all about your space or the proximity between people. When someone says they like you and lean in closer, that’s them using the closeness to really add meaning to their words. On the other hand, sometimes people arguing will lean in closer to the other person in an intimidating way.
Touch. This form of communication is very important and has been studied a lot. Human contact is crucial to forming strong bonds and can bring a lot of depth to your words. Think how much a comforting arm around the shoulder can mean when you’re down. Or how affectionate a touch on the arm can be.
Researchers have also found that people of higher status tend to invade personal space with touch more frequently. And there can be differences in how touch is used based on gender.
Appearance. Interestingly, the way you look can affect how your words are perceived. And this isn’t always a politically correct response. Personal biases and past experiences can come into play. But let’s put that discussion aside and look at other ways appearance can play into your communications
If you’re speaking about how to make a million dollars but you’re unkempt and wearing cheap clothes, it can have an effect. Also, the color you’re wearing can affect mood and attitude.
Artifacts. Artifacts are prompts or accessories you use to bring home your point. If you’re wearing your lab coat to give a scientific discussion, it could add an air of authority. Using a pointer to direct attention is a way to bolster your message by drawing attention. Showing someone a picture while you’re describing an object can help in personal communications.

Nonverbal Communication Skills

So how do you work on your nonverbal communication skills? First, we need to address the two obvious categories that those skills fall under.

Sending nonverbal communications. These are the ways you communicate with others without words, whether you realize you’re doing it or not.
Receiving/reading nonverbal communications. These are the nonverbals that you pick up in others. You can practice being better at interpreting, understanding, and responding to them.

These nonverbal skills can be adapted and improved for both situations, the givers and receivers:

Pay attention. This is a big skill in any type of communication. Your ability to pay attention to what someone is doing and saying is crucial. Force yourself to use active listening skills.
Note the words being spoken and any nonverbal that goes with it. Do they jive, or are they contradictory? Challenge yourself to notice the nonverbal cues and match them to the meaning of the words. Another big part of nonverbal communication is paying attention to your own. Are you rolling your eyes, nodding in approval, smiling, or are you frowning? Being aware of yourself helps you learn to be more in touch with others.
Interpret. Take a nonverbal, say a head nod, and compare it to the words being spoken. Does it make sense and add value to the meaning? What about a smile from the speaker? Do you immediately feel that they’re happy about what they’re saying, or are they acknowledging someone else who isn’t a part of the conversation?
Stretch your brain to dive deep into what someone means with their entire body.
Practice. Try touching someone on the arm when you’re saying something to see what their reaction is. Use gestures to get across your point or lean in when someone else is speaking to see how they then respond to you. Practicing using your whole body to communicate (both listening and providing the message) gives great insight.
Work on expressions. You think your face is passive, but you might be scowling and not even know it. Make faces at yourself in the mirror and study how it feels. What muscles are moving, and how your features are positioned. It sounds strange, but the more you understand your own expressions, the better you’ll be at controlling them.
Talk to yourself. If making faces in a mirror felt weird, this will feel even stranger. Talk to yourself. Practice using a different tone or volume to say something. You know those who always sound sarcastic, which is a tone, and it can be very irritating. Knowing if you have that tone or not can help your interpersonal communications.

How to Read Body Language

Let’s talk a minute about body language because that’s one form of nonverbal communication that’s been heavily studied. Some people are naturally better at reading this than others. Don’t worry if you’re not one of those intuitively gifted people; you can learn how. Here are some common body language positions and motions that you need to understand.

Shoulder shrug. I don’t know
Nod up and down. Yes
Shake head side to side. No
Open arms with palms up. Trust
Smiling with mouth, not eyes. Fake smile without meaning
Raised eyebrows. Surprise
One raised eyebrow. Questioning or judging
Leaning in. Creating a connection or agreeing
Leaning away. Distancing themselves from the person or what’s being said
Crossed arms and legs. Closed off from the conversation, doesn’t want to be involved
Open arms and legs. Welcoming the conversation or the topic
Touching face. Repeatedly doing it is a sign of nervousness
Mirroring of your body language. They’re grooving on you or what you’re saying
Both arms up. Celebration or authority

How to Improve Nonverbal Communication

If you’re lacking in the nonverbal department, whether reading it or displaying it, you should work on the skills listed above to improve. You don’t need to overact or act at all. But being more in touch with how you look when you respond to things can help you see what other people see. Spend some time in the mirror and understand how your expressions can give you away. Then practice doing things that add value to what you say. You’ll find you’re understood more often and more clearly. On the flip side, look at what actors do with their bodies and their faces when they’re portraying an emotion. That’s an excellent place to start because it’s so obvious. Take what you learn there and begin watching people in your everyday life. Notice how they emphasize or take away from their words with gestures, facial expressions, how they appear, etc. When you start noticing how people respond to nonverbals, you can begin pulling them into your repertoire to get a better reaction.

Using Nonverbal Communication in a Job Interview

For a job interview, nonverbal communication can say a whole lot. We’re willing to go out on a limb and say that they could even cost you the job. Imagine a hiring manager explaining the job dues and an interviewee rolling their eyes or refusing to make eye contact at all. If you’ve already been working on using the appropriate nonverbals to show that you’re engaged and listening, you’re on the right track. This will go over really well with any prospective employer. You might also want to start mimicking the interviewer’s movements (but not in an obvious way). This creates a bond and a rapport that can make them like you more than they would have if you sat back with your arms crossed. Know that they probably know a bit about nonverbal communication, too. Try to keep it natural and don’t go overboard with anything. Also, don’t think about it too much, or you’ll miss what’s verbally happening in the interview.

Nonverbal Communication FAQ

What are advantages of nonverbal communication? Nonverbal communication allows people to connect and relate to one another in a more meaningful way. Posture, gestures, and eye contact all deliver messages that are subtly picked up by others.
Nonverbal communication also allows people who don’t share a language to communicate basic messages.
What does “nonverbal cues” mean? Nonverbal cues are body movements that signal another person to take an action or form an opinion. They are the ways you express yourself outside of words.
Nonverbal cues can refer to instantaneously recognizable gestures, like putting your index finger over your mouth to request quiet. Or they can refer to subtler things, like the color palette you wear to work.
What are the limits of nonverbal communication? Nonverbal communication is limited by its lack of a formal system and an increased chance of miscommunication.
It’s simple to communicate nonverbally with people like siblings or close friends because we know how to “read” them. But with strangers, it’s easy to misunderstand nonverbal cues, especially as you travel further from your hometown or meet people from different backgrounds.