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Tax Tips are not a substitute for legal, accounting, tax, investment or other professional advice. Always consult with your trusted accounting advisor before acting upon any Tax Tip.
How to Encourage More Bright Ideas - Give creative employees a chance to shine

Creative employees can revive a struggling business operation or inject it with a new sense of purpose and energy. But you may not be giving these employees opportunity to present their thoughts to the higher ups. It's the responsibility of your company's managers to "bring out the best" in your workforce, without causing any major disruptions.

Of course, each situation is different and should be handled differently. But here are several practical suggestions to consider.

  • Acknowledge creativity. If employees come up with bright ideas that will build sales or cut costs, let everyone else at the company know about it. You might put their names up on the bulletin board or in the company newsletter, or select them to represent the company at industry meetings.
    In contrast, dismissing ideas from workers out-of-hand is a surefire way to discourage creativity. Even worse: Don't "steal" ideas from workers without providing them with the proper recognition.
  • Reward creativity. Workers should know that coming up with a creative idea will pay off for them personally. Rewards can, of course, come in all shapes and sizes. They can be as simple as giving an employee an extra day off or a bigger work area.
    A monetary bonus is also a powerful incentive. It may be possible to tie bonus payments to suggestions that end up saving the company money. Advertise the availability of bonuses in the company manual or newsletter. Announce the "winners" to further encourage creativity.
  • Stimulate creativity. It helps to supply some sort of outlet for creative ideas and suggestions (and even for simply blowing off steam). The tried-and-true suggestion box may be the simplest way to get the ball rolling.
    Another possibility is to hold casual get-togethers where employees can speak freely about how company products are manufactured, shipped, advertised and sold. You might hold these on a regular basis (e.g., the first Friday afternoon of every month). Invite the entire workforce to participate.
  • Train employees to be creative. It's a simple but unfortunate fact of life: Many employees simply don't have the self-confidence to step forward with good ideas. They think that they have nothing to offer your firm other than the mechanical performance of the job they have been hired to do.
    Frequently, educating workers is the best way to overcome this misconception and turn employees into a source of creativity. Some companies have hired professionals who specialize in this kind of creativity training, while others have been able to develop their own training programs from the ground up.

On the downside, creative employees can also be rebellious and difficult to manage. Such employees may be a double-edged sword because they might create as many problems-or even more-than they solve. Try to harness the energy to produce favorable results.

Lights out: It is important to maximize the benefits these employees can bring to the table while minimizing the potential distractions. These activities can help spur your company forward in 2009.

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TAX ADVICE DISCLAIMER: In accordance with IRS Circular 230, any tax advice included in this communication, including attachments, is not intended or written to be used, and cannot be used by you or any other person or entity, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions, nor may any such advice be used to promote, market or recommend to another party any transaction or matter addressed within this communication. If you would like such advice, please contact us.


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