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How to impress over a business lunch…

Picture the scene. You’ve got an important business lunch coming up. You want to make a good impression on the person you are meeting with. What should you eat for lunch?

A study published in the Journal of Consumer Psychology has some interesting findings which indicate that if you have an important business lunch, there are various benefits to ordering the same food as the person you are trying to impress.

Scientists from the University of Chicago studied nearly 500 people to identify whether eating the same food helped them agree in negotiations.

The researcher’s conclusion was that people who are served the same food are more likely to trust each other, smooth out problems and make deals.

As part of the study, participants in the research were told to imagine they were “investors” who had to decide whether to invest in funds operated by their “fund manager” eating partners. The researchers found that those people who were served similar food invested more money.

Another interesting finding in the study was the link between food consumption and the effectiveness of advertising. The authors said that “consumers are more trusting of information about non-food products – e.g. a software product – when the advertiser in the product testimonial eats similar food to them”.

Back to the business lunch though and although the research found that there are benefits to ordering the same food as the person you are trying to impress, I’m not sure that if you’re wearing a nice clean white shirt to the lunch meeting you should necessarily follow the other person in ordering that “tricky to eat tidily spaghetti with the sloppy tomato sauce”…

Don’t sweat your exams

Most people enjoy it when the weather gets warmer. Sunny weather often makes people happier but some research indicates that a heatwave may not be good news if you’re taking an exam.

Researchers from Harvard Chan School of Public Health found that students who were exposed to hotter temperatures did significantly less well in cognitive tests than those students who lived in a temperature-controlled environment.

The research involved a group of students who had already been allocated accommodation on campus. Half of the rooms had air conditioning and half didn’t.

The students were followed during a 5-day heatwave where temperatures exceeded 26C.

Before, during and after the heatwave, the students had to perform a number of cognitive tests which measured the speed they processed matters as well as their working memory. The results showed that the scores of these students in the hotter accommodation fell by 13% compared to their colleagues in the air-conditioned temperature stable environment.

The researchers said that it was not clear what was behind the drop in performance during an increase in temperature. It could have been because the brain was working harder on maintaining critical body functions such as thermoregulation or it could have been due to a poorer quality of sleep due to the heat.

Either way, let’s hope it’s not a heatwave the next time you sit an exam…

Best to take it back…

Most of you have probably had an interview. In fact, some of you may have had a number of interviews but a boss of one of the top companies in Australia has recently disclosed a pretty unusual way of deciding who not to offer a job to.

Trent Innes, who heads up Xero in Australia said that he will greet the person when he or she arrives for the interview and then take them to the kitchen to offer them a drink before heading to the meeting room with the drink. Even if they aren’t tea or coffee drinkers they will generally walk away with a glass of water.

He explained in the Venture Podcast with Lambros Photios that after taking the drink back for the interview “one of the things I’m always looking for at the end of the interview is, does the person doing the interview want to take that empty cup back to the kitchen?”

He explained that what “I was trying to find was what was the lowest level task I could find that regardless of what you did inside the organisation was still super important that would actually really drive a culture of ownership.”

He went on to say, “You can develop skills, you can gain knowledge and experience but it really does come down to attitude, and the attitude that we talk a lot about is the concept of ‘wash your own coffee cup’.”

That’s quite a smart move by Mr Innes as he said that attitude was the most important trait he looked for when hiring people.

He said that “Especially in a fast growth company or a start-up environment or scale up environment – you need people with a really strong growth mindset and that comes back to their attitude.”

So, how many interviewees do you think offered to take their cups back?

Perhaps surprisingly, the number of people who offered to take their cup back to the kitchen was pretty high. According to Mr Innes only 5 to 10 per cent of the interviewees didn’t offer to return their empty coffee cup back to the kitchen.

So there you go. If you’re attending an interview and you go to the kitchen with the boss to get a drink, it’s probably a good idea to offer to take the cup back.

A great recovery

We’ve all made mistakes but the key thing is how you recover from those mistakes. ASOS, the global internet clothing company recently made a mistake but recovered from it really well.

ASOS is an incredibly successful company. They sell over 80,000 products on their website and last year had over 15 million active customers and sales of nearly £2 billion.

One thing they are not that good at though is using the spell check function as they printed 17,000 packaging bags with the slogan “discover fashion online” spelt using “onilne” instead of “online”.

Now, what would you have done in that situation?

Would you have ignored it and hoped that no one noticed or cared about it?

Would you have scrapped the bags?

ASOS did neither of those and recovered brilliantly by tweeting:

“Ok, so we *may* have printed 17,000 bags with a typo. We’re calling it a limited edition”.

So, depending on how you look at it you’ve either got a bag with a typo on it or a limited edition collector’s item.

A brilliant recovery by ASOS. Turning a typo into some great publicity.

Exams for sale….

One of the five fundamental ethical principles is Integrity.

Being straightforward and honest is a vital characteristic of being a professional accountant.

Most people who are studying for their professional exams have one thing on their mind. Namely, to pass their exams but four students who were studying for their ACCA exams had other things on their minds and at the same time, were not the brightest individuals out there.

What they planned to do was to register for some Computer Based Exams (CBEs) and then whilst sitting the exams they would use their mobile phones to take photos of the computer screen showing the questions. They would then sell these photos with the questions on them via the internet.

The four individuals involved, Chen Yiyun, Hiujiao Ru, Zehui Gong and Ziying Wang decided to sell the questions on Taobao Marketplace, a Chinese shopping website.

They no doubt thought that this was an extremely clever way of making some money. What could possibly go wrong by taking photos of the questions and then selling them online?

One of the other fundamental ethical principles is that of Professional Competence.

Now, if these individuals had even a minuscule amount of Professional Competence, they would have reviewed the photos before selling them.

Alas for them they didn’t review them.

If they had reviewed them, they would have seen at the top of the computer screen in the photos their ACCA student registration number and the exam centre.

ACCA were made aware of the questions being for sale and made a test purchase on the Taobao Marketplace. Given the student registration numbers were on the screen, they didn’t need a team of top detectives to identify the individuals involved.

Unsurprisingly, the four individuals are now ex-students of ACCA having been found guilty of misconduct and they were ordered to pay costs ranging from £3,500 to £7,000.

Remind me – what was I going to buy?

Do you wish you had a better memory? Perhaps you do but you can’t remember whether or not you do.

If this is the case then help may be at hand.

University researchers have suggested a simple technique which could improve your memory.

Dr Mark Moss from Northumbria University led a research study which found that students studying in a room with the smell of the herb rosemary (in the form of essential oils) achieved 5% to 7% better memory results than students undertaking similar studying in a room without the smell of rosemary.

Dr Moss reported that the sense of smell in humans is highly sensitive and sends messages to the brain which can set off reactions and responses.

In the case of rosemary, the smell could well result in a better memory.

This view isn’t new though as ancient Greek students used to wear garlands of rosemary in their exams and Ophelia, the young noblewoman in Shakespeare’s play Hamlet said “There’s rosemary, that’s for remembrance.”

So, in conclusion, the next time you are studying hard for an exam it may be an idea to buy some rosemary essential oils to help your memory.

That is of course, if you can remember to buy some in the first place…

(Details of some of the work done by Northumbria University can be found here).

I’m not kicking a ball, I’m being looked at.

Professional footballers must have a great life. Playing football and earning significant amounts of money. Oh, and using some very clever tax advisers…

There are serious amounts of money being paid to some of the top footballers. Payments of in excess of £200,000 per week are fairly common (over £10 million per year).

This income doesn’t simply go into the tax return as salary. No, there are far more sneaky/clever [delete as you feel appropriate] ways of minimising the tax liability (or should I say maximising the after-tax income).

One of the methods used to minimise the tax is to make two types of payments to the player.

One would be for playing football whilst the other would be for “image rights”.

“What are image rights?” I hear you say.

Well, the basic idea is that the player would agree to let the football club use his image in any sponsorship or TV deals that the club has.

Without going into too much technical detail, the key difference from a tax point of view is that the payments made to the player for playing football would be classified as employment income and would be taxed at 45%.

Payments for image rights on the other hand would in effect be rental payments for an intangible asset. Players would assign their image rights to a company (where they could be the 100% shareholder) and the company would only pay corporation tax of 19% on the income.

With the globalisation of the Premier League, there are now numerous players who are not tax domiciled in the UK and if their image rights were channelled through a non-UK company they could potentially escape tax altogether.

Given the size of the payments involved there’s a lot of tax at stake and no doubt the tax authorities will be looking closely at these schemes.

In the meantime, most of the readers of this blog are not professional footballers but instead undertake far more interesting finance and accounting activities in an office. Why not suggest to your boss at your next pay review that you’d like image rights instead of a pay rise so that you can receive more tax advantageous rental income from an intangible asset via your personal company…

Laziness and intelligence.

Are you lazy? Do you know anyone who is lazy?

Whilst a lot of you won’t admit to being lazy (and I’m sure most of you aren’t in fact lazy!), some of you will know somebody who you feel is lazy.

Is it such a bad thing to be lazy though?

Perhaps not, as according to a study by scientists from Florida Gulf Coast University laziness could correlate with high intelligence.

The study found that people with a high IQ rarely got bored. As a result, they spent more time lost in thought. On the other hand, the study suggested that less intelligent people were more likely to be prone to boredom and consequently were more likely to do more physical activity.

The researchers worked with 2 types of students. The first group expressed a strong desire to think a lot whilst the second group were keen to avoid doing things which were mentally taxing.

The participants were then fitted with fitness trackers which monitored how much they exercised over a 7 day period. The study found that people who thought a lot were much less active than those individuals who avoided high-level thinking. Interestingly, this discrepancy in levels of activity only happened during the week and there was no difference during the weekend.

Before any of the lazy people out there start claiming that they are more intelligent, it’s worth noting that the sample size of the test was small and further tests will be needed to prove the correlation.

Pass the doughnuts…

Does your weight affect the amount of money you earn?

That’s an interesting question and researchers from the universities of Strathclyde in Glasgow and Potsdam in Germany have come up with a potential answer.

They analysed data from nearly 15,000 working men and found that men within that the recommended Body Mass Index (BMI) health range earnt more than those who were outside of the range.

Individuals who were underweight on the body mass index were found to earn 8% less than those who were in the top end of the healthy bracket. They found that the effect was more prominent in manual jobs where no doubt the extra strength of the guys in the healthy weight bracket helped increase their earnings.

What was perhaps surprising though was that there was also a difference in earnings in white-collar office jobs. They found that in the more middle-class occupations the rewards peaked at a BMI of around 21.

It wasn’t just men who were impacted though. The study also looked at the weight and earnings of 15,000 German women and found that the slimmest earnt the most and the obese the least.

Jonny Gifford, of the Chartered Institute of Personnel and Development was quoted in the press as saying “it is depressing that, in this day and age, looks are in any way a factor in how much people are paid”.

I have to agree with him as organisations should employ people on the basis of their abilities as opposed to how heavy they weigh.

Anyway, best dash as I’ve got a doughnut to finish…

Should you employ good looking people?

Should you employ good-looking people or not so good-looking people?

Whilst the obvious answer would appear to be that it doesn’t matter what a person looks like as long as they can do their job properly, researchers in Japan have found out that the attractiveness of an employee can have an impact on the sales of a business.

Interestingly though, it’s probably not the correlation most people would think applies.

Researchers at the Chinese University of Hong Kong studied retail sales in shops and found that the more attractive the shop assistants of the opposite sex were, the lower the sales were. The researchers found that male shoppers were less likely to go into the shop if the more attractive woman in the research study was serving.

Even if they entered the shop with the attractive shop assistant in it, only 40% of them bought something. This compared to 56% who purchased something when a less attractive assistant was serving.

Lisa Wan of the University said “attractive service providers can lead consumers to become self-conscious or embarrassed. This is especially true when the provider is of the opposite sex. Even when the attractive salesperson is the same sex, consumers may feel a sense of inadequacy through self-comparison.

In either case, the shopper may avoid interacting with physically attractive providers, rendering the salespeople ineffective”.

It’s worth mentioning though that the scientists undertaking the research were monitoring a shop selling figures from Japanese comics and the male shoppers were obsessed with computers.

“Male shoppers obsessed with computers” – surely they would only notice the female shop assistant if she was holding a computer?