MONDAY,NOVEMBER25,2019 | THEGLOBEANDMAIL O ENTREPRENEURSHIP B5
T
he workplace is generally
considered to be a setting
where we keep strong
emotions in check, so when an
employee breaks the taboo and
cries at work, many managers
are at a loss for how to handle it.
One manager I worked with
had an Achilles heel when it
came to crying. He couldn’t
stand to see people upset, and
would often walk back the nega-
tive feedback he’d given or even
reverse a tough decision. Al-
though he thought he was being
kind in the moment, he only
ended up confusing his team
and delaying conversations that
needed to happen. Worse, in his
kindness, he ended up losing
people’s trust by not standing his
ground. Having to give tough
feedback or even let someone go
is part of a manager’s job, and
you might find yourself on the
receiving end of anger, sadness
or an emotional outburst. Hand-
ling it with grace and profession-
alism is tricky, but it can be done.
First, if you know a meeting is
going to be tough, take steps to
prepare. Avoid all-glass “fish-
bowl” style rooms, and if you
can’t, ensure you position your-
self to face any transparent walls
or doors. Having worked in offic-
es where glass was the only op-
tion, I’ve also resorted to strate-
gically blocking windows with
anything movable – white-
boards, coat racks, you name it.
You can also have tissues on
hand, although a box of Kleenex
placed dead centre on a meeting
table may be a giveaway that bad
news is coming.
If you see tears welling up,
pause the conversation. In that
moment, they can’t hear you.
Try giving them a bit of space by
offering to get them some water.
Leaving the room for a minute
gives them a private moment to
compose themselves, which may
be all they need to continue. If
you return and the employee is
still upset, you could try asking
them simple questions, such aswhat their plans are for the
weekend or what they thought
about a recent company event.
Low-key, easy conversations can
help calm the brain by taking
people out of “fight or flight”
mode.
Remember that while you can
be an empathetic boss, it’s not
your job to be their friend. Don’t
backtrack on the statements
you’ve made and avoid the urge
to pile on praise to ease the ten-
sion. Resist comforting them
physically in any way, such as
with a hug or pat, as this can beeasily misconstrued. However,
there’s no need to be a robot.
Empathize with your team mem-
ber (“I know this news may be
tough to receive”) and validate
their feelings. Don’t ask them to
stop crying or say “it’s only
work.”
If the conversation is focused
on giving constructive feedback,
it should centre around your in-
vestment in their growth and
making a plan to improve, to-
gether. For some, finishing that
conversation is helpful, as you’re
leaving things on a more positive
note. For others, it may not be
possible to refocus and the con-
versation should continue at a
later date. In that case, be sure to
affirm that you’re there to help
them grow and will work togeth-
er with them on a plan to im-
prove. There’s nothing worse
than hearing bad news and be-
ing left to stew on it with no plan
or conclusion.
If the conversation involves
telling someone that they’ve lost
their job, postponing the meet-
ing may not be possible. In that
case, you can offer a follow-up
e-mail and/or phone call outlin-
ing the details of the exit pack-
age (if any) that the employee is
entitled to, along with any next
steps. They’d also have the op-
portunity to ask any questions at
that time, after they’ve calmed
and had a chance to consider the
news. Offer them this option and
ensure they’re given an easy way
to get out of the office and head
home, without running into co-
workers.
De-escalating an emotional
outburst is not a favourite task
for any manager, but with some
empathy and preparation, you
can make the experience less
painful for both of you.Whattodowhenanemployeeburstsintotears
NORAJENKINSTOWNSON
OPINIONFounder ofBright +Early, a human-
resources advisory firm for startups
and creative companies
NoraJenkinsTownson,
founderofhuman-
resourcesadvisoryfirm
Bright+Early,suggests
pausingaconversation
withanemployeeifthey
begintotearup.
CHRISTOPHERKATSAROV/
THEGLOBEANDMAILO
ntario real estate agents
are cheering anew govern-
ment bill that would allow
them to incorporate–amovethat
could mean huge tax benefits and
align them with other professions
as well as peers in other prov-
inces.
The proposal is part of Bill 145,
the Trust in Real Estate Services
Act, and comes after more than a
decade of lobbying from the in-
dustry to enable its salespeople
and brokers to incorporate and
have their commissions paid
through the corporation.
The government says incorpo-
ration would “create a stronger
business environment” and is
proposing the change as part of
amendments aimed at strength-
ening consumer choice, protec-
tion and professionalism in the
real estate industry.
Almost all real estate agents are
independent contractors who are
paid by commission. By incorpo-
rating, salespeople and brokers
could keep their commission pay-
ments in a corporation, where the
money is taxed at a much lower
rate before being withdrawn as in-
come for personal use, either
through a salary or dividends. To-
day in Ontario, only brokerage
firms can incorporate, or brokers
paid a management fee – separate
from sales commissions – for run-
ning a brokerage.
Other professionals, including
accountants, lawyers and insur-
ance brokers, already can incor-
porate in Ontario and across the
country. The change would put
Ontario real estate salespeople
and brokers on equal footing with
their counterparts in B.C., Que-
bec, Alberta, Saskatchewan, Ma-
nitoba and Nova Scotia.
“It’s time to modernize,” said
Joseph Richer, registrar of the
Real Estate Council of Ontario,
which regulates real estate profes-
sionals in Ontario on behalf of the
provincialgovernment.
Tim Hudak, chief executive of
the Ontario Real Estate Associ-
ation, an independent profes-
sional organization that repre-
sents salespeople and brokers,
said the change would allow pro-
fessionals to invest more in staff
and new technology, and make a
greater contribution to the local
economy.
“It’s a modern business tool
that’s available to a significant
number of other professions,”
said Mr. Hudak, a former leader of
the Progressive Conservative Par-
ty of Ontario.
Having a corporation would al-
so help realtors set aside more
money for industry downturns.
“It appropriately recognizes that
the real estate cycle can have
some significant ups and downs,”
he said. “... This helps them plan
over that cycle.”
Andrew Zakharia, a small-busi-
ness accountant and founder of
AZ Accounting Firm in Toronto,
said incorporating would provide
“substantial savings” for some re-
al estate agents, high earners in
particular.
Incorporated professionals
could defer as much as 41 per cent
in taxes by leaving money in their
corporation, or about $41,0000
for every $100,000 in profit. The
estimate is based on the highest
personal-tax rate in Ontario of
53.53 per cent and the lowest busi-
ness tax rate of 12.2 per cent on the
first $500,000 of profit, taking in-
to consideration a cut in the
small-business tax that begins in
2020.
Mr. Zakharia says incorpora-
tion is not as appealing for people
who spend all or most of their in-
come, in part because of the cost
of incorporation, which is about
$1,500 to $2,000 to set up and can
range from $2,000 to $5,000 ormore a year for tax-preparation.
“It will only help people who
make more money than they
need to live on and are leaving
money inside the corporation,”
he said.
Business owners that incorpo-
rate also need to keep in mind
new federal passive-income rules
that gradually eliminate access to
the small-business deduction for
Canadian-controlled private cor-
porations that earn money from
assets not directly used in the
business, such as stocks and
bonds. The change took effect in
2019.
Businesses lose access to the
deduction if they have more than
$50,000 in passive investment in-
come in a year. They lose access
entirely after $150,000 a year. Pre-
mier Doug Ford has called on the
federalgovernment to reverse the
changes.
Catherine Himelfarb Borden, a
Toronto-based real estate sales
professional and managing part-
ner of the Forest Hill Real Estate
Inc. Brokerage Yorkville branch,
says the proposed change would
level the playing field.
While Forest Hill is incorporat-
ed, her commission is subject to
personal-tax rates. Incorporating
would allow Ms. Himelfarb Bor-
den to keep money in her corpora-
tion and, because of the lower taxrate, invest more in the operation.
“Funds can be allocated for
business growth, promotion and
planning for the long-term,” she
said. That includes hiring other
professionals such as marketers,
photographers, decorators and
home stagers. “It will be great to
be able to pay for them out of a
corporation, instead of personal-
ly,” she said.
Incorporating would also help
her compete for talent to expand
her brokerage. “Prospective sales
reps often ask us if they can incor-
porate,” she said. “Being able to
answer this question in the posi-
tive will go a long way to attract-
ing top realtors.”
The government has said it
would work with the industry to
develop the regulations, “includ-
ing to establish rules for the struc-
ture of these corporations,” Mat-
teo Guinci, a spokesman for the
Ministry of Government and Con-
sumer Services, said in an e-mail.
He also said the measures would
ensure real estate professionals
who incorporate “would con-
tinue to remain accountable and
subject to all existing professional
obligations including education,
insurance, professional liability,
code of ethics and other require-
ments.”Special to TheGlobe and MailIncorporationwillbringtaxbenefitstorealtors
Newruleswillallow
Ontariosalesagents,
brokerstokeeptheir
commissionpayments
inacorporationwith
lowerassessmentrate
BRENDABOUW
CatherineHimelfarb
Borden,managing
partneratForestHillReal
EstateInc.’sYorkville
branchinToronto,says
newregulationswillhelp
hercompetefortalent
toexpandherbrokerage.
CHRISTOPHERKATSAROV/
THEGLOBEANDMAIL