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An ongoing series of informational entries

The competitive edge in a saturated market INSURANCE!

09/26/2016

The insurance brokerage industry has become crowded and highly competitive in Florida. Insurance agencies can be found on virtually every corner these days. Even as all aspects of the property and casualty has become digital the options are many. As an agency it can be difficult to stand out from the crowd and obtain new business.

Adding to this is the current shift in how captive insurance companies making it easier for clients to purchase their own policies online. These companies are allowing clients to choose coverage, price the policy, and purchase in a couple of minutes. This means that in most cases the perception is that agents are not needed in order to purchase a policy. Clients are also able to endorse there policies and handle claims from a smart phone. So, does the insurance industry still need agencies and or agents? I guess it depends who you ask. But it is this writer’s opinion that this automated way of buying insurance is well, crazy!

The problem is that insurance is not a cut and dry product in which you can just choose options like if one is ordering toppings on a pizza. People must understand coverages and how to protect assets. The other day I heard a story about a person who leased a car. Agents understand that as soon as they hear lease it automatically needs a minimum 100/300 bi coverage with comp and collision with the rest of the coverages all Floridians should have. This person went online to change the insured they are with because once they added the coverages with the car the premium sky rocketed. They put in the coverages as they understood it and was shocked on how much cheaper this new company was offering them insurance for. They purchased by putting the credit card info and printing the insurance cards. Well three weeks later the car was a total loss because of a accident this insured caused. When they put it in they claim the insurance company informed the client that the vehicle was not covered. Why? What happened? Well the insured did not purchase comp and collision on the policy because they thought the system understood they needed it. This is just a small example of how dangerous buying insurance on line can be. How about when clients ask for full coverage! What does that mean you can never really be fully covered the word has no room in insurance.

Well what does this all mean? It means that as insurance agents and insurance agencies we have to find new ways to compete. This can be done in several ways.

Agents need to become educators. Yes educators! The biggest weapon we have above self-service insurance is knowledge. The fact that clients can get answers to import questions. How about insurance reviews and making sure clients assets are properly covered? This is one of the marketing strategies that can and should be used. Put it on your website, digital marketing and word of mouth. Advertise that you are a licensed agent with knowledge and experience to protect. As insurance educators we can assure that clients will still need us to answer and review some of the most important issues.

Great customer service! This is one if not the most important way an insurance agent can market themselves. It is crazy how many agency I have worked in and or have consulted for that clients are treated as if they are somehow bothering the agent. Treating clients bad is pushing them further to self-insuring. Insurance agency principles must make sure there agents are treating the clients like gold. It has been my experience that clients choose me for their agent even if I am not the lowest rate! There is a reason for that. I treat my clients like gold they can sit with me for hours without purchasing a product and I would continue to answer their questions. These are just two ways to gain the competitive edge. For more ideas contact me and let’s talk!

Marketing is vital!

09/28/2016

Marketing is a vital part of the puzzle for a small business. It tells potential clients who, what, where, why, and when. But, marketing can become a black hole in which money goes to never be seen again. If the marketing is targeted to the wrong audience or the message does not get across the ROI can be nothing to negative. With such a diverse and open market how does a small business compete when resources are at a minimum? How can a small company get the word out without throwing everything it’s got into one basket? Understanding how, where, and when to use certain marketing strategies and tools can save time and resources. These resources can then be distributed into the right places of the businesses.

There are many ways for a small business to market itself without breaking the bank. One great way is network marketing. They can be a very good place to market your company. It can also be a big waste of time depending on the networking group you meet with. I have seen some groups that do not like for you to come out and ask for the business. In fact the best way to go into these events is with a perspective of meeting new people. Then as relationships build, so will your client base.

Business cards are an underestimated way to gain clients. It’s the most affordable and effective way to get the next customer. Anywhere you go give a business card. One of the most successful businesses I had was built on business cards. I give them when I went to dinner, movies anywhere. Even in drive thru as I paid for my lunch I would give my business card.

The internet has become a great way to market. It is now easier and more cost effective than ever. Placing ads on sites that are free can help drum up some business fast. It takes time to do this and why some business owners decide to pay someone to this for them. First you must choose who and what you are trying to reach. Then target those sites and reach people. How about the phones? Well cold calling can work but can be a lot of work. It is best to only use cold calling when selling product and or services to businesses. If not you will have to buy a do not call system to avoid trouble. In most states like Florida businesses can be cold called. Visiting businesses and giving out flyers and speaking to people can drum up some business. The first thing you need to do as a business is create a marketing strategy. Research areas of opportunities and create and implement a strategy to pursue. This will assure that you correctly and efficiently market yourself. Keep it simple and use your imagination.

Diversty and business!

08/30/2016

Societies around the world are at a constant change bringing about diversity in every aspect of life. This is especially true in the United States of America. With such a diverse population the business environment is in a constant change as it adapts to the population changes. This can be seen with the Hispanic population as the community has grown at an astonishing rate. As of July 2014 the Hispanic population has grown to 55 million (U.S. Census Bureau, 2014). This is not including other diverse population as the U. S. populations as of July, 2014 is 318.19 million (U.S. Census Bureau, 2014). For this blog only the Hispanic population will be used as example dew to the fast growth with in this population.

What does this mean to businesses nationwide? It means that the face and buying habits of the consumers is become more diverse than ever before. It also means that some part of organizational success relies on how well organizations understand and adapt to the population growth. All aspects of business can be affected by diversity such as marketing, sales, hiring, training, business development and much more. Businesses need to take a hard look at how prepared they truly are to the diverse population. These markets are growing and opportunity is following.

But for some odd reason it has been my experience that organizations have not adapted very well to the population growth. I have worked in many places in which I am the only Spanish speaking person. It very beneficial to me of course, but isn’t for the organization. Then the question becomes why isn’t hiring according to the population growth the thing to do? There can be many reasons for this from not enough well trained people in the particular field to it’s not a market segment the organizations are looking for. One research found that the Hispanic culture is currently overly represented in low skilled, low paying job (Lui 2013). The same study shows that 42.15% of the low skilled jobs are held by the Hispanic population. This has become evident in the nursing industry in which there is a shortage of nurses of the Hispanic culture (Morales 2013). With this gap existing it answers the question as to why organizations are having difficulties adapting to the Hispanic growth. Tis gap must be filled because the Hispanic population need the professional services all populations purchase such as homes, insurance, mortgages, and many more.

This means it might be time for organizations to step in and create training and education programs to fill the need. That is just an opinion but something should be done to solve the issue. It all starts with research. This can allow organizational leaders to form strategies that will allow them to take advantage of opportunities. Would the organizations just need Spanish speaking staff or would it make a difference that the employee is from Hispanic background? It is my hope that more research is done as it would solve many social problems in addition to organizational needs.

References

Liu, C (2013). Latino Immigration and the Low-Skill Urban Labor Market: The Case of Atlanta. Social science quarterly. Vol 94, pp131-157.

Morales, E. (2013) Lived experience of Hispanic new graduate nurses- a qualitative study. Journal of clinical nursing. Vol 23, page 1292-1299.

www.census.gov

HOME PRICES! And home insurance

08/25/2016

The value of your home is very important information to be aware of. During the last recession many people found out how critical this information can be. As home values plunged it became clear to many homeowners the investment they worked so hard for was drowning. At the present moment home values are actually rising. This is great news for homeowners and the U.S as this means the dream is still alive. It also means that owning a home is still part of the American dream. This is why it is vital for homeowners to assure they are properly insured. An insurance review allows you to do a sort of health check on your home coverage's.

An insurance review should be conducted every year because of the fluctuations in home prices. Your agent should do a replacement cost estimate before writing the policy or while conducting an insurance review. Why is this important? Well the replacement cost is what the insurance companies will pay if the home would have to be replaced. It pays up to the replacement cost so this number is very important. Let’s look at an example of how this works and why an insurance review is so important.

According to www.floridarealtors.org the average home sales price was $277,170 in 2015. According to the same website home sales price averaged at $299,292 in 2016. Now let’s make it clear this is not the replacement cost but means the replacement cost of a home sampled in this website went up in value changing how much an insurance company will pay. This is just one example of why conducting a homeowner’s insurance review is so important.

1. Other reasons for conducting an insurance review and checking prices.

• New roof

• New additions

• New alarm systems

• Pluming updates

• Addition of security windows

• Purchase of new jewelry

• Change in personal financials

• Addition of gates

• Addition of pools

• Death of partner

• Any concern of added liability

• New dogs

These are just some of the reasons for conducting an insurance review. Even if none of the above has taken place remember insurance companies lower rates in certain years as well as increase. An insurance review can help you save hundreds of dollars at times. Shopping with multiple companies can give you many options. Ask your agent for a insurance review. Because if they won’t review you policy I will.

Julio C Caba 220 insurance agent

What do you know about your INSURANCE?

11/21/2016

Insurance in Florida has become a complicated and expensive subject. Let’s not forget it’s boring and annoying. Understanding Liability, bodily injury, personal injury protection, comprehensive, replacement cost, and that’s not even touching on business insurance like a key holder policy or general liability. How are consumers supposed understand or keep track of what they are protected for and what coverages are really needed. I have been assisting people and business with insurance for 10 years and you will be surprised on how many people I meet that is paying for coverages they will never need. An example is a retired person paying for work loss in there pip when they can never qualify because they don’t work or people that are under covered. An example of this is a homeowner that has had the same policy for years without doing an insurance review with their insurance agent. Remember that word replacement cost? Well this is what is would cost to replace the home if total disaster strike at the time of peril. If you have not reviewed your home owner’s policy in years chances are the home you live in has gone up or down in value changing the amount of replacement that would need to be purchased. Imagine your homes replacement cost on that old police is $200,000 dollars and today your home is worth more and disaster strikes, you will be under covered. Most small businesses do not know that revenue is one of the determinants of business insurance. If your business grows you need to speak to your agent to adjust for that growth. Look I know a person does not wake up excited about the task of speaking to an agent about insurance. But it is vital to take the time once a year or when things change to speak to your agent. If you feel your agent does not clearly explain all coverages or doesn’t take to time to review your policy with you move on. Find an agent that will, because the items you are insurance are items you have worked really hard for and they should be protected as such. I performed insurance reviews for anybody that asks because it is my duty. Even if you are not my client, it is important to me that clients are protected.

Tips when reviewing your policies

1) Take time before going to the agent and look at the policy documents. Make notes of you don’t understand and write down your questions. It matters not if you do not understand anything just asks.

2) Make an appointment with your current agent or even get a second opinion from another agent.

3) Know your assets. What is it that needs protection? Most people think they don’t have much to protect until they lose it. Make a list of assets to bring to your appointment.

4) Talk to a agent not a computer. Technology has made it easy to buy insurance but do you really know what you have brought? If you cannot explain the coverages you have purchased and what they do, you need to see an agent.

5) Ask the agent for specifics or examples like if a driver hits my car and they do not have insurance am I covered?

6) Do not leave until you are completely informed of what you are covered for.

7) Make sure to do this procedure at least once a year or whenever life changes occur.

Don’t be the person who losses it because they thought they understood. Make sure you understand and don’t take any chances. Protect your ASSets at all times. And remember a agent that has no time to help you with a policy review is not an agent that cares. Policy reviews should be free in all cases. I offer it for free for anybody that asks. Let’s do insurance differently!

Julio C Caba M.B.A

220 Agent

407-272-8117 for free policy reviews

Women; The new leadership trend.

11/21/2016

In a this world, change is the only constant. It has become very evident that women are taking their place as leaders in our societies. In fact, the United States of America had its first women presidential hopeful of a major party. This shows a lot about the direction in which the world and our country is heading.

This can be clearly seen in the corporate world or the new business environment. In which more and more women are CEOs, Presidents and owners of all types of organizations. As an insurance agent, I would say that at least 80 percent of the time, my supervisor or manager has been a woman. This is great for a man that has three daughters. It has also become obvious that they are very good leaders.

In this newsletter, we will be interviewing Carolina Alvarez L.M.F.T. She came to this country from Colombia with a dream. A dream to learn and succeed in this country. In Colombia, she studied as an undergraduate family counseling. When she moved to the United States she continued her education completing her Bachelor’s degree in science and a Master’s degree in science with a focus on family and marriage therapy. She has worked in Florida as a Therapist for 10 years. Opened a marriage and family counseling clinic. The motto of her organization is providing access to mental health to all. We sat down with this CEO/owner/operator to discuss some of the challenges she faces as a small business owner and what has been the driving factor for her success.

I started by asking Carolina what made her choose the mental health profession.

Carolina Alvarez: I have always believed in the power of people, and how they are capable of such beautiful things. Since I was twelve I can remember taking the money my parents would give me every week and buy food. Then I would take that food to a very poor area called Moravia in my country Columbia. My friends and I would spend the day feeding them and playing with the kids. I did this till the age of nineteen and it helped me realize that I needed to find a profession in which I can help people. Mental health was the perfect fit, because it was a way to help people by empowering them to help themselves.


Julio Caba: So, you have been working in mental health organizations for over 10 years, how has that worked for you?


Carolina Alvarez: It has been an amazing experience! I have learned so many new things and have helped hundreds of families. It has helped me understand what metal health is about and the difference it makes in people’s lives.


Julio Caba: So, why open an agency? If you can get what you need working in an organization, like helping people why go through the trouble? Being that opening a business is difficult?


Carolina Alvarez: Because one of the problems with mental health is that it’s expensive to obtain. And what some people don’t understand is that we still have people in this country that do not have insurance because they can’t afford it or the company they work for does not provide it. But the same people make too much money to have Medicaid help them. I did not see any programs in the organizations I worked for that catered to that group of people. Most counselors are 150 to 200 dollars an hour. This becomes expensive especially knowing and understanding that counseling takes several sessions to get the benefits of it. This is the main reason for opening Change, to allow people in that bracket to be able to get the help they need.


Julio Caba: Wow. 150 to 200 an hour? What do you normally charge? And does it bother you that you are not making as much as you could on a client?

Carolina Alvarez: It depends on the clients need or what they can afford. I have gone as low as $40 dollars an hour. And no! because I believe the money will follow. Right now people need these services and I am very honored and proud that I can provided the services. Look I love what I do, and in most cases by helping them I feel as if I am giving back to a community that took me in when I came to this country with open harms and gave me the education to do so.


Julio Caba: Yeah, but anybody could tell you this is all I can afford just to pay you less no?


Carolina Alvarez: No, not at all we must start believing in people. You would be surprise how honest people are when you give them a chance. Plus, all that I care about is the fact that they have made the first step in creating a better life for themselves.


Julio caba: Now let’s talk business, what has been the hardest part of opening and running a business?


Carolina Alvarez: Well, there have been many challenges but if I had to choose it would have to be the organization of everything. It can be difficult to develop new ways of operating and of course the fear of finding new clients. As a business owner, it can be very difficult to believe in the dream you are creating because I have learned it takes time to develop and you have to keep motivating yourself to push forward.


Julio Caba: In such a technological age, how do you use technology to help you in your business?


Carolina Alvarez: The use of technology has been imperative in the development of my business; social media, google, my website www.changetherapy.vpweb.net and blogs managed by jcabacorp have allowed me to get more clients, advertise my business and promote my ideals. Without this I don’t believe I would be where I am. I also use and electronic health record EHC that allows me to keep track of my notes, my practice and billing. Technology is also a great way to communicate with people that do not have access to traveling and this is the next market I would like to explore; counseling via skype to give my clients other options.


Julio Caba: What do you believe are the factors that helped you succeed by coming to this country, open your own business and succeed in this business?


Carolina Alvarez: that’s a great question, I believe that what motivated me was my desire to learn and succeed not only in a financial way but educationally. The original reason why I came to the USA was to finish my education. I have always believed that education is the key to success. My husband and kids also motivated me to continue and finish my masters. After this I went on to become licensed and gain as much experience as I could. As far as opening the business to be honest this was all my husband’s motivation and believing in me, I wanted it but I wasn’t sure I could do it but he reassured and gave me confidence in myself which allowed me to keep pushing forward.


Julio Caba: Have you had any challenges or do you believe is harder because you are a business woman?


Carolina Alvarez: I don’t think so, I focus on myself and my potential so I don’t focus on the female or male. I can tell you that being Hispanic and knowing another language has given me an excellent edge both while I worked in large agencies and in my own private practice. I focus on my qualities and clinical skills and do not let negativity bring me down.

What would you advise other women that are thinking about opening a business?


Carolina Alvarez: My advice is to move forward with their plan, to believe in their selves, surround themselves with people that will empower them and help them achieve their dream. Opening a business can be scary but with the right tool and positive people around them this is possible. Fear of the unknow is scary but you will never achieve greatness if you don’t try different new scary things. Also, to believe that this is going to happen and if you fail its ok, this is part of growth you dust off and move forward.



This was a great interview as it shows a small example of the leadership women are providing in many industries. I am sure the world is ready and in need of this diversity in the business environment and if you ask me, it will grow in numbers.


Carolina Alvarez Change M.F.C.R www.changetherapy.vpweb.com

Controlling Car Insurance

12/03/2016

Controlling Car Insurance

You may be frustrated with car insurance premiums and factors that cause increases, such as:

Your insurance company's overall loss experience (due to more claims).

The increased value of newer model cars, particularly SUVs and models with smart car features.

Increases in judgment amounts awarded in auto lawsuits.

Increased business processing and administrative expenses.

Auto loans lasting longer, meaning increased auto repair costs for older cars.

There are ways to address rising costs. First, gather your insurance records and any other car-related information. Next, determine if circumstances have changed since you last dealt with your coverage. Once this information is handy, call your agent and discuss relevant items such as:

If your home and auto insurance are with the same company, is a discount available?

Does my coverage take full advantage of the discounts offered by my company?

I have more than one car; am I getting a credit?

Does it make sense to change my deductibles?

Do my cars really need physical damage coverage insurance? (An important consideration for older vehicles).

Do lifestyle choices such as drinking or smoking affect my premium?

My son or daughter is on the honor roll, does this affect my premium?

Did you know that my car has special security features?

Did you know that my son took Driver's Education?

Does the company have accurate information on how often and how far I drive?

Am I with a standard carrier or do I qualify for any preferred program?

Is my vehicle charged an additional premium because of its type or performance?

Do I qualify for a loss-free history or policy longevity discount?

Giving your agent accurate information helps you get the best available premium. Provide your agent with complete details about your driving history. It’s important to be clear about who drives your cars and how they’re used. Finally, use your agent as a resource for handling errors about your account or what may be shown in your driver records.

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The real way to sell and succeed!

03/03/2017

I have worked for many organization as a salesperson. In every organization, the strategies are the same with settle differences. Seeing so many different sales strategies I can tell you have learned quite a bit about the sales profession. They all have great strategies that attempt to robotize the sales process. This helps the organization as it sets a certain standard of the sales process. It also allows for sales to be quantitative and speculative. This way it can be measured and reproduced as efficiently as possible. Even still many speak of a salesperson as a person that is born with the skill. This is because even with sales strategies and standards some people do much better than others. Well, I was always person or one of those sales people that seem to always sale and become a veteran very quickly. I am going to explain how easy selling really is. This could literally be the best and easiest advice you will get on how to become a successful salesperson. Not only is it affective but it is also one of the easiest things you can do in sale!

First, I would like to introduce myself and share some experiences that will help you understand what, why, and how it works. My name is Julio Caba the man of many careers. Literally, changing careers many times and becoming successful in every career I have had. I guess the first thing I should tell you is what type of career I have done. I started in the automobile business as a young man. Followed by the insurance industry. After doing that for some time I became an entrepreneur which lead me to dabble in many things. I have sold a lot of things between service and products. Selling cars, insurance, clothing, consultation, milk, cookies, time shares, therapy, and more. The funny part about it is I have been able to jump right in using the same selling technique over and over. I would almost always sell the product on the first day and easily create a pipe line.

But, my selling career did not start as a conventional salesman. You see, I was born and raised in a bad neighborhood in which survival was tough. My family was very poor and the streets full of drug dealers. The reason I mentioned this is because life became about selling. Selling myself or a story to get through the times in which I was raised in. What I did not realize at the time is that I was being forced into leaning how to sell. Watching my mother negotiate rent with landlords.

The first thing that I learned about selling is you are always selling, we are always selling. Even if we are not getting a financial benefit from it whenever you are getting any benefit out of any conversation you’re selling. Getting the kids to bed is selling. Asking for days off at work can be considered selling.

This has led me to question what has been the key to my selling ability. It hit me like a ton of bricks as they say. The story sells. Yes, the story is what people or potential clients want to hear. The story about a product and or services is what makes the difference in the close. SELL THE STORY people. This is what has allowed me to always succeed in anything I sell. It needs not to be a dramatic story but one you can own and mold depending on the audience. I have used the story of the product and or service and combined it with my personal story and Wala, a sale. By using the traditional sales technique and combining it with a personal story sales become effortless. My tip for selling is get your story together and sell the story and then the product and or services you are selling will sell itself.

Entrepreneurs crazy story!

03/03/2017

Wow! Crazy story that ended better than planned.  This story shows the true meaning of being an entrepreneur. So, my wife and I put together a network event in a new local restaurant. We spoke to the owner of the restaurant on a regular basis for two weeks. The day before the event, yesterday we confirmed that we would be able to bring in our group of about 20 people including people from London and Canada. My wife and made it first and ordered appetizers. As the group came in we began to speak as the members began to look at the menus to order. About 15 minutes later the manager approached my wife and asked us to leave. She could not understand why and called me over. I asked why would we have to leave he said he dose not need is in the establishment and told us to leave now. Instead of letting that get us down we told our guest what was going on apologized and asked them if they would like to continue we could go to our office which is small. As we leave we thought to our self how embarrassing and these people would not got to our office. As we pulled up to our office we noticed the parking lot full of cars which is not normal. To our surprise all of our gust went to the office to continue the networking event. The awesome part about it we made true relationships had a great time and talked about ideas on how to help each other grow. Now, we have all committed to meet once a month as a group and support all of social media as well as meet during the week individually to support each other. It felt as a family event with great and smart people. The event turned out better than planned with true lasting connections. Moral of the story never give up and loosing is a choice, because it's never over till you win. Entrepreneurs make it happen in any situation.  We are so proud of ourselves for turning a negative  into a positive and not allowing the actions of others get in the way of progress . The group of people in attendance where first class. Being am entrepreneur is a life style so live it

Leadership in today’s diverse workplace...What you need to know

03/03/2017

Leadership in today’s diverse workplace.

Globalization and technology has changed the business environment in a major way. It has become evident that diversity in the work place is here to stay. With this being known leaders are now given the task of creating an organizational culture that allows for this diversity to help the organization grow. Many research has been conducted on the best way of managing a diverse workforce. Some mention hiring a more diverse leadership and others use some leadership styles that can help the organization in diversity management. For this article leadership styles and theories will be discussed for a better understanding of which style and theory have the possibility of improving a diverse workforce.

Before going into the meat and potatoes we must first get an understanding of how important it is to manage a diverse workforce properly. First, let’s discuss some of the negative impacts felt by not managing the diverse workforce in a way that works. One of the main issues is high turnover! Yes, people from diverse groups that feel management or leadership are not treating them with respect or the same as others will make the decision to leave the organization. This leads to extra cost for the organization in replacing and training new individuals to do the work of the employee that left. Another problem can arise from efficiency in the workplace. If employees feel less valued they will most likely not work to their full potential. Another reason is the markets or industries have become diverse as well. This might be the most important reason of all. This is because the market the organizations serve are diverse and are more likely to spend their dollars where they feel comfortable or with diverse organizations. This means organizations would benefit from the adaptation of these diverse buyers or consumers of the organizations product and or services. These are just three important reasons why companies must adapt the leadership of the organization to diversity management.

Furthermore, we should identify what a diverse group is. These days many diverse groups exist and some if not all will be mentioned. These groups include but are not limited to age, gender, sexual orientation, cultural, and more. Gender diversity has become an important discussion point. Females have become a major staple in the workforce as they have grown by 50% since the 90’s making it one of the most important diversity trends in the workforce. Another major diversity shift forms the mentioned group is age diversity. Millennials are entering the workforce at a fast pace. This is a group that is also discussed often as a different form of thinking when it comes to work. Culture is yet another major group because of the growth in the Hispanic population. For this article, the content will be generalized to sum up diversity leadership. In the articles to follow specific groups will be used. What is known about those from diverse groups? They want to be recognized for what makes them different but want to be treated the same ways as those that are not diverse. With this being said, it is important to know what leadership styles work best in a diverse work group.

Researchers have been studying different leadership styles for leading organizations. Currently much has been mention how to use these styles and theories to better lead a diverse workforce. This article will look at two of the major leadership styles that help in managing all workforces. Each have benefits and draw backs. Therefore, this article will first mention and describe these leadership styles. These leadership styles include Transactional and Transformational.

Transactional Leadership style

Transactional leadership is concerned or focused on keeping order and things the way they are. It motivates with a reward system such as normal compensation (salary). This leadership puts the goals and rules forward and employees must follow to be in compliance with their jobs. They have the formal authority and responsibility of maintaining the routine of the organization. These leaders set up criteria usually based on prior criteria’s and conduct performance reviews. This type of leadership motivates its employees with a penalty and reward system.

Transformational leadership

Transformational leadership goes beyond the day to day activities. They motivate and inspire the employees to work efficiently. These leaders help with changing the norm to fit employees and organizations alike. They concern themselves with team building and understanding of individuals. This style use rapport, empathy and or inspiration to lead employees. This type of leadership guides employees to working better together as a team.

Many research shows that transformational leadership is the best style to use for diversity management compared to transactional. Since diverse groups tend to want to be noticed for their differences while being treated the same this style has traits that fit this narrative. It is also great because of the concept of change. If organizations are looking to adapt to diversity then a change leader or a transformational leader has the characteristics to do so. Some of these traits include empathy. Empathy will allow diverse groups to feel understood for their diversity. Another quality that helps is the fact that transformational leadership strives to help employees work together strengthening teams. This is another great quality when managing diverse groups.

But this style still needs some of the traits of transactional leadership. Such as task managing. If we compare both; transformational leadership is the best style but still fails to completely lead diverse employees. For this reason, researchers are continually looking for methods to lead diversity. In the next article Path-Goal Theory by House (1971) will be examined and discussed. Path-Goal theory uses a mix of styles to properly manage any workforce. This mix of styles makes it perfect for the management of diverse groups.