The U.S. economy has been volatile to say the least in the past few years, and tumult in markets across the globe is chipping away at companies’ already shaky confidence, which has stalled hiring.

However, some industries are seeing orders or requests for service start to increase, which requires companies in these fields to try to keep up with demand using a pared-down work force. That’s where staffing agencies have been able to lend a hand.

However, the impending implementation of the Patient Protection and Affordable Care Act is likely to have an impact on workers’ compensation benefits, a program for which many staffing and professional employment organizations take responsibility. While the consequences are uncertain, employers and staffing agencies are taking measures to provide safer workplaces to reduce claims but are otherwise bracing for its potential impact.

Smart Business spoke with Hayden Smith, account executive and consultant with Solid Agency, LLC, about how staffing firms have been faring in this choppy economy.

How has employment been impacted by economic uncertainty?

There have been some positive trends in the staffing industry. Temporary and contract employment has grown 24.8 percent since the beginning of 2012, according to the American Staffing Association. There are certainly many rosy predictions and forecasts for the temporary industry, with the consensus saying good times are ahead for well-operated firms.

Since September 2008, 88 percent of employers have either maintained or increased the size of their nonemployee work force and ASA reports that temporary and contract staffing employment jumped 24 percent in May.

Further, reports indicate more college-educated professionals and managers have been hired than blue-collar workers in the past years, signaling that contract workers have become the go-to solution for companies across industries.

This comes at a time when only 23 percent of U.S. companies say they plan to add staff in the next six months. That figure is down from the 39 percent of companies that planned on hiring when they were surveyed in April. Clearly, companies are exhibiting caution when it comes to adding costs, such as those incurred when hiring full-time, permanent workers, while the global and U.S. economies stand on shaky ground.

Workers’ compensation is a significant cost often covered by staffing agencies. How are recent events impacting this program?

Workers’ compensation coverage is the second-largest expense behind payroll for temporary agencies.

When employers use temporary workers, they can avoid the possibility of having workers’ compensation claims made against them as contract workers are covered through the agency’s program. However, the Supreme Court ruling upholding the constitutionality of the Affordable Care Act could impact the current workers’ compensation program. For instance, there is some speculation that frivolous claims made by workers could drop as more are provided health care coverage with which to get treatment, instead of filing a fraudulent workers’ compensation claim. A study that examined the impact of health care reform on workers’ compensation medical care in Massachusetts found that health care reform could reduce workers’ compensation billing volume and costs. However, it’s unclear how the findings will apply across states mandated to abide by the Affordable Care Act.

Additionally, alternative markets available for the temporary industry to secure valid coverage have continued to grow and can offer cost-effective, tailored methods other than traditional methods of workers’ compensation.

The temporary agency that does not manage its workers’ compensation very carefully will eventually find out how important this expense is to its bottom line.

How can the number of workers’ compensation claims be reduced for a temporary staffing agency?

While accidents cannot be completely eliminated, several processes and procedures can be used to help reduce the number of accidents and injuries, and possibly stop fraudulent claims.

Implementing a proven best-hiring practices program is first on the list. In depth prehire and post-offer questionnaires will help in deciding the type of work of which a temporary employee is capable. A drug-free workplace is another key component but only if the program is well managed by the employer. Also, most states offer premium discounts for drug-free workplace programs.

Another risk-reducing element that every business needs is a formal written safety program. However, this can be difficult for a multi-industry temp agency to provide. A thorough job description from the client employer will aid in the task of understanding risks and managing safety. Additionally, use these job descriptions with the aforementioned post-offer questionnaire, so client employers receiving qualified labor will be more confident using the services of a diligent temp agency.

A managed care organization is another helpful tool of a well-managed workers’ compensation program. When put in place and enforced, these can help reduce the total number of compensable workers’ compensation injuries. However, if a temporary employee is never informed and updated about the procedures of his or her workers’ compensation program, all will be for naught.

Ultimately, providing a safe workplace for employees is the responsibility of the employer. If employees are hurt, regardless of whether they are temporary or permanent, your bottom line could potentially suffer in several ways, including higher workers’ compensation premiums, loss of production and a negative impact on overall employee morale.

Proper planning, efficient management and complete implementation of components available to the staffing industry can help you avoid ‘the ugly’ in the future.

Hayden Smith is an account executive and consultant for Solid Agency, LLC. Reach him at (678) 460-2965 or hsmith@solidagencyins.com.

Insights Business Insurance is brought to you by Entera

Published in Atlanta

The U.S. economy has been volatile to say the least in the past few years, and tumult in markets across the globe is chipping away at companies’ already shaky confidence, which has stalled hiring.

However, some industries are seeing orders or requests for service start to increase, which requires companies in these fields to try to keep up with demand using a pared-down work force. That’s where staffing agencies have been able to lend a hand.

However, the impending implementation of the Patient Protection and Affordable Care Act is likely to have an impact on workers’ compensation benefits, a program for which many staffing and professional employment organizations take responsibility. While the consequences are uncertain, employers and staffing agencies are taking measures to provide safer workplaces to reduce claims but are otherwise bracing for its potential impact.

Smart Business spoke with Hayden Smith, account executive and consultant with Solid Agency, LLC, about how staffing firms have been faring in this choppy economy.

How has employment been impacted by economic uncertainty?

There have been some positive trends in the staffing industry. Temporary and contract employment has grown 24.8 percent since the beginning of 2012, according to the American Staffing Association. There are certainly many rosy predictions and forecasts for the temporary industry, with the consensus saying good times are ahead for well-operated firms.

Since September 2008, 88 percent of employers have either maintained or increased the size of their nonemployee workforce and ASA reports that temporary and contract staffing employment jumped 24 percent in May.

Further, reports indicate more college-educated professionals and managers have been hired than blue-collar workers in the past years, signaling that contract workers have become the go-to solution for companies across industries.

This comes at a time when only 23 percent of U.S. companies say they plan to add staff in the next six months. That figure is down from the 39 percent of companies that planned on hiring when they were surveyed in April. Clearly, companies are exhibiting caution when it comes to adding costs, such as those incurred when hiring full-time, permanent workers, while the global and U.S. economies stand on shaky ground.

Workers’ compensation is a significant cost often covered by staffing agencies.

How are recent events impacting this program?

Workers’ compensation coverage is the second-largest expense behind payroll for temporary agencies.

When employers use temporary workers, they can avoid the possibility of having workers’ compensation claims made against them as contract workers are covered through the agency’s program. However, the Supreme Court upholding the constitutionality of the Affordable Care Act could impact the current workers’ compensation program. For instance, there is some speculation that frivolous claims made by workers could drop as more are provided health care coverage with which to get treatment, instead of filing a fraudulent workers’ compensation claim. A study that examined the impact of health care reform on workers’ compensation medical care in Massachusetts found that health care reform could reduce workers’ compensation billing volume and costs. However, it’s unclear how the findings will apply across states mandated to abide by the Affordable Care Act.

Additionally, alternative markets available for the temporary industry to secure valid coverage have continued to grow and can offer cost effective, tailored methods other than traditional methods of workers’ compensation.

The temporary agency that does not manage its workers’ compensation very carefully will eventually find out how important this expense is to its bottom line.

How can the number of workers’ compensation claims be reduced for a temporary staffing agency?

While accidents cannot be completely eliminated, several processes and procedures can be used to help reduce the number of accidents and injuries, and possibly stop fraudulent claims.

Implementing a proven best-hiring practices program is first on the list. In depth pre-hire and post-offer questionnaires will help in deciding the type of work for which a temporary employee is capable. A drug-free workplace is another key component but only if the program is well managed by the employer. Also, most states offer premium discounts for drug-free workplace programs.

Another risk-reducing element that every business needs is a formal written safety program. However, this can be difficult for a multi-industry temp agency to provide. A thorough job description from the client employer will aid in the task of understanding risks and managing safety. Additionally, use these job descriptions with the aforementioned post-offer questionnaire, so client employers receiving qualified labor will be more confident using the services of a diligent temp agency.

A managed care organization is another helpful tool of a well-managed workers’ compensation program. When put in place and enforced, these can help reduce the total number of compensable workers’ compensation injuries. However, if a temporary employee is never informed and updated about the procedures of his or her workers’ compensation program, all will be for naught.

Ultimately, providing a safe workplace for employees is the responsibility of the employer. If employees are hurt, regardless of whether they are temporary or permanent, your bottom line could potentially suffer in several ways, including higher workers’ compensation premiums, loss of production and a negative impact on overall employee morale.

Proper planning, efficient management and complete implementation of components available to the staffing industry can help you avoid ‘the ugly’ in the future.

Hayden Smith is an account executive and consultant for Solid Agency, LLC. Reach him at (678) 460-2965 or hsmith@solidagencyins.com.

Insights Business Insurance is brought to you by ENTERA

Published in Atlanta

A projected 175,000 service members will be exiting the military in the next year. When they return to civilian life, these young veterans of the Iraq and Afghanistan wars will face an unemployment rate of 23 percent, contributing greatly to the Department of Defense’s annual unemployment compensation payments of more than $900 million. However, at the same time, there are 1.7 million high-wage, high-demand jobs open in the U.S. today that match the skills of service members, representing more than $136 billion in gross wages.

“Many service members do not fully grasp the value of their training and experience in the work force and end up underemployed or unemployed as they struggle to find work,” says Laurie Bradley, president of ASG Renaissance.

Smart Business spoke with Bradley about how hiring veterans can benefit your business.

Why are veterans seemingly being overlooked in the marketplace?

Part of the reason is because it’s very difficult to translate military experience into a civilian resume. For example, an infantryman with 20 years of experience in the Army might state on his resume that he ‘operated weapons and tanks and dug ditches.’ He needs to convey these skills in terminology recognized in the civilian world of work, such as ‘supervised, trained and evaluated 35 personnel, and supported more than 2,500 troops in four countries. Core competencies include personnel management, logistics and operations.’ This will help the reviewer match these skills to possible employment opportunities that may include logistics or personnel management.

Once you overcome the language barrier, you can recognize some of the softer skills people have learned in the military, for example, being entrepreneurial, which is crucial today. Service members understand how to be part of a team and have respect for a team, which can translate to any job. They also have cross-cultural work experience and have worked in very diverse environments, traits that many employers seek. The stereotype of service members just following orders and not thinking is outdated. It’s a new military today that operates in ever-changing environments.

What are some industries that would benefit from veterans and their skills?

The skills of service members translate well into any industry. You want people who are not only able to learn a product or a service but also who have good communication skills and are adept at skills transfer. Our military really demands that people think on their feet and react very quickly, making the right choices in a very short timeframe. In the fast-paced business environment we all compete in today, that is a great attribute to have.

What are the benefits of hiring veterans from a marketing perspective?

The message of being a veteran-friendly environment is significant. Having a veteran-friendly message in your hiring materials helps improve a company’s image, because you don’t have to look far to find someone who is or who knows a soldier. It really supports a message of inclusion and speaks to the fact that a company has been thoughtful in its hiring process as it looks to source talent across a broad spectrum of potential candidates.

From a tax perspective, new rules provide for an expanded tax credit for employers that hire eligible unemployed veterans. The credit can be as high as $9,600 per veteran for for-profit employers or up to $6,240 per veteran for tax-exempt organizations.

To qualify, the employer must file a request with the local state agency for the Work Opportunity Tax Credit.  This applies for veterans hired on or after May 22, 2012, and before Jan. 1, 2013.

How can companies better integrate veterans into their businesses?

Start with a great outreach program. Be clear in your hiring message and have the ability to translate military resumes to determine if you have a fit. Companies should consider installing a customized onboarding program that includes a partner or coach to help the new hire navigate the civilian employment world.

The program should be sensitive to the varying needs of veterans, including those who have only been out of the service for a few months, or ones who have been back in the market for a year or more. In general, it’s important to make sure your onboarding process includes cultural acclimatization to the civilian work force. Civilian corporate culture is not as black and white as the military and language and communication styles differ. Former military personnel can be formal and direct, whereas civilian communication styles can be much more nuanced. The U.S. military has a top-down system for making decisions, while many civilian companies have a more bureaucratic process.

Where can companies find veterans?

There are job boards and employment services that cater to military personnel in transition, such as Hire A Hero, careeronestop.org, or contact your State’s Director for Veterans’ Employment and Training (DVET).

Are there reasons a company might not hire a veteran?

Concerns range from post-traumatic stress syndrome to skills transfer and the gap between military and civilian work styles. Some employers are uncertain how to provide work site accommodations for those with physical injuries, but there are a host of resources to navigate these concerns.

Just as with civilians, you have to evaluate each person on a case-by-case basis. Employers need to spend the time in the hiring process to determine if there is a fit.

If you know that there is a pool of talent that has the skills to do the job, why wouldn’t you consider putting that to work? Those who served our country are ready to transition those skills and dedication to service into the civilian world of work. Ultimately this translates into a win for both the employer and the veteran.

Laurie Bradley is president of ASG Renaissance. Reach her at (248) 477-5321 or lbradley@asgren.com.

Insights Staffing is brought to you by ASG Renaissance

Published in Detroit

Scott Wise admits it’s difficult to find and keep good employees for the seven restaurants he operates. But despite that, he knows he’s doing something right ? Scotty’s Brewhouse grew from $11.6 million in annual revenue to $18 million between 2008 and 2010, a 55 percent increase.

“It’s important to keep growing our company so everybody’s fire continues to burn, so everybody feels they have another place for them to move forward,” says Wise, founder, president and CEO of the 1,000-employee company.

“Your employee is No. 1, not your customer,” he says. “If your employee is not happy, your customer is going to know that and is probably not going to come back.”

Smart Business spoke with Wise about how Scotty’s finds workers and stokes the fire within them.

What does it take to find a good employee?

Gosh, it’s hard. It’s tough. It starts all the way from the beginning. From the minute you hire them, you’ve got to hold hope that your manager has done his job. We try to put a lot of effort into the manager who’s doing the hiring so that he or she can find the right person. You absolutely have to recognize the right person, see through the bullshit and make sure that someone is not just saying things you can say to get hired. So it starts with that.

But from watching over my entire company, I would say just the generation we are dealing with right now, I don’t want to blame anybody or blame a generation, but it’s just, I hate to say weaker, but I think every generation gets a little weaker in some respects. Maybe they have been a little more overprotected or they need to know a little bit more about why ? “Why do I have to be there at 10 o’clock instead of 10:30?”

They ask a lot more questions. They want to know why they are doing this, or what’s in it for them if they sell these different food items or these different drink items.

I think that the toughest challenge is to always keep all your staff motivated, content, happy and, obviously, as the end result ? pleasing your guests.

What solutions are you taking to address the challenges of Gen Y workers and others?

It takes proper training. If you don’t train them correctly, they won’t want to stay with a company that doesn’t train them properly. The employees won’t feel like they know what they are doing, and they feel uncomfortable where they are, and they are not going to want to stay there.

To follow up, the chief executive needs to personally send an e-mail to every new trainee that comes into the company and tell them, ‘Hey, here’s my e-mail address. This is really me typing this e-mail. If you ever have a question or you feel like someone is saying something rude to you or anything, you need to e-mail me here.’

It all takes good training. We actually have two directors of training in our company so we try to put a lot of emphasis on them and making sure that they have proper training manuals and everything in place.

What are the responsibilities of the two directors?

One travels to the restaurants and actually goes to each store and talks to staff and the training manager.

The other one, who is the main director of training, manages the entire database and stays back to make sure everything is put together. Then she gives out information to him to transfer to the restaurants. They work together in the training.

What types of perks are successful with employees?

Try to just take a little bit extra effort to show support to all employees: Christmas parties, summer baseball games, anniversary cards and gym workout memberships are a few.

You don’t want them to be giving 80 hours a week at work and just killing themselves with that.

You want people to have a good work/life balance. That’s kind of my philosophy. I really think that helps.

How to reach: Scotty’s Brewhouse, (317) 759-6336 or www.scottysbrewhouse.com

Published in Indianapolis