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Background Checks Business Research Economy Human Resources Miscellany preemployment screening Staffing Uncategorized

Employment Hurt When Customers Decide to Do It themselves

Employers in Small Businesses, especially, are feeling the drop off in customers thanks to the economic downturn.   Services that people took for granted as having performed by professionals are now being relegated as do it yourself or DIY projects.   Everything from lawn care to hair, skin and beauty care, are now being revisited ad DIY.   People need to save money, and these are areas that shave more than a couple of bucks from the budget.

It seems like yesterday, in fact it was yesterday when people took for granted they would outsource these services.   People thought they were financially comfortable enough to have their basis services performed.   Some saw it as a spoiled generation, while others saw it as a natural evolution.    However you saw it, that doesn’t matter.   The fact is people had money to spend for the necessary maintenance as well as for the luxury goods and services.

The gardener tended to the lawn and shrubs, the hairdresser fussed over your hair length and color.   You had massages, your legs waxed, nails done, manicures and pedicures.   It seemed that everyone deserved to be pampered.   It wasn’t a luxury, but a necessity.

You had the full-time nannies, even for women who were stay at home moms.   You had dog walkers, personal trainers, and, speaking of pets, any number of accessories you could lavish on your furry loved ones.   There are oil changes and tune ups for the automobiles, cleaning, ironing, all sorts of things we so rightly felt we deserved to have done for us.   But to coin a Bob Dylan line, “It”s all over now, Baby Blue.”

Obviously, the businesses that offer these services are seeing a major problem.  According to a recent article in the New York Times, not only is there a drop off off in business, the business owners ae often compelled to lower prices for existing customers.   Otherwise they could loose these people as well.    It is a tough situation, no doubt about it.

Conversely, many people have been outsourcing or sub-contracting their basic household services for so long, they really don’t know how to perform these tasks.   With a more complex and techno9logical world, there are other services that are too sophisticated for them to address.   Because of the necessary equipment and technology, some of these services will always be outsourced.  As for the other, more basic types osf services, people will experiment until they get it right.  Or not.

What to do?  perhaps the smaller businesses should take a lesson from the large outfits and offer courses in how consumers can do it themselves.   With thye understanding that this rotten economy will be around for awhile, it may be a long time before people decide to spend their money on such services.  In fact, like the folks who lived through the Great Depression, who use that last piece of soap, finish everything, etc., there may be life lessons to which people adhere even after the economy starts to turn around.

So maybe it is good to offer traing.   If you are a hair salon, you won’t be doing it for extra money, you will be doing it for aesthetic principles as well.   We don’t need to see some bad dye jobs and some rusty orange hair  bobbing along the sidewalks.   Better you and your hair and beauty care instruments than the dangerous and ineffective stuff we see on those late nigh informercials.   Train people how to do things well, so they don’t hurt themselves.   Can’t have women coming to your nail salon with only one good hand.

Or price it down.  Offer discounts.  Group rates.  Have Wednesday specials.   Cut out the emphasis on the high maintenance areas and offer services that they feel they can maintain on their own for extended periods.  Show them how they should still come to see you, but with lower maintenance they can visit your shop less frequently.   Sell them green goods that won’t make them sick.  Offer a variety, a mix of training and in-house services.   Have a preemployment screening program, so you can pick up employees who are out of work and willing to work elsewhere, for a lot less money.  People with experience or a given expertise.   It may be time to beef up your services and not just trim them.

There are somethign like 18 million service people in our economy.   some will be going out of business or out of work.  Perhaps you can help out your favorite hair dress or manicurist when they are out of work by slipping them a few bucks to come to your house and tend to your needs.  Not all the time, but here and there.    Throw some money their way.  If you can afford it.  See if you can.  After all, it’s better to put some money in another person’s pocket than to be overly indulgent.   The dog can make do with last year’s coat.

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Background Checks Business Research Economy Human Resources Miscellany Staffing Uncategorized

Pay Cuts the Trend for More Media Employees

Layoffs in the media industry are becoming all too common.   It is like a mass slaughter with thousands of people being laid off.  Whether it is desperation to cut cost that drive the layoffs or the fact that some of the venues are nearly outmoded, is another issue.  Probably a little of both.  But in the interim many media personnel will be joining the ranks of the unemployed, facing a long and harsh winter.

New York Magazine is joining the newer and less harsh trend of issuing employee pay cuts in order to save jobs.   While the cut backs are painful they are not nearly as painful as being out of work, completely.  Same goes for the scaling down from a full time week to less hours.   At least there is some money coming in.

Sooner or later the economy will turn around, or at least bottom out, so that some of our media venues cna restore themselves.   Some, I’m afraid will be going out of business.   In some cases, they are outmoded forms of delivery and their time has simply come.   Still, we most have multiple voices providing information, opinion and even entertainment.  Otherwise everything becomes one voice, the same-same, and there is no varying perspective.  Not a good thing for any democracy.

Certain companies will survive.  Some will put the staff on full time.  Some,. eventually, will eliminate the pay cuts.  And some wil hire new employees, conduct the necessary background checks and perform the necessary professional reference checks to determine who is best qualified for this new age in media.   It will take awhile before this all sorts out, and for the next number of months at least the only certainty we have is that the experience will be painful.

It may not be a pretty picture, but we do need people to write about it from all points of view.

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Background Checks Business Research Human Resources Miscellany preemployment screening Uncategorized

Employers Saving Jobs and Saving Money–Furloughs Without Pay

There are layoffs aplenty, as we all know.  Since this economic debacle first began a reported 2.6 million jobs have been lost.  Over half-million were lost just last month.   In reality, there are probably more job losses than what has been reported.  That’s the way it always seem.

But employers are trying desperately to keep their people.  Employers are looking for alternate means to cut back on business expenses.   they are invoking pay freezes and in some cases pay cuts.   Some employers are utilizing a four day work week and others are invoking mandated furloughs without pay.   Anything to stay afloat in this ridiculously tough economy.

According to the New York Times, The Gannet Company, the world’s largest newspaper publisher, will be the next major company to mandate its workers take a week off without pay.   This coincides with Gannet’s efforts to avoid layoffs.   Gannet retains 31,000 employees in all, and most of them will be on the unpaid holiday.  For those in the unions, Gannet will ask that they voluntarily take their leave.

Obviously, more companies will invoke the unpaid furlough plan.  While it is painful to its employees, it is not nearly as painful as firing staff.   And while it is expensive to retain a workforce through a tough economy, it is very expensive to fire and rehire, based on retraining, preemployment screening concerns and the rates of attrition.  Simply put, not everyone will be around when you want them back to work.

In all, most companies are making admirable attempts to retian their staffs.  Unlike in other periods where the first thing any business did was layoff employees, this time around businesses seem to know we are all in this together.   Do what you can to cut other expenses first, before you send someone home without a job.

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Background Checks Business Credit Reports Business Research Economy Human Resources Miscellany preemployment screening Staffing Uncategorized

In Economic Downtrend, Some Businesses Move Forward

There have been numerous studies where businesses who open or expand during a lousy economy often tend to do better than their competitors when times turn around.   I suppose the best way to put it is that the more intrepid step on the gas while the others ease off and cut back.   The more intrepid, for their courage, are either rewarded with success or we hear the splat as they hit the all.   Either way, it can make for a dramatic story.

In a recent Los Angeles Times article, there was such an intrepid country, willing to expand in this dicey economic climate.   The company is Raj Manufacturing of Tustin, a bathing suit manufacturer.   It believes it can expand its market share while its competitors are cutting back on operations.   Raj is hiring while others are laying off their employees.    The company is taking a brand new space that was vacated  by a competitor that has gone out of business.

While Raj built its business on manufacturing for luxury clothing designers, it is now developing its own premium in-house line of swimwear.   This will mean new customers, and hopefully these are clients that will be able to pay.   Which is why it is so important to conduct business research and business credit reports as well as the normal preemployment background checks.

There is no sense in doing business with someone who will beat you for the bill.   In this economy, the deadbeats are occurring with increasing frequency.   As are the fraud and scam artists.   These factors can destroy or damage a burgeoning business, and that would be a shame.

Employee theft is another thing to watch out for.  Hire the right employees, those who won’t be grabbing your inventory and selling it for cash to flea market vendors.   Employee theft is not only harmful to the bottom line, but it causes a serious decline in morale among the honest workers who resent that the thieves are getting away with it.

So check them out before you hire.  And check them out before you ship them.

Meanwhile, good luck to Raj and companies like it.   They are the true fabric of our national economic recovery.