October 2011 Newsletter

Are You Too Busy to Lead?

Are your workdays taken up by meetings, putting out fires, preparing reports, and engaging in business activities that do not necessarily fall under your realm? If the answer is yes, you are probably thinking that someone has to do it, right? Leadership is key for any company. Managing employees, maintaining relationships with clients, plotting the direction for the future, following-up with deadlines, keeping abreast of changes in your field and place of business, while building a good work environment, can be a daunting task for anyone in a management position. How can leaders learn to slow down and guide effectively?

Stephen Covey, recognizes some of the important elements of leadership that often go undone:

  • Planning, preparation, and prevention
  • Performance reviews
  • Teaching and coaching (instead of doing and fixing)
  • Relationship and team building
  • Values clarification

These critical responsibilities can go undone as managers get caught up in the immediate tasks of the day. Some managers like to take on immediate responsibilities themselves because they aren’t confident in their staff’s abilities or they think they can do it better. However, by rolling up their sleeves and doing it themselves, leaders take up valuable time that could be spent on leadership duties. Immersing ourselves in the day to day can be easier, but delegating by coaching or teaching the employees and giving them the responsibility for process and outcome are ways to lead in this case. A great threat to leadership today is a saturation of meetings, discussions, brainstorming and policy/procedure round tables without action. Whatever the urgent matter of these events, it’s not worth it if managers are constantly being pulled away from their teams and creating a division between the task at hand, the team members and their leader. Leadership provides direction and helps the business run better and more efficiently, so fewer meetings should be on tap in the future.

Organization can save time for any leader. A workplace can be one of chaos if structured leadership is not in place. Management formulates policies and procedures with clear guidelines for anyone to follow. They make thoughtful and clear decisions while analyzing all criteria to reach the best possible outcome in any situation. They understand the next goal and put together processes for achieving it in a timely manner. After the process is on track, they continually follow-up and check with others involved to make sure it is completed. These steps alone can complete a project in a shorter timeframe and the company will come out ahead.

Leaders face a lot of adversity today, but the ones who understand the importance of their role and have a dedicated and educated team behind them will be successful. As Colin Powell said “Leadership is solving problems. The day your people stop bringing you their problems is the day you have stopped leading them. They have either lost confidence that you can help or concluded you do not care. Either case is a failure of leadership”.

Federal Unemployment Tax Changes Expected

According to an analysis conducted by the Labor Department, employers in 22 states are likely to face increased Federal Unemployment Tax (FUTA) payments in 2011. Although Congress could act to change the funding process, employers who reside in the states with loan balances not paid back in full by November 10 will be subject to a FUTA credit reduction. Currently, employers can take a 5.4 percent credit off the regular rate of 6.2 percent leaving a net of 0.8 percent.

The State of Michigan experienced a change in charges, in 2009, which resulted in an increase in their FUTA percent from 0.8% to 1.1%.” Adding the additional 0.3 percent to the wage base of $7,000, the tax increased from $56.00 to $77.00 per employee. In addition, the credit reduction continues to increase by the 0.3 percent each year the state had not repaid the federal loans. In 2010, the credit reduction increase was applied to Indiana, South Carolina and Michigan (for the second year).

The additional states that may be subject to this same increase are: Arkansas, California, Connecticut, Florida, Georgia, Idaho, Illinois, Kentucky, Minnesota, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Virginia and Wisconsin. The good news is if your state is not a credit reduction state, your FUTA rate is scheduled to drop from the 0.8 percent to 0.6 percent.

Interest on the federal loans is normally due annually but the American Recovery Act of 2009 (ARRA) waived these payments through 2010. The states that have these outstanding loans are preparing employer assessments for interest due in 2011. Employers can expect these separate assessments, or surtaxes, on their quarterly state UI contribution returns. That is unless Congress adapts the proposed changes of deferring the credit reduction in 2011 and 2012 and extends the interest waiver for these same years.

Hold Onto Your Low Interest Business Credit Card

As the cost of credit increases, closely managing business finances are important. Major lenders are not offering the small business loans that are required to grow their business and some owners are looking for financing alternatives. Low interest credit cards can help with some of your business funding needs. Below are a few rules to follow when it comes to finding and keeping lower interest rates.

Rule 1: Keep your Credit Score High
Card issuers will use your personal credit score when they are evaluating your credit card application, unless your business already has a long established credit history.

Rule 2: Make Your Payments on Time
Making on time payments is one of the best ways to raise your credit score. After you charge, pay by or before the due date. One late payment would not necessarily result in massive credit damage, but that late payment will create a fee and a possible increase in your interest rate.

Rule 3: Reduce Credit Card Balances
A high balance can impact your credit score. Do you know your credit limit? Many creditors reduce credit limits, even for cardholders who kept accounts in good standing. Exceeding that threshold will trigger a fee, knock down your credit score and may be reason enough for your creditor to bump up your interest rate.

Rule 4: Be a Squeaky Wheel
If your fees and interest rates do spike without you doing anything to warrant the change, Clark Howard recommends taking immediate action.

“Call your creditor and ask that it go back to where it was. Be polite and respectful. If you have a better offer from a different creditor, ask that they match it.”

Also, request that the creditor send you the deal details in writing.

Following these four rules could help your business get and retain the best credit card with the lowest interest rate possible.

Can You Avoid Hiring Troublemakers?

Probably not, but it is worth the effort if you keep some out of your organization. At the very least, you’ll establish your good-faith effort to screen candidates. You do not want be in a situation where you have to explain how you never got around to conducting a reference check on an employee who just committed an illegal act and who was terminated from a prior job for the same reason.

Most troublemakers are masters at interviewing and know what to say and do during the interview to secure the job. It is your responsibility to complete a full due-diligence to ensure you are taking the necessary steps to secure the best person for the position. There are basic questions and pre-employment tests you can complete when interviewing. But, keep in mind that your past experiences and your learning from past hiring mistakes are valuable context as well.

To avoid hiring troublemakers, do consistent, detailed reference checks:

  1. Be sure to talk to current or former direct supervisors.
  2. Explore the red flags uncovered on the application and during the interview.
  3. Stick with questions about performance on the job.
  4. Engage a professional agency to conduct background checks appropriate to the position.

One of the most effective checks you can do is just to compare all the information you have for consistency. Are the résumé and application consistent with each other and with information gained during background checks, reference checks, and interviews? If not, ask questions, and get additional information so you’ll feel confident in making a good hiring decision. If you have trouble getting former employers to divulge information, try some of the following tips:

  1. Ask the employee to sign a wavier.
  2. Enlist the candidate’s help. Ask them to call the person and request that they speak with you.
  3. Remind them of “job reference immunity laws”. More than half of the states in the U.S. have laws protecting employers from liability statements made in job references, as long as the information is true and devoid malice.

OSHA Updates

New Local Emphasis Programs (LEP) in four states target injuries and deaths related to powered industrial trucks
OSHA recently initiated Local Emphasis Programs (LEPs) in Alabama, Florida, Georgia and Mississippi focused on reducing fatalities and serious injuries related to powered industrial trucks. Inspections conducted under these LEPs will primarily focus on operator training, maintenance and repair, and the pathways the trucks travel to ensure clear visibility and determine any possible struck-by hazards.

LEPs are enforcement strategies designed and implemented at the Regional Office or Area Office levels. These programs are intended to address hazards or industries that pose a particular risk to workers in the Office’s jurisdiction.

OSHA announces measures to improve its Whistleblower Protection Program
In a continuing effort to improve the Whistleblower Protection Program, OSHA announced Aug. 1 that it is implementing additional measures to strengthen its Whistleblower Protection Program and releasing the report of its recent top-to-bottom review. OSHA enforces the whistleblower provisions of 21 statutes protecting employees who report violations of various workplace safety, airline, commercial motor carrier, consumer product, environmental, financial reform, food safety, health care reform, nuclear, pipeline, public transportation agency, railroad, maritime and securities laws.

“The ability of workers to speak out and exercise their legal rights without fear of retaliation is crucial to many of the legal protections and safeguards that all Americans value,” said OSHA Assistant Secretary David Michaels. “The new measures will significantly strengthen OSHA’s enforcement of the 21 whistleblower laws that Congress charged OSHA with administering.”

Significant changes in the Whistleblower Protection Program announced by OSHA cover areas including restructuring, training, program policy and internal systems.

OSHA unveils heat safety Smartphone app and heat index guidance
OSHA invites employers and workers to use its new Heat Safety Tool Smartphone app, the first developed by OSHA. The app is designed for devices using an Android platform, and versions for BlackBerry and iPhone users will be released shortly. The app, which can be downloaded for free in English or Spanish, allows users to calculate their worksite heat index, determined by a combination of high temperature and humidity. Based on the heat index, the app displays a risk level to outdoor workers. With a simple click, the user can access reminders about the measures that should be taken at the indicated risk level to protect the user from heat-related illness. Users are prompted with reminders about drinking enough fluids, scheduling rest breaks, planning for and knowing what to do in an emergency, adjusting work operations, gradually building up the workload for new workers, training on heat illness signs and symptoms, and monitoring each other for signs and symptoms of heat-related illnesses.

New comprehensive OSHA Web page on preventing work-related hearing loss contains a wealth of information to help businesses and workers
OSHA launched a new Safety and Health Topics page on Occupational Noise Exposure to provide resources to prevent noise-related hearing loss, which has been listed as one of the most prevalent occupational health concerns in the United States for more than 25 years. Approximately 30 million people in the United States are occupationally exposed to hazardous noise and thousands of workers every year suffer from preventable hearing loss due to high workplace noise levels. The new Web page provides information on the health effects of hazardous noise exposure and comprehensive information on controls to prevent hearing loss.

OSHA posts new educational video on preventing fatal falls in residential construction

OSHA’s narrated Residential Fall Protection slide presentation is the latest compliance assistance tool available to help the residential construction industry comply with the requirements of the agency’s Fall Protection standard. The presentation describes safety methods for preventing injuries and deaths from falls, and explains techniques currently used by employers during various stages of construction. These techniques include the use of bracket scaffolds, anchors, safety net systems, safety harnesses and lines, and guardrails for activities such as installing roof trusses and sheathing, decking, reroofing and installing walls, among others. Falls are the leading cause of death for workers involved in residential construction. Data from the Bureau of Labor Statistics’ 2009 Census of Fatal Occupational Injuries showed that 78 workers died from falls while constructing residential buildings. OSHA hopes the presentation will help employers protect their workers and reverse this deadly trend.

Source: www.osha.gov

Preparing for the Flu Season

The flu, or influenza, is a contagious respiratory virus that infects the nose, throat and lungs, and can cause mild to severe illness. The best way to fight off the flu is to receive an annual flu vaccine. As there are many different flu viruses, each year the vaccine is created to combat the most common expected strains. This year, the flu vaccine protects against three strains that research has suggested will be the most common.

The experts believe that the flu virus is spread through coughing, sneezing or even talking to an infected individual. The droplets produced by these actions can land in the mouth or nose of people passing by. A person might even get the flu by touching a surface that has the flu virus on it and then touching their own mouth, eyes or nose. The flu can be passed on to someone even before you know you are sick. The period of contagiousness as early as the one day before symptoms develop and up to 5 to 7 days after becoming sick. Those with weakened immune systems and children may be able to infect other for an even longer period of time.

Some of the signs and symptoms are fever, chills, muscle or body aches, cough, headaches, fatigue, sore throat and runny or stuffy nose. It is also common for children to experience vomiting and diarrhea although it can also affect adults in the same manner. However, not everyone who contracts the flu will have a fever.

The Center for Disease Control (CDC) recommends three very important steps in protecting yourself from the flu this season.

  1. As mentioned earlier, the most important step is to get the yearly flu vaccine.
  2. Cover your nose and mouth with a tissue when you cough or sneeze. Throw the tissue in the trash immediately after use. Wash your hands often with soap and water.
  3. Antiviral drugs can treat the illness and are different from antibiotics. The antiviral drugs can make the illness milder and shorten the duration of the illness. It may also prevent serious flu complications. Antiviral drugs are only available through a prescription.

Keeping these simple, but important, recommendations as top priority during the flu season, will guide you through a healthy season.

The American Jobs Act – How Will It Impact Small Business?

President Barrack Obama has announced his plan for putting Americans back to work called “The American Jobs Act”.  The president said, “Everyone here knows that small businesses are where most new jobs begin.”

The American Jobs Act has five components.  Let’s take a look and see how these components and their ideas might impact small business.

Tax Cuts to Help America’s Small Businesses Hire and Grow –

  • The president has proposed to cut the Social Security Tax from 6.2% to 3.1%.
    1. For the Employee:  Congress, late in December 2010, had cut the Social Security payroll tax from 6.2% to 4.2% effective for all of 2011.
      • -Employee savings on an estimated $50,000 in earnings for 2011 vs. 2010:  $1,000.00.
      • -Employee savings on an estimated $50,000 in earnings for 2012 vs. 2010: $1,550.00.
    1.  For the Employer:  The Social Security payroll tax would be cut from 6.2% to 3.1% up to $106,800 of earnings.
      • -Employers would save an estimated $1,550.00 per year per employee.
  • For small businesses that create jobs or give raises above the prior year, The American Jobs Act proposes a full holiday on the 6.2% payroll tax that the company pays for the year 2012 for any growth in their payroll up to $50 million above the prior year.

Putting Workers Back on the Job While Rebuilding and Modernizing America

    • A “Returning Heroes” hiring tax credit for veterans:  business tax credits from $5,600 to $9,600.
    • Modernizing at least 35,000 public schools across the country.
    • Preventing teacher layoffs, while keeping police officers and firefighters on the job.
    • Rebuilding and modernizing our roads, bridges, rail, airports and waterways.
    • Expanding access to high-speed wireless.

Pathways Back to Work for Americans Looking for Jobs

  • Reform the Unemployment Insurance Program, which has not been done in 40 years.
  • Unemployment Insurance benefits for those who choose to Work Share over Layoff.
  • Prohibiting employers from discriminating against unemployed workers when hiring.
  • A $4,000 tax credit to employers for hiring long-term unemployed workers.
  • Bridge to Work Program, which is a plan that builds on what states are doing to put their residents back to work.

Tax Relief for Every American Worker and Family

  • Allowing more Americans to refinance their mortgages at today’s interest rate of nearly 4% through Fannie Mae and Freddie Mac.

Fully Paid for as Part of the President’s Long-Term Deficit Reduction Plan

  • The President has called for a Joint Committee to come up with additional reductions to pay for the Act.

These are the some of the elements the President has proposed in The American Jobs Act and some of the impacts that might affect your small business.

*Fact Sheet released by The White House, Office of the Press Secretary.