Employers slashed 467,000 jobs in June, to bring the US unemployment rate closer to double-digit levels. The jobless rate is now 9.5%, up slightly from May’s 9.4% figure.

Jobs fell farther than the 350,000 economists were predicting, and June marked the end of a declining trend that began after January’s peak job loss figure. Since then, the number of jobs lost each month had declined—until June’s number increased over May by 145,000. (May’s job decline had been reported at 345,000, but has been adjusted to 322,000.)

Since the recession began in December, 2007, the number of jobless Americans has increased by 7.2 million; the unemployment rate has increased by 4.6%. Blacks, Hispanics, and teenagers have higher rates of unemployment than the general population, at 14.7 percent, 12.2 percent, and 24 percent, respectively. These numbers show little change from May’s figures.

The number of long-term unemployed, who are classified as jobless for 27 weeks or more, increased by 433,000 in June, to 4.4 million.

Construction and manufacturing jobs continue to take the biggest hit in the sliding U.S. economy. Manufacturing dropped over 136,000 workers, and construction employment declined by 79,000 in June—a smaller decline than the rest of the year. Since the start of the recession, manufacturing employment has decreased by 1.9 million, and construction by 1.3 million.

The professional and business services sector lost 116,000 jobs, and federal government jobs were cut by 49,000 in June—mostly workers hired to prepare for the 2010 Census. Even temporary help services are on the decline: by 38,000 in June and 848,000 since the start of the recession. Automobile dealership closures affected June’s numbers: 9,000 jobs were lost in this category. And overall retail jobs declined by 21,000. Losses in retail jobs have leveled out over the past three months.

Financial services continue to shed jobs: 27,000 in June, to bring the total lost in financial services to 489,000 since the recession’s beginning in December, 2007. The information industry lost 21,000 jobs in June, and is down by 187,000 since the recession began. Publishing has accounted for about half the total job losses in this category.

The only real increase was seen in education and health care, which added 34,000 jobs in June. Health care job increases have averaged 21,000 per month, which is down from 2008’s average of 30,000 per month.

A broader indicator of the state of unemployment is the number of Americans who have given up looking for a job, or who are working part-time when they want full-time work: this number rose to 16.5% in June.

June’s unemployment figure tempered signs of progress in the US economy, and reiterate the fact that the job market remains weak—something 14.7 million Americans know only too well.

Source: United States Dept. of Labor, Bureau of Labor Statistics

How do you know when you can trust an employee? For starters, if you’ve properly screened every applicant, you can be reasonably sure you’ve hired honest people.  Pre-Employment Screening will weed out those with criminal backgrounds, credit problems, or who have misrepresented education or work history.

Trust is an important component of the long-term relationship you want to build with your employees. It’s vitally important that they feel they are trusted, and can trust you back. Here are some tips that can help!

1. Remember that your employees are adults—and treat them accordingly. For example, it’s reasonable to ask for receipts for employee out-of-pocket expenditures—and unreasonable to chastise someone for spending a few dollars more than you think is necessary.

2. Remember that your employees have lives outside work. Respect their need to care for their families, and their desire to leave work on time.

3. Rewrite your company’s policy handbook. Dictating endless rules can cause resentment. Consider eliminating policies that don’t involve safety, established employment laws, abuse of paid leave, and taking care of your customers.

4. Show generosity. Whether it’s with time, money or with words, be as generous as you can with your employees. A small investment of time or money can return a big investment in terms of loyalty and employee retention. And everyone wants to hear that they are appreciated. Let the compliments flow freely!

5. Ask their opinions. Get feedback on processes, ask for their ideas, and encourage them to make suggestions to improve your company. Just the act of asking shows them you’re engaged; but be careful not to ignore every suggestion—or your employees may stop making the effort.

6. Encourage employees to make their own decisions. Empowerment contains the word “power” for good reason. Let your employees feel powerful by giving them the ability to make decisions that serve your customers’ best interests. Chances are when given the opportunity, they will make the right decisions.

7. Be flexible. Consider employees’ needs concerning work schedules, working from home, and requests for time off. See #2.

If you feel nervous about letting go and trusting your employees, you’re probably not hiring the right people. Keep in mind that you can always take action if and when your staff abuses your trust.

Hiring smart and treating your employees like they are valuable assets of your company will go a long way toward building mutual trust—which leads to loyalty and a happier work environment for everyone!

Right now, lots of good, smart people are looking for work. If your business is in hiring mode—and plenty still are, despite the economy—how can you focus your recruiting efforts and find the right people?

Employee recruitment has become more complicated as the usual practices have changed over the past several years. Mass advertising, online or in print, won’t always target your best hire—especially for higher-level professional positions. If the perfect employee never sees your ad, how can you hire them? And a better question is, where are they and how can let them know you’re hiring?

That’s where social networking comes in to boost your recruiting efforts.

LinkedIn is probably the largest online social network for business. You could think of it as a replacement for your Rolodex—only it contains 42 million names across the entire globe!  Once you join and complete your profile, you can easily search for people you know. LinkedIn does just what its name implies—it links business people, whether they work in the same building or worked together twenty years ago.

But LinkedIn goes much farther in building community. It links you to all the contacts held by each of your contacts—so through degrees of separation, you are connected to all those millions of people.  LinkedIn also finds commonalities among its members, who then form groups based on shared industry connections or interests. Whether you’re in manufacturing, medicine, or marketing, you can find thousands of like-minded folks quickly.

Once you’ve established contacts, you can easily put out the word about positions you need to fill. Rather than calling thirty of your Rolodex contacts, LinkedIn can automatically put your message out to thirty thousand of your contacts’ contacts! Plus, you can search by keyword through the entire LinkedIn network to find people with the skills and qualifications you require. So instead of waiting for the perfect employee to come to you, you can find them in seconds—even if they weren’t looking for a job.

But remember that online social networking is much like face-to-face networking. Just as smart people are always looking for their next great position, smart employers are always recruiting their next great hire. That means you have to stay involved, be helpful, keep adding to your contacts, and invite others into your circle.

Social networks can make recruiting employees a breeze!

Before you hire, screen every applicant. Check out our Pre-Employment Screening services. Increase your peace of mind and save training costs by hiring smart.

Can employers hire staff if they are in the middle of layoffs? While there is nothing inherently wrong about it, hiring new employees after (or while) letting other staff go can open the door to big problems. Your ex-employees will surely find out—and will look for any holes in your procedures and the reasons they were let go.

Even though it is risky, there is no reason not to hire new staff in spite of layoffs. Proper planning and care in procedures makes a big difference. Microsoft announced big layoffs this year: a decrease of 5,000 jobs over 18 months. But the net loss in jobs was reported to be only 2,000 to 3,000. Why? Because Microsoft planned on hiring for new, key positions at the same time they were eliminating the old ones.

At Dell, recently laid off employees filed a $500 million class-action lawsuit, claiming that older and female staff were targeted in a round of layoffs that affected 8,900 workers. The employees claim performance evaluations were manipulated and that they were told that no other positions were available when job openings existed. Employers must be clear about reasons for reductions and must ensure that no group is singled out—or even appears to be.

But keep in mind, too, that although it is illegal to target older workers for layoffs, it is within an employer’s rights to base reductions on salary—which often means the older, tenured staff members are more likely to be let go.

For most employers, decisions around hiring and laying off employees are necessary to stay viable—and sometimes must be made at the same time. It doesn’t make sense to ignore areas of your business that are currently strong, and need additional staff, just because you must reduce in other areas. If certain sectors of your business have the potential to become profit centers, you should reinforce them as needed.

A reasonable approach might be to eliminate positions, then re-categorize or modify job descriptions, establish the new positions, and hire for them. And as always, the safest way to ensure you are within the law is to consult an HR attorney before taking any action.

Our previous post covered diversity in the workplace, including being sensitive to employees who display their religious beliefs through clothing or hairstyle. We advised employers to avoid making an issue of any such break of dress code as long as job performance was not affected.

That leads us to today’s topic: are dress codes still being established in businesses? A look around a scattering of companies reveals a variety of policies that are currently in force:

Retail: Most major chains enforce dress codes. Target, Walmart, Macy’s, and Costco all require their employees to either dress in business wear or uniforms. Target’s red top and khaki bottom outfits are familiar to frequent shoppers. Costco’s guidelines forbid facial piercings (even after Costco was sued for the policy on religious grounds). And what would Walmart be without blue vests everywhere?

Smaller, locally-owned establishments are usually a reflection of their clientele and surroundings. Some stores allow employees to wear whatever they want—which can be dangerous! The definition of “too casual” depends largely on your industry and where you’re located. West coasters tend to be more casual, and we’ve seen plenty of t-shirts, jeans, and flip-flops worn by sales clerks. If that’s a normal look in your area, your customers probably won’t think it’s a big deal—especially if they’re dressed the same way. In bigger cities and on the east coast, people tend to dress up more, and retail clerks’ dress reflects it.

Restaurants: Most restaurants have established dress codes, at the very least for health and safety reasons. Customers don’t usually care for a guy in a tank top taking their dinner order (as happened to a friend of ours recently!). Upscale restaurants see dressed-up diners who expect professional appearances for host and wait staff.

Health Workers: Scrubs are the norm in all areas of health care, from walk-in clinics to emergency rooms. Nurses, doctors, and dental assistants are usually decked out in scrubs for their entire work day—even television’s Dr. Oz wears scrubs for every appearance on Oprah’s show.

Professionals: Most law offices and finance-related businesses still require corporate dress for all staff, from CEO to reception. You don’t expect to see a board room full of people dressed in sweat pants and tennis shoes. Nor would most folks feel comfortable if their lawyer represented them in court while wearing a t-shirt and shorts! Suits, dress shirts and ties, skirts, and hose are still considered proper attire in the legal and financial fields.

Dress codes can encourage professional conduct and increase productivity for your employees. But beware: if you do not currently have a dress code in your company, your employees may resist it—so be sure to communicate your reasons clearly, and to enforce it consistently. When deciding what the dress code will entail, ask the following questions to avoid legal trouble:

• Is the policy fair for employees of both genders and all ages?
• Does it infringe on any employee’s religious beliefs?
• Does it infringe on a cultural aspect of a specific race?
• Would a disability prevent an employee from complying?
• Can employees fulfill their job duties when complying?

Chances are your company has become more diverse over the years, based on the changing demographics of the US population. Being sensitive to cultural differences between you and your employees is not only important, but it could keep you out of legal trouble, as well. 

With charges of religious discrimination in the workplace on the rise, here are some general guidelines you might consider. These examples are based on recent courtroom cases, and should not be construed as legal advice.

Be careful about dress and personal appearance codes. In the District of Columbia, a federal court ruled that firefighters cannot be forced to be clean shaven. The case began around concerns that respirators won’t fit the bearded firefighters properly. Those who wear beards for religious reasons were ruled to be exempt from the policy. 

Consider your company’s dress code, and how it applies to workers who wear head coverings or other religious dress. Courts would unlikely to find favor with an employer shown to be discriminating against employees for facial hair or religious dress. If an employee’s appearance does not affect their work, it’s best to leave the issue alone.

Be aware of what makes for a hostile work environment, and require your employees to be respectful to all co-workers. One worker sued her company after management ignored her requests for fair treatment. Her co-workers had repeatedly yelled at her when they could not understand her English. The court ruled against the employer on grounds of a hostile workplace after it found she demonstrated enough knowledge of English to do her job and ruled the co-workers were harassing the complainant.

Be flexible about days off. Don’t assume that all your employees share your faith or that everyone celebrates the same holidays. Respect your workers who request days off for religious holidays—even if you are unfamiliar with them. Communicate with all of your employees to create solutions that will work for both the business and the staff. Swapping days off or instituting floating holidays for everyone are two possibilities to consider.

Speaking of holidays, how does an employer celebrate holidays without offending employees? Whether your staff celebrates Hanukkah, Christmas, Kwanzaa, Ramadan—or nothing at all—must be taken into consideration. You will add to your employees’ job satisfaction and loyalty when you demonstrate your respect of their religious beliefs. 

At holiday time, instead of giving Christmas cards or bonuses, avoid singling out one religion by renaming  them “year end bonuses.” Instead of decorating a Christmas tree, honor diverse customs by allowing employees to bring in personal holiday mementoes, or to decorate a space together. Those individuals who do not wish to participate should never be forced to or treated any differently.  

If you’re an employer, read up on cultural diversity, or take a class if offered in your local community college. All companies can provide education to help managers learn about and model sensitivity to their workers’ religious beliefs and cultural differences. Remember, it is up to the employer to ensure that all employees are respectful of their co-workers, and to stop any harassing or insensitive actions when they occur. 

Even Google, a company famous for its happy work environment and revolutionary business model, has trouble keeping good employees. If it wasn’t the fun, start-up atmosphere and valuable stock options that kept everybody motivated, the unusual perks did. Who wouldn’t love to work where you receive free bus service, free gourmet meals in the company cafeteria, on-site gym and dry cleaners, and a pets-allowed policy?

But lately, high-level and midrange employees have been jumping Google’s ship for newer start-ups like Facebook and Twitter. And Google is not taking it lying down. They have been crunching the numbers and developing formulas that can predict which of its 20,000 employees are thinking of moving on. Google is looking at employee reviews, promotion history, and pay scales, among other factors, and says the new algorithm has identified employees who feel underused—a big reason for employee dissatisfaction.

It’s nice to have the big data-crunching companies out there spotting trends that can help businesses run things better.  So, what can employers can learn from Google’s example? 

Keep Employees Engaged
Many companies concentrate on the customer—and that’s a good thing. But too much attention to one side of the equation can lead to disaster on the other. Employees want to know that they are just as important to a company as the customers, the financial statements, and the economy. They care about their contributions, and if they feel underused, productivity could be affected fast.

Ask employees—often—about how they feel about their position and its importance to the company. You may discover that you and your staff have very different views on the subject.  It’s up to the employer or manager to come up with ways to keep employees challenged and engaged, and to re-evaluate these efforts on a regular basis.

Reward and Appreciate
It’s so easy to overlook this aspect of managing employees—especially in a difficult economy. Many employers feel that they’ve done enough by providing jobs and that alone should be enough appreciation. And to some employers, reward comes in the form of a regular paycheck.  Fair enough! But if reward and appreciations is proven advantageous to the company’s bottom line, it might be enough to convince even the most resistant employer to make the attempt.

Certainly the cost of hiring employees affects a company’s profit. Advertising, recruiting, interviewing, and training are time and money drains on any business. Avoiding that expense by keeping good employees is simply a smart business decision.

One example is Nugget Markets, a small regional grocery chain in California. With a 12% turnover rate, they are well below the industry’s average of 20%. Their culture includes providing employees with free food, dance parties, field trips and bonuses helps to keep 900 staff people feeling appreciated. 

For Nugget Markets, efforts that let their team know they’re valuable has helped keep turnover at a level their competition can’t touch.

Learning from the big guys is something employers of every size can do. Try keeping employees engaged and challenged, and make them feel appreciated. Remember that what’s good for your staff is good for your company’s bottom line, too. 

Telecommuting is Increasing

By necessity, employers are becoming more and more flexible when it comes to how their employees work. Job sharing, flex time, creative work hours, and telecommuting are a few methods employers use to improve quality of life and even ease the strain of the current economy for their employees. Many employers are finding these alternatives are good for business, too. Telecommuting is on the rise, with one study showing that the number of people working from home at least one day a month doubled from 2000 to 2005.

Increased technology offerings, like high-speed internet, have made telecommuting much easier than in the past. This will only increase the number of telecommuting workers over the coming decade.

Is Working From Home a Good Idea?
If your employees express a desire to work from home, consider the advantages and disadvantages to your business before you make your decision. Will implementing a telecommuting program ultimately increase or reduce the bottom line? How will working from home affect employee productivity?  Will telecommuters take advantage of the situation and cut their output? Analyzing each factor will help you make the best decision regarding telecommuting for your business.

Does Telecommuting Fit Our Business?
There are the obvious “no” answers to this question, such as production-based businesses, food service, or restaurants. If face-to-face interaction is a major function of your business, you need all hands on deck to run it. But if you have a number of employees who are able to perform most or all of their duties without much supervision using only a computer, then your business is a good candidate to consider a work-from-home program.

Does Telecommuting Fit Our Employees?
Not every employee is suited to self-supervision. But workers with proven track records of organization, dependability, and good work habits should be considered for telecommuting. 

What Policies Are Necessary?
Take time to implement procedures that work for your business. Often, one-size-fits-all policies found online prove to be inadequate.

How Are Virtual Employees Managed? It’s important to realize that managing employees from afar presents its own set of challenges. Communicating over email or by telephone removes important visual cues that you use in face-to-face communication. Consider video conferencing or an online resource like Skype that will facilitate communication while keeping that important visual contact. When managing virtual employees, it is also vital that you set clear objectives and expectations, monitor performance, and require accountability. Remember to reward and recognize these employees, and find ways to help them feel included in the company. Don’t let out of sight mean out of mind. Employees need to feel appreciated, even if they only “come to work” once a month!

Are We Supplying the Proper Technology? Providing employees with the best technology possible will not only allow them to perform their jobs, it will make them even more productive. From up-to-date software and high speed internet connectivity to a proper desk chair, giving your employees the equipment they need will go a long way toward increasing loyalty, appreciation and work output. And it could improve their quality of life, too.

Telecommuting, while presenting its own challenges, is a fantastic way to reduce the number of cars on the road and thus, your company’s carbon footprint. And if it improves productivity, your employees’ quality of life and your company’s profitability, it’s a win-win-win situation: good for the environment, good for your employees, and good for your company!

Rate of Job Losses, Layoffs Slowing Down
Two reports released on Wednesday show that the US job loss rate may finally be slowing. While jobs are still going away, at least the rate at which companies are cutting workers is lessening a bit.

Automatic Data Processing is a payroll processing firm that released the first report, based on payroll data from 500,000 US businesses. It revealed a silver lining in April 2009’s decrease of 491,000 in private-sector employment: the figure is down considerably when compared to the 708,000 jobs lost in March. And economists surveyed by Briefing.com had expected job loses of 643,000 last month, so things weren’t as dim as predicted.

The second report released yesterday was from an outplacement firm, Challenger, Gray & Christmas, Inc. The company reports that the number of layoffs announced last month fell for the third month in a row, from 150,411 in March to 132,590 in April. That figure, while still 47% higher than April of 2008, is the lowest announced layoff rate since last October.

2009 has seen announced job cuts of 711,100, compared to 290,671 for the first quarter of 2008. Friday’s Labor Department report will reveal April’s total nationwide job losses, including government, private, and non-profit sectors, expected to be 630,000. The number of jobs lost still reflects a recession economy, and job losses are expected to continue; however, the slowdown in the rate of losses could indicate the U.S. is approaching the bottom of the job loss curve.

Lower New Claims for Unemployment
Last week the Labor Department’s total for new unemployment claims fell by 14,000 to 631,000. The four-week average also declined to 637,250. Economists watch the latter number closely, as it historically has helped them predict when recessions will end. The number peaked in the week ending April 4, so a continuing decrease could indicate the end of the recession tunnel is in sight.

Discount Retail Sales Up in April
Target showed just a slight increase over April 2008 in same-store sales, but overall sales were up 4.5%. Walmart boosted same-store sales of 5.9% in April, while overall sales were up a healthy 7.7%. Ross Stores showed same-store sales increased 6%; overall sales were up an impressive 11% for April 2009.

While other retailers showed continuing sales declines, discount remains a bright spot; seeing these retail giants staying strong is a good economic indicator!

Finding economic good news is not easy, but it’s out there. Employers need to know that all is not as dire as it has been, and there are signs that the economy is starting to improve!

Sources: the Wall Street Journal; ADC; Challenger, Gray & Christmas

What do employers need to know about complying with the Fair Credit Reporting Act (FCRA)? It may seem unlikely that you would have to worry about legislation designed to protect consumers against unlawful use of their credit and personal information. But you must comply with FCRA if you:

• Want to check the credit history of an applicant for a cash-handling position;

• Intend to promote a long-term employee, but want to be certain they have a good credit record;

• Have already obtained a credit history on a job applicant, which is unfavorable; however, it is a lack of experience, not the credit record, that impacts your decision to not hire this person.

Employers are entitled to run consumer credit reports on applicants or existing employees at any time, providing they comply with the FCRA. Employers who use consumer reports have legal obligations under FCRA, which was designed to prevent applicants from being denied jobs or employees being denied promotions unjustly.

You cannot obtain a consumer report until employees or applicants have given their written permission for you to do so. This cannot be accomplished on the employment application.  A separate disclosure must contain the proper notification, and the employee must sign it.  If employees gave permission in the past, you must ensure that they receive a separate notice stating that reports may be obtained over the course of their employment. 

So, what if you didn’t include the disclosure and obtain permission during the hiring process and now you want to run reports on your employees? You must notify employees and get their written permission before you run the reports.

Who can supply pre employment screening reports to ensure an employer is in compliance? To be covered by FCRA, employers must use employee screening reports provided by a Consumer Reporting Agency (CRA). The reports can range from simple credit checks to criminal, housing, employment, and driving record checks. 

The FCRA requires employers to comply with reporting requirements. These include: 

• Certifying that the employer is obtaining information for employment purposes;
• The proper disclosure has been provided to and written authorization has been obtained from the applicant or employee; 
• The applicant or employee will be provided with a copy of the report;
• And the information will not be used in violation of equal opportunity laws.

What happens if you deny an applicant or a promotion based on information you obtained from a CRA? 

Before you take adverse action, such as terminating an employee, or denying a job or a promotion, you must give the individual a pre-adverse action disclosure, including a copy of their consumer report and a copy of “A Summary of Your Rights Under the Fair Credit Reporting Act.” This document can be provided by your CRA.

After you have taken adverse action, you are required to give the individual notice, either orally, electronically, or in writing, that the action has been taken. The notice must include the name, address and phone number of the CRA that supplied the report, as well as a statement that the CRA did not make the decision for adverse action and cannot give specific reasons for it. In addition, the individual must be notified that they have the right to dispute the accuracy or completeness of the information and their right to obtain a free report from the agency within 60 days.