Small business owners in states that did not establish healthcare exchanges in advance of the implementation of the Affordable Care Act will be harshly impacted by a recent rule enacted by the Internal Revenue Service. Some small business owners have filed a lawsuit in Federal court over it.

The Competitive Enterprise Institute (CEI) reports on a lawsuit filed by six small business owners and several individuals against the U.S. government, challenging the IRS rule.   The IRS rule seeks to provide tax credits to people in states that did not opt to create state healthcare exchanges under Obamacare.

CEI noted in a prepared statement last week:

“The Affordable Care Act authorizes health insurance subsidies to qualifying individuals in states that created their own healthcare exchanges. Those subsidies trigger the employer mandate (a $2,000/employee penalty) and expose more people to the individual mandate.  But last spring, without authorization from Congress, the IRS vastly expanded those subsidies to cover states that refused to set up such exchanges.  Under the Act, businesses in these nonparticipating states should be free of the employer mandate, and the scope of the individual mandate should be reduced as well.  But because of the IRS rule, both mandates will be greatly enlarged in scope, depriving states of the power to protect their residents.”

One effect of the lawsuit is to make sole proprietors subject to consequences they otherwise would not be subject to. For instance, Jacqueline Halbig, one of the plaintiffs, is a sole proprietor who says that under the IRS rule she would be subject to paying a penalty for her own coverage.  In the lawsuit she asserts she “will be forced to either pay a penalty or purchase more insurance than she wants.”

Chuck Willey, an MD who also is a plaintiff in the lawsuit, said in a statement through CEI: “Contrary to the clear language in the Affordable Care Act, government is directly impeding my ability to design a quality affordable health plan for my employees. The IRS will extra-legislatively extend this onerous benefit requirement (which will increase premiums and costs of care) and impose the employer penalty in states with federally-run exchanges. I maintain the right to choose my own employees’ health plan without government intervention into its benefit design and without penalty.”

Thirty-three states have opted not to establish state healthcare exchanges.  Those states that have not established their own exchanges include Wyoming, Wisconsin, Virginia, West Virginia, Texas, Tennessee, South Dakota, South Carolina, Pennsylvania, Oklahoma, Ohio, North Dakota, North Carolina, New Jersey, New Hampshire, Nebraska, Montana, Missouri, Mississippi, Michigan, Maine, Louisiana, Kansas, Iowa, Indiana, Illinois, Georgia, Florida, Delaware, Arkansas, Arizona, Alaska, and Alabama.

The lawsuit is complex, but can be viewed here in its entirety.

The post Small Business Owners File Lawsuit Against IRS Over Obamacare “Power Grab” appeared first on Small Business Trends.

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What do Millennials want? Flexibility and independence top the list, according to a new study, “Millennials and the Future of Work,” from oDesk and Millennial Branding that polled nearly 2,000 people aged 19 to 30. Here’s some of what the study found, and what it means for your business.

Millennial Workers Want Freedom and Flexibility

Millennial workers want freedom and the flexibility to work how they want.  Many Millennials have a “freelance” attitude. Almost nine in 10 (89 percent) say they prefer to work when and where they choose (compared to a corporate, 9-to-5 job). When comparing freelance work to “regular” jobs, Millennials say freelancing gives them more freedom to:

• Work wherever they like (92 percent).
• Work whenever they like (87 percent).
• Work on more interesting projects (69 percent).
• Travel while working (half say they’d prefer this to taking vacation time).

You Might Have a Closet Freelancer on Your Staff

Many Millennials are biding their time at regular jobs and freelancing on the side until the time is right to leave.

Nearly three-fourths (71 percent) of those who work regular jobs want to quit to be entirely independent; 61 percent say they likely will quit within two years, and 17 percent say they definitely will.

Millennials Have a New Definition of “Entrepreneur”

For 90 percent of Millennials surveyed, being an entrepreneur means having a certain mindset, rather than starting a company. Aspects of this mindset mentioned included being a self-starter, risk-taker, visionary and someone who “spots opportunity.”

Millennials see themselves as building entrepreneurial careers whether they work for someone else or freelance – they don’t necessarily have to start their own businesses. In fact, more than half (58 percent) already classify themselves as entrepreneurs.

Millennials Have a Rosy View of Entrepreneurship

Three-fourths of them say the benefits of being an entrepreneur outweigh the downsides. In fact, for 57 percent of Millennials there are no downsides to entrepreneurship. More than one-third (38 percent) say they’d pursue a promising startup opportunity rather than finish a traditional college degree.

What do these figures mean to your business?

• Satisfy their desire for freedom: Keep Millennials on your staff happy and attract more of this age group by offering flexibility and the ability to work from home or on the road.

• Help them move ahead: Millennials have an insatiable desire to move faster in their careers. Provide lots of feedback and let them know what they can do to improve.

• Sell them on “small:” Millennials hate having to follow corporate rules and climb the steps of the corporate ladder, making small businesses a natural fit for them. If you’re looking to hire, promote your small business as a place where they can wear different hats and learn a lot of skills.

• Tap into Millennials’ entrepreneurial attitudes: Since Millennials can feel entrepreneurial even as employees, take advantage of their self-starting nature. Give them projects of their own and let them run with them.

The post Millennials Are Rewriting the Rules of Work and Entrepreneurship appeared first on Small Business Trends.

A federal appeals court has overturned a decision that would have required small business owners to display “right to unionize” posters in the workplace. The posters would have been extremely detailed. The consequences of not displaying posters could have been severe.

The National Association of Manufacturers, the National Federation of Independent Businesses (NFIB) and others including two small business owners, had appealed a lower court ruling requiring the posters.

On appeal, the U.S. Court of Appeals determined the National Labor Relations Board (NLRB) could not require this new rule.  The Court essentially said that (1) the compulsory posters violated the employer’s free speech rights, and (2) the NLRB’s proposed enforcement action exceeded its rule-making authority.

The right to unionize poster

Under the rule, small business owners would have been required to hang an 11-by-17 inch poster in the workplace. Posting also would have been required on a company’s intranet. The proposed posters would have had very detailed language (see embedded court decision below, pages 31 to 34, for the text).

The small businesses and groups that filed the challenge noted that the posters were one-sided.  Among other things, the posters did not notify employees of their rights to decertify a union, to refuse to pay dues to a union in a right-to-work state, and to object to paying excess union dues.

The rule also attempted to require small business owners in right-to-work states to comply with the NLRB mandate.

Penalties for failing to post

The posters themselves weren’t the only issue, though.  It was the serious consequences of not posting them that had the two small businesses and their advocates up in arms.

Had small business owners not put up the poster,  they could have been charged with unfair labor practices. On top of that, they could have been opened up to investigations and other broad actions on unrelated claims.  The rule went beyond established labor law and regulations in existence today.

The NFIB, a non-profit that advocates on behalf of small businesses, spoke also about the concern of accidental  violations.  The NFIB noted, ”small businesses are particularly vulnerable to accidental violations because the regulatory compliance burden most often falls on the small business owner and because small businesses do not have dedicated compliance staff.”

The National Association of Manufacturers noted on its Shop Floor Blog:

“During oral argument before the Court of Appeals, one judge asked the attorney representing the Board a basic question. What, if any, limits are there on the NLRB’s authority? The attorney quickly — and shockingly — responded that in the Board’s view there are no limits to their power. Yesterday, the Court issued a strong rebuke to that line of thinking and highlighted the shaky ground the NLRB is on with regard to its agenda.”

The NFIB hailed the decision s a victory for small businesses. “Today’s decision is a monumental victory for small business owners across this country who have been subject to the illegal actions of a labor board that has consistently failed to act as a neutral arbiter, as the law contemplates,” NFIB’s executive director of its Small Business Legal Center Karen Harned said in a statement.

The National Association of Manufacturers represents 11,000 manufacturers in the United States. It was founded in 1895 and is based in Washington, D.C.

The NFIB is a Nashville, Tennessee based organization founded in 1943. It represents 350,000 small-business owners. Membership is made up of small businesses, 60% of which have 5 or fewer employees, and 55% of which have gross sales of $350,000 or less.

Workers Image

The post Union Poster Rule Overturned: “Victory for Small Businesses” appeared first on Small Business Trends.

Telecommuting is increasingly becoming a way of business life.  According to the United States Census Bureau, an estimated 20 to 30 million people work at home at least one day a week. Worldwide, the numbers are even more impressive. The Citrix Workplace of the Future survey found that 24 percent of global companies allow their employees to work at times and locations of their choosing.

What are the benefits of this approach?

For employees, telecommuting eliminates travel costs and provides a better work/life balance. For companies, it lowers employee-related and real estate costs, which can be a major boon to small businesses that may lack the capital and infrastructure to maintain a traditional office environment. Additionally, telecommuting allows businesses to hire from a wider pool of applicants, including disabled and geographically removed workers.

However, working from home also presents a number of unique challenges for both employees and employers. Recently, Yahoo CEO, Marissa Mayer, revoked her company’s longstanding at-home work option, citing her company’s need to improve employee collaboration and communication. In a Forrester survey, Virtual Work Environmens in the Post-Recession Era (PDF), other employers shared Mayer’s concerns, with 49% worried about effective communication with remote employees and 43% concerned about managing projects and deadlines successfully.

What Can Employers Do To Minimize Potential Disadvantages From Telecommuting?

It’s all about the right employees, the right security and the right project tracking business tools.

The Right Employees

Not every employee is cut out to be an at-home worker. Most employees have been conditioned to work in a micromanaged office environment and some may flounder when working independently. Julia Drake, Founder and Director of Julia Drake Public Relations, solved this problem by instating a trial period for all possible hires.

“I spent about six months to a year with them to make sure they possessed the right work ethic and the ability to work independently without a boss breathing down their neck,” Drake said. “It takes ambition, discipline and a passion for what you do. It takes a certain type of person.”

Companies can also have potential employees take personality and behavior tests as part of the application process, such as the one at Affintus. These can help determine if an employee would work better in an office or at-home environment.

The Right Security

The aforementioned Citrix study also found that 83 percent of businesses allow remote employees to use their own devices to access company networks. Additionally, 59 percent of remote workers do not back up company data. This can create a lot of hassle and potential security risks, especially for small businesses that might have fewer security protections in place.

To maintain the security of sensitive and critical data, businesses should develop and enforce security best practices and keep employees informed of possible security threats. Additionally, they should keep track of what devices employees are using and what they are using them for.

The Right Project Tracking Business Tools

Employees often flourish when they are given freedom and flexibility in how and where they work. However, that doesn’t mean that businesses should give up their ability to monitor employee progress. Employers can easily stay in touch with remote employees through email and instant messaging. Company meetings can be conducted through video conferencing.

Employers would also be well advised to implement software to track employee time for individual projects. This software should be fully integrated across remote and in-house workers, so that employers can view their entire workforce at a glance. This will allow managers to effectively manage deadlines and costs for all company projects.

Telecommuting seems to be the way of the future, and it offers many benefits for both employers and employees. But businesses can only enjoy these benefits if they implement certain guidelines and securities. If they fail to do so, businesses risk ending up like Yahoo, having to revoke the telecommuting option years down the line.

Work at Home Photo via Shutterstock

The post The Rise of Telecommuting And What It Means For Your Business appeared first on Small Business Trends.

Are your employees engaged in their jobs? A Gallup poll measured the growth of employee engagement and which of 12 different occupations tend to boast the highest engagement.

What Exactly Do I Mean By Employee Engagement?

Gallup defines it as people who are “deeply involved in and enthusiastic about their work and actively contributing to their organization.” In contrast, employees who are “actively disengaged” feel emotionally disconnected from their jobs and their workplace, which can only harm their companies’ performance. Somewhere in the middle are employees who are simply not engaged. While they may be satisfied with their jobs, they’re not emotionally connected to them, making them less likely to go above and beyond.

Gallup compared engagement levels from 2012 (when the study was conducted) to levels in 2009 at the depths of the Great Recession. Overall, while engagement has improved among almost all occupations, the difference is not huge. Thirty percent of employees report being engaged, similar to the 28 percent who were engaged in 2009. About one in five (18 percent) are actively disengaged; the rest are not engaged.

The group that enjoyed the most engagement and the most growth in engagement was managers and/or executives. Their engagement level was up 10 percentage points from 2009, to 36 percent. Manufacturing and transportation workers are the least engaged in their jobs, which is no different from 2009. And service workers are the only group whose engagement actually dropped from 2009 to 2012 – Adown 3 percentage points, to 29 percent.

What’s the Reason for the Different Engagement Levels?

Gallup theorizes that tough times might inspire managers and executives to work harder and become better leaders, increasing their engagement or that they simply feel more secure in their jobs than lower-level employees.

Why Aren’t Service Workers Engaged?

Gallup points out that service industries are typically most affected by consumers’ discretionary spending, which has put them in a tough place for the past few years. But the study also notes that service workers, more than any other group, don’t believe their opinions matter at work.

To me, this hits at the core of the issue. Having the ability to direct or influence what you do at work is a big factor in engagement, and executives enjoy this ability much more than do service, manufacturing or transportation employees.

Another Key Issue?

A separate Gallup poll found that engaged employees are far more likely to work at businesses that are hiring than non-engaged or disengaged employees. In fact, 40 percent of managers and execs in the 2012 study say their companies are hiring—a big increase from the 26 percent who said so in 2009. Perhaps seeing some light at the end of the tunnel, and knowing that their teams are finally getting the extra help they’ve needed during the recession, is driving higher engagement among managers and execs.

Finally, Gallup data consistently show that employees are more likely to be engaged when their direct supervisors are highly engaged managers.

What Can You Do to Increase Employee Engagement?

Give your employees more autonomy and ask for their input and opinions—then, whenever possible, act on them. Hire more help to take the load off overwhelmed employees who have “checked out.”

Focus on your managers, particularly those who supervise front line employees directly. Keeping them engaged has a “trickle-down” effect on the whole team.

Business Leader Photo via Shutterstock

The post Are Tough Times Inspiring Better Leaders and Increasing Engagement? appeared first on Small Business Trends.

Growth is exciting for a small business or startup — but it often comes with a lot of internal HR challenges, including the less-than-pleasant task of promoting or hiring the right person for the right management role (often to the disappointment of another employee). Done right, employee promotion can ensure growth. Done wrong, a promotion can lead to the kind of office politics that no CEO wants to deal with.

To find out how to turn this sticky situation into an opportunity, we asked members of the Young Entrepreneur Council (YEC), an invite-only organization comprised of the country’s most promising young entrepreneurs, the following question:

“What’s your best advice for explaining why an employee in the running for a promotion DIDN’T get a coveted new title?”

Here’s what YEC community members had to say:

1. Be Clear

“Outline the employee’s successes within the organization so they know the things they don’t have to focus on. Then, as tactfully as possible, outline the areas where they need improvement so they can position themselves for that promotion in the future. That way, they clearly understand what they need to work on.” ~ Andrew Schrage, Money Crashers Personal Finance

2. Have a Career Plan

“It is easier to break challenging news when there is an alternative plan to get an employee where they want to go. Employees who see a future in the company, an opportunity to move up in title, a more challenging role and higher compensation tend to stick around, even if there is a setback. If they know what their target is, and there is transparency, this conversation is much easier to have!” ~ Raoul Davis, Ascendant Group

3. Be Honest

“As this is a great opportunity for employee development, don’t save face or overly sugarcoat the information. Highlight areas the employee should work on in order to succeed in the position in question, and identify appropriate resources to help them get where they need to be. Keep them motivated by giving them intriguing new responsibilities as well.” ~ Alexandra Levit, Inspiration at Work

4. Explain That You’re Running a Meritocracy

“From the outset, make it very clear that your company is a meritocracy, and then act that way. I find if you set clear expectations, this type of thing has minimal negative consequences.” ~ Rob Emrich, PaeDae

5. Be Open

“You must (I hope) have had good reasons to promote the person you selected. Convey these in a concise, clear manner to the person who did not get the title. True professionals should understand, appreciate and, hopefully, learn from a logical and rational decision. ” ~ Nicolas Gremion, Free-eBooks.net

6. Tailor the Job to the Person

“If we have a new role that someone on the team can fill, it’s rarely about a “promotion,” but instead an evolution. We’re all growing together, so the job titles and responsibilities grow as we do. By customizing it to each person, no one loses out.” ~ Derek Flanzraich, Greatist

7. Become a Flat Organization

“If you choose to have an organization with fancy titles and a hierarchical system, then you are going to run into these problems. There is no good solution to sugarcoating the news to someone that their former colleague is now their boss. In this day and age, there is no reason why we have to have a corporate-looking system of promotions, instead of everyone just accepting more responsibility. ” ~ Matt Wilson, Under30Media

8. Do Away With Titles Altogether

“Titles make people feel more important, but they don’t make you more money. We eschew titles altogether and stick with disciplines to describe what the person does — marketing, finance, development, etc. You never have to explain why someone didn’t get a coveted new title if there weren’t any titles to begin with.” ~ Michael Portman, Birds Barbershop

9. Turn It Into a Motivational Lesson

“Rather than emphasizing the things an employee may have done wrong or poorly, I prefer to focus on the things that they did right — being proactive in meetings, showing enthusiasm, arriving early and staying late when needed, etc. By turning this missed opportunity into a learning experience, you keep the passed-over employee engaged and motivated.” ~ Zach Cutler, Cutler Group

10. Use Performance Evaluations

“Many executives and managers have trouble explaining why someone didn’t get promoted because they haven’t been doing performance evaluations, which is a huge disservice to their team and their business. Good performance evaluations show current performance and indicate future potential. In lieu of evaluations, though, explaining the decision based on current performance and future potential helps.” ~ Charlie Gilkey, Productive Flourishing

11. Inspire Employee Understanding With Honesty

“Honesty is crucial when delivering news in regard to a promotion. Inform your employee about your decision, and then tactfully explain your reasoning. In some situations, it may be in regard to skill level and experience; other times, it might come down to an employee being more of a natural fit in regard to personality or soft skills. This is a chance for an employee to learn and grow.” ~ Heather Huhman, Come Recommended

Promotion Photo via Shutterstock

The post 11 Tips for Handling Internal Employee Promotions With Finesse appeared first on Small Business Trends.

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Forty-two percent of all jobs created in April came from small businesses, an ADP Employment report released this morning said.  Small businesses were responsible for 50,000 jobs out of a total of 119,000 created for the entire job market.

And most of the small business jobs (a total of 34,000) were created by the smallest of the small, those with under 20 employees.

And when you add in the number of jobs created by medium size businesses with up to 499 employees, we see that small and medium businesses were responsible for nearly 64% of total job growth during April 2013.

Service Sector Source of Most Jobs

Of the small business jobs created, an overwhelming majority, 41,000, were created in the service sector.  If you’re thinking that means slinging hamburgers, “service sector” covers much more.  It’s a large classification that includes financial, professional and business services, but also includes employees like restaurant workers, housekeepers, teachers, health care workers and retail sales workers.

Service jobs were also important to the overall employment numbers among large, medium and small businesses, officials said.

“The services sector generated the overwhelming majority of new jobs in April, contributing a total of 113,000, which helped to offset overall softness in the goods-producing sector, which was marked by a loss of 10,000 manufacturing jobs,” Carlos A. Rodriguez, ADP’s president and CEO, said with the release of this report.

Overall Job Growth Slowed, Says Employment Report

However, job growth slowed compared with previous months.  Today’s report notes that the pace of job growth has hit its slowest since September 2012.

There are several factors that are likely slowing job growth, said Mark Zandi, chief economist at Moody’s Analytics. It should be no surprise that small businesses saw the most growth over the last month because larger businesses are currently weighing the expenses of providing healthcare to their employees before the end of the year, he said.

In 2013, businesses with 50 or more employees will be required to provide medical coverage to their employees or face federal penalties. This uncertain expense is a leading contributor to a lack of new jobs being created from these companies. This, along with tax increases and government spending cuts were leading factors in the weakened jobs market.

“Companies that have close to 50 employees, you have some big decisions to make,” Zandi said.

The rate of job growth in the last month is a sign that U.S. economic recovery is slowing out of the Great Recession, Zandi said. He told reporters Wednesday morning that the rate of growth is not enough to offset unemployment numbers and that similar numbers could be expected over the next three-to-six months.

“The ADP number was disappointing. The job market and economy are slowing,” Zandi said. “It’s OK but it’s certainly not enough to generate any declines in unemployment.”

The post 42% of April Jobs Created by Small Businesses Per ADP Employment Report appeared first on Small Business Trends.

Have you ever wondered how to be a consultant? What does a consultant do? Well, the answer is simple – a consultant consults. The answer, though true in its basic sense, is much too vague.  If you want to become a self-employed consultant, you need to have a better idea about the business and the way to set it up. Let’s try to define the role of a consultant.

The task of a consultant is to provide advice to an individual or organization about matters in a specific niche. Still sounds vague; right? You need to dig a little deeper into the area before you plunge in to establish your business as a consultant.

Below is a step-by-step guide to help you start off as a self-employed consultant.

How To Be a Consultant: 10 Steps to Self Employment

Step 1: Identify the Niche in Which You Have Knowledge and Experience

You may have an interest in computers. However, this does not mean you can become an independent computer consultant (though it can give you a head-start in this field). Knowledge and experience coupled with interest is the only way to begin.

If you have knowledge about computers (hardware or software), have worked with these for a considerable period of time and have the latest detailed, information about them, you can plan to start a computer consulting business.

Step 2: Acquire the Certifications and Licenses

Some consulting businesses do not require formal training and certifications (e.g., gardening consulting). However, if you are planning to work as an accounting consultant, you need to get professional certifications from recognized accounting institutions.

Also, consider the licensing requirements to start a consulting business. The local or state legal guidelines may require you to get a particular license to work as an independent consultant in certain specialties.

Step 3: Decide Your Short and Long Term Goals

If you excel in a niche that has a good prospect, such as business consulting, computer consulting, career consulting and so on, you may paint a rosy picture of clients waiting for your advice within a week of starting your consulting business.

It’s not magic.  If you have such unrealistic expectations, you are sure to be disappointed. Every business takes time to grow and become known and established. If you lack the time and effort to start and establish a business, you may end up headed towards failure.

Step 4: Choose Your Target Market

If no one pays for your ideas and advice, your business will face failure. It will also face the same result if the recipients of your ideas do not have the money to pay you. The first thing you need to do is to decide whether you will advise individuals or companies.

Every niche in the consulting business provides these options. For example, if you are working as a career consultant, you may help individuals plan their careers. You may also work with a large corporation to help the employees excel in their chosen fields.

Step 5: Research Your Target Market

Individuals and organizations need consultants for a number of reasons. A tax consultant can help a millionaire plan his/her taxes. A computer consultant can help the employees of a large company learn software basics. A human resource consultant can help a big business implement a change in a policy.

After you determine the target market that will hire you for your expertise, you need to find out the various ways in which you may help them. This will help you market your consulting business. You need to tell your clients why they need you.

Step 6: Consider a Home Office

If your local laws permit this, it can work to your advantage in more ways than one. You don’t spend any money to buy or rent an office space to start your business as a self-employed consultant. You don’t need to pay for utilities separately. You don’t need to pay for a regular commute.

Along with the money, you also save time and energy when you work out of your home. You may acquire new premises after you have established your business and employed associates; but more on this later.

Step 7: Build Your Network

If no one knows you and you know no one in your field, you may find yourself in the midst of a disaster soon. It is important to start building your network as soon as you have decided to be a consultant. A strong contact base ensures that you have the sources to find work.

A professional network, coupled with a social network, can help you market and advertise your business. References are also important ways to find work in the niche. Rely on your initial contact base to build your network.

Step 8: Fix Your Fees and the Way to Bill Clients

As a beginner, you may not receive high fees as a consultant. Your charges increase as you become known as a consultant. Keep in mind your credentials and experience as well as market conditions, your target group and your competitors when you fix your fees.

Also, decide how you will bill clients. Hourly billing may seem to be a convenient method; the problem is many clients think that you charge too much for your time. It is best to use the project-based billing method when you start your consulting business.

Step 9: Arrange for Advertising and Marketing

You are not selling a house which, by the way, is much easier than selling your advice. Many of your clients may not be even aware that they need your ideas and advice. How do you market and advertise something so difficult? Believe it or not, you have a lot of choices – print media, cold-calls, online ads and many others.

Before you choose any avenue to advertise, decide your budget. If the costs go out of hand, the chance of success of your business plummets. Newsletters and brochures, advertisements in niche-specific journals, websites and blogs offer the best options.

Step 10:Determine Whether You Need to Outsource Certain Tasks

You may find it easier to handle all tasks of your business on your own when you start. But after your consulting business is up and running, you may need the help of others and you may decide to employ people. Check both legal and tax details before you do this.

You may also outsource some tasks that do not require your immediate attention. Make sure that the tasks are not connected to your consulting business. For example, you can outsource auditing for a career consulting business but not when it is your niche.

Consulting Photo via Shutterstock

The post 10 Steps to Become a Self-Employed Consultant appeared first on Small Business Trends.

Is your small business planning to hire hourly summer workers?

If so, you’d best get hopping. Snagajob’s annual summer hiring survey found that more businesses are planning to hire hourly workers than last year, and they’re also planning to pay them more.

According to the poll of more than 1,000 hiring managers nationwide, 19 percent plan to hire more summer employees this year, up from 9 percent last year. In addition, wages are at their highest level since the survey launched six years ago. For the first time in two years, hourly wages are projected to rise, from $10.90 last summer to $11.50 on average.

The number of hiring managers who don’t plan to hire any summer workers dropped from 45 percent in 2012 to 31 percent this year. Why are some companies not hiring? The biggest reason, cited by 36 percent was budget concerns. That’s up 9 percentage points from last summer. And while 36 percent plan to give current employees more hours this summer, that’s down 11 percentage points from last year.

Businesses expect just 55 percent of their summer hires will be returning from years past, down from 65 percent last year. That means it will be a good time for new employees to get a foot in the door. Similar to past years, the majority of summer hiring managers expect most of the applicants to be high schoolers or college students.

As in most years, the survey found most hiring will take place in April and May (24 percent and 30 percent, respectively), and 77 percent of all hiring will be done by the end of May. Just 11 percent will still be hiring in June.

Clearly, if you need hourly workers this summer, you shouldn’t delay. Below are some steps to speed and improve your hiring process.

Steps to Improve Your Hiring Process

Create a System

You probably hire for the same types of positions each year. So if you haven’t already, create a job description for each position that includes the duties to be performed, hours needed, skills or experience required and anything else that candidates need to know.

It’s simple to update these annually to add new requirements.

Maintain Records

Keep contact information for past seasonal workers whom you liked and get back in touch with them in advance of your hiring season. It’s always preferable to hire a known quantity than start from scratch.

Note what websites or job boards got good results in the past and use them every year as well.

Put the Word Out

Many good hires come from word-of-mouth, so let your social media friends, family and business contacts know you’re hiring.

Chances are everyone’s got a niece, nephew, son or spouse looking for a seasonal summer job.

Hire for Personality

Skills are important, but attitude is more so. You can teach someone to operate a cash register, but you can’t teach them to be friendly or energetic.

Put reliability, a positive attitude and friendliness above all and, in most hourly positions, you really can’t go wrong.

Do you hire summer workers, and what are your plans for it this year?

Summer Heat Photo via Shutterstock

The post Summer Hiring Heating Up, Steps to Improve Your Hiring Process appeared first on Small Business Trends.

According to information released by the National Federation of Independent Business, employment at small businesses nationwide rose by an average of 0.19 people per company in March 2013. This is the third straight month of gain according to data gathered by the NFIB’s Small Business Research Foundation. The figure represents the highest gain since this time last year.

The growth is being heralded as a good sign, at least temporarily, especially against a backdrop of overall economic uncertainty that still predominates and which is expected to continue as the federal government wrangles over spending and weighs tax increases, especially on businesses.

“While actual job creation appears to be rising, plans to create jobs took a dive, falling four points to a net zero percent of small employers who plan to increase total employment,” said NFIB Chief Economist William Dunkelberg in a prepared statement released with the report. “It seems that the stamina for growth is waning, even with decent reports on consumer spending at the macro level.”

NFIB figures show that 47 percent of small business owners have tried to hire in the last three months. Just slightly more than one-third of those said they were not able to add staff because they found few or no qualified people for the jobs they had available.

“Once again, our bifurcated economy may have large firms doing well but the Main Street owners [are] not sharing in the gains and [are] finding little reason to take on new employees. Owners are still pessimistic and see little reason to hire,” Dunkelberg said. “Small businesses need a shot in the arm; but seeing as this is unlikely, the slow crawl to eventual prosperity might be the best we can hope for.”

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