The U.S. Equal Employment Opportunity Commission (”EEOC”) has issued a long-awaited final rule (”Final Rule”), which amends the regulation on the “reasonable factors other than age” (”RFOA”) defense available under the Age Discrimination in Employment Act (”ADEA”). The Final Rule is available at 29 C.F.R. Part 1625. The EEOC previously published proposed rules regarding the RFOA defense on March 31, 2008, and then on February 18, 2010. The Final Rule takes into account public comments received on those proposals.

Unfortunately for employers, the Final Rule was not worth the wait. The revised regulation, which takes effect on April 29, 2012, imposes rigorous procedural and factual requirements for employers when attempting to establish the reasonableness of a policy or practice that causes an age-based adverse impact.

The RFOA Is an Affirmative Defense to Certain Disparate Impact Claims Under the ADEA. By way of background, the RFOA defense applies only to disparate impact (as opposed to more straightforward disparate treatment) cases alleging age discrimination under the ADEA. In contrast to a disparate treatment case, where an employee alleges that the employer intentionally discriminated on the basis of his or her age (of 40 years or older), a disparate impact case challenges a rule or procedure that merely disproportionately affects older workers, without regard to the employer’s intent.

The Final Rule states that “[a]ny employment practice that adversely affects individuals within the protected age group on the basis of older age is discriminatory” unless the employer justifies the practice as a RFOA.

Employers Will Now Have a Harder Time Defending Against ADEA Disparate Impact Claims. The revised regulation imposes stringent standards on employers seeking to raise the RFOA defense. To qualify as a RFOA, a factor must be “objectively reasonable when viewed from the position of a prudent employer mindful of its responsibilities under the ADEA under like circumstances.” Thus, ignorance is not bliss; the reasonableness of an employer’s offered explanation will be evaluated in light of the employer’s presumed knowledge of the ADEA’s requirements. Further, an employer must show that the challenged employment policy or practice was both: (i) reasonably designed to further or achieve a legitimate business purpose; and (ii) administered in a way that reasonably achieves that purpose in light of the particular facts and circumstances that were known, or should have been known, to the employer.

The Final Rule calls for a fact-intensive analysis, which must take into account “all the particular facts and circumstances surrounding each individual situation.” 29 C.F.R. § 1625.7(e)(1). These facts and circumstances appear to include the extent to which an employer has considered less discriminatory alternatives.
To assist in gauging the reasonableness of a non-age factor, the Final Rule lists five relevant non-exclusive “considerations,” which underscore the exacting nature of the

RFOA analysis and the EEOC’s elevated expectations for employers seeking to avail themselves of this defense. Relevant factors include:
1. the precision that the employer used in achieving its business goals;
2. any anti-discrimination training that the employer provided to its managers;
3. the extent that the employer limited supervisors’ discretion to assess employees subjectively (particularly where the criteria that the supervisors were asked to evaluate are known to be subject to negative age-based stereotypes);
4. the extent that the employer prospectively gauged any adverse impact of its practice; and
5. the extent that the employer sought to ameliorate any foreseen adverse impact.

Thus, the EEOC clearly expects a “reasonable” employer to be fully cognizant of the potential that its various policies and practices might cause an adverse impact based on age, and to attempt to minimize such adverse effects, if feasible. Only time will tell whether courts will defer to the EEOC’s interpretation of the applicability of the RFOA defense.

What Employers Should Do Now:
Now more than ever, employers should take steps to guard against disparate impact based on age, resulting from the adoption or application of facially neutral policies and practices. This not only will increase the likelihood that an employer can successfully raise the RFOA defense but also will reduce the likelihood that employers are sued in the first instance.

In order to decrease the chance of a successful disparate impact claim, employers should:
• train managers involved in designing and implementing human resources policies and practices to ensure their familiarity with the employers’ requirements under the ADEA;
• take steps to minimize the exercise of unfettered discretion by decision makers;
• ensure that such decision makers do not base employment decisions solely on factors such as “flexibility, willingness to learn, and technological skills,” which the EEOC suggests may be susceptible to age-based stereotyping;
• provide decision makers with an objective way of evaluating traits necessary for a particular position, and train managers on how to gauge the quality fairly;
• consider conducting statistical analyses with respect to any employment policy or practice that could have a disparate impact on older workers, such as those related to hiring, pay, and reductions in force (”RIFs”);
• perform statistical analyses in connection with RIFs to gauge whether employees 40 years and older will be adversely impacted by the employer’s selection criteria; and continue to monitor the administration of policies or practices after their implementation to assess whether they are being carried out fairly.

All of the above actions should be carefully documented, including any alternatives that the employer may have considered to reduce any foreseen or observed adverse impacts. With respect to any policies or practices that could result in a disparate impact claim, but that cannot be changed or eliminated, in order to minimize the risk of successful disparate impact claims, employers should:
• clearly define the business goals behind the policy or practice;
• be able to demonstrate how the policy or practice at issue accomplishes those goals; and
• be able to justify why they chose that policy or practice over other potential alternative policies or practices that were considered.
*****
This article is for informative purposes only and not inteded to be used as Legal advice.

The number of Americans saying the U.S. economy is getting better rose in March to the highest level since 2004 as a decline in claims for unemployment benefits offered more evidence of a labor-market recovery.

Thirty-four percent of respondents to Bloomberg’s monthly consumer expectations survey said the economy was improving, the largest share since January 2004. The pickup boosted the monthly expectations to the highest in a year. Figures from the Labor Department today showed jobless claims decreased by 5,000 to 348,000 in the week ended March 17, the fewest since February 2008.

The best six months of job growth since 2006 are boosting the optimism of consumers whose spending accounts for 70 percent of the economy. Another report today showed the index of leading indicators rose in February by the most in 11 months, signaling the U.S. expansion will strengthen, helping to sustain global growth as China slows and Europe threatens to sink into a recession.

“The economy will be gradually building up momentum going forward,” said Omair Sharif, an economist at RBS Securities Inc. in Stamford, Connecticut. “We will be shouldering a little bit more of the burden given the slowdown in Europe and some degree of slowing in emerging markets.”

Stocks fell as manufacturing contracted in Europe and China. The Standard & Poor’s 500 Index (SPX) declined 0.8 percent to 1,391.48 at 11:50 a.m. in New York. The yield on the 10-year Treasury note dropped to 2.27 percent from 2.3 percent late yesterday.

Monthly Expectations

Bloomberg’s monthly expectations gauge climbed to 1 this month from a reading of minus 7 in February. It was at minus 45 as recently as October. The monthly index is based on responses to people who are asked whether the economy is getting better, worse or staying the same.

Americans are growing more optimistic as employment prospects brighten. Mark Eister, 47, of Kennesaw, Georgia, landed a job this month with Georgia Perimeter College as director of military outreach after sending out more than 400 applications since August. He retired from the U.S. Army in December.

“One week, the phone was ringing off the hook with job offers and interviews,” he said. “I feel like the economy is getting better. As I have talked to more employers and hiring managers, they seem ready to talk and bring people on board.”

The weekly Bloomberg Comfort Index (COMFCOMF), based on a separate survey that asks for current views of the economy, personal finances and whether it’s a good time to buy, was minus 34.9 in the period ended March 18, down from a four-year high of minus 33.7 over the previous seven days.

Unemployed Americans

Confidence among the unemployed rose to minus 44 last week, the strongest since April 2008. Sentiment also climbed among those with a college degree, rising to the highest level since March 2008.

Higher gasoline prices may be limiting gains in the index. The average price of regular gasoline at the pump climbed to a 10-month high of $3.88 a gallon yesterday, according to AAA, the nation’s largest auto club. It’s climbed 60 cents this year.

“We’re beginning to see positive signs that the economy is improving,” Randy Potts, chairman and chief executive officer of Winnebago Industries Inc., said during a March 15 conference call. “Consumer confidence has been trending higher, and the jobless rate is improving. Both the stock market and housing markets are showing signs of improvement, but rising fuel prices do remain a concern.”

Dismissals have been waning, and reports show companies are becoming more willing to expand workforces amid evidence sales are improving. Initial jobless claims reflect weekly firings and tend to fall as job growth — measured by the monthly non-farm payrolls report — accelerates.

Good for Spending

The decline in claims “is consistent with gradual improvement in labor-market conditions,” said Brian Jones, a senior U.S. economist at Societe Generale in New York, who correctly projected the level reported today. “It’s good for consumer spending.”

Last week included the 12th of the month, which coincides with the period the Labor Department surveys employers to calculate monthly payroll growth. The March employment report will be released on April 6. Payrolls climbed by 227,000 in February, more than forecast by economists, and the jobless rate held at a three-year low of 8.3 percent.

Companies expanding their workforce include General Electric Co. (GE) The Fairfield, Connecticut-based company this week said it will add 600 jobs at a new Louisville, Kentucky, appliance plant producing refrigerators with freezers built into the bottom.

Factory Production

Strengthening demand may also drive production gains at factories, helping to sustain the expansion and allowing the U.S. to withstand higher oil costs.

Another report today from the New York-based Conference Board showed that its gauge of the outlook for the next three to six months increased 0.7 percent after a revised 0.2 percent gain in January. The median forecast of economists surveyed by Bloomberg called for a 0.6 percent rise.

Eight of the 10 indicators in the leading index contributed to the increase, led by fewer claims for unemployment benefits and a surge in stock prices. The S&P 500 Index is up more than 10 percent this year.

Growth in the U.S. may help make up for weakness in Europe and Asia. Euro-area services and manufacturing output contracted more than economists forecast in March, adding to signs the economy has slipped into recession. A euro-area composite index based on a survey of purchasing managers in both industries dropped to 48.7 in March from 49.3 a month earlier, London-based Markit Economics said in an initial estimate today. Economists forecast a gain to 49.6, according to the median of 21 estimates in a Bloomberg survey. A reading below 50 indicates contraction.

Chinese Manufacturing

A Chinese manufacturing index indicated a worse contraction this month, bolstering the case for Premier Wen Jiabao to add measures to sustain growth even as he prolongs a campaign to cool property prices.

The preliminary 48.1 reading in a purchasing managers’ index from HSBC Holdings Plc and Markit Economics today is the lowest since November and compares with a final 49.6 in February. A result below 50 indicates a contraction.

Managers who are approachable will find out about problems and issues before they become full blown crises. The people who work for an approachable manager will challenge the manager if they feel that he or she is going to make a big mistake. They will do their best to keep the manager out of trouble.

Here is an example that I use in my work with managers to illustrate the point. I’m walking down the street not paying attention to where I’m walking and am just about to step in a pile of dog poop. My employees observe me and have three choices of how they respond. One choice is to stop me before I step into it. The second is to watch me step in it and then say how sorry they were that it happened. And the third choice is to watch me step in it and then cheer. My next question is “how would your employees respond?”

Managers who are not approachable will have more and bigger problems than those who are approachable. If the manager is not approachable, the employees tend to cover up problems, either consciously or unconsciously.

Some of the reasons that managers may be perceived as unapproachable include:

- Always being in a hurry and not taking the time to acknowledge people. And in those situations where they do attempt to interact with subordinates they give the impression that their mind is on something else.

- “Shooting the messenger.” If employees are made to feel embarrassed or criticized for bringing bad news, then they will be less likely to do it in the future.

- Most of the feedback that the manager gives to employees is negative. Visits to the workplace are usually to deal with a problem and to find out who is to blame. The manager rarely gives positive, face-to-face recognition.

- The manager spends most of his or her time trying to make a good impression on those above him or her in the organization. The “face” they put on for higher level people is totally different from the one that their employees see on a daily basis.

- Most of the interaction with the manager happens on the manager’s “turf”. This not only includes the manager’s office, but also includes conference rooms as well.

Becoming approachable involves changing behavior and habits. Here are a few ideas on ways that a manager can change his or her behavior to become more approachable:

- Make interacting with employees on their turf a priority. I have been responsible for managing organizations of several hundred people. A goal that I always had was to have a face-to-face interaction with each person in my organization at least once per month. If I had a smaller organization, I would expect a more frequent interaction. For those managers with larger organizations, less frequent is probably needed. The key is to have a goal and stick to it.

- In the 1970’s, Bill Hewitt and Dave Packard created a management style that was known as “management by walking around (MBWA).” It consisted of personal involvement with employees, exhibiting good listening skills, and recognizing people for doing the right thing. Under Hewlett and Packard, MBWA has a purpose. When I coach managers on this subject, I emphasize that their visits through the workplace need to be done with a purpose. Otherwise, it is just management by meandering around.

- When engaging employees, avoid the standard “how it is going” question. Instead, ask open ended questions that cannot be answered with one word—”yes”, “no”, “alright” , “bad” and so forth. Engage people in a conversation to find out what is really on their minds.

- Be sensitive to non-verbal clues that you may be sending to your people about your interest in them. Stopping a conversation to answer a cell phone call or constantly looking at your watch tells people subconsciously that you are not really interested in what they are saying.

- Greet people was if you are genuinely glad to see them.

- Find ways to give some form of positive feedback each day. Make the feedback specific and use it to reinforce the positive behaviors and outcomes that you want to see from people in your organization.

- All of us are just people, regardless of the position or title that we have. Managers who are approachable have the self confidence and self esteem to show their human side. They don’t have the need to wear a mask in the work place.

Are you approachable? Are you getting ready to step in it? What would your employees do?

Written by Ryan Scholz

Isnare.com

http://jobs.aol.com/articles/category/cover-letter-examples

Can prospective and current employers check up on employees? Yes, but with limitations. It may be used to verify previous work history and accuracy. Social Media may also be monitored for postings that may be viewed as harassment by other employees. It can also be checked to see if an employee who calls in sick was not out partying the night before. A very large issue is an individual’s right to privacy. Does someone have the right to make postings in confidence that no repercussions may occur? No, once you post an item to the internet it is considered public information.

• Privacy: Has a person’s constitutional right to privacy been violated? It first depends on the individual’s reasonable expectation of privacy and whether that was infringed.
o There remains no established method for determining if a reasonable expectation of privacy was established. Therefore proving their right to privacy has been violated is very difficult.

Many employers are using social media as pre-employment screening. This practice is becoming increasingly popular. In a June 2009 survey of 2,600 companies performed by CareerBuilder.com, 45% of employers stated that they used social media to pre-screen job applicants. Of the employers that said they pre-screened applicants through social media, 35% admitted that they reviewed content on social media sites which caused them to disregard a job applicant for employment. The thing that employers must remember is that you cannot “unsee” what you have discovered in social media. Often times, the information you garner about a job applicant does not create any legal issues. However, knowledge that an individual is within a protected class (be it based on race, religion, or disability) could increase the risk of a discrimination claim if that individual is not hired. It will basically place an employer in a situation where it must provide a non-discriminatory reason as to why a certain individual was not hired. It is very easy to discover such information from a quick review of a Facebook or MySpace page. The applicant’s profile picture can often give away race, ethnicity, and disabilities. In addition, the applicant’s profile may also give religious information and the applicant’s date of birth (bringing age discrimination into the mix as well).

When utilizing social media for pre-employment screening best practices should be considered and policies should be written and implemented. While very few legal guidelines exist in regards to legislation there are still legal implications that can arise if best practices are not followed. Below are nine steps that are recommended to assist in your development of best practices.

• Screen in a consistent and uniform manor – make sure you follow the same process for everyone you are screening. Don’t follow a random process of only checking up on people you think may be hiding something or may have some secret life you think you should know about.
• Screen the same sites for everyone and maintain the list of sites you screen – determine which sites you think are the most relevant to look at (Linked In, Quora, Spoke, Twitter, etc) and don’t alter the list just because of the candidate. In other words – if you feel like Facebook is really a social environment without much relevant job information – don’t suddenly search it for the candidate that has a funny tattoo.
• Pre define the types of information you are screening for and the criteria used for screening – This is a KEY point: You are looking for relevant, work related information only. You probably don’t need to know about someone’s partying habits, but you probably do need to know about threats of violence, hate messages against minorities or ethnic groups, a pattern of disparaging comments about previous employers, or misleading information about their college degree.
• If you don’t plan to screen everyone, be clear and consistent about what groups you are not screening – like all background checking, social media is not that different in a case like this. You don’t have to screen all job categories, but be clear (and document) why you screen some and not others.
• Have a neutral party do the screening to avoid hiring manager seeing protected data (age, race, religion, health conditions, etc.) – The fundamental point here is – if you are going to look at data on a social media site – you will see more than you need to. To avoid that risk – use a third party that will filter out that data.
• DO NOT friend an applicant – this is fraught with all kinds of problems. Not only does it provide you access to information you do not need to know, it opens up all kinds of issues with privacy, harassment, etc.
• View only publicly available information – most of what you need to know can be found in the public data. No need to ask for an applicant’s access or password, or to friend or “connect” with them to see additional data.
• If you use social media data to reject an applicant, point to clear, legitimate hiring requirements for reason to not hire (e.g. poor judgment) – your reason for not hiring someone should be sound. Enough said. Social media data is no exception.
• Gain applicant’s consent – it really is a good idea to follow the same notice and disclosure policies you would with any pre employment screen. Let the applicant know you will be checking their social media footprint and gain their consent.

Sources:

Thuber, J (2011, April 9). 9 Steps if Considering Social Media in Pre-Employment Screening. http://hrtoolbox.com. Retrieved August,4, 2011, http://hr.toolbox.com/blogs/musing-on-preemployment-screening/9-steps-if-considering-social-media-in-pre-employment-screening-45441

Sherwood, M (2011, March 21). Social Media in the Workplace: Pre-Employment Screening. www.unlaw.com. Retrieved August 4, 2011, http://www.uwlaw.com/articles/SOCIALMEDIAINTHEWORKPLACEPREEMPLOYMENTSCREEN.htm

Saper, D (2009, April 6). An Introduction to Legal Issues Surrounding Social Media. www.saperlaw.com. Retrieved August 4, 2011, http://www.slideshare.net/DaliahSaper/legal-implications-of-social-media

“The unexamined life is not worth living.” – Plato

Whether leading yourself toward a higher path, leading a family, community, congregation, or an entire organization, this is a good time to reexamine your leadership effectiveness. On a scale of 1 to 10, 10 being the highest, how would you rate yourself as a leader? Leadership effectiveness, what I like to call LQ or Leadership Quotient, is primarily determined by a combination of Physical Intelligence, Mental Intelligence, Emotional Intelligence, and Spiritual Intelligence. These four areas (Body, Mind, Heart, and Spirit) are essential toward the making of a whole leader. Let’s explore the key leadership factors that bring wholeness:
1. Inspire with Integrity (Spirit or Conscience)
2. Initiative and Innovation (Body and Mind)
3. Impactful Influence (Heart)

An easy way to remember this is LQ = 6I (Inspiration, Integrity, Initiative, Innovation, Impact, and Influence). This exercise will only take about fifteen minutes in which you answer some questions and honestly rate yourself on a scale of 1 to 10 for each factor.

1. Inspire with Integrity (Spirit or Conscience)
Are you energized with a larger than life vision or transcendent goal that serves the greater good and inspires others, or is your focus limited to only your own immediate needs? Are you aware of your highest purpose?
Great leaders subordinate their ego to their spirit or conscience by putting the needs of others before their own and finding a cause or purpose that’s greater than themselves. This gives a leader the moral authority to lead others.
On a scale of 1 to 10, rate yourself for * Inspiration _________
(*In my book, The Hero Soul, http://www.herosoul.com, pg. 117, I provide deeper reflections on ‘inspiration’).
Do your actions reflect your vision, beliefs, and values? Do you do as you say and honor your word? Andrew Carnegie once said, “As I grow older, I pay less attention to what [people] say. I just watch what they do.”
On a scale of 1 to 10, rate yourself for Integrity ___________

2. Initiative and Innovation (Body and Mind)
Once you know what your highest purpose and core genius is, how well do you execute on your vision and key priorities? Are you focused on doing the right things, what’s important, or are you spending too much time on urgent but not important activities and doing things right?
Leadership is about doing, taking initiative, and getting things done. Do you usually wait for things to happen and wait for others to initiate, or do you make things happen and initiate things on your own?
Additionally, the body is the temple of the spirit. Are you taking care of your body by exercising regularly and eating healthy so you have enough energy to take lots of action, or are you often succumbing to whims of the day?

On a scale of 1 to 10, rate yourself for Initiative ___________

Are you continually growing and innovating as a leader in the never ending pursuit of excellence, or are you settling for mediocrity by being comfortable with the status quo?
Are you using your creative problem-solving skills and imagination to become a change-agent by experimenting with new ideas, solutions, and technology, or are you continually in fire-fighting mode by being frequently blindsided with change?

On a scale of 1 to 10, rate yourself for Innovation ___________

3. Impactful Influence (Heart)
Are you reaching out to people and making an emotional impact in their lives? Are you getting to intimately know people in your circle of influence and taking the time to find out their fears, desires, challenges, and goals? Are you touching people’s lives by serving? The old adage, “people don’t care about what you know, until they know you care,” applies here.
The hero’s journey is about following your bliss and doing what you love doing in service to others. Interestingly, through the heart, by making an emotional impact in people’s lives and serving, the spiritual dimension is tapped. Rabrindranath Tagore once said, “I slept and dreamt that life was joy. I awoke and saw that life was service. I acted and behold, service was joy.” In other words, service is spirit.

On a scale of 1 to 10, rate yourself for Impact ___________

Finally, influence is a measure of your character that comes with time and experience. How wide and impactful is your influence? Are people seeking you out for your leadership, mentorship, and guidance? What is the quality of people you have attracted in your work and life?
We are in many ways the sum total reflection of the people in our circle of influence. Look around you. What type of people have you attracted in your sphere of influence? The majority of people you attract in your life, whether negative or positive, bright or ignorant, are mostly a reflection of your own character. If you’re not happy with the quality of people in your circle of influence, it’s time to work on yourself.

On a scale of 1 to 10, rate yourself for Influence ___________

After you’ve rated yourself for all six factors (Inspiration, Integrity, Initiative, Innovation, Impact, and Influence), add all the scores and divide by six. This indicator will give you a rough idea of your total LQ and where you need to make improvements. Make it a goal in this year to raise the bar in every category.
We have now come full circle in the leadership cycle starting with spirit (call it whatever you want) and ending with spirit; for everything rises and falls on leadership, everything comes from the spirit and returns to the spirit like the dust in the wind. Our highest purpose comes from spirit and returns to it in the form of service.

By subordinating our vision to the spirit, our conscience, our highest purpose is revealed. If you are not sure about your purpose, ask your higher self for guidance. A great way to do this is to ask a question before you go to sleep fully expecting an answer to be revealed in a dream or when you wake up. It might take several tries, but that’s okay, keep at it — and the answer will be revealed to you. A question you could ask might be, “What is my highest purpose?” or “How can I use my core genius to serve the greatest good?”

Nonfarm payrolls rose by a seasonally adjusted 54,000 in May. This is the smallest gain since September and a fraction of the 125,000 jobs expected by economists polled by MarketWatch.

That forecast had been cut in recent days as economists grew pessimistic after a string of disappointing data this week. Just a few days ago, economists were expecting jobs growth of 175,000 jobs in the month.

The official unemployment rate increased to 9.1% in May from 9.0% in April. This is the highest unemployment rate since December. Economists were expected a slight drop in the jobless rate to 8.9%.

“While one month does not make a trend and we are coming off three solid report payroll reports, today’s employment report not only confirms the recent softening in the economic data, but suggests that momentum is slowing sharper relative to market expectations,” said Neil Dutta, an economist at Bank of America Merrill Lynch.

The unemployment report adds to fears that the U.S. economy may have hit more than a soft patch and that a more protracted and dangerous downturn could be in the offing.

U.S. stocks traded lower on Friday, two sessions after the Dow Jones Industrial Average had the biggest one-month drop since July. Oil and silver futures also dropped.Read Market Snapshot.

Economists blamed the slowdown on higher gasoline prices and a slowdown in manufacturing caused by lack of parts from earthquake-wracked Japan.

“The deceleration in employment growth, together with a string of disappointing results on other indicators, calls into question the sustainability of the recovery,” said David Greenlaw of Morgan Stanley.

“However, we are still inclined to believe that this is a temporary soft patch reflecting supply chain disruptions, a spike in gasoline prices (which has been partially unwound), and weather-related influences.”

The government rejected the notion that deadly storms in the Midwest and the South played a role.

“We found no clear impact of the disasters on the national employment and unemployment data for May,” said Keith Hall, commissioner of the Bureau of Labor Statistics, in a statement.

Total payrolls were revised down by 39,000 for March and April. March’s gain was revised to 194,000 from 221,000, while April’s gain of 244,000 was revised to a gain of 232,000.

There was no sign that hiring at McDonald’s boosted payrolls. Food and drinking employment rose by 13,600 jobs in May after adding 28,000 workers in April.

“The breakdown of the leisure category suggest that the so-called McDonald’s effect was probably even smaller than the +25,000 or so that we had anticipated,” said Greenlaw.

A more detailed estimate for May fast food hiring will be available with a one-month lag, officials said.

The big picture

Stepping back, the economy has only recovered a small portion of the more than 8 million jobs lost during the recession.

Even before today’s disappointing number, the pace of job growth had not been sufficient to make a meaningful dent in the unemployment rate.

The problem of long-term unemployment continues to fester.

The number of unemployed workers out of work for 27 weeks or more rose to 6.2 million in May, or 4% of the labor force.

The labor force participation rate has held steady at 64.2% since January.

The underemployment rate, which includes part-time workers seeking full-time work, slipped to 15.8% in May from 15.9% in April.

Details

Details of the May report just added to evidence of a sharp deterioration in labor conditions.

Employment in the private sector was up by 83,000 in May, down from an average 244,000 gain in the prior three months.

The government sector shed 29,000 jobs in May, the seventh straight month of losses.

Services sector employment slowed to a gain of 51,000 in May from 194,000 in April.

Average hourly earnings increased 6 cents, or 0.3% to $22.98. Economists had been expecting a 0.2% gain. Earnings are up a slim 1.8% in the past year.

This shows that workers do not have a lot of spare cash as they grapple with higher prices at the pump.

The average workweek was steady at 34.4 hours. The factory workweek rose 12 minutes to 40.6 hours while factory overtime was unchanged at 3.2 hours.

“The only good news in the report was some upside in hours worked which points to a decent rise in wage income and a sharp jump in manufacturing output,” said Greenlaw of Morgan Stanley.

…The news sources used on Schwab.com come from independent third parties. Schwab is not affiliated with any of the news content providers. Schwab is not responsible for the content, and does not write or control which particular article appears on its website.

In today’s rapidly changing business climate, efficiency and effectiveness are crucial to your organization’s survival. This means you must have the right person for the job—any job—whether that job is temporary or permanent. America’s staffing companies can help you find the best talent—for any job—when you need it.

Today’s staffing employee might be a highly trained nurse at one of our nation’s finest hospitals, or a lawyer researching a big case. He could be a skilled technician, engineer, project manager, or scientist. She could be a truck driver, administrative assistant, medical technician, accountant, or architect. And he or she could be an interim CEO or CFO for a company in transition.

Staffing firms nationwide collectively employ an average of 2 million workers daily across all industries, providing work force flexibility and access to talent to businesses like yours. They also offer competitive wages and benefits to attract the best talent, and provide free training to millions of temporary, contract, and permanent employees each year.

How do you, as a business owner or executive, stand to gain? According to a major survey conducted for the American Staffing Association, companies use staffing employees for two principal reasons: flexibility and access to talent.

You’ll Profit From Work Force Flexibility
Nine out of 10 business customers rated flexibility as an important reason to use staffing companies, saying it keeps them fully staffed during busy times. Whether it’s a temporary job lasting a few hours or several years—or a permanent job placement—America’s staffing companies allow businesses to adjust their work forces to meet their ever-changing needs.
There are three main types of job placements in the staffing industry:

■Temporary or contract, where you add a staffing employee on an interim basis
■Temp-to-perm or temp-to-hire, where you add a staffing employee until you’re sure a spike in business will sustain itself or you want to make sure you have the right candidate for the job—if so, he or she becomes your employee
■Direct hire or permanent, where you tell the staffing firm what you’re looking for, it selects candidates for interviews, and you hire the best one
You’ll Enjoy Access to First-Class Talent
A staffing company not only offers you work force flexibility—it can provide you with specialized skills for a particular project. If you need a lawyer specializing in tax law, for example, a few calls to staffing firms in your area may fill your need. In addition, these firms can serve as deep recruitment pools for your permanent hiring. In fact, eight in 10 business customers say that staffing companies are a good way to find potential permanent employees—and industry research indicates that three out of four customers rank the quality of the employees they get from staffing firms as good as or better than their own employees.
You’ll Save Time, Money, and Worry
Consider this scenario: You’ve just realized you need to comply with the Sarbanes–Oxley Act, a recently enacted law requiring businesses to adhere to strict accounting practices. What do you do? You can develop compliance solutions yourself and hope they work. But if not, what then? Hire consultants or contract the work out at a significant expense? Remember, this expense is in addition to the man-hours already invested in the project.
Why not reach out to a staffing firm and bring in senior accountants and auditing specialists specifically to manage compliance with this law? Since these accountants have already been working on Sarbanes–Oxley, they know the new law from top to bottom. Time and resources are not wasted on false starts or missteps. And you might gain some valuable new permanent employees.

Determine the Type of Staffing Help You Need
OK, you’ve decided to use a staffing company. First, you need to choose a staffing firm that specializes in your industry or type of operation. Figure out if you need staffing employees for a one-shot deal, a long-term assignment, or a permanent job placement. Also, if it’s a permanent position—or likely to become one—find out if the company will let you submit interview questions for job applications and participate in the selection process.
Shop Around
There are thousands of staffing firms out there, from small operations to large multinational firms. Use the Internet to visit various Web sites. Check out several companies and ask for references. Ask about their fees; the turnover rate among account executives, office staff, and staffing employees. Make sure the firm will visit your premises to get a feel for your corporate culture, meet supervisors face to face, and learn details about the jobs that need filling. If you’re staffing a major project or function, expect a thorough review and presentation.
Also, find out if the staffing firm is an ASA member. These members represent 15,000 offices and branches nationwide, have agreed to conform to the industry’s highest standards, and are up-to-date on all the latest human resources developments and trends. Find a Staffing Company will help you select an ASA member that offers the services and skills you need.

How Was Your First Interaction With the Companies You Contacted?
Their Web sites should be informative, up-to-date, and easy to use. Telephone or e-mail the companies to get your first clue as to their business styles. Remember, staffing firms are employers. Their management practices greatly affect the quality of the employees who come into your offices—on a temporary or permanent basis. Staffing firms recruit, hire, and train their staff, so make sure you are dealing with a professional, capable organization.
How Well Run Is the Organization?
This will reflect the quality of help you receive. Ask how long the company has been in business in your area. Call references. Ask how satisfied they were with the employees at the staffing company as well as with the workers assigned to their organization, whether temporary or permanent.
How Does the Company Recruit and Retain its Qualified and Reliable Work Force?
Get details. See ads. To what extent are its techniques passive or active? What kind of a database does it maintain? For temporary and contract positions, consider whether the firm’s compensation and benefits are competitive to attract the type of workers you need. A more complete benefits package often attracts a better-quality worker. Also, ask about the firm’s turnover rates.
How Are Potential Staffing Company Employees Screened and Tested?
Many staffing companies give their employees initial “skills tests.” Some provide specific skills training, such as software tutorials in PowerPoint, Word, and Excel, and educate them on how to behave at businesses such as yours. This will help you greatly in determining the “quality” of worker you receive. In addition to skills testing, find out if the staffing firm conducts background checks and drug tests.
Does the Company Fully Understand Your Needs?
Get the most appropriate temporary or permanent person for the position. Make sure the company has an extensive database of available workers. This will help you get the right person for the job in a timely manner. If you need several jobs filled, ask the firm to help you determine the number of employees you should bring on board. Also, find out how to reach the company after regular business hours in case of an emergency.
Remember
The critical element in your relationsship with a staffing firm is the quality of temporary employees and job candidates you receive. Reliance on a reputable and capable staffing company can be an important management tool for your business. A little investigation and observation beforehand can save you time and money and result in a long-lasting business relationship.