A couple of months ago, we explored whether it can hurt business when an executive vocalizes a controversial opinion (TradePost, 3/27/13). By and large, we found that it has not negatively impacted that company's bottom line in the past. However, we may have just found the exception with Mike Jeffries of Abercrombie & Fitch (A&F), which has recently experienced a media backlash as words from his 2006 interview with Salon magazine have resurfaced.

Jeffries has worked wonders for A&F's bottom line since joining the company in 1984. He is referred to as a creative, yet business-minded individual with style and drive, and he is considered largely responsible for the company's impressive rise from a small clothing brand to one of the most popular lifestyle brands. The company's success, according to Jeffries, can be attributed to the fact that it has remained a highly exclusionary brand, openly targeting only thin and attractive consumers. The brand does not produce women's clothing above a size Large, and they only produce above men's Large to accommodate muscular athletes. He also notes that they hire good-looking people to work in their stores in order to attract other good-looking people as customers. Said Jeffries in the Salon interview:

"In every school there are the cool and popular kids, and then there are the not-so-cool kids. Candidly, we go after the cool kids. We go after the attractive all-American kid with a great attitude and a lot of friends. A lot of people don't belong [in our clothes], and they can't belong. Are we exclusionary? Absolutely."

Uproar over A&F's exclusionary philosophy is nothing new. In 2005, the retailer settled a $50 million class action lawsuit with minority applicants and employees who claimed they were discriminated against during hiring and placement. Six years later, the company offered Mike "The Situation" Sorrentino, of Jersey Shore fame, money to not wear its clothing for fear his image would tarnish A&F's brand.

Though these two incidents were very much in the limelight (the lawsuit filing even prompted a featured report on CBS' 60 Minutes in 2003), the recent controversy seems to have inspired more vitriol from journalists, bloggers, and celebrities due to the viral spreading of the interview across social media. Many customers are even mailing back their previously purchased A&F items and are calling for a boycott of the company. Others are donating their used A&F items to the homeless to ensure they are seen on those Jeffries would exclude from his "cool kids" club.

While Jeffries' comments are certainly unsettling to many, some have called into question the similarity between this company and others, such as plus-sized or big & tall retailers, or those that target specific ethnic groups (Medium.com, 5/8/13). While these comparisons seem perfect on the surface, it is the reasoning behind the business plan that makes the difference here. No mainstream store that markets to larger or ethnic consumers has tried to exclude other consumers on merit; they market to their chosen demographic on the basis that their needs and wants are underrepresented in other stores.

While all companies have a target demographic, the fact that A&F purposefully excludes many shoppers sets it apart. Not only are larger people unable to shop there and are alienated without choice, but those consumers that belong to Jeffries' "elite group" may be sympathetic toward those who don't fit the bill, thus alienating a possibly significant portion of his target demographic. Arguments about weight and attractiveness have changed in recent years in order to offer a more inclusionary view of people, and acceptance of people's differences is becoming an important quality to possess.

It is yet to be seen if this recent publicity concerning Jeffries' seven-year old interview will pose a problem for the company's profits, but it can be inferred that sales will likely drop due to the fact that many people, whether or not they belong to the groups that can shop there, do not appreciate such a negative attitude toward a large portion of the public.

Readers: Would you continue to shop with Abercrombie & Fitch if you fit into their clothing?

This entry was posted on May 23, 2013 at 11:30 AM and has received 141 views. There are currently 0 comments. Print this entry.

Many newsworthy topics are on Americans' minds as they watch legislators in Washington hash out their differences over such topics as immigration and budget and spending cuts. One piece of legislation, the Cyber Intelligence Sharing and Protection Act (CISPA), promises to have far-reaching effect. The bill has only passed the House of Representatives thus far and has a long way to go before earning approval of the Senate and the White House; however, the fact that it is being pushed and backed by many begs the question of whether or not this will be the first large piece of legislation leading to a world where the line between the public and private sectors is no longer easily defined.

CISPA is a bill that was introduced last year as a bipartisan effort to be able to target cyber terrorists. The concern is that other countries seeking to harm the United States have now taken to computer hacking as a way to hurt the economy and obtain information. CISPA would allow technology and manufacturing companies to share user information with the government, and vice versa, in the event of a possible national security threat. The National Security Administration would ask for user information from relevant corporations, who would turn it over without due process. The bill would also trump any other privacy laws, making all user information available to the government without the user's consent, or even knowledge.

Many groups, notably the ACLU, have expressed concern that the bill is far too broad. The ACLU claims that CISPA violates the Fourth Amendment since companies would not be required to anonymize the information, and it would be collected by the government without following proper search and seizure processes. (The government would be required to anonymize user information when sharing it with private companies.) The White House also states that the bill will be vetoed unless the vague language concerning privacy is amended before passing through the Senate.

Although this bill has a long way to go before becoming a law, it is well on its way since most large tech companies actually support it, including Microsoft, IBM, and Apple, among others. This is due to the fact that these companies all have to monitor their own users and deal with security threats, which is highly expensive. CISPA would effectively place much of this burden on the government.

While the chief concern of the White House and groups like the ACLU is privacy for Internet users, especially law-abiding citizens, there is another concern possibly being overlooked by those arguing over this bill. CISPA blurs the line between the public and private sectors. So far, private companies would only have to turn over user information willingly, but if CISPA passes, how long will it be before the government makes this transfer of information mandatory in the interest of "national security?"

Although there are laws that regulate parts of private industries for the safety of the American people, CISPA may be one that digs too far into user privacy, possibly leading to complete control by the State. It could also lead to laws enacted within other industries in the interest of anti-terrorism. The fact that it overrides any other privacy act and clause used prior to its passing is a sign that this may be a piece of legislation that cannot be reversed if later found to be too invasive to the privacy of Americans, and it could set us down a road toward a fully government-controlled economy and society.

Readers: Are you worried that the passage of CISPA will overly blur the lines between the public and private sectors?

This entry was posted on May 9, 2013 at 8:00 AM and has received 310 views. There are currently 0 comments. Print this entry.

This morning, the Bureau of Labor Statistics released the April Employment Situation Summary. This report showed that unemployment has fallen again by 0.1%, bringing the United States to 7.5% unemployment. This change, though small, is a continuation of a downward trend over the past several months. The long-term unemployment rate fell from 39.6% of the total unemployed to 37.4%.

Total nonfarm payroll added 165,000 jobs in April. The industry that added the most jobs was professional and business services at 73,000. Professional and technical services also added 23,000 jobs. Food services and drinking places added 38,000 jobs in April, rising far above the monthly average for the industry, which is 25,000. Retail services also rose by 29,000 jobs. Health care added 19,000 jobs. Several industries showed almost no change, including construction, manufacturing, mining and logging, wholesale trade, transportation and warehousing, financial activities, and government.

The staffing industry added 31,000 jobs in April, which was 7.4% higher than in April 2012, showing that employers are leaning more toward temporary solutions over the last year.It is also estimated that the staffing industry is responsible for adding 59,400 new jobs since March.

The average hourly wage rose by 4 cents to $23.87 in private nonfarm payrolls. Also, the Dow is up 1.2% to 15,006.56. Not only has the job market seen these increases, but the adjusted data from February and March added 114,000 jobs to the previously estimate data over the two months. While many have questioned whether or not the economy has really been in recovery over the last several months, it is now clear that the U.S. economy is expanding.

This entry was posted on May 3, 2013 at 11:30 AM and has received 142 views. There are currently 0 comments. Print this entry.

Being healthy at home and in one's personal life is becoming one area of focus for many companies across the United States. However, we often forget about keeping ourselves well throughout the working day. With an estimated $576 billion lost in the U.S. economy due to illness, disability, and workers' compensation (Forbes, 9/12/12), the need for staying healthy at work is at an all-time high. We have some tips for staying health-conscious in the workplace.

Take breaks. Stress causes an incredible amount of illness and can also distract workers, making workplace injuries much more likely. Taking a breather between projects will also boost productivity. Take a quick walk outside or lay your head down for a moment in order to reduce workplace stress.

Eat healthier and drink water. It is very easy to hit your favorite burger joint at lunchtime or even to skip lunch due to a heavy workload. However, these habits cause our bodies to function poorly, effectively lowering productivity. That extra time you spent at your desk without eating a proper meal can slow you down for the rest of the afternoon. Drinking lots of coffee and sugary drinks at work can also make your work suffer when you crash. When your body is working well, your work will improve greatly.

Get enough rest at night. A huge loss in productivity is caused by presenteeism, the concept that people are at work but are not working to their full potential due to exhaustion, illness, or other problems. Getting enough sleep at night can improve health, help you lose weight, and improve focus dramatically. You will feel less stressed and will be able to accomplish more on a full night's rest.

Keep your work area clean. Germs are everywhere and are very easily transferred. Keep hand sanitizer at your work station as well as some antibacterial wipes that you can use to clean up at least once a month. Your mouse, keyboard, and phone can harbor contaminants, and wiping them clean from time to time will help to keep preventable sicknesses away.

Stay home when you are not well. If you are sick, coming in to the office can be a catastrophe, as you can infect the rest of your colleagues. It is tempting to come in to work and suffer through the day so as not to fall behind or use up valuable sick days, but this is inconsiderate and will end up reducing your team's productivity in the long run, as more people could miss days from catching your illness. Take the time to get better at home.

Managers should be aware of the various pitfalls at work that can lead to an unhealthy staff. Encourage your team to have healthy habits and give them some slack to be able to take the time they need to be well. This will cause productivity to soar and will lead to a happier staff that will work well together and have less unnecessary stress.

Readers: What measures do you take to remain healthy during your work day?

This entry was posted on April 18, 2013 at 8:05 AM and has received 306 views. There are currently 0 comments. Print this entry.

In last week's TradePost, we discussed the Affordable Care Act (Obamacare) and how it affects American businesses of all sizes (TradePost, 4/4/13).

This week, we'll focus more on those businesses that have more than 50 full-time-equivalent employees on the payroll and the way they can mitigate the financial and administrative burden posed by the legislation once the "pay or play" election requirements take effect on January 1, 2014. Under Obamacare, those companies will either have to offer expensive health care coverage to their employees or pay a $2,000 - $3,000 fine (after tax) per employee.

Experts agree that the best strategic solution can be summed up in two words... temporary staffing.

On a recent episode of his CNBC show Mad Money, financial analyst Jim Cramer noted that the demand for temps is mushrooming, "fueled in part by the pending implementation of Obamacare." He says:

"Businesses of all sizes are searching for ways to cope with this law, and the easiest way to avoid paying these expenses is to hire more temps."

It's a matter of math. To avoid the Obamacare penalties, or the requirement to provide health insurance to all its employees, companies can shed its employees and hire temporary workers through a staffing firm -- enough to lower their direct payroll to under 50 full-time employees.

Similarly, large employers can hire temps instead of full-time employees to perform work; the costs of paying a staffing firm's bill rate are usually significantly below the high costs of providing health insurance for employees, especially since health insurance costs are projected to increase by 8% next year, according to Milliman Medical Index.

According to Cramer, "Companies need to start making their adjustments now," due to the 12-month look back (measuring) period that starts on January 1, 2014. Not only will costs start to increase on that date, but heavy expectations for administrative reporting and compliance will take effect as well. The American Action Form estimates that the new law will create 111 million hours of paperwork burden in first three years (The Hill, 3/25/13).

The Select Family of Staffing Companies has studied the potential effects of the Affordable Care Act carefully. With 350,000 employees W-2d last year, Select has a strong vested interest in understanding how this legislation will impact its clients. Your Select representative will gladly discuss the practical and strategic steps your business should be taking now to position yourself for full compliance and minimization of financial exposure. To have someone contact you about what your company can do, please email us at tradepost@selectfamily.com.

Readers – will you add temps to your staff or offset your current staff to a temporary agency to mitigate the financial burden of the Affordable Care Act?

This entry was posted on April 11, 2013 at 7:46 AM and has received 851 views. There are currently 0 comments. Print this entry.

The March Employment Situation Summary, released from the Bureau of Labor Statistics this morning, shows that the unemployment rate in the U.S. has remained mostly static, falling only 0.1% from 7.7% to 7.6%. This leaves 11.7 million Americans unemployed, a number that has hardly changed since February.

The number of long-term unemployed dropped slightly from 4.8 million to 4.6 million, and those make up about 39.6% of all unemployed people. The number of nonfarm jobs increased by 88,000 over the month.

Professional and business services added 51,000 jobs, while accounting and bookkeeping services added 11,000 jobs; 23,000 health care jobs were added over the month, and construction added 18,000 jobs. Retail jobs fell by 24,000 over the course of the month, as well as a decline of 12,000 jobs for the U.S. postal service. Meanwhile, temporary help services have continued to show a slight upward trend across all industries, adding 20,300 new jobs this month (up 0.8%).

Average hourly earnings across the private sector have changed very little, and the average hours per work week across all industries have remained mostly unchanged. The very small amount of growth across all industries indicates that March has been a month of very little change to the job market and wages.

This entry was posted on April 5, 2013 at 11:45 AM and has received 227 views. There are currently 0 comments. Print this entry.

The Affordable Care Act (ACA), also known as "Obamacare," has been on the minds of Americans since its introduction into law in 2010. Business owners are especially concerned with the implications of this legislation and the new costs associated with it. Still, there remains confusion and debate over exactly what the changes will mean for U.S. businesses. As a result, in this week's TradePost, we have highlighted the major changes associated with the ACA that relate to businesses both small and large.

Many provisions in the ACA benefit small businesses so that they have the ability to offer insurance plans to employees for prices comparable to larger plans, which are often discounted by insurance providers. Perhaps the most notable is that in 2014, the Small Business Health Options Program (SHOP Exchange) will be available to small businesses who would like to compare plans and offer the most affordable coverage to their employees. This program offers a way for small businesses to shop for the best plan for their businesses. States must provide this program by 2014, or the federal government will do it for them. Also, tax credits will also be available to small businesses in order to offset the high costs of coverage for small employers.

So what constitutes a small business? According to the ACA, a small business is defined as having up to 50 full-time employees, or having the equivalent of 50 or fewer "full-time equivalent" employees (the total hours among all full- and part-time employees equals the amount of hours worked by 50 full-time employees).

On January 1, 2014, larger businesses, those with over 50 full-time equivalent employees, must be ready to either PAY (a penalty for each employee left uncovered) or PLAY (and offer health insurance to each full-time employee). Businesses who "pay" will be fined $2,000 per employee after the first 30 employees. Those who "play" must offer insurance that covers at least 60% of the cost of services while ensuring employee premiums do not exceed 9.5% of the employee's household income. If this standard is not met, employees may receive a tax credit to help cover the cost of the insurance offered, which the employer will have to subsidize by paying $3,000 per employee or the $2,000 fee per employee after the first 30, whichever is less.

Many businesses are concerned about the financial and administrative ramifications of complying with Obamacare. Some have announced plans to cut their workforce and/or cut back employees' hours, effectively underemploying many people and making it difficult for them to afford insurance for themselves and their families. These are debates that are still being argued in Washington and beyond.

What strategy works best for your business? Please join us again next week as we will discuss strategic plans for implementing the Affordable Care Act.

Reader Question: Does your business have a firm plan in place to implement the Affordable Care Act?

This entry was posted on April 4, 2013 at 8:00 AM and has received 1145 views. There are currently 0 comments. Print this entry.

Most companies already know that job seekers are increasingly heading to social media sites in their efforts to find employment and learn about potential employers. Most are also already starting to capitalize on this new method of interacting with candidates. This trend is changing the way many businesses recruit talent, and recruiters are building more of a presence on social networking sites. More business owners and managers are embracing social media as part of the hiring process due to the large amount of job seekers using social media as a research method.

As social networking has become a large part of many people's lives over the past few years, managers have noticed that it is a distraction at work and have often set forth policies that limit the use of social media sites during work hours and on company computers. This is understandable considering all of the self-professed social media addicts. However, many companies have allowed employees to continue use of these sites for business purposes, especially for recruiting.

Where are businesses drawing the line? Many only allow their marketing and recruiting teams to use social networks in order to build brand visibility and draw in candidates, while some also allow their sales managers to network with potential clients. When properly used, social media can build a strong presence for companies and bring in candidates and consumers alike. It is also an important extension of your customer service, as consumers frequently air complaints on social media sites, and your company needs to be there to respond to them. (Complaints on the Internet often provide the best opportunities for positive public relations – if handled correctly.)

Since it is tough to set clear guidelines that distinguish how much time and energy should be spent on social networking, many have decided that hiring so-called "social media experts" is the most effective way to go -- so long as the position and its objectives are fully defined (Forbes, 3/20/13).

As such, companies are expanding their marketing teams to build presence on multiple social platforms for the company, as well as to interact with followers and stay current with emerging trends for online marketing. In fact, there is such an uptick in the number of social media jobs available that several job boards have been launched to house opportunities solely in this area. Also, a recent search for the "social media" keyword on CareerBuilder.com returned nearly 6,000 open positions nationwide.

Forbes recently highlighted the increased adoption and endorsement of social networking tools by executives (Forbes, 12/11/2002), while a survey from the American Marketing Association showed that social media was the area in which organizations will increase their focus in 2013 – by 35% -- 10% higher than the next highest area, mobile strategies.

Most companies have some sort of social media presence, and the number is expected to jump in 2013, which means many companies will either revamp their policies regarding social networking, or may even considering hiring an expert to manage the company's reach, potentially tapping into a huge online community in order to boost business this year.

Reader Question:What is your company policy regarding the use of social networking sites?

This entry was posted on March 21, 2013 at 10:00 AM and has received 516 views. There are currently 0 comments. Print this entry.

The February Bureau of Labor Statistics Employment Situation Summary, released this morning, indicates that the U.S. unemployment rate has fallen from 7.9% to 7.7% -- reaching the lowest level since December 2008.

Commenting about the report, Alan Krueger, chairman of the White House Council of Economic Advisers, said: "While more work remains to be done, today's employment report provides evidence that the recovery that began in mid-2009 is gaining traction."

An estimated 236,000 nonfarm jobs were added to the economy. The long-term unemployed rate rose only slightly from 4.7 million to 4.8 million, making up about 40.2% of unemployed people.

The job gains were fairly broad across many industries. Among those that added the most jobs are professional and business services (+73,000), construction (+48,000), and administrative and support services (+44,000). Health care also added 32,000 jobs.

Staffing firms also added 16,000 new jobs, which is up by 0.6% since January. Other industries added jobs similar to this number, making February a month of growth across the board.

This entry was posted on March 8, 2013 at 10:33 AM and has received 781 views. There are currently 0 comments. Print this entry.

Training a new hire is one of the more difficult tasks managers face. Whether they are in desperate need to fill the position or they simply have a lot on their own plate, taking the necessary time for training often gets put to the side.

As a result, managers find themselves in a position of high turnover or with an employee who lacks the necessary skills and knowledge to do his or her job. When bringing someone new on board, it’s critical to take time to prepare them for their position. It will also surely save you lots of time and heartache in the long run.

Below are a couple of tips for integrating new employees so they become a valuable part of your company.

Develop an Employee Manual

An employee manual is a must-have for every position and is also a great place to start with a new employee. This manual documents every responsibility that a position entails and lists the necessary procedures, resources, and technical information someone needs to succeed in a position. Basically, this manual should be written so that someone new can come into a job and know exactly what to do and what is expected.

It’s important to keep in mind, though, that every position evolves and acquires new tasks or a better way of doing things. So in order to make the manual successful, it’s important that it is regularly updated.

Have the New Hire Shadow a Tenured Team Member

When bringing someone new onboard, it’s ideal to have them shadow the person they are replacing or someone in a similar position (if this isn’t possible, then have them shadow an employee in the same department). This allows them to get a feel for how a job is done, gain a sense of the work atmosphere and culture, and gain hands-on experience for the position they are about to take over. Encourage them to carry a notebook and write down important observations and details they see. This will help them capture the small, important details that might not be documented in the employee manual.

Introduce the New Hire Around

From Day 1, walk around with the new hire and introduce them to everyone on the team individually. Allow them to get familiar with the office layout, who they will be collaborating with, and how the business is run. This is a must for building a team that is cohesive, successful, and works together.

Make Yourself (or Someone) Available for Questions

Whether it’s you or another person in the department, make sure you delegate the “go-to” person that will be open and available for the new hire to ask questions. It’s important that they know who they can go to when they need information and guidance during their transition.

Encourage Questions

Often, when a person is new to a position, they feel the pressure to jump right in and know how to be self-sufficient right away. By encouraging them to speak up when they do not know something, it fosters learning, creates open communication, and prevents a lot of mistakes that could arise.

Readers: What other good training tips can you offer up?

This entry was posted on February 21, 2013 at 7:55 AM and has received 773 views. There are currently 0 comments. Print this entry.