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Navigating a Dying Industry

By Business Protection Bulletin

bb-0316-1Now and then, we need to take a look at our industries and ask ourselves what the landscape is going to look like in five more years. Business protection can protect us against unforeseeable losses, but it’s not much help when there’s no business left to protect. Recent developments like 3D printing, the Internet of Things and Web 2.0-enabled innovations mean that more industries than not are changing shape. Whether your industry is dying, or simply suffering from a shrinking market, it’s worth planning for that future. You have a few options for adjusting to an industry whose future does not look bright.

Going Niche

If you look at the market for coffee right now, whole bean sales make up around a tenth of all sales, and that number is shrinking. This is in part thanks to coffee pods, which most people simply find more convenient than grinding and brewing their own coffee. Single-serving coffee doesn’t taste as good and doesn’t give you many choices for how you’d like to brew it if you prefer Turkish coffee or you boil it cowboy style or make your own espresso, but the average consumer simply doesn’t care.

This sounds like bad news for coffee bean sellers, certainly, but, people who like to grind their own coffee will always exist. We’re seeing a mass market becoming niche, and to the right entrepreneur, that is a golden opportunity. Customers in niche markets are willing to pay a premium price, and they spend a lot more time talking about their favorite products than do casual users who are looking only for convenience.

Diversifying

Expanding your brand into related or even unrelated industries can help you to maintain what you’ve built and use it to give you some momentum as you explore other avenues. Off the top of your head, you can probably name a dozen superheroes, but when was the last time you visited a comic book shop? A brand is more than its product. If movies ever suffer the same decline in popularity as comic books have, then Marvel will put more attention into producing television and video games. If you run a successful business, it’s because the market has put some faith into you. Will your customers follow you into another field?

Selling Out

Finally, you can simply sign the business over to the top bidder. There’s really no shame in selling a business if you’ve decided that you’d rather simply cut and run and build something new rather than try to make it work in an industry that isn’t likely to bounce back any time soon.
Source http://www.bloomberg.com/news/articles/2015-04-15/the-coffee-revolution-is-just-too-efficient-for-hurting-farmers

Corners You Can’t Afford to Cut

By Construction Insurance Bulletin

con-0316-4In any line of work, you’re going to learn some shortcuts. Pick up a comic book, for instance, and you’ll find that many artists simply trace backgrounds and complicated objects from Google Image search results. Go see a movie and you’ll find that they reuse the same stock footage of explosions, car chases and airplanes taking off from movie to movie. It’s simply easier and cheaper than producing new work from scratch.

Here’s the key difference between the shortcuts that you can afford to take, and the shortcuts that you can’t: With the former, there’s no real risk of anyone getting hurt.

Climbing a ladder with an armful of tools is quicker than hauling them up after you in a bucket, but it’s not safe, and it’s not going to look good on an insurance claim. The truth is that most shortcuts that you could take on a construction site are shortcuts that you absolutely shouldn’t take. Especially these ones:

“I Don’t Need A Crew For This”

You’re touring the job site after hours, maybe doing a little last minute clean up or picking up something you forgot earlier today. You notice that your team left the roof just a few tiles short. Your first instinct might be to take two minutes out of your day and get that finished now instead of having to go up there in the hot afternoon sun the next day. This is a simple task that doesn’t exactly require a three man team, but the crew isn’t just there to get work done, they’re also there to make sure that there’s a trained team to respond should you fall off the roof. You really shouldn’t be working any job site without at least bringing along a friend who can help you out if you get hurt, no matter how simple the task seems to be.

Inadequate Tools and Materials

You’ve probably seen people using the back end of a hatchet as a hammer, or using nails where a screw is needed. Using inadequate tools and materials isn’t only a recipe for disaster, it’s not that good of a shortcut, either. Would you honestly rather take out two dozen old screws with a claw hammer than with a power drill?

Skipping Any Safety Protocols, Period

Maybe you’ve been welding without a mask for years without incident, and maybe you feel that an injury suffered on the job would have turned out the same whether or not you’d been wearing a mask. The problem is that nobody else is going to see it that way when you file your insurance claim. Safety protocol is there not only to protect you, but to make sure everyone is on the same page so that we can rule out negligence.

Source

http://ehstoday.com/blog/safety-shortcuts-longest-distance-between-two-points

The Worst Construction Mistakes Ever Made

By Construction Insurance Bulletin

con-0316-3Forgetting one hurricane tie before drywalling probably isn’t going to see a house going up in a tornado like in The Wizard of Oz. Some mistakes aren’t that big a deal. Others… well, here are some of the biggest mistakes ever made in construction, engineering and architecture:

The Aon Center

The Aon Center, completed in 1973, was known for its beautiful exterior made of Italian Carrara marble. A fetching addition to the Chicago skyline, it turns out that there’s a reason they don’t use Carrara marble on most buildings. It’s a very thin material. Just one year after the building was completed, pieces started to crack and fall off, one of them smashing through the roof of the nearby Prudential Center. Replacing the exterior with granite cost over $80 million. There’s something to be said for using the right materials the first time.

NASA and Lockheed Martin’s Mars Orbiter

Long story short: in 1999, Lockheed Martin used the English system of measurement on a project with NASA, while NASA used the metric system. The Mars orbiter was then unable to transfer its coordinates to the lab in California. Now there’s a $125 million chunk of useless metal floating around the galaxy. You might not be building a satellite any time soon, but it’s important to get on the same page with your crew and your client when it comes to how many inches are in a meter.

Vdara Hotel & Car Dashboard

The Vdara Hotel & Spa is a classic example of a designer putting form before function. All those reflective surfaces on the windows surrounding the pool looked absolutely stunning, but at mid-day, they created a sort of magnifying-lens-on-an-ant effect, scorching people in the swimming pool and turning the whole area into a car dashboard on a Summer afternoon. One man even claims to have had some hair singed right off his head while going for a swim.

Piper Bravo Oil Rig

The smallest mistakes can have major complications. The Piper Bravo Oil Rig exploded, killing 167 people, simply because safety inspectors forgot to replace a single safety valve after a routine check of the rig. The repairs cost more than $3 billion in 1994 USD. This is something worth thinking about the next time a worker decides that he doesn’t need to wear his goggles if he’s only going to be using the table saw for a couple minutes.

Source

http://www.businessinsider.com/worst-mistakes-in-history-2011-4?op=1

People You Don’t Need On Your Crew

By Construction Insurance Bulletin

con-0316-2It’s an uncomfortable truth of construction jobs that it’s better to put a start date off for a couple of weeks than it is to move forward with a crew that isn’t quite up for the task at hand. There are some people that you’re just better off not hiring.

Substance Abusers

There’s a big difference between substance use and abuse. There are people who drink at the end of the day, people in Colorado who smoke pot on weekend, and of course, a lot of us in construction can’t live without coffee and cigarettes. The difference between use and abuse is whether or not it’s affecting your daily life. You don’t need someone showing up for work drunk and trying to operate heavy machinery when they can’t even stand up straight. It’s simply not worth the risk.

The Exceptionally Inexperienced

Most people in construction didn’t attend a university to learn how to operate a screwdriver. In this industry, we do most of our learning on the job. Most of your gofers, for instance, are probably working their first professional construction job, or at the very least, they haven’t been paying their rent on construction sites for more than a year or two. What you don’t need, however, is a bunch of employees who have never so much as replaced a doorknob without calling in a professional. Even the lowest ranked new hires on the job should at least know the difference between a Philips and a flathead.

The Totally Disinterested

Having one or two part-timers on staff is fine. Extra hands on deck are never a bad idea. The problem is when you have too many people who are just not that interested in the work up and quitting on you all at once, leaving you short-handed and unable to complete a job on time and under-budget. There are day labor agencies to help you out in these scenarios, but it’s easier when you know the people you’re working with, and you don’t have to leave the house an hour early in the morning to replace the guys who quit yesterday, or worse, just plain stopped showing up one day.

One of the great things about running a construction site is that there’s always work to go around, it’s a great industry for giving opportunities to young people who don’t have advanced degrees or a lot of on-the-job experience. With time it becomes easy to tell the people who appreciate that opportunity apart from the ones that don’t.

What You Need To Know Before Setting Foot on a Construction Site

By Construction Insurance Bulletin

con-0316-1So you have some people coming to visit the site, and they have zero experience on construction jobs. How do you make sure that they stay safe while touring the facilities? Here are some tips:

HARD HATS AND GOGGLES

Make sure anyone visiting the site is fitted with hard hats and goggles and that they understand the importance of proper safety gear. These can make the difference between a funny story and a lawsuit that puts your client out of commission.

WHAT TO COVER IN A SAFETY BRIEFING

Different points will vary from site to site, but there are a few basic points that are pretty universal:

-Stay with your guide.
-Don’t touch anything unless it’s a handrail.
-Don’t lean on anything.
-Here’s where we keep the first aid kits.
-Keep long hair, loose clothes and shoelaces tied and tucked.
-The bathroom/portable toilet is right over there.

As long as you’re escorting normal people and not the Three Stooges around a job site, then these points should be enough to cover most work stations.

OFF-LIMITS AREAS

You really don’t want anyone who isn’t working on the job to be around live, exposed wires, walking through confined spaces, or climbing ladders and navigating scaffoldings. Let your visitors know where they shouldn’t be, and plan your tour of the site around these areas, not through them. If they absolutely need to check out one of these areas, there’s always a safe alternative. You can send them photos, or let them look at it from a safe distance.

KEEP IT BRIEF

Construction sites are a high-risk environment. People who work in construction know the risks and have spent their entire career learning to better navigate the dangers of a job site. Your visitors have not. You don’t want to rush people along, but keep the tour going at a brisk pace, have them ask questions after the walk-through, and don’t keep your visitors in the danger-zone any longer than absolutely necessary.

Some construction professionals would rather just not have any visitors at all, under any circumstance, and ideally, that would always be an option. But, sometimes a client wants to see what their new living room is going to look like, or the architect needs to give some notes. It would be safest to have nobody on the job who isn’t working there, but when that’s not an option, make sure your visitors know the basic safety procedures.

How to handle the Office Bully

By Your Employee Matters

em-0316-4Bullying happens everywhere, including the office. People who are bullies may act that way out of habit or to feel powerful or look important. Learn how to handle the office bully as you improve your work environment and decrease your stress.

Review Your Actions

You never want to blame yourself for a bully’s behavior. The individual alone makes the choice to act unkindly toward you. However, you can consider if your attitude or actions could make you a target. Do you show gratitude to everyone for their contributions, share credit for team projects and check your aggression? A trusted coworker can tell you honestly if there’s something you do that increases your risk of being bullied.

Stand up for Yourself

When you’re the target of a bully, you may be tempted to fight back or become a doormat. In the office, it’s important to maintain your professionalism. Resist the urge to get in a shouting match or act in a passive aggressive manner. These actions only fuel the bully and reduce your chances of finding a solution. Instead, take action and make clear “I” statements that show that you will not be pushed around.

Ask Allies to Stand With You

Your trusted coworkers or teammates will help you keep a level head as you deal with the office bully. They will also help you organize your evidence and stand with you as you confront the bully or talk to HR.

Talk to Human Resources

If your actions don’t achieve results, talk to your HR manager. Remain as emotionally neutral as possible and avoid “he said/she said” statements. Do calculate the cost of the bullying. Because a bully can affect office morale, performance and productivity, the company can suffer. Be prepared to share these costs when you report bullying behavior.

Report Violent Behavior Immediately

When the office bully threatens you in any way, report it immediately. Do not wait! Record the dates and times and what was said or done.

Prepare to Switch Jobs

Despite sanctions or warnings, the office bully may not change. In this case, you may need to move to another department or leave the company. If you absolutely cannot switch jobs, look for ways to survive your situation, which may include working different hours or eating lunch off premises.

The office bully can make your work day miserable. However, these tips help you handle the situation and find relief. Discover more ideas when you talk with your Human Resources manager and work together to create a safe and productive work environment.

Can You Employ Minors?

By Your Employee Matters

em-0316-3Hiring young people might be tempting for a business. After all, the labor is affordable since kids don’t demand high salaries and won’t need health, retirement and vacation benefits like their older counterparts. Kids are also enthusiastic, willing to do grunt work and able to handle hard labor. Before you hire minors, though, understand the law.

Federal Child Labor Rules

Find the rules about child labor in the Fair Labor Standards Act (FLSA). It divides minors into categories based on their age.

Children under 13 may not be employed unless the job is on a farm or in a business operated by parents or guardians.

Children who are 14 to 15 years old have several restrictions.

  • During the school session, they can work a maximum of three hours per day and 18 hours per week.
  • Non-school sessions can include eight hours of work per day and 40 hours per week maximum.
  • They may only work from 7 a.m. until 7 p.m. or until 9 p.m. from June 1 to Labor Day.
  • Hour and day restrictions do not apply for kids who are employed by parents or guardians.
  • They may not perform hazardous jobs, including driving motor vehicles, mining, operating certain power tool, logging, manufacturing or meat packing, packaging or slicing.
  • State minimum wage guidelines apply.

Children who are 16 to 17 years old can work unlimited hours per day and days per week. Certain hazardous job limitations and state minimum wage guidelines apply.

Children over 18 are considered adults and have no restrictions on work hours or days.

Exceptions to FLSA rules do not apply to kids who work as actors, deliver newspapers or work at home with evergreen materials. Agricultural exceptions also exist.

Paperwork Requirements

If you decide to hire minors, make sure your paperwork is in order.

  1. Use an official birth certificate, driver’s license or other document to verify the minor’s age.
  2. Obtain an age certificate from the Department of Labor’s Wage and Hour division.
  3. Your state may require you or your minor employee to get a work permit available through your state’s Department of Labor.
  4. Get permission from the minor’s parent and school. The authorization form is available from your state’s Labor and Industry department.
  5. Retain employment records for at least three years. The information includes the employee’s name, address, occupation, employment dates, pay rate, hours worked and pay received.

Before you hire minors for even small tasks like filing papers or cleaning your office, check the federal laws and your state’s Department of Labor’s website. Talk to your insurance agent and attorney, too, as you make sure you’re following the law.

Guidelines for Employee Political Contributions

By Your Employee Matters

em-0316-1The next United State’s president will be elected in November, and candidates and their supporters are actively fundraising now. You are free to donate to any candidate you wish, but there are rules that affect your financial contributions at work. Know the guidelines for employee political contributions as you support your favorite candidate.

The Federal Election Campaign Act limits the amount of money an individual can contribute to candidates who run for a federal office. Those limits are $2,700 per federal candidate, $5,000 per state, district or local party committee and $100,200 total per year.

The Act also prohibits employers from forcing employees to make political contributions. In the weeks leading up to the 2012 presidential election, a senior executive at an Ohio company allegedly forced employees to contribute to the political action committee established by the company.

That action is illegal, but it’s not unusual. Many individuals have strong feelings about their favorite political candidates. In their zeal to see their candidate get elected, they may use their positions of authority to coerce employees to donate money.

FEC regulations list several examples of ways employers can force employees to make political contributions. They can threaten to demote or fire you, lower your pay rate or insist that you support a fundraiser.

While the Federal Election Campaign Act limits individual contributions during federal elections, it also prohibits certain contributions that are solicited or unsolicited, given as a gift, in-kind contribution or loan and used for any purpose, including advertising, travel or office supplies. You cannot contribute if you:

  • Donate with the intent to influence federal elections
  • Are a sole proprietor and have a government contract
  • Are a foreign national who does not have permanent U.S. residency
  • Donate more than $100 cash
  • Make a contribution in someone else’s name
  • Are a corporation, national bank or labor organization not associated with a political action committee or PAC

There is a fine line between forcing and encouraging employees to support a certain candidate. If your employer participates in any of these tactics, file a complaint with the FEC at www.fec.gov.

Several states also have labor laws that affect political actions. In these states, an employer cannot pressure employees to participate in political activities of any kind.

If you’re the employer who’s passionate about a certain politician, you can support your candidate. Be sure to follow the law, though. Share your ideas with your attorney to make sure your actions are legal.

2016 is an important election year, and the pressure to push hard for a certain candidate is tempting. Understand the rules about political donations as you support your favorite candidate and obey the law.

Has the End of On-Call Scheduling Arrived?

By Employment Resources

er-0316-3Many retailers rely on on-call scheduling. When someone calls off, crowds swell or during an emergency, an employer can call a handful of employees who are available basically 24/7. Lately, several retailers have ended their on-call scheduling based on employee feedback and pressure from labor groups and regulators. Learn more about the demise of on-call scheduling as you decide if it’s a smart business decision for your company.

The changes stem from an investigation performed by New York attorney-general Eric Schneiderman. He sent letters to several retailers in April 2015 questioning their on-call scheduling practice.

In New York, employers must provide at least four hours of pay to employees who come to work, even if they do not work a full shift. Schneiderman’s office pointed out that requiring employees to call into work the night before or a few hours before their shifts could be considered the same thing.

J.Crew listened to the letter and is the latest retailer to end on-call scheduling. It joins Gap, Urban Outfitters, Bath & Body Works, Banana Republic, Old Navy, Athleta, Abercrombie & Fitch, Intermix, Pier 1 Imports and Victoria’s Secret. Workers will now receive a one-week notice about the schedule details in all New York locations.

Schneiderman praises retailers who are changing their policies. He notes that ending on-call scheduling gives employees a predictable schedule and allows them to manage their budgets more effectively, plan family and childcare responsibilities, make transportation arrangements and avoid other challenges brought on by unpredictable work hours. The change will also benefit the lowest paid workers who typically have the most irregular work schedules.

There are still seven companies whom Schneiderman’s office has contacted about its scheduling practices that have not changed their on-call scheduling practices. They will most likely do away with on-call scheduling soon based on pressure to provide equal opportunities to all employees.

Other scheduling problems may also be addressed thanks to the pressure. For example, Starbucks has committed to cutting its clopening practices. They will no longer require an employee to close at night and reopen the next morning. Retailers are also looking into posting schedules at least one week in advance. Labor groups hope these changes prompt even more schedule overhauls that do away with two shifts per day, rotating shifts and irregular work hours.

Whether your business is located in New York or another state, consider your on-call scheduling practices. Change is coming. Research the labor laws in your state to ensure you’re following them. Also, consider how your scheduling practices benefit or harm your employees. Take time today to make sure you’re following the law and promoting beneficial scheduling tactics that attract and retain employees.

How to Find Quality Hourly Employees

By Employment Resources

er-0316-2Up to 60 percent of the United States workforce is paid hourly. It can be challenging to find and retain reliable hourly workers, though. Plus, when your business loses an hourly employee, you also lose between 30 and 150 percent of that person’s annual income, which is a big hit to your bottom line.

Discover a few tips that help you find and hire quality hourly employees for your business.

    1. Recruit employed workers. You certainly can focus your recruiting efforts on finding unemployed candidates, but don’t exclude workers who may already have a job. They may be looking for a position that offers better flexibility, fulfillment or working conditions.

 

    1. Offer less hours. Most hourly employees prefer to work less than 30 hours per week. If you insist on hiring only workers who will work 40 or more hours per week, you exclude the majority of skilled hourly employees.

 

    1. Target the right demographic. In the past, hourly employees may have been teens or young people. Today, one-third of all hourly employees are between 25 and 44 years of age and slightly less than one-third are over 45 years old. If you only look to hire young workers, you miss the majority of applicants.

 

    1. Become a magnetic company. Your company’s reputation, culture and benefits package plays a big role in attracting quality employees. Take action today if you need to improve this aspect of your business.

 

    1. Simplify the application process. Accepting applications during business hours only or requiring applicants to fill out a paper application reduces the number of candidates who may apply for the job. Set up a 24-hour hotline or online job application that allows applicants to apply when it’s convenient for them. Remember to list your opening on as many online sites as possible, too, since most of today’s applicants use the internet to find jobs.

 

    1. Actively recruit new employees every day. Instead of waiting until you have an opening and then hiring the first applicant who applies, recruit regularly. Your chances of finding a qualified employee increase with this strategy. You can take this step when you add a Join Us tab on your website.

 

  1. Use a hiring manager or firm. If you only occasionally hire employees, you may not be versed in current hiring practices. Delegate this responsibility to a hiring manager or hire a firm that works full-time in the field and understands the ins and outs of preparing applications, screening candidates and conducting interviews.

Your company can succeed thanks to hourly employees. Use these tips as you find and hire quality employees for your business.