Filling Employment Needs in a Sellers’ Market

October 10, 2018

The economy seems to be chugging along, with unemployment at record lows. The Bottom Line looks at why some of that optimism needs to be tempered and what companies need to do in an increasingly competitive recruitment landscape.

Transcript

Dave Plaskow: Hello and welcome to The Bottom Line. This podcast examines the everyday business and finance issues faced by closely held and private businesses. We hope to provide you with news you can use in what we like to think of as a jargon-free zone. I'm your host, Dave Plaskow, and with us is Tim Schuster, a Manager at EisnerAmper’s Private Business Services Group. In this episode we'll discuss what the current employment environment means for both employers and potential employees. Nice to see you Tim.
Tim Schuster: David, always a pleasure.

DP: We are hearing a lot about the booming economy and record employment. Just where are we with respect to the unemployment rate?
TS: So right now we're at an 18-year low, at approximately 3.8% and closing in on the 1969 rate of 3.5%. That's particularly impressive given the current atmosphere surrounding international trade deals. In case you haven't heard in the news, the U.S. is imposing a multitude of tariffs, which are essentially a tax on goods – predominantly steel and aluminum – imported into the U.S. The idea is to even the playing field with U.S. products from foreign companies. But this is something to keep an eye on.
DP: I just saw today that the EU slapped a new round of tariffs on us.
Tim Schuster: We're getting into a little bit of a trade war, but it always shakes out.
DP:Without being a party pooper, why should we be cautiously optimistic about these employment numbers?
TS: Interestingly, with the booming economy we're really not seeing an accompanying increase in wages. But as the economy continues to grow, that soon may change. You've probably read in the news over the past few months that there are some major companies that are giving out bonuses to their employees because of the tax reform. While this may be minor, it is a start that they are giving back to their employees. Another factor that may come into play is how unemployment is actually being calculated. If someone has just initially stopped looking for work, that doesn't count toward the statistic, so it's something to really be cautious about when you hear unemployment rates – because other factors that go into it.
DP:Having said that, I saw a CNBC headline the other day that said there are more jobs than people out of work, which I found fascinating. So, how can closely held businesses attract the best and brightest?
TS: They really need to be creative and competitive. It may mean enhancing compensation packages. As a company, you're making investments in your future. So no company has a capital investment mindset of, let me go out and get the most mediocre technology I can find. The same goes for people. You also need to be creative and keep an open mind and that may come down to offering a wellness program or a superior work-life balance. We have that here at our firm. You can work from home, you can work in the office, and you're out at clients. I've also read where some employers are helping pay off student loans. This is a huge plus when trying to attract the millennials to work for your company. A benefit that can help lessen the burden of crippling student debt by offering some sort of agreement to pay back student loans is a wonderful hiring inducement.
DP:Especially when those loans are pretty significant.
TS: High interest rates, unsecured debt – whatever they can do to alleviate that pressure for their employee would be great. And another concept being thrown around is offering unlimited paid time off as an incentive. Clearly there are going to be rules around unlimited paid time off. But there are a lot of companies floating this idea as an incentive package.
DP:What's a good note to end on for our private business listeners?
TS: I did a little research and according to a recent survey by Accenture, 44% of college graduates said that they want to work for a small company or a startup versus only 19% for a big company. This is a huge change if you talked to someone 40 years ago; they worked for one company
DP: They don’t want to go to IBM or Exxon.
TS: Exactly. So you're seeing a shift toward smaller companies, mid-sized companies or startups that are going to really entice these people to work there. So it really pays to take some time to understand the millennial mindset with respect to career trajectory. I have a lot of conversations with my clients who are looking to attract millennials to work for them. This is an area that our Private Business Services Group specializes in. We can help our clients plan out the success of their organization.
DP: Excellent. So give us one of the really neat New Jersey Historical Society Fun Facts.
TS: Of course. This is actually a continuation of a fun fact that we gave a few podcasts ago. New Jersey was, at one point, two separate states. Out of curiosity, do you know how we got our name?
DP: I do not.
TS: Ah, well I'm going to tell you. The land was officially named New Jersey after the Isle of Jersey in the English Channel.
DP: Never knew that. Well thanks, Tim, for this valuable information.
TS: My pleasure.
DP:Thank you for listening to The Bottom Line as part of the EisnerAmper podcast series. If you have any questions or there's a topic you'd like us to cover, email us at contact@eisneramper.com and visit EisnerAmper.com for more information on this and a host of other topics, and join us for our next EisnerAmper podcast when we get down to business.

About Tim Schuster

Mr. Schuster is a Senior Manager providing tax compliance services to individual filers, as well as assistance on tax returns for companies in the manufacturing and real estate industries.

More in This Series

My Trusted Business Advisor Is Retiring. What Should I Do?

EisnerAmper advises on helpful hints for when you find out your trusted business advisor is planning to retire.

What Is An Outsourced CFO?

EisnerAmper discusses outsourced CFO and when would you want to outsource your CFO and how this can impact the Great Transition.

The 5 W’s of 1099s

The Private Business team discusses the who, what, when, where and whys of 1099 forms.

FMLA and Absence Management

EisnerAmper discusses the Family and Medical Leave act. There are two main types of lawsuits that happen between employees and employers regarding FMLA. The first is FMLA interference where the employer may not prevent an employee from taking FMLA leave. The second type of lawsuit that could take place is retaliation. .

What Are The New Overtime Rules?

Tim Shuster discusses the new overtime rules with Jane Romanowski, from ADP. While most employees are classified as non-exempt, the FLSA provides exemptions for minimum wage and overtime requirements for certain employees.

Year-End Planning Guide

The Importance of Verifying Employment Status

Meredith Brown and Kristen Whelan from ADP join Tim Schuster and discuss the importance of verifying employment status including I-9 checklist and orientation checklist and seller salary and benefits checklist.

A Cautionary Tale on Fraud

Dan Gibson speaks with Tim Schuster regarding employee fraud. They discuss real life examples and three factors that incentivize fraud.

State Tax Incentives – Do I Qualify?

Tim Schuster and Steve Abbott, president of Abbott Consulting Group talk about certain ways your business can take advantage of state tax incentive programs, such as through relocation, investment and staff training.

You Mean Employers and Employees Are Not on the Same Page?

Meredith Brown speaks with Tim Schuster about employee vs employer perspectives on the evolution of financial wellness, compensation, and employee incentives.

Employee Benefits That Are on the Fringe

This episode of The Bottom Line, Tim Schuster examines some examples of employee benefits and who are using them, and if they’re having the desired result.

6 Types of Executive Compensation to Consider

Tim Schuster discusses executive compensation, option grants, deferred compensation, fringe benefits and more. He also examines what to be aware of when preparing an executive compensation package.

Is There a Difference Between Outsourcing and Private Business Services?

Lindsey Gross of EisnerAmper’s Outsourced Finance and Accounting Group joins Tim Schuster from Private Business Services to discuss the differences between these two areas, client case studies that demonstrate those differences, and which types of client could benefit from each.

You’re Not Using Social Media to Grow Your Business?

The Bottom Line looks at how you can use social media to grow your business and examine the different communication platforms available including Facebook, Twitter and LinkedIn. You really need to develop website content and push it on social media platforms.

Pair of New Laws Impacts NJ Workers and Employers

Tim Schuster, a manager in EisnerAmper's Private Business Services Group, discusses new NJ legislative initiatives happening in Trenton that you should be aware of. The first is the New Jersey Family Leave Act and the second is the increase in NJ's minimum wage.

Creating a Quarterly Planning Calendar

In this episode of The Bottom Line, EisnerAmper Private Business Manager Tim Schuster discusses developing a quarterly planning calendar, including budget, tax planning and speaking with your trusted advisor. Review these concepts monthly from an accounting perspective.

The Importance of Having an Emergency Fund

In the wake of the government shutdown, Tim Schuster offers tips on creating an emergency fund. To avoid living paycheck to paycheck, Tim suggests putting money into a separate savings account, as well as a portion of any windfalls. Emergency funds should include medical expenses.

Why the Sandwich Generation Needs to Talk Finances

Tim Schuster from EisnerAmper’s Private Business Services Group talks about the family issues and financial burdens for members of the sandwich generation - those individuals who are responsible for raising their children as well as caring for aging parents.

New Jersey Sick Leave Goes into Effect

As New Jersey initiates paid employee sick leave The Bottom Line examines the requirements for business owners. Some reasons for which employees can use sick leave include an employee's own personal medical treatment or legal services, or that of a family member.

Don’t Postpone Making Your Will

EisnerAmper’s Private Business Services Group partner discusses estate planning and the need to have a will - from an online provider or an estate planning professional - to help your heirs understand your estate asset wishes and the Tax Cuts and Jobs Act estate tax thresholds.

Don’t Get Scammed By Someone Pretending to Be from the IRS

The Bottom Line looks at some of the common IRS scams out there and what you should do if you fall victim to one of these scammers, including email and personal data hacks, ID theft and fraudulent returns. Contact your accountant if you think you’re a victim of a scam

High Court Rules on the Taxation of e-Commerce

The landmark Supreme Court decision in the Wayfair case on e-commerce taxation allows states to collect sales tax on e-commerce companies, even without brick and mortar locations in that state, affecting all e-commerce companies such as Amazon. Accountant guidance is suggested.

Employee or Contractor – The DOL’s Watching

This podcast discusses the New Jersey Department of Labor and the employee or independent contractor (freelance work) classification under new Tax Cuts. A DOL audit might look at your Facebook and LinkedIn, and can also change your employee or contractor classification.

NJ Budget Mixes Some of the Familiar (and Not-So Familiar)

This episode of The Bottom Line looks at New Jersey Governor Phil Murphy’s inaugural NJ budget. The discussion includes the Governor's proposed New Jersey's state tax on Uber and Airbnb, addressing tax loopholes for hedge funds and New Jersey tax's effect on the gig economy.

Tim's Top Individual Tax Questions

In this episode of The Bottom Line, Tim Schuster discusses some of the individual taxation questions bubbling up from clients in the wake of tax reform including adjusted gross income changes, private business taxation, QBI, and the importance of talking with your tax advisor.