FastUpFront

As we all know, people post highly personal information about themselves on Facebook and other Social Media without thinking twice. Religion, sexual orientation, race relationship status and other personal issues are all part and parcel of the Facebook profile.

 

Social Networks would seem to be the ideal platform to find qualified candidates for jobs. Think about it – finding jobs or suitable candidates for jobs is often based on networking – a friend of a friend who has heard about a highly qualified individual who is looking for a job.

Theoretically, this would seem to be a win-win situation. But according to Federal Equal Employment Laws, employment discrimination is prohibited against qualified individuals with disabilities. They also ban discrimination based on race, color, religion, sex, national origin or age. In some states, even stricter rules are imposed in the matter of employment discrimination.

The sort of information related to a candidate’s race, national origin and even one’s pregnancy status comes under the definition of “protected information” and as a potential employer you are banned from asking about it in the course of an interview.

But this sort of protected information is served to you on a silver platter in the candidate’s social media profile. Is it legal for your company to use it when considering possible candidates for a position?

Let’s consider a situation where a highly qualified woman has applied for a position. But then the woman’s Facebook profile shows that she is pregnant. Legally, the potential employer is not allowed to act on this information and may just end up being sued for discrimination if he decides not to hire the candidate. The icing on the cake is that you, as the potential employer, have to be able to prove that the candidate’s pregnancy was not the reason for hiring another applicant. Not an undertaking that most employers relish.

Despite the risks, don’t discount social media as a platform for hiring just yet. Protect yourself by departmentalizing the hiring process. Have one individual conduct the online search and another entity (perhaps a screening or HR agency) deal with the actual hiring. If you choose to discuss the candidate with your online researcher, avoid any questions connected to protected information.

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The spate of foreclosures in the U.S. might be coming to a halt. Homeowners have long been complaining that banks use improper documentation to seize their homes. Their clamoring became so loud that lawmakers and banks have finally taken notice. Now, several of the big guns in banking have declared a nation-wide moratorium on foreclosure action.

 

 

Bank of America, GMAC Mortgage, and JP Morgan Chase have suspended foreclosures while they investigate the situation. Under duress from lawyers and judges, banks have admitted to unlawful behavior. Flooded with foreclosure affidavits, banks allowed their employees to sign documents without reading them. For example, GMAC admitted that employees signed thousands of affidavits without knowing their contents.

The underlying problem is the verification process. Before banks can submit documents for legal foreclosure proceedings, they have to check the information contained within the documents. Bank employees have reported that they failed to verify information such as amounts owed by borrowers, and names of banks currently holding the mortgage. Additionally, lawmakers have uncovered suspicious circumstances such as clear forgeries of officials’ names and notarizations of signatures by out-of-state notaries.

Housing experts expect the foreclosure suspensions to strongly affect the market. While the legal system sorts out the problems, properties involved in foreclosure will probably not be sold.

The banks attribute their sloppy paperwork to the rapid pace at which they have been processing foreclosures. Now, as they backtrack and reassess the particulars of each foreclosure, both the foreclosure rate and the housing economy should slow significantly.

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Sources:

The New York Times

The Wall Street Journal

While the name “dorm room start-up” may seem somewhat subdued, eliciting the image of a cash-strapped, ramon noodle-eating student trying to scrape together a little extra income, for those of more enterprising natures, college provides the fertile ground on which to develop and expand some pretty hefty business ideas. From their humble student quarters, a select group of college entrepreneurs have produced some of the most influential, well-known, and dare we forget, profitable companies around.

Which businesses got their start at college? Here’s a brief rundown of the most famous (and infamous) college dorm room businesses ever:

1. FedEx: While this first entry on the list did not technically start operating while its founder, Fred Smith, was in college, it deserves a spot due to its almost legendary status. The story goes that when Mr. Smith was a student at Yale University, he composed a term paper detailing how the shipping industry would change as a direct result of changing informational needs and advances in technology. Though the paper received a tepid response from the professor, from it emerged the well-known overnight shipping company, FedEx. Today, FedEx boasts some $40 billion in yearly revenue.

2. WordPress:  While a freshman at the University of Houston, Matt Mullenweg teamed up with Mike Little and b2 developer Michel Valdrigh and eventually created WordPress, one of the most prolific blogging platforms around.

 

 

3. Napster: Sean Fanning was a freshman at Northeastern University in Boston when he developed Napster, the hotly contested P2P file sharing service that allowed users to share MP3 music files. Though it was forced to file for bankruptcy after numerous high profile recording studios and artists lined up to sue the company, it is still fondly remembered by its users.

 

4. Dell Computers: Michael Dell, started PC Limited while attending the University of Texas, Austin. With $1,000 in start-up capital, he later dropped out and began building Dell Computers. Today, he is worth an estimated $13.5 billion.

5. Facebook: Mark Zuckerberg originally developed “thefacebook” as it was called then, for his fellow students at Harvard. He later dropped out of college to develop the program further. The result: Facebook is now the biggest social network in the world with over 500 million users.

 

6. Inogen: In an effort to improve her grandmother’s quality of life, Allison Perry teamed up with two of her classmates, Brenton Taylor and Byron Myers at the University of CA, Santa Barbara, to create a better, lighter, and more mobile medical device for the delivery of oxygen. Inogen was later recognized with the Ernst & Young Entrepreneur of the year award, and to date they raised 55 million in venture capital.

 

7. Shoeboxed: In an effort to help small business owners make some sense of their financial paper trail, Taylor Mingos started Shoeboxed from his Duke University dorm room. Customers email, fax, or send in special envelopes stuffed with receipts and other paper “scraps” and the company both scans and organizes them as digital records.

 

8. Biz Chairs: Like FedEx, Biz Chairs, breaks away from the pack because its founder, Sean Belnick actually came up with the idea when he was only 14 years old. But it was all the time and effort he put into his venture as a 20 yr old freshman at Emory University that turned it into a full fledged business, supporting almost 100 employees and bringing in over $25 million in revenues.

 

 

9. Google: Google founders, Sergey Brin and Larry Page, developed the idea for a more powerful and effective search engine while working together as PhD students on the Stanford Digital Library Project. Google’s original domain name was actually “google.stanford.edu.” Today, Google is a massive conglomerate offering an impressive range of ubiquitous Internet-based products and services.

 

10. Plaxo: Cameron Ring started working on Plaxo with his co-partners, Sean Parker of Napster fame and Todd Masonis, while he and Masonis was earning their master’s degrees at Stanford University. The versatile online address book and social networking service, allows for automatic updating and access of contact information across numerous programs and platforms. It also connects users to pertinent social networking information. In July of 2008, Plax was bought by Comcast.

 

11. College Hunks Hauling Junk: As a student at the University of Miami, Omar Soliman submitted a business plan for a trash-removal service to the Rothschild Entrepreneurship Competition and won the $10,000 first prize. Since then, he and his partner Nick Friedman of Pomona College, have expanded the company, called College Hunks Hauling Junk, nationwide with 21 franchises and 12 company-owned locations.

 

12. Venus: The well-known line of slinky swimwear, swimsuits, and women’s clothing began in 1982 under the name Titan Bodybuilding, while Founder Daryle Scott and four of his friends were attending Stetson University. The company initially marketed bodybuilding apparel and equipment but eventually expanded to include a variety of women’s clothing.

 

13. Tripod: Tripod, the well-known web hosting service, was founded by Bo Peabody and Brett Hershey, two students attending Williams College. At its inception, the site targeted college students and young adults with a collection of resources and services, such as résumé-writing help, website building tools, and links to relevant products and businesses. Only later were its trademark web hosting services added. Tripod was eventually bought out by Lycos.

 

14. Theglobe.com: One of the first social networking sites in the days before Facebook and MySpace ever came on the scene, theglobe.com was created by Cornell University students Todd Krizelman and Stephan Paternot. The site featured specialized content, chat rooms, and games, allowing users with similar interests to interact. When the company went public in 1998, it posted the largest initial gain of any IPO in history, 606%.

 

15. College Bellhop: Alan Ringvald, then a student at Brandeis University, came up with the idea for College Bellhop when he was unable to fork over the hefty cost to hire a professional service to clean his apartment. Together with Boston University’s Assaf Swissa, he developed the company which provides cleaning, laundry, and food delivery services at five different college campuses.

 

16. Microsoft: Many are familiar with the fact that Bill Gates founded Microsoft as a student in Harvard. He quickly dropped out to build up the software empire synomous with his name. Today, he is one of the richest people in the world with an estimated worth over $54 billion.

 

17. Citadel: Kenneth Griffin began managing two funds while at Harvard University. Shortly thereafter, he founded Citadel, currently one of the most successful hedge funds worldwide. Griffin himself is estimated to be worth about $3 billion.

 

18. EcoTech Marine. In 2003, Pat Clasen and Tim Marks, both students at Lehigh University began developing the idea for an aquarium equipment company. Shortly thereafter, they received the start up financing they needed to put their plan in action. The company’s cutting edge technology propelled it to one of Inc.’s 500 fastest-growing companies, and as of 2009, it sported revenues of almost $4 million.

Whether you take Johnson & Johnson CEO William Weldon’s public mea culpa over the recent spate of drug recalls at face value or with a cynical grain of salt, the event highlights several important points in brand image damage control.

 

Johnson & Johnson is no stranger to corporate crisis management and large scale product recalls. The 1982 “Tylenol Scare” involving the deaths of seven individuals after they took some Extra Strength Tylenol that had been laced with cyanide, resulted in a well executed nation-wide recall. Within a week, the company pulled some 31 million bottles of capsules from the shelves. The whole incident is regarded as a case study in corporate crisis management till this day.

While the current product recalls may lack the luster and consumer approval that characterized the former incident, it nonetheless offers many powerful lessons that small business owners should keep in mind should crisis strike their own companies. Here are three of the most important points:

1. Work quickly to contain the situation. In the age of social media, where news and word-of-mouth ideas spread like wildfire, it is this all the more important to act quickly to quell consumer rage or disapproval. This means quickly getting a statement out to your customers, keeping tabs on social media sites and blogs for negative comments and making it a point to offer a response, and finally being available to offer pertinent information and assistance and answer customer questions. While J&J may have been slow to react at the beginning of the recalls, they did get some things right. (See J&J’s dedicated website).

2. Don’t be afraid to admit wrong doing. Though your first impulse may be to try to cover up a potentially slanderous event. News of your attempted cover up may only backfire and further fan the flames of negative press. Publicly admitting a mistake actually may go a long way towards rebuilding consumer trust and brand loyalty.

3. Present a plan to right past wrongs. In conjunction with the previous two points, presenting a clear and detailed plan of action to prevent future mishaps and then acting on that plan in a timely manner, shows consumers that the company is taking the issue seriously and is making a real effort to improve. Though J&J may have put out such a plan, much skepticism exists as to its efficacy.

In short, a business’ relationship with its customers is just like any other. Mistakes don’t have to be a relationship-breaker, but only if he offending party knows how to handle them properly.

In the United States, “at-will” employment relationships have become quite popular as businesses big and small seek to cover their bases and avoid any legal headaches down the road. But what many employers don’t know is that “at-will” may not be the safety net they think it is.

 

The term “at-will employment” means that either the employer or the employee may end the employment relationship at any time- with or without prior notice or cause. While this concept seems to be straightforward in theory, there are various exceptions to the rule that may place you in jeopardy of facing employee termination claims.

While the “at-will” relationship does not necessitate good cause, it is safe to say that most employers usually have a reason for a termination, such as poor employee performance. If brought to court, a jury (which is made up of workers past and present) will undoubtedly attempt to determine whether you treated the employee with respect while deciding if you are liable for the person’s termination.

How can you ensure that you have the flexibility to make legitimate termination decisions? Establish best practices from the very beginning so that you will be able to exercise your at-will employment rights with little risk. Develop clear human resources policies about at-will employment, discipline, and performance management that are widely distributed and enforced. Make sure supervisors maintain ongoing records about employees in their files as well as any one-on-one discussions regarding their performance. These records can subsequently be used as proof that the employee was aware of the employer’s concerns and was given every opportunity to change his ways.

Irrespective of the matter of employee termination, it is always good policy for both the employer and the employee to establish open and clear communications from the beginning of the employment relationship.

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The implicit assumption when it comes to hiring temporary employees or consultants is that it will save your business money. After all, with these temp workers, you don’t have to worry about an attractive benefits package, a competitive salary, nor a drawn out hiring process. They come, they do their job, and they leave.

 

But the truth is that bringing in short-term or seasonal employees may actually be more expensive then you think. There are several, often hidden costs associated with using temporary workers.

Below are three reasons why temporary employees may end up costing your business more:

1. Higher wages. In many cases, the wage you will pay your temporary help will be higher than the regular benchmark amount for the full-time position. This premium on the services rendered is especially relevant if you use a temporary employment agency which must cover its administrative and human resource costs, such as aptitude testing, reference checking, and absorbing workman’s comp insurance payments.

2. The Learning Curve. In many cases, temporary workers will need some time to orient themselves to their new surroundings. This includes both the physical set up as well as the corporate culture. Unless the task at hand is very specific and well-defined, much time may be required to answer questions and clarify confusions regarding the job. This means that initial productivity may be a little low, and it will also affect the productivity of those designated to help the temp worker out. Moreover, in instances where a temp worker will interact with customers or customer information, a pivotal mistake could cost the business future contracts or customers.

3. Miscommunication; Lack of Direction. If you really want to capitalize on temporary help, then be sure to create a thought-out, detailed job description and plan of action for these new workers. Much time and money are wasted because temporary workers were unclear about what was expected of them, or the employer’s expectations were unrealistic.

In short, bringing temporary employees into your business can be a big help, but if you do not put some effort into the process it could end up costing your business more than it gained.

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Whenever the workload increases, a key employee has taken a leave of absence, or additional skills and expertise are required to complete a specific task, bringing in temporary employees can quickly become a standard practice for businesses big and small. But the mere presence of an extra pair of hands or someone with a fresh outlook, skill, or knowledge, does not ensure that the task at hand is getting done efficiently.

 

In order to get the most out of your temporary workers you have to put a bit of thought and effort into the process before you actually take someone in. The following are a few tips to consider:

Be clear about your needs. One of the most important elements to successfully work with your temporary employees is the amount of clarity and forethought you have about your needs. This will in turn help you to write out the detailed job description listed below.

Seek advice and support. Don’t just wade into the temp employment world unaided. First, consult with employees to see if they recommend anyone who could do the job; you could also ask them how they see a temp worker best being used within the business. In many cases, it may also be worthwhile using the services of a dedicated temporary employment agency. The premium you will have to pay can be easily made up if you think about all the time and effort required to weed through potential candidates yourself.

Write out a detailed job description. One of the most important points to keep in mind is that your goals and overall expectations are realistic and in line with the amount of compensation being offered as well as the experience and skill of those being hired.

Offer feedback and support. Just because your temporary worker won’t be around for the long haul doesn’t mean that he or she should be disrespected or ignored. Not only will acting respectfully and offering support generate good will, but the worker may then be more motivated to do the job right and efficiently.

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