What Happens if General Contractor Goes Without Insurance

Liability insurance is made for any type of industry, helping to protect those involved when it comes to being sued. In the contracting world, having general contractors insurance can protect a contractor and their subcontractors from costly claims related to accidents or mishaps on-site. General contractors insurance pays out entities when an accidental death or injury takes place on-site. So, not having this kind of coverage can be detrimental to all involved including the person or agency who hired the uninsured contractor.

While subcontractors aren’t legally required to carry liability insurance, it’s important to understand what happens when a general contractor goes without insurance in terms of legal issues and ramifications on their business operations.

Unlicensed and Uninsured Contractors

There are a number of issues related to not carrying general contractors insurance on a construction job. From injuries to shoddy workmanship to issues with sewer or water lines, there are a number of instances where insurance is a must-have. Ultimately, any and all issues, no matter how rare or random, are the responsibility of the general contractor in question.

If someone hires an unlicensed and uninsured contractor who ends up busting a sewage line, the person who hired them is responsible, not the contractor. If a worker gets hurt on-site and there’s no workers’ compensation set up through the general contractor, the person who hired the contractor is on the hook for medical bills and lost wages.

For contractors, failing to get insurance can end up costing them their business and seriously hurt their operations. If they are known to have operated without insurance, this means they cannot be trusted as being responsible for their work. Contractors rely on good reviews and word of mouth, so being known as an irresponsible party will only keep possible clients at bay.

Claims can, in turn, be made against general contractors who operate without insurance, ending up costing them more than just medical bills or payout for one claim. Licenses can be taken away and businesses could, in fact, be closed, plus the long-term mark of being known as a contractor once operated without a license or insurance and ended up in legal trouble will do nothing to help a contractor get back on their feet in the industry.

It’s important to know the risks and why general contractor insurance is important. Working with the right agent can help alleviate the stress around future issues with various claims.

- Doug Myrick

Low Unemployment Wages Mean Employers Should Think Ahead

In September, the U.S. Department of Labor reported that the overall jobless rate had fallen to 5.9% (11.8% using the broadest measures). These numbers were in line with economists’ predictions and are welcome news to American businesses. But they should also be a signal to employers and hiring managers to prepare for increased competition for talent as the economy improves.

The 5.9% unemployment rate is the best number since early 2008. While 2007 was a year of particularly low unemployment rates, 2014’s numbers are getting closer to those numbers and are even closer to the unemployment rates of September 2004 (5.4%) and 2005 (5.0%).

While the lower unemployment rate is a positive, some other factors still worry economists. One major concern is the combination of underemployment and stagnant wages.

As the Wall Street Journal profiles, the present labor market currently allows businesses to pay talented and experienced workers lower wages than these individuals would receive in a more vibrant economy. Average hourly earnings have increased by 2% over the last year, but overall wages remain stagnant in most sectors, even when accounting for very low inflation rates. In fact, real wages have fallen over the last year.

While this may seem like a benefit to some companies, employers need to think about the future. Currently, employers can seemingly take advantage of a difficult job market to hire the best employees at lower rates. As the unemployment rate continue to fall, however, competition for talent will increase. There will be a smaller pool of qualified candidates seeking work and current employees may start looking at the wages and compensation packages offered by competitors.

As the economy improves, inflation might be expected to rise slightly, but it continues to be quite low. Workers should see more real wage gains as the jobless rate decreases and consumer spending increases. If moderate inflation does occur, firms that are able are likely to increase nominal wages. This means that companies that are currently paying talented employees low wages are going to face stiff competition in the future.

The smartest businesses will look ahead and make plans to handle lower unemployment rates and higher wages. If your business wants to retain its talented workers, higher wages or benefits will be offered. Rather than wait for the shock of lost employees, businesses should strive to create sustainable practices now. Companies that fail to prepare themselves for the need to retain top talent may find themselves falling behind in the race for the best workers.

The next Department of Labor’s next report will be released on October 31.

- Doug Myrick

4 Ways to Retain Employees & Keep Them Happy

Retaining key employees is an overlooked part of the hiring process. We all know that we don’t want to lose our employees or hire people who will quit in two months. Yet many businesses do not actively try to retain employees. Some employers feel there is little they can do to stop an employee from leaving, especially if they are unable to offer raises or meet other demands.

Fortunately, there really are steps that can be taken to encourage loyalty and retain employees. These techniques can ensure that your employees feel valued while also gaining you more skilled, devoted workers.

1. Increase opportunities to retain employees

Many employees report they feel unsatisfied at work. One way to combat this restlessness in your own employees is to ensure there are some opportunities for learning and advancement.

This doesn’t mean you need to provide extensive training or promise promotions beyond your capabilities. Encourage employees to develop new skills and suggest managers and supervisors to do the same in their jobs. Small projects can go a long way towards making employees feel that they have opportunities to develop professionally.

Of course, any chances for genuine, sustained training and a clear willingness to consider internal hires will do even more to make employees feel valued.

2. Spend some extra time on new hires

Get a clear idea of where the candidates you interview want to go in their career. Not every employee will have a clear goal or plan, and of course you must consider past behavior and capacity for growth first. However, taking note of candidates who truly want to learn and become involved in the company will allow you to select for employees who are likely to make a genuine commitment.

Dedicate some extra time to introducing new hires to the workplace. Encourage suitable employees to make themselves available to new hires for questions or advice. This benefits you, as well, as it may save mistakes and will assist in setting clear expectations.

Go out of your way to debrief with the new employee about their progress, even take them out to lunch to make sure they are socializing well with the rest of the team. These little touches will go a long way to demonstrate your interest in their well being.

3. Collect real feedback – perhaps anonymously

Collecting feedback from employees can be a vital step in preventing employees who may consider leaving. By offering avenues for feedback – whether written, through supervisors, or at meetings – you will be able to understand what employees are thinking. Consider creating a pathway for employees to provide this feedback anonymously, outside of direct conversations or performance reviews.

4. Pay appropriate salaries and wages

Unsurprisingly, many employees feel underpaid. As the economy continues to recover from the recession, companies must understand that a lower unemployment rate will increase worker confidence. As a result, employees may search for opportunities elsewhere. Businesses willing to pay higher salaries will have a great advantage, particularly when it comes to highly-skilled workers. Depressed wages may seem like an advantage, but in reality paying employees below what they are worth can result in dissatisfaction.

There are many reasons employees may choose to leave your company, it would be a mistake to behave as though nothing can be done to stop it. Providing opportunities for growth and making employees feel valued are major steps for reducing turnover. Thankfully, these steps should also leave you with more skilled, dedicated workers.

- Doug Myrick

10 Sensitive Interview Questions That Face Employers

With unemployment at historic lows, employers are looking for new ways to find the most qualified candidates. This often shifts the focus of recruiting to sourcing.

Not to take anything away from sourcing, it’s important to remember the role that interviewing plays in the hiring process. Interviews are one of the first interactions organizations have with candidates. It’s where workplace relationships start. It’s where trust begins.

That means the interview needs to go well. Interviews are designed to be two-way conversations between the recruiter or hiring manager and the candidate. Just because it’s a conversation doesn’t mean it can’t dive into some critical issues. After all, organizations do want to hire the best talent.

Here are ten questions that organizations might want to consider in their interview process and the rationale behind each: 

1. Tell me about yourself. Let’s face it, we want to know a little bit about the candidates we’re considering. But we can’t ask personal questions during the interview. By asking, “Tell me a little bit about you.”, the organization allows the candidate to decide what they’re ready to share. Keep in mind that protected information cannot be used in employment related decisions.
   
   
2. What’s your salary requirement? Many states are passing laws that make it illegal to ask candidates their salary history. The better question to ask is what a candidate’s salary requirements are. That way, both parties can decide if the salary budgeted and desired are in the same range.
   
   
3. How would you rate your communication skills? Organizations cannot ask candidates if they speak English. The real question is whether the candidate will be able to effectively communicate with customers and co-workers. It’s okay to ask candidates about their ability to communicate with others.
   
   
4. Tell me about a time when you worked with someone you didn’t like. It’s not realistic to think we like everyone and they like us all the time. Workplace conflicts happen. Candidates should be able to talk about a challenging relationship and how they’ve worked through it. This will help the organization understand how the candidate gets things done.
   
   
5. Have you ever been disciplined for violating a company policy? In many states, it’s illegal to ask candidates if they have a criminal history. Organizations are really trying to determine if employees can follow company policies and rules. It’s okay to ask employees if they’ve ever broken a company rule or been disciplined for breaking a rule, and who knows, you might just get a truly entertaining story out of it.
   
   
6. Why is there a gap in your work history? In some industries, especially safety sensitive ones, having a work history free of long gaps in employment is necessary for badging purposes. That being said, candidates should be able to explain a gap in employment. Keep in mind the candidate’s response could be personal and shouldn’t be considered in an employment decision.
   
   
7. Why did you leave your last job? Organizations hope that the candidates they hire will stay. Managers will want to understand what things potentially disengage a candidate. So, candidates should be able to discuss the reasons they left a job or the reasons that they’re looking for a new opportunity. This can also shed light on personality questions that you just can't ask. 
   
   
8. Will the work schedule be a problem for you? It’s not legal to ask candidates if they have a car. What organizations really want to know is whether a candidate will show up to work on time. The best way to find out if attendance and punctuality are going to be an issue is to discuss the work schedule with candidates. This will get to the root of what you actually want to know - will they show up for you.
   
   
9. This position requires travel and overtime. Will you be able to do this when necessary? Don’t even think about asking candidates their family situation. Just don't. But, organizations do want to know that employees can do what’s expected of them. Similar to the last question when we ask about work schedules, it’s okay to confirm that employees are able to work the schedule if it includes travel.
   
   
10. This position requires a drug screen, criminal background, and credit check. Are you comfortable with this? It’s not legal to ask a candidate if they take drugs or write bad checks. Besides the fact that, if you did, who is really going to answer “yes”? Organizations want to know that the candidates they are considering will be able to pass the background check, so finding sensitive ways to dance around the subject is pertinent. 

Today’s job candidates are doing research on companies before they apply. And they are coming to interviews prepared to ask tough questions. Organizations should do the same.

But keep in mind that the goal isn’t to obtain illegal information or be sneaky. That should never be the goal. Organizations should develop interview questions that help them select the best candidates who will do good work for the company.

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- Doug Myrick

It's time to set up your 2019 QLAC

It is that time of the year again. If you have been thinking about setting up a Qualifying Longevity Annuity Contract (QLAC), now is the time to pull the trigger.

• Lower your 2020 RMDs and reduce taxes.
• Use up to 25% of you total IRA type assets or maximum allowable $130,000...whichever is less.
• Add your spouse to guarantee joint lifetime income.

A QLAC should be part of your GUARANTEED INCOME FLOOR.

To take advantage of the 2020 RMD savings, your QLAC must be in place by 12/31/2019.

Sample QLAC Annuity Rates - September 2019
		If you invest $100,000 in a Cash Refund QLAC, you'll receive the following monthly income beginning at age...
Present gender / age		75	80	85
Male Age 50		$1,874	$2,992	$5,362
Female Age 50		$1,733	$2,701	$4,679
Male Age 55		$1,527	$2,429	$4,338
Female Age 55		$1,415	$2,195	$3,779
Male Age 60		$1,235	$1,955	$3,469
Female Age 60		$1,147	$1,772	$3,026
Male Age 65		$988	$1,554	$2,754
Female Age 65		$920	$1,416	$2,396
To get your free, personalized QLAC quote click here

- Doug Myrick

Hire for a Customer Service Attitude – The Secret to Owning Your Market

Being customer focused is one of the main keys to building customer loyalty, this is not the job of just one person but everyone in your company. Are you hiring people with a customer service attitude in all positions?

Doing business in what is now a global economy may have its benefits, but there are just as many challenges. For one thing, whatever you sell – motel rooms, hot sauce, paperclips, or life insurance policies – you have more competition now than ever before. Customers can choose to by real Egyptian cotton bath towels from Egyptians in Egypt without paying extra. They can find an auto insurance policy online that will beat the price of the local agent, hands down. If you want to compete in this buyer’s market, you must have one of two things in order to stay afloat. You must either produce the world’s best widget, or you must supply the best customer service available today. Most of us want the first, but aim for the more achievable second.

The truth is our customers can find what they want in a heartbeat online. What they cannot always get online is personalized customer service. You, as business leader are totally committed to customer service, but you may be less confident in the efforts of your employees. Yes, You’ve trained them, but training, like juggling, involves constant attention and effort.  How can you be certain that your people are customer service superstars? It begins long before the training starts.

Not all applicants have what it takes to be thoroughly attuned to customer service. As a matter of fact, employees with a genuine customer service attitude can be difficult to find. Like panning for gold, you must sift through a lot of rocks before you find a nugget of value.

Some attributes common to customer service superstars are these:

• Outgoing personality
• Good listening skills
• Empathy
• Pays attention to detail
• Demonstrates problem solving skills
• Has a positive attitude
• Enjoys new challenges

When you spot these qualities in an applicant, you may think you’ve scored. You should be aware, though, that there’s much more to matching the applicant to the job.

According to the well-researched e-book  Hiring Talented Team Players, A Guide to Getting it Right, there is a science around finding the applicant best suited to any job you have to offer. Each of us fits, more or less, into one of four personality quadrants with its own set of special attributes. By understanding the differences in personality types and matching them to the job at hand you, and your potential hires, can save  time, money, and frustration by avoiding costly bad hires in the first place. Consider testing your pool of applicants using the ideas and procedures in this book.

Once you’ve applied the science and have a pool of  customer service experts to consider, move the interview process outside the box. In the typical interview setting, it is difficult to observe and assess the abilities of a customer service professional.  You want watch him as he interacts with others. A good place to do this is at the local lunch counter. Watch as he communicates with the server. Does he engage her/him? Does he make eye contact with others? Notice if he is observant….does he read the name tag and then call the waiter by name? These small details can make all the difference in the business of making your customers happy.

Just a bit further outside the box is the early morning (say, six or six-thirty,) interview. The concept of performing at a level above beyond what is usual is an important one in customer service jobs. This is a great final hurdle in the interview and testing process and can serve to set the right team member apart from others.

Your customers get to make choices. They can choose to buy from countless thousands of widget makers the world over. If you want to win their business, you must win the customer service battle. That can only accomplished by good hiring practices and thorough training.

- Doug Myrick

5 Ways to Improve the Standard Interview Process

You know that the people you hire are the face of your company representing your vision. The people you hire are the assets which underpin your success. As an astute employer, you know that building a happy and productive team means having a dynamic interview and selection process with a constant focus on building a company culture of talented team players.

Know What You Need

It isn’t enough that you have a detailed job description of the position you want to fill. This is where the key job functions are listed. That’s the easy part. The more difficult and even more critical list is the one that addresses the competencies of the applicant. We call this list a profile. Your profile will include a wide range of qualities such as:

• Dependability
• Intelligence
• Communication skills
• Relevant job experience
• Required licenses and certifications
• Attitude toward criticism
• Does he want to do the work
• Does he have the personality to accomplish the job
• Imagine the applicant at the Company Picnic. Does he fit in?
• Is he a blame placer, or can he accept responsibility for his own errors?

The list can be quite long, but should include each of the qualities you see in your very best employees. Some of these things will apply to all the positions in your operation. Others will be less important, but by visiting each quality as it relates to the applicant, you will be able to better evaluate the applicant in terms of his attitude to make it in your operation. 

Get Into Their Heads

Particularly now, with so many Americans out of work, it’s important for you to understand that the rules of the hiring game have changed. The good news is there are probably more qualified candidates than you would ordinarily be able to attract. The bad news is, poorly qualified candidates have learned to be better interviewees. In other words, out of desperation they have become ‘shape shifters.’ A candidate that goes to lots of interviews becomes very good at the drill. He can convince you that the job you’re offering has his name all over it even though he is eminently unqualified in attitude, emotion and personality.

You must use questions designed to get past the “interviewee” and get down to the brass tacks of who this person really is.

Look Beyond the Resume

Believe it or not, the skills the interviewee has are often times less important than his overall attitude and potential ability. When people are fired, it is most often because of their attitude not because they cannot do the work they were hired to do. You are, no doubt, looking for good-natured employees who are loyal, hard working, competent and thorough. You also need to look as deeply into his personality as you can.

One way to do this is to look at how this interview spends his off-duty hours. Does he volunteer? Does he coach Little League? Is he a hiker? Does he paint? When you get to these truths about the applicant, discussions about values will follow. Look to see if his values are aligned with your own. If they are not, he will not likely fit into your company’s culture.

Use More Eyes

It isn’t always convenient to arrange for a job candidate to shadow one of your star employees for a day, but it’s worth the effort to do so. Your eyes see a good bit, but another set of eyes, in the person of one of your best and brightest, will tell you more. The applicant may open up more to someone who is not the boss. His attitude will be more likely to surface. As a bonus, your Star will shine a little brighter because you trusted him/her with such an important task.

Don’t Wait Until You Have A Vacancy

Good candidates for your team don’t always respond to want ads. Really good employees probably already have a job. You might spot somebody at the supermarket or in the electronics store and say to yourself, “I wish she worked for me.”

So? Invite them to join your team!

Don’t wait until you’re behind the 8-ball or short-handed to upgrade your staff. Be constantly on the look-out for talented people and when you find one, offer them the opportunity to discuss a career with your company.

By never settling for mediocre employees your existing employees will learn to appreciate that you value talented team players. By constantly upgrading the people on your team everyone will see how important being the best really is. The subtle message is, the talented people rise to the top and those whose attitude is lacking, will fall away in time.

When you fit the applicant carefully into the slot you have open, or when you pick an outstanding employee even when you don’t have a slot for him, you send a clear message to your employees. When the process of hiring is seen among your employees as a ‘very big deal,’ they will see themselves in a better light and will be more inclined to preach your values to new hires. The sense of team will solidify around the values you demonstrate. Be sure to set the bar high.

- Doug Myrick