What is Happening to our Economy and How it Affects You
September 19, 2008
We are in one of the worst financial disasters of our generation. Every day the news is worse. One day the market is tanking, the next it seems to rebound, only to plummet again the following day. Poor oversight from government agencies and greed have taken us to this monumental point in our nation’s economic history. It appears the government‘s plan is not only a short term band-aid but also a long term fix of some serious banking issues. President Bush has authorized the Treasury to tap into a $50 billion depression-era fund to insure the holdings of eligible money market mutual funds. In addition, Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke are creating a huge rescue plan to buy up “dodgy assets” held by banks that made bad financial decisions.
Does the government have all the answers? I don’t know, but it appears the solutions look better than the alternative. However, aside from being a business owner, my economic background ends at reading Alan Greenspan’s “The Age of Turbulence” and Steven D. Levitt’s & Stephen J. Dubner’s “Frekonomics“. I do however know that in tough times, simple answers may be the best solutions. What can consumers do? They can learn from mistakes of others. Don’t buy houses you can’t afford. Don’t take out loans you can’t pay back. Gas prices are high, don’t drive so much.
But what can corporations do? I can only lend advice in one area, your people. Look at where you are vulnerable. Make sure you have the best employees in your organization. Tough economic times mean some people are desperate to get jobs. Do thorough background checks when hiring your staff. People need to work and sometimes desperate times create desperate measures. Lying on a resume is a sure fire way for someone to look better than another applicant and get the job that pays the bills. Time will tell, but we expect to see more people claim degrees they don’t have, employment titles and salaries they didn’t earn.
So, now more than ever, it is important companies do a quality employment background check. Don’t use a tough economy as an excuse to cut employment screening. Economics conditions affect your organization’s revenue, but decisions you make also affect your profits. It’s a shortsighted decision that could fundamentally alter the talent pool within your organization. There are also tools available to vet your current staff. Aside from the liabilities you have with new employees, potential criminal acts committed by current employees can cause you the same heartache. It is my hope we have learned a lot from these tough times. Let’s not turn the housing “bubble” into the “now my company is filled with unqualified employees bubble.”
Thanks to Kevin Bachman, Vice President of Quality Service at employeescreenIQ for help with this posting!
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