Although statistics indicate unemployment claims are dropping, there are still millions who are out of work. Many of these people have been out of work for six months or longer and they are struggling to make ends meet. Clearly, Government, as well as businesses, both private and public need to take more aggressive action to reduce unemployment. Several years ago, in one of my business management courses, a professor told me that finding the cause of a problem is easy,however finding a solution is not. I took my former professor’s logic to heart and asked myself, “How can our government and domestic businesses help get the unemployed back to work?” Here are some solutions:

1): Think carefully before outsourcing

Let’s face it; outsourcing is a very attractive alternative for many businesses.

If properly executed, it reduces corporate expenses. On the downside it can cause a company to lose goodwill and actually reduce their incoming business. Here is an example. A few months ago, I ordered a product from a company I have done business with before. My decision to order from them was also based on price, quality and their record for delivering on time. I will not name the company, however I am sure this has happened to others. A few weeks after I placed my order, I received a notice that the product was delayed, and I was given a new estimated arrival date. Two weeks later, I received another delay notification. After the third notice I called the company’s customer service center. In previous years, these customer service calls were routed to their manufacturing facility, where an expeditor could go across the street to the factory and physically check on the order. Recently, this particular company decided to outsource that function. My call was routed to a foreign country. It was given to an agent who was very difficult to understand. I never received a satisfactory explanation as to why my delivery was moved out three times. I ended up canceling my order. Truth be told, I had to repeat my cancellation instruction, as the agent who handled my call never actually canceled my order. Needless to say, I will never order their products again. If I were an executive at that company, I would ask two questions: First, how many other people will do exactly the same thing I did, and second, does the cost of the lost business justify the savings the employer receives from outsourcing?

2): End unnecessary credit checks

Not long ago, I received an e-mail from Hire Diversity.com. The e-mail contained a link to an article entitled Credit Checks not needed for hiring: Editorial. The entire article can be viewed on the following website:

http://www.hirediversity.com/news/2009/10/12/credit_checks_not_needed_for_hiring.htm

The article raises a good point. If you are out of work, it is possible you may fall behind on credit card payments. It is also likely that you will fall behind on your mortgage. This will cause, at best, a decrease in your credit rating. A perspective employer can use a poor credit rating as a reason not to hire you. I am reminded of Joseph Heller’s novel, Catch 22, where the main character found himself in a no-win situation. Granted, there are positions where a credit check is necessary. For many positions however, it is an extraneous exercise at best, and at worst it can be used to mask other reasons for not hiring a candidate, such as age discrimination, sexual or racial bias. This is a practice that must end, unless it is absolutely required for that position.

3): Follow Governor Corzine’s Initiative

Last month, New Jersey’s governor, Jon Corzine provided an initiative to employers that will help those who have exhausted their unemployment benefits. The initiative will pay employers a bonus for hiring people who have exhausted those benefits. My parents often told me that the one language businesses understand best is money. Here is a real life example. When Microsoft was ready to pull Windows XP off the market, it was not the consumer complaints that delayed that action; it was complaints by businesses, where Microsoft makes a more significant profit. The end result was that Microsoft not only delayed pulling Windows XP off the market, it included a Windows XP mode in its new Windows 7 Business Edition. Similarly, if business have a financial initiative to hire the unemployed we may start to see a more significant reduction in unemployment.

4): Government needs to take a fresh look at unemployment centers

Several years ago, it seemed that unemployment centers were my adversaries. At that time, I was out of work for about 10 weeks. While collecting unemployment benefits, I was required to see an employment counselor twice. Both times I was criticized for lack of initiative. The most frustrating visit was my second one, where the counselor was so busy criticizing me, that she did not hear me tell her that this would be the last visit, as I would be starting my new job in the following week. I am pleased to say that the current atmosphere is completely different. The Hempstead Unemployment Center has been renamed HempsteadWorks, and the staff is extremely helpful in terms of providing whatever resources they can. It can now be considered a re-employment center. HempsteadWorks can also be accessed via the internet via http://www.hempsteadworks.com. They provide computers, telephones, training resources, and counseling services. As unemployment increases, centers such as HempsteadWorks will require more staffing and more equipment. Government needs to make funding for these centers a top priority.

Whether you refer to our current economic condition as “The Great Recession” or “Depression 2.0” both Government and businesses need to work hand in hand to reduce the high rate of unemployment that currently exists.

-By The 405 Club