While we consider the contents of this publication to be of general meti4 its sponsorship by the U.S. Small Business Administradon does not 

necessarily constitute an endorsement of the views and opinions of the authors or the products and services of the companies with which 

they are affiliated.
All of SBA's programs and services are extended to the public on a nondiscriminatory basis.
TABLE OF CONTENTS

Who Needs a Pay 

Administration Plan? ................................................................................................................................................................................................7

Developing the Plan 

Installing the Plan 

Telling Employees About the Plan . .

Performance Evaluation .. .......

How Can the Plan Help You? ......

Updating the Plan ...............

ALTERNATIVE STAFFING SYSTEMS

Temporary Help Services ................................................................................................................................................................ lo

Employee Leasing .......

Payroll Service Contractors .

Service Contracting ......

INFORMATION RESOURCES

INTRODUCTION

STAFFING YOUR FIRM.........................................................................................................................................................................................1

Setting Personnel Policies ........................... Determining Needed 

Skills Finding Applicants Application Forms Interviewing Job 

Applicants

ESTABLISHING A PAY SYSTEM . ...........................................................................................................................................................................4

. 4

1

0 

1

... 14

.... 16

.... 16

............................................................................................................................................................l9
U.S. Smit Business Adminisfttlon

Finding and keeping qualified employees are crucial to 9 Right-to-Know Chemical Act

the success of any small business. 0 Federal Rehabilitation Act of 1973

Many staffing issues confront the employer: job 0 Age Discrimination in Employment Act

descriptions, pay schedules, work rules, motivation,

recruiting, interviewing, hiring, training, supervising, 0 Drug Free Workplace Act of 1988

evaluating, retaining and firing. 0 Vietnam Era Veterans Readjustment Assistance

There also are a multitude of laws and regulations Actofl974

confronting employers, including the following: 0 Worker Adjustment and Retraining Notification

• Immigration Reform and Control Act of 1986 Actofl988

0 Americans with Disabilities Act of 1990

• Civil Rights Act (Title VII on employment

discrimination) And, of course, there are the many payroll-related reports

• Equal Employment Opportunity Act and payments required by the Internal Revenue Service.

• National Labor Relations Act All have a bearing on hiring and conduct of the

• Fair Labor Standards Act workplace.

This publication suggests guidelines for creating

• Employee Retirement Income Security Act employment policies that meet the needs of your business

(ERISA), Pension Reform Act of 1974 as well as alternatives to ease administration and

• Consolidated Omnibus Budget Reconciliation Act operating burdens.

(COBRA)

• Occupational Health and Safety Act

A business is only as good as the people who staff it. To Setting Personnel Policies

effectively manage your small store or shop, you must

take time to find and hire the right employees. First, know yourself. Know what business you are in.

This section discusses the process of staffing a small Know your personal abilities and weaknesses, and try to

retail or service business: setting personnel policies, anticipate how you will deal with the situations that arise

determining the skills and abilities needed, finding in the daily operation of your business.

applicants, developing application forms and interviewing Standardize matters such as hours of work, time record

prospective employees. keeping, paid holidays, vacation, conduct and dress

Staffing is critically important to a business, regardless of regulations, wages, promotions, overtime, separation

its size. All firms take the same risk in hiring a new procedures, severance pay, pension and retirement plans,

employee; however, the smaller the firm, the greater the health care benefits and grievance procedures. Do not

consequences in lost time and money of hiring (and then leave these matters to the whim of a supervisor. Establish

fuing) the wrong employee. employment and training procedures to get the job done

the way you want it done.

Large companies have developed effective hiring When you have developed personnel policies, put those

techniques and procedures to lessen this risk. If you, the that affect'employees in writing and give each employee a

owner-manager of a"smau firm, are going to effectively copy. For the small business, this statement may consist

manage your operation you, too, must apply good staffing of on . e or two typed pages. For larger operations, it forms

techniques. the core of an employee handbook.
U.S. Sniaff Business Administration
It is very important to have written personnel policies. Probation also is useful for correcting serious

They help to resolve minor issues quickly; in more performance problems that develop during the course of

complicated matters, courts can rely on them as authority. employment.

Cofisider written policies for the following areas: Grievances. Regardless of the quality of the employment

Hours. Consider the number of work hours per week, the you offer, there will be conflicts with employees. Plan for

number of days per week, evening and holiday work, and grievances and establish procedures for handling them.

Consider the employee's right to demand review and

the time and method of payment for both regular and establish provisions for third party arbitration.

overtime hours. Unnecessary payment of overtime at

premium rates cuts profits. With planning, you should be Pronwtion. Consider promotion matters including normal

able to organize your employees' work to keep overtime increases of wages and salaries, changes of job titles and

at a minimum. When peak periods occur, consider using the effect of your company's growth on employee

part-time help paid at regular rates. advancement.

Compensation. ne bulk of the retail salesperson's Smoking. Your policy for smoking on the job or on the

earnings should come from a base salary competitive with work premises should be clear and enforced.

that offered by other local firms. It may be possible to

supplement the base salary with an incentive such as a Substance abuse. Use or abuse of alcohol or illegal

small commission or quota bonus plan. Try to relate the substances on the job is usually grounds for tentiination,

incentive both to your goals and to the goals of your especially after one or two warnings (your written policy

employees. Whatever plan you choose, be sure each will state the number of warnings required). But what of

employee understands it completely. use or abuse outside work, when the aftereffects affect

job performance through tardiness, absence, inattention,

Employee benefits. Consider offering your employees mood swings, avoidable accidents and so on? Are you

discounts on merchandise, free life insurance, health aware of local social services available to help troubled

insurance, a pension plan and tuition payments to schools employees? Your policy on substance abuse must be

and colleges. You might also look into joining other clear, in writing and enforced.

merchants in a group disability plan and a group workers'

compensation plan. Such plans could mean a considerable Safety and security responsibilities. Every employee has

savings in your premium costs. (For details see SBA certain responsibilities to help preserve safe and secure

pu4lication PM3, Managing Employee Benefits.) working conditions, be it opening the doors in the

morning or locking up at night, tending a cash register,

Retirement. What are your programs for retirement being alert for shoplifting, being alert for conditions that

benefits to supplement Social Security, such as pension can cause injury, knowing what to do in case of a robbery

plans and annuity plan insurance? or other emergency. Your training program should

include this information.

Leave. How long will vacations be? Will you specify the

time of the year they may be taken? With or without pay? Attire. Do you require uniform attire? If so, who provides

Will you allow employees time off for personal needs, and pays for uniforfns-you or the employee? Do you

emergencies in the family, holidays, special days such as have other requirements for attire? These should be stated

election day, special religious observances, Saturday or clearly, as should requirements for safety or sanitary garb.

Sunday holidays? What about lunch hour and work

breaks during the day? What about jury duty, service in Personal use of company equipnwnt orfacilities.

the local volunteer fire department or the local National Occasionally an employee may ask to use company

Guard and Civil Air Patrol units? equipment or facilities, such as a telephone, copy

machine, facsimile machine, word processor, typewriter

Training. Be certain each employee has adequate training or tools. Limits or prohibitions on such use should be

for the job. In a small business, the training responsibility clear from the beginning of a person's employment.

normally falls to the owner-manager. If you have

supervisors, each one must recognize the irnportance of Confidential in~fornution. "What you see here or hear

being a good teacher and must schedule time to teach new here, stays here!" These are good watchwords for every

people. employee, to protect not only the business but its

customers too. Gossip, faulty conclusions based on

Probation. At the beginning of employment it is usually a incomplete information, speculation or premature

good idea to have a probation or trial period of 60 to 90 discussion of company plans or expectations can

days to make certain the employee is a good "fit" for your seriously harm and perhaps destroy a business or its

operation. Problems can be identified and corrected. customers. You should wam employees of this danger.

2 U.S. Si7iall Business Administration
Personnel evaluation. You should periodically evaluate different tasks to different people. Make sure you know

each employee's performance. What factors will you which skills the employee must have and which ones you

consider? Will you ask the employee's opinion of his or can teach him or her.

her performance, how it can be improved and how overall

operations can be improved? Will you discuss your

evaluation with the employee? Will you cite serious Finding Applicants

deficiencies in writing and set a deadline for

improvement (see earlier comments on Probation)? Will When you have identified the skills needed you are ready

you make salary adjustments and training to contact sources that can help recruit job applicants.

recommendations based on your review?

Termination. Although termination is distasteful to many Each State has an employment service (sometimes called

business owners, it is wise to have a written policy on Job Service, Public Employment, Unemployment Bureau

matters such as layoffs, seniority rights, severance pay or Employment Security Agency). All are affiliated with

and the conditions that warrant summary discharge. the United States Employment Service, and local offices

Document in writing all events leading to a summary are ready to help businesses needing employees.

discharge, as this evidence will be critical in determining The employment service will screen applicants by giving

your liability in unemployment compensation claims as aptitude tests (if they are available for the skills you

well as possible civil actions. specify). Passing scores indicate the applicant's ability to

learn the work, so be specific about the skills you need.

Private employment agencies will also help recruit;

Determining Needed Skills however, the employee or the employer must pay a fee to

The trick to finding the right person for the j . ob is to the agency for its services.

decide what skills are needed. Once you know what a job Another source of applicants is a "Help Wanted" sign in

requires, you can match an applicant's skills and your front window. The disadvantages to this method are

experience to it. that unqualified applicants may inquire about the job, and

The first step in analyzing a job is to describe it. Suppose, you cannot conduct an interview and conduct your

business at the same time.

as a busy owner-manager, you want someone to relieve

you of some of your duties. Look at the functions you Newspaper advertisements reach a large group of job

perform and determine your strengths and weaknesses. seekers, and you can screen them at your convenience. If

Suppose you decide you need help in the office. The you list a company telephone number, you may end up on

phone is always ringing. Letters that need answers are the phone instead of dealing with your customers. A

piling up. Merchandise must be ordered. "blind ad," using a box number at the newspaper, can

protect your identity while you screen applications.

Once you have a job description on paper, consider the Schools are a good source of job applicants. The local

skills the job requires. What is the lowest level of skill high school may have a distributive education program in

you can accept? In this example, assume you decide which students work for you part-time while they learn

initially to hire a secretary, but discover that secretaries about your business. Many part-time students become

are scarce and expensive in your area. Word processors permanent employees after they finish school.

are almost as hard to find and nearly as expensive as

secretaries. Hiring a typist may be easier and cheaper -than You may find job applicants by contacting friends,

hiring a secretary or word processor. Many high school neighbors, customers, suppliers, present employees, local

students are well qualified as typists, and many are associations such as the Jaycees, service clubs to which

seeking part-time work. you belong or even a nearby armed forces base, where

One additional point: When you start looking for people may be leaving the service or * their dependents

someone to fill your job, make sure you spell out exactly may be seeking work. The downside of using this method

what you want. Say you are advertising for a "sales is that the goodwill of these sources may be affected if

clerk." What should the applicant be able to do? Tally they recommend a friend you do not hire or if you fire the

sales receipts accurately? Keep a customer list and person they recommended.

promote your products to these people? Run the store Your choice of recruitment depends on your type of

while you are away? The job of "sales clerk" means business, your location and you. There are many possible

U.S. Smil Business Administration
sources to choose from-if you are willing to invest the Interviewing Job Applicants

time and effort you will find the right applicant with the

correct skills for the job. The goal of the job interview is to find out as much as

you can about the applicant's work background,

Application Forms especially work habits and skills. Your major task is to

get the applicants to talk about themselves and about their

The crucial part of your work is hiring the one right work habits. The best way to go about this is to ask

employee. You need some method of screening specific questions. What did you do on your last job?

applicants to select the best one for the position. How did you do it? Why was it done?

The application form is a tool to ease the task of Employers are prohibited from inquiring of a job

interviewing and selection. You need to collect sufficient applicant as to whether they have a disability. Any

information, but also to keep the form as simple as question or act designed to determine disability status of a

possible. Use care in seeking personal information that is potential employee might be considered discriminatory.

not job-related. You may copy the sample form below. Questions must relate to the individual's ability to

perform essential functions of the job.

Have applicants complete the application before you talk Evaluate the applicants' replies. Do they know what they

to them; it makes an excellent starting point for the are talking about? Are they evasive or unskilled in job

interview. It is also a written record of experience and tasks? Can they account for discrepancies?

former employers' names and addresses. Moreover, it is

your first demonstration of how well the applicant When the interview is over, ask the applicant to check

follows instructions. back with you later, if you think you are interested in

Remember, the Civil Rights Act of 1964 prohibits hiring him or her. Never commit yourself until you

discrimination in employment practices because of race, interview all likely applicants. You want to be sure you

religion, sex or national origin. Public Law 90-202 select the right employee.

prohibits discrimination on the basis of age with respect Next, verify the applicant's information. A previous

to individuals who are at least 40 but less than 70. employer is usually the best source. Sometimes previous

Federal laws also prohibit discrimination based on employers will provide infortnafion over the telephone,

physical handicap. After 1994, Public Law 101-336 will but it is usually best to request information in writing and

require employers with at least 15 employees to take to ask for a written reply.

affirmative steps to reasonably accommodate the needs of To ensure a prompt reply, you should ask previous

the disabled whom they employ. employers a few specific questions about the applicant

Public Law 99-603 prohibits the hiring of illegal aliens that can be answered by a "yes" or "no" check or with a

and requires that you maintain certain documents very short response. For example: How long did the

indicating you have obtained proof of citizenship or employee work for you? . Was his/her work

alien-worker eligibility from your employees. poor _ average _excellent ? Why did

the employee leave your employ?

When an applicant has had work experience, other

references are not very important. However, if work Once you verify the information on all applicants, you are

experience is limited, additional references may be ready to make a selection. The. right employee can help

obtained from other individuals, such as school you make money. The wrong employee will cost you

counselors, who can give objective information. Personal money in wasted time, materials and perhaps customers.

references are almost useless, as most applicants list only

people who have a kind word for them.

4 U.S. Smil Business Administration
NOTICE: This application is valid until ff you are sd interested in employment at the end of this 

pedo you 

must file a 

new 

applicagon.

Application for Employment

Falsification of any information requested may be grounds for refusal to hire or for termination shoud the falsity be 

discovered after hiring.

Position

Name

Last First Middle

Present Address:

Street City State ZEP

Telephone No.:

1-9 Identification:

Social Security No. Driver's License No.

Green Card Work Permit

Passport (country & Birth Certificate

exp. date)

Successful applicants will be required to produce document(s).

Indicate dates and places you attended school:

Elementary, from to

High School, from to

Graduate? Year

from to

(Name of college)

Degree?

Our employees are bonded. Can you be bonded? If Yes, in what job?

Other training (include dates):

Special skills, accomplishments, awards:
Page I of 2

U.S. Small Business Administration 5
Application for Employment (Continued)

List below all present and past employment, beginning with most recent (include military service, if relevant):

Name & Address From TO Name of Reason for Weekly Describe

o(Company Mo/Yr L%lo/Yr Supervis(w _Leaving Salary Work You Did

May we contact the employers listed above?

If not, indicate those you do not wish us to contacl

Signature

Date

Remarks:
Page 2 of 2

6 U.S. Smfl Business Administration
Pay administration is a management tool that enables you A formal pay plan doesn't have to be costly in time and

to control personnel costs, increase employee morale and money. Formal doesn't mean complex. In fact, the more

reduce work force turnover. A formal pay system elaborate the plan, the more difficult it is to practice,

provides a means of rewarding individuals for their communicate and carry out.

contributions to the success of your firm, while making

sure your organization receives a fair return on its In establishing a pay plan,

investznent in employee pay. * define the joK

This section provides time-tested concepts for 0 evaluate the jobs,

determining competitive pay levels and for maintaining

fair pay relationships among the jobs of a small company. 0 price the jobs,

install the plan,

Who Needs a Pay Administration Plan? communicate the plan to employees and

evaluate employee performance under the plan.

Pay administration may be a term for something you are

already doing but haven't bothered to name. Or perhaps Defirdng the Jobs

your organization has not been paying employees

according to any system, but waiting until unrest prompts Unless you know each job's specifications and

pay adjustments--using payroll dollars to put out fires, so requirements, you can't compare them for pay purposes.

to speak. It's no surprise, therefore, that the initial step of installing

a formal plan is preparing a job description for each

A formal pay plan, one that lets employees know where position.

they stand and where they can go with respect to

take-home dollars, won't solve all of your employee You may be able to write these descriptions yourself, as

relations problems. It will, however, eliminate an area of in many small businesses the owner-manager at one time

doubt and rumor that may keep your work force anxious or another has worked at just about every job. However,

and unhappy-and less loyal and more mobile than you'd the best and easiest way to put together this job

like them to be. information is to ask employees to describe their jobs.

Supervisors should be asked to review the descriptions.

What's in it for you? In business-particularly small

business--good people make the difference between GO Prepare a simple form to be tilled out by the employee (or

and NO GO. Many people like a mystery, but not when by someone interviewing the employee). This is the time

it's about their pay. Employees under a pay plan they to explain to employees what you are doing. Tell them

know and understand can see that it is equitable (fair) and you need their help to develop the pay plan; that you are

equable (uniform), that pay isn't set by whim. They know not trying to find out how well they are doing their jobs,

what to expect and what they can strive for. Such a plan just what they do. The form should contain the following

can help you recruit employees, keep employees and categories:

motivate employees. It can help you build a solid 9 Job Title

foundation for a successful business.

0 Reporting Relationship

Developing the Plan 0 Specifications

e Primary Function (What is the main responsibility

A foremost concern in creating a formal pay of the job?)

administration plan is to get the acceptance, e Main Duties (List main duties in order of

understanding and support of your management and importance and estimate the percentage of time

supervisory employees. A well-defined, thoroughly spent on each.)

discussed and properly understood plan is a prerequisite

for success. * Other Duties (List duties not performed regularly.)

U.S. Smit Business Administration 7
o Job Requirements Pricing the Jobs

- Technical/Administrative Complexity Thus far in establishing a pay system, you've looked only

- Formal Education or Training Required* inside your company. You also should look outside at the

going rates for similar work in your area. Because you

- Experience or Background Required* have ranked and grouped jobs in pay levels, you won't

- Responsibility for Dollar Results have to survey each job. Sw-vey those on each level that

are easiest to describe and are most common in local

- Responsibility for Supervision industry. Do try, however, to survey jobs with more than

- Unusual Working Conditions one level, for example, junior and senior typists.

You probably have neither the time nor the money to

It will take time to prepare job descriptions from the make such a survey yourself, but you should be able to

information your employees provide, and what you learn get all the data from sources such as your local chamber

may have other uses besides comparing jobs for pay of commerce, major firms in your area, or from such

purposes. For example, you may discover that some national sources as the U.S. Bureau of Labor Statistics,

employees are not doing what you thought they were or the Administrative Management Society or the American

what they were hired to do. You may find you want to Management Association. If you belong to a trade

make changes in their work routines. The information may association, you may be able to enlist its help in

also be useful for determining the going rate for one or more jobs at each

• Hiring, training and developing employees; pay level.

• Realigning duties in the organizafion-, Make sure you compare job descriptions, not just job

titles. There can be great differences between what one

• Comparing job data for salary surveys; organization and another cafl their jobs--one firm's

janitor may be another's environmental control engineer.

• Assuring compliance with various employment

practice and pay rate laws and After you are satisfied that you are comparing apples and

• Evaluating job performance based on assigned apples, compute an average rate (the averages in this

duties. publication are purely arbitrary) for each job and enter it

on a worksheet as fohows:

Evaluating Me Jobs Pay Level . Position Average Rate

Nobody knows a scientific, precise way of deciding the I Clerk-typist $574

exact worth of a particular job. Human judgment is the 2 Word Processor 635

only way to put a douar value on work. A good job 3 Payroll Clerk 687

evaluation method for firms with 100 or fewer employees 4 Secretary 723

is "siznple-ranking." It's a guess, too, but a 5 Accounting Clerk 741

well-controlled guess. 6 Computer Operator 815

(and so on)

Under the simple-ranking system, job descriptions are

compared against each other by ranking them according

to difficulty and responsibility. Using your judgment, you You may need to adjust the average rates somewhat to

end up with a document showing an array of jobs and the maintain a distinction between pay levels. The going rates

relative value of each to the company. for each pay level can then become the midpoints of your

pay level ranges. (You can, of course, set midpoints

After ranking the job descriptions by value to the firm, above or below the survey averages, based on your

group jobs similar in scope and responsibility into the company's ability to pay, the length of your work week,

same pay grade. Then arrange the groups in a series of and the type and value of your benefit programs.)

pay levels from highest to lowest. The number of levels

depends on the total number of jobs and types of work in Typically, the minimum rate in a level is 85 percent and

your organization, but for a company with 100 or fewer the maximum rate 115 percent of the midpoint. With this

jobs, 10 or 12 pay levels is usually about right. arrangement, an employee can increase his or her

earnings by 35 percent without a job change; thus, there

can be performance incentives without promotions.

*Have your supervisors review these items, then decide if the levels of

training and experience your employees have is really what you want for You now have a pay range for each position in your

their positions. organization. It will resemble the following example:

a U.S. S=ll Business Adminis"tion
Pay Range--Sales Clerk Telling Employees About the Plan

Pay Level Minimum Midpoint Maximum Once your pay administration plan is in place, you must

1 $490 $575 $660 tell employees about it. If setting up a good program is

2 530 625 720 number one in importance, a close number two is

3 580 685 785 explaining the plan to employees.

4 615 725 835 Some employers write a personal letter to each employee,

5 690 815 935 others hold meetings to explain the plan and answer

(and so on) questions, still others do both.

However you tell employees, be clear, honest and open in

A pay range will enable you to tell where your explaining how the plan works. This is a prime

employees' pay and pay potential stand in relation to the opportunity to build goodwill and good relations with

market rates for their kinds of work. It should show you at your employees. Be sure your supervisors understand and

a glance where changes are needed to achieve rates that can explain the plan to their people. Explaining the plan

are fair within your organization and pay that is to new hires is essential and it is a good idea to review

competitive with similar businesses in your community. the plan periodically with all employees.

With a planned pay structure you should be able to tie

individual rates of pay to job performance and Performance Evaluation

contribution to company goals. It should also provide

enough flexibility to handle special situations. Most employees in the American labor force are under a

merit increase pay system, although their pay increases

Installing the Plan frequently result from other factors. This approach

involves periodic review and evaluation of how well

At this point you have the general plan, but of course you employees perform assigned duties. An effective

don't pay in general; you pay each employee individually. employee evaluation plan

You must now consider how to administer the plan for o Achieves better two-way communications

individual pay increases. between the manager and the employee,

There are several approaches to pay increases: * Relates pay to work performance and results,

• Merit increases to recogni~e performance and * Provides a standardized approach for evaluating

contribution; performance, and

• Promotion increases for employees assigned to * Helps employees see how they can improve by

different jobs at higher pay levels; helping them understand job responsibilities and

• Progression to minimum for employees who are expectations.

below the minimum or hiring rate for the pay Such a performance review helps not only the employee

level; whose work is being evaluated, it also helps the evaluating

• Probationary increases for newer employees who manager gain insight into the organization. An open

have attained the necessary skills and experience exchange between employee and manager can show the

to function effectively; manager where improvements in equipment, procedures or

other factors might improve employee performance. Try to

• Tenure increases for time with the company; and foster a climate in which employees can discuss progress

• General increases to help employees stay current and problems informally at any time throughout the year.

with, inflation and to keep pay competitive. Again, to get the best results it is a good idea to use a

form for evaluation. A typical form includes such job

These approaches are the most common, but there are performance factors as

many variations. Most annual increases are for cost of

living, tenure or employment market reasons. Several, all o Goals achieved,

or combinations of the increase methods can be used. t Quality of performance,

It is helpful to have a form to document salary increases 9 Volume of work,

and record the reasons. Over the years such records are

good references for pay administration purposes. * Effectiveness in working with others in f irtn,

U.S. S=ii Business Adminisfttlon 9
• Effectiveness in dealing with customers, suppliers Motivate--Me pay plan will provide goals to

and other outsiders, keep employees interested in and enthusiastic

about their present assignments and also provide

• Initiative, the incentive to seek greater opportunity within

9 Job knowledge, and your company.

• Dependability. Capable, interested and enthusiastic employees will help

You can design your own form, using examples from you win the battle for business survival and growth.

books on personnel administration, if necessary. Follow

from your job analyses and tailor your forms to the jobs. Updating the Pbn

Review your pay administration plan at least annually and

How Can the Plan Help You? adjust where necessary. Don't forget to retrain

supervisory personnel.

The finest pay plan in the world won't be of any use if it

doesn't help your business. What's in it for you? The During your annual review of the pay plan, ask yourself

answer is hiring, keeping and encouraging good the most important question: Is it working? Are you

employees. Your pay plan will help you getting the kind of employees you want or are you just

making do? What is the turnover rate? Do employees care

• Recruit--The pay ranges will provide competitive about the business? In the end it is not the elegance of the

hiring rates for attracting high-caliber employees. plan or the beauty of the forms and administration that

• Retain-The performance evaluation plan and matters; it is how the plan helps you to achieve the

pay increase feature will encourage performance objectives of your business.

plus growth and development within your

organization.

How do you cope with unexpected personnel shortages? unexpected employee shortages. This section explains

Many businesses face this question because of seasonal these services, points out some of their advantages and

peaking, inventory taking, special projects, several outlines steps to obtain the best possible results.

employees simultaneously on sick leave or an unexpected

increase in business. Almost every business needs extra help at one time or

another. A rush order comes in; the work load suddenly

And what about coping with the rising costs of providing zooms, then drops back to normal. More employees than

employee benefits, as well as all the payroll record usual are absent because of illness or vacations. A special

keeping required by local, state and federal government? project needs immediate attention. Seasonal demands

Or short- or long-term needs of your business that require must be met or inventories taken without disrupting

special expertise? normal business. The extra-heavy work load puts a strain

on you, on your employees and, if the overtime is

This section discusses alternatives available to meet these required, on your budget.

and other staffing challenges. Options include

• Temporary help services, Temporary shortages of personnel are especially difficult

for smaller businesses. The staff is small and there is little

• Employee leasing, leeway for shifting schedules, yet they cannot afford to

keep extra employees when the work load is normal.

• Payroll accounting and

• Service contracting. You can recruit extra workers yourself, use a public or

private employment agency or call on a temporary

personnel service. These specialized firms can usually

Temporary Help ServiceS provide you with a wide variety of people-, some of the

larger services handle complete departments, including

Using the services of temporary personnel firms often supervisors and workers.

provides a convenient and economical solution to
10 U.S. Smli Business Administration
What 13 a Temporary Personnel Service? labor market is tight and the skills you need are not

readily available. Also, why waste time orienting new

A temporary personnel service is not an employment people for short-term employment?

agency. Like many service flnns, it hires people as its The financial aspect of hiring shon-term personnel is also

own employees and assigns them to companies that

request help. When you use such a service you are not of major importance. Using temporary personnel may

hiring an employee, you are buying the use of his or her cost more than hiring additional employees, although

Lime. 'Me temporary personnel firm is responsible for there are many costs not usually considered. As an

payroll, bookkeeping, tax deductions, workers' example, mandatory costs-such as social security,

compensation, fringe benefits and all similar costs unemployment insurance and workers' compensation

connected with the employee. You avoid recruiting, amount to over I I percent of the base salary. Payment for

interviewing, screening and even testing and training if time not worked, including vacations, holidays and sick

these are necessary. Most national temporary personnel days, amounts to almost 9 percent. Company-paid

companies also offer performance guarantees and fidelity benerits-heallh insurance, pension plans, discounts,

bonding at no added cost to clients. In addition, they record keeping, payroll and other paperwork-amounts to

assume responsibility for reporting withholding tax, another 6 to 7 percent. Total hidden costs can be about 42

social security and unemployment compensation to percent. Therefore, a basic $150 weekly salary can cost

government agencies. about $213.

You can contract for a receptionist, typist, secretary, word Advantages of Using a Temporary Service Firm

processing operator, bookkeeper, switchboard operator,

product demonstrator, packer, added sales personnel or Workers supplied by a temporary service firm are quickly

many other types of office, professional and industrial available. Usually they can sm the day after a request is

workers. made and, in some cases, are available the same day.

Experienced and well qualified, they need little assistance

Consider temporary personnel when a temporary second to begin functioning. Thus, you can adjust to fast

shift allows you to make better use of expensive breaking opportunities or problems without interrupting

equipment investments. Sales blitzes to introduce regular production schedules.

products, special quarterly or year-end invoicing, special

telephone sales programs or order taking, and seasonal Although the hourly rate paid to a temporary service firm

catalog sales are other examples. Some companies is higher than the base salary of an employee you hired

contract for teams of temporary people to microfilm yourself, the cost of getting the work done is less. As

documents, retrieve information and maintain riles. noted earlier, using a temporary service fu-in does away

Temporaries also are in wide use at trade shows, product with many costly personnel recruiting and record-keeping

samplings and demonstrations. National temporuy firms operations. In addition, you save the cost of training,

offer the smaller company a way to handle a national overtime and idle periods. When you use a temporary

marketing effort, to compete with larger organizations firm you pay only for the actual time worked.

without excessive permane I nt overhead. Every company has a department in which turnover is

You can contract for temporary personnel for a day or for high. By using temporary personnel for such jobs you can

a much longer period. Some temporary personnel improve turnover rates and reduce the number Of

companies specialize in one tAx of help, such as office unemployment claims against your company until you

workers. Others supply a broad range of personnel, from have time to restaff. Claims experience determines, in

unskilled labor to accountants and engineers. part, the cost of unemployment insurance; therefore,

reduction of turnover can result in large savings for your

Why Not Hire Your Own Temporary Personnel? entire payroll.

Hiring temporary workers on your own has several When Not To Use a Temporary Service

important disadvantages. It may hamper your efforts to

attract good permanent employees. Once an emergency is In considering the use of a temporary service, weigh the

over, laying off employees can lower morale among the disadvantages to your company as well as advantages.

regular employees and, if this happens too often, it may Regular employees who lose overtime pay because of

give your firm a reputation for instability. temporary workers may become a morale problem.

Highly specialized work may require a training period,

Another disadvantage is that you may not be able to get which may make the use of temporary personnel less

help when you need it. There may be times when the economical.

U.S. Smil Business Adminis"tion 11
If you need a temporary worker for six months or longer Recruiting. Competition for skilled, reliable employees is

you should hire a full-time employee. There are also intense. The firm with an aggressive recruiting program is

cases in which the job is so complex it requires extensive more likely to have the most skifled and reliable

supervision if the worker is unfamiliar with your employees.

procedures. In such instances, it may be more economical

to pay overtime to a regular employee than to use a Testing and evaluating. How do its testing and evaluating

temporary worker. personnel assure quality workers? Does the firm check

references?

What Will it Cost? Training programs. Certain skills are always scarce. Does

the company train people in various aspects of office

Charges by temporary service firms vary widely with the work, such as modem office methods, word processing,

type of help you conuwt. Obviously, rates are higher for records management? Are typing and shorthand skills

the more skilled office or industrial worker than for the upgraded? Training is especially important in areas such

less skifled. Rates vary from city to city also, as most as word processing; the company should carefully train

temporary service firms pay employees the going rate in operators on the newest types of equipment and in the

that particular area for a given job. They charge you this newest techniques.

rate, adding a basic markup for administrative costs and a Retention programs. Does the company have a good

fair profit. program to keep qualified employees? -This will ensure

You pay an hourly rate to the temporary service firm. that you receive qualified workers when you need them.

They pay the employee. Most reputable services do not Professional permanent staff. 'Me temporary service's

charge for hours worked by an unsatisfactory worker if permanent staff should be experienced in the personnel

you let them know promptly. Normally you must notify field, knowledgeable professionals who will understand

them within four hours after the employee reports for your needs.

work, but this requirement varies with individual firms. Knowledge of your needs. Does the firm make every

If you are to get the most for your dollar investment, you effort to investigate your needs? Do they understand what

must analyze your needs and plan to make the best you are discussing with them?

possible use of the time and skills of the temporary Prompt service. The temporary service firm with a supply

employee. The following guidelines will be helpful. of workers available on short notice can be most

important when you are in a rush.

How To Select a Temporary Service Firm Quality control. Does the company check with you to

There are many temporary service firms throughout the determine the quality of work temporary employees are

United States. Some operate regionally and a few doing?

nationally. If you are likely to need temporary workers, Insurance protection. Does the firm protect your

do some exploring in advance . . company with adequate insurance coverage, including

Check with your local chamber of commerce, your fidelity bonds and workers' compensation?

attorney, your accountant, your banker. Look in the Guarantee. Does the temporary service firm guarantee

Yellow Pages of the telephone directory under your satisfaction with each temporary employee? Does it

"Employment, Temporary," "Employment have a refund or guarantee policy? What are its terms?

Contractors-Temporary Help" or a simflar heading.

Try to meet in person with an executive of the firm you Plan Early

select. A short discussion will help him or her understand The key to the successful use of temporary employees is

your operation, problems and needs. You, in turn, can to plan what kind of help you will need, how much and

gain an understanding of services the company provides. when. Your accurate information will help the temporary

Evaluate the company and its ability to serve you service to efficiently supply your needs.

properly by these factors: To pla . n properly, answer these questions:

Reliability. Is the service well established, with a history How seasonal is my business?

of success and financial stability? Check the annual report

if it is a public company or ask for a certified financial

statement to determine if it is a stable organization.

12 U.S. Smfl Business Administration
• Do any of my regular employees have to work Give the Temporary Help Service Full Information

overtime to meet peak work loads? What does the

overtime cost? If the temporary personnel rirm is to help you get the best

results at the lowest possible cost, you must provide

• If there is extensive overtime, will there be a detailed information about the work. If possible, send

performance lag and possible morale problems samples of the work. Be sure to give the exact location of

during regular working hours? With better your business, transportation available, parking

planning can I sprea I d peak work loads out over information, and the name and title of the person to whom

the year9 the temporary employee will report.

• Are my deliveries made on schedule?

Preparing for the Temporary Employee

• Do customers often order with rush jobs? If so,

can I help them plan their needs further in Before the temporary employee reports for work

advance?

Tell your permanent employees. Let your staff know you

• Are my employees' vacations scheduled around will have temporary extra help. Explain the reasons and

peak seasons? ask their cooperation with the new employee.

• What extra help do I need to cope with these Arrangefor supervision. Appoint a permanent employee

problems and to reduce costs? to supervise the temporary worker and to check

Meet with key personnel who plan day-to-day operations. occasionally on work progress. Be sure the supervisor

Study production schedules. Note peak periods. Compare understands the job to be done and his or her

this year with previous years. A pattern will.emerge and responsibility.

you will be able to see where some extra help can avoid Prepare the physicalfacilities. Before the temporary

problems and keep costs down. worker arrives, see that all necessary materials are

available and equipment is in place and in good working

What To Do When the Time Con,*s order. Organize the work so the employee can begin

producing with a minimum of time spent adjusting to the

It is extremely important to inform the temporary service job and the surroundings.

of your exact needs. A good temporary firm needs Plan the work load. Establish schedules that are possible

detailed descriptions of your company and the positions to complete in the allotted time. Try to stay within time

you are filling. They will ask for information about the limits, but plan to extend the. time period rather than

department the employee will be working in, duration of crowd the employee. Rushing and overwork can cause

the assignment, working hours, dress code, smoking rules costly mistakes.

and other important information. Will you need a copy

typist or a clerk-typist, for example? Does the secretarial Prepare detailed instructions. Describe your type of

position require shorthand or are there machine business, the products you manufacture or the services

transcriptions to type? What kinds of word processors, you offer. Be specific in outlining company procedures.

typewriters and office equipment do you have? Does the

employee need special knowledge or skills? If you define The Work Begins

needs exactly you will get qualified people and will not

pay. for skills not needed. Most larger temporary servi ' ce You've made the preparations. The employee has arrived

firms have special advisors to work with you and help and is ready to start work. What now? How do you get a

you plan. In summary, temporary worker started? What should you expect?

What if you're not satisfied?

Estimate Your Needs Help the employee settle in. Receive ' the temporary

employee as you would receive one hired permanently.

Decide specific requirements of the job. Exactly what Make the person feel like a member of your team.

talen6 do you need? How long will you need the Explain where to hang coats, location of the washroom,

employee? Don't ask for someone with higher lunch hour and coffee breaks. Introduce the temporary

qualifications than the work requires. On the other hand, employee to the work supervisor and to permanent

don't try to economize by getting underqualirted help and employees in the same deparunent: "Ms. Jones will be

expecting the worker to carry out tasks he or she cannot here for a few days to help out." Or "W. Smith will be

handle. here this week working on the rush job."

U.S. Smit Business Administration 13
Explain the job. Go over the work assignment and the 

instructions. Explain company routines. Make directions as 

simple as possible and provide samples of the work to be 

done. If the work is complex, explain it clearly and make 

certain you are understood. Assure the temporary employee of 

your staff's willingness to help and your own interest and 

concern.

Don't expect the in;wssible. How much can you expect from a 

temporary employee? Fully as much as you contmted for with 

the temporary service firm. Most employees of these firms 

have experience, are versatile and perform well. Because they 

have worked for a variety of businesses they have learned to 

adapt quickly to new situations and they know future 

assignments depend on their doing satisfactory work.

Don't expect the impossible. Don't overload temporary 

employees; make a slight allowance for the fact they are not 

familiar with your business. Check the work occasionally, ask 

for questions and never let the employee feel stranded or left 

out. However, don't hover. And don't push or prod too much.

Judging the Overall Results

Within a few hours after the temporary worker arrives, you will 

be able to judge how the work is going. If you are not satisfied, 

notify the temporary service firm.

You have a right to expect a conscientious, interested 

employee who will put in a full day's work. A good temporary 

service firm will ask you to evaluate the employee's work at the 

end of the assignment.

To measure the value of temporary services in your business 

operation, keep these points in mind to help you plan for 

future needs:

o Did the productivity of the employee justify the

cost?

Was the work completed accurately and effectively?

Did using a temporary worker benefit overall operations?

i, Were there any disadvantages?

Your evaluation may help you work out a program for hiring 

temporary personnel so you have adequate help for all work 

loads.

landholders, paying their wages in return for some form of 

reimbursement by the lessee. It is, in many ways, similar to 

temporary personnel services, but employee leasing is 

long-term and involves permanent employees.

Usually an employer transfers the company employees to the 

payroll of an employee leasing firm that, in turn, leases them 

back to the employer.

The leasing company becomes the legal employer and is 

responsible for paying the workers; keeping their payroll, leave 

and other records-, providing their benefits and services; 

and participating in their hiring, evaluation and firing.

Interest in employee leasing has been fueled by increased 

government regulation of employer-employee relations. 

Meeting requirements of the many laws related to employment 

and to employee benefit programs (see the Introduction to this 

publication) is extraordinarily time consuming. Moreover, the 

penalties for not meeting them are heavy, not only in potential 

costs, but in time defending one's actions.

Another key factor is the ability to provide employee benefits 

equal to those of large corporations. Leasing companies have 

far greater buying power than do small firms.

How does employee leasing differ from temporary personnel 

services? Leasing firms create their services for the permanent 

workers of an organization. Providing benefits is part of this 

service. Because of this, the leasing concept extends deeply 

into the personnel management needs of the business using 

the service.

Administrative/accounting work of a leasing company includes

Creating employee payroll checks,

Maintaining deduction records,

Computing tax liabilities and making required bank deposits,

Handling garnis~ents for courts or other taxing 

bodies,

Auditing for workers' compensation insurance,

Auditing for employee health insurance, credit union 

and so on,

o Auditing for unemployment claims,

Employee Leaslng 0 Complying with COBRA regulations on various

benefits,

Systems of employee leasing go back hundreds of years, 0 Reconciling employee paychecks,

to "lent-servant" arrangements in England, in which

landholders "leased" their own servants to other - Posting state and federal tax records,

14

U.S. Smil Business Administration
• Preparing end-of-year W-2 statements, 0 Help is provided in defining personnel policies

• Maintaining vacation and other paid leave records, and compiling employee handbooks.

• Responding to payroll inquiries, * Record keeping is uniform and easily audited.

• Maintaining payroll updates and changes, and Disadvantages of Employee Leasing

• Preparing payroll audits for other insurance

programs. The I . easing company has a right to exercise

certain controls over your employment policies.

Employee leasing is not a way for employers to insulate This can be a two-edged sword, a hindrance and a

themselves from legal responsibilities or liabilities. It can help.

be said that "employee leasing occurs when one employer, You retain a large measure of responsibility for

while conawting in good faith with an otherwise your work force, its productivity and conduct.

independent business, has retained for itself sufficient

control over the terms and conditions of the employees Terminating an employee may be more difficult

who are on the payroll of another employer."' For this as a leasing company will insist on certain

reason most employee leasing arrangements have joint documentation.

employment implications.

Leasing is not a way to cut comers or avoid

In fact, one definition of employee leasing is a obligations.

4-contractual arrangement in which the leasing company is

an employer of all or part of the client's work force. What To Watch Out For

Under this arrangement employment responsibilities and

liabilities are allocated between the leasing company and Before entering an employee leasing contract you should

the client, while allowing ;he client to retain essential pay particular heed to the following matters:

management and control of its business. The leasing

company pays and reports wages and employment taxes Labor union contracts. A labor union contract may

out of its own accounts and has a right of direction and prohibit you from engaging in employee leasing. Union

,,2

control of the leased employees. Note the definition members may view your actions as a way of avoiding the

does not say "has the right of direction and control," but terms of your contraCL

"has a righl"

State Idws that affect hiring of certain professionals.

Advantages of Employee Leasing Some states have laws on the hiring of certain

professionals such as attorneys, accountants and medical

• An obvious advantage is that much of the time personnel.

previously spent on personnel management and

accounting can be directed toward other activities Obtaining the consent of employees. Your employees

that affect earnings and profit. should know fully of your plans and why you are entering

employee leasing. They should understand your

• Econornies of scale in providing employee continuing role in their employment and supervision, as

benefits is an even greater advantage. For well as the role of the leasing company and how it will

example, firms with fewer dm 25 employees affect them and the benefits they receive.

have difficulty providing economical health These items are of concern to your employee lessor, too.

benefits. An employee leasing firm can negotiate

group health insurance premiums at a

significantly lower cost for 100 or more The leasing company will likely require you to place the

employees. equivalent of one payroll in an escrow or trust account.

You have an obligation to meet payroll costs as regularly

• Leasing can provide a greater variety of employee as if you were paying employees directly.

benefits--including cafeteria plans, group life

insurance, disability insurance, payroll savings, How To Select an Employee Leasing Firm

credit unions and certain retirement plans-than

might be available otherwise. You should evaluate the company and its ability to serve

you property by these factors: reliability, professional

'Willey. T. Joe..... "I"be Changing World of Employee Leasing," Nalionwstaff, knowledge of 

your needs, prompt service, quality

StaffLeasing Source Dookfor Employee Leasing, Vol. 1. Encino, CA, control, insurance protection, guarantee.

1990.

lwiuey.

U.S. Small Business Administration 15
Questions you should ask:

How long has the leasing firm been in business?

Is the leasing firm a member of an association?

Do representatives of the firm appear competent and 

knowledgeable, able to answer questions promptly and 

intelligently?

Are the personnel administration instruments in place?

* Who administers the employee benefits, and how?

How does the firm train and update its professional staff9

Are the fmn's insurance carriers rated?

Who are the firm's attorney, banker and accountant?

Are the firm's operations computerized?

If not, how are employee records maintained?

Is the payroll accurate and punctual?

Can the firm provide printed verification of 

payroll data?

Does the firm have a backup for recovery of 

payroll?

Is invoicing and billing understandable?

Are records and insurance payments reviewed?

What is the firm's capacity for improving 

services to the subscribers?

Before Signing the Leasing Contract

Be completely candid with the leasing firm 

about all aspects of your business and your employees so 

the most reasonable and reliable arrangements can be made.

Because employee leasing companies operate in a fiduciary 

capacity, they must meet rigorous financial standards. All 

companies should be able to provide bank references and 

financial statements prepared by an independent certified 

public accountanl Ask also for client references and be 

certain to contact them for a report of their experience with 

the firm.

Payroll Service Contractors

With payroll services, the normal employer-employee 

relationship continues. Payroll service contractors issue 

paychecks, deposit taxes, prepare W-2 tax forms and handle 

personnel record keeping.

Payroll services depend largely on automatic data 

processing. Leaders in the industry include ADP, Bank of 

America and Paychex.

Refer to the section on Service Contracting for items to be 

considered when entering into any agreement for services.

Service Contracting

Many business needs are better met-because of the 

infrequency of the need or the specialized nature of the 

work-by contracting for the service rather than hiring 

permanent employees. Services often contracted include

Have all the legal documents reviewed by competent 

counsel.

Know who your direct liaison with the leasing company will 

be when you need help or have questions.

Be sure your leasing company carries all necessary insurance 

appropriate to your situation. Choose only employee leasing 

companies that deal with top-rated insurance companies. 

Association with a well-known insurance name may indicate 

only that certain services-not necessarily insurance 

covemge--am available from that fmn. Top-rated firms may 

charge slightly higher premiums, but their coverage and 

service is reliable or they would not have top rating.

Security,

Janitorial,

Waste management,

Equipment/mechanical maintenance,

Merchandise delivery,

Payroll accounting,

Printing,

Data processing,

Messenger,

Grounds upkeep,

Interior decorating,

Building upkeep (remodeling, roofing, painting) and

Specialized services (installation, servicing and 

cleaning of appliances, carpeting, furniture).

16

U.S. Sinall Business Administration
In these situations you enter a contract with a business to Copies of required licenses for performance of

perform specific services, during a specific period or at a certain services.

specific time, for a specific price. The terms of the contract Appropriate warranty or guarantee on the quality

cite responsibility for providing any materials or of the work.

equipment necessary to perform the service and other

requirements for successful completion. It is the Clear payment schedule including, depending on

contracting firm's responsibility to provide staff, pay them the work, possible retainage (holding back of a

and supervise them. portion of payments) pending satisfactory

When contracting for services, it is wise to require completion of a project.

• References from other companies that have used Proposals for services usually are presented and detailed

the contractor and will comment on the quality of on standard forms designed by the contractor. It is wise to

contract performance. have your legal counsel review the terms of the docwnents

before you sign them, to avoid any misunderstanding of

• Certificates of insurance demonstrating that the your obligations. Such a review also may suggest

contractor has adequate liability and other amendments benefiting you that are also acceptable to the

coverage for its employees. contractor.
U.S. Smil Business Administration 17

U.S. Smafl Business Administration (SBA) Many federal agencies offer publications of interest to

small businesses. There is a nominal fee for some, but

The SBA offers an extensive selection of information on most are free. Below is a selected list of government

most business management topics, from how to start a agencies that provide publications and other services

business to exporting your products. targeted to small businesses. To get their publications,

contact the regional offices listed in the telephone

This information is listed in The Small Business directory or write to the addresses below:

Directory. For a free copy write to: SBA Publications, Consumer Information Center (CIC)

P.O. Box 1000, Fort Worth, TX 76119. P.O. Box 100

Pueblo, CO 81002

SBA has offices throughout the country. Consult the U.S. The CIC offers a consumer information catalog of

Government section in your telephone directory for the federal publications.

office nearest you. SBA offers a number of programs and

services, including training and educational programs, Consumer Product Safety Commission (CPSC)

counseling services, financial programs and contract Publications Request

assistance. Ask about Washington, DC 20207

• Service Corps of Retired Executives (SCORE), The CPSC offers guidelines for product safety

a national organization sponsored by SBA of requirements.

over 13,000 volunteer business executives US. Department of Agriculture (USDA)

who provide free counseling, workshops and 12Lh Street and Independence Avenue, SW

seminars to prospective and existing small Washington, DC 20250

business people. The USDA offers publications on selling to the USDA.

• Small Business Development Centers (SBDCs), Publications and programs on entrepreneurship are also

sponsored by the SBA in partnership with available through county extension offices nationwide.

state and local governments, the educational

community and the private sector. They US. Department of Commerce (DOC)

provide assistance, counseling and training Office of Business Liaison

to prospective and existing business people. 14th Street and Constitution Avenue, NW

Room 5898C

• Smaff Business Institutes (SBIs), Washington, DC 20230

organized through SBA on more than DOC's Business Assistance Center provides listings of

500 college campuses nationwide. The business opportunities available in the federal government.

institutes provide counseling by students This service also will refer businesses to different

and faculty to small business clients. programs and services in the DOC and other federal

For more information about SBA business development agencies.

programs and services call the SBA Small Business U.S. Department of Health and Human Services (HHS)

Answer Desk at 1-800-U-ASK-SBA (827-5722). Public Health Service

Alcohol, Drug Abuse and Mental Health

Other U.S. Government Resources Administration

5600 Fishers Lane

Rockville, MD 20857

Many publications on business management and other Drug Free Workplace Helpline: 1-800-943-4971. Provides

related topics are available from the Government Printing information on Employee Assistance Programs.

Office (GPO). GPO bookstores are located in 24 major National Institute for Drug Abuse Hotline:

cities and are listed in the Yellow Pages under the 1-800-662-4357. Provides information on preventing

"bookstore" heading. You can request a Subject substance abuse in the workplace.

Bibliography by writing to Government Printing Office, The National Clearinghouse for Alcohol and Drug

Superintendent of Documents, Washington, DC Information: 1-800-729-6686 toll-free. Provides pamphlets

20402-9328. and resource materials on substance abuse.

U.S. S=ii Business Adminisntlon 19
U.S. Department of Labor (DOL) For More Information

Employment Standards Administration

200 Constitution Avenue, NW

Washington, DC 20210 A librarian can help you locate the specific information

The DOL offers publications on c(xnpliance with you need in reference books. Most libraries have a variety

labor laws. of directories, indexes and encyclopedias that cover many

business topics. They also have other resources, such as

U.S. Department of Treasury

Internal Revenue Service (IRS) Trade association information

P.O. Box 25866 Ask the librarian to show you a directory of trade

Richmond, VA 23260 associations. Associations provide a valuable

1-800-424-3676 network of resources to their members through

The IRS offers information on tax requirements for small publications and services such as newsletters,

businesses. conferences and seminars.

Books

U.S. Environmental Protection Agency (EPA) Many guidebooks, textbooks and manuals on

Small Business Ombudsman small business are published annually. To find the

401 M Street, SW (A-149C) names of books not in your local library check

Washington, DC 20460 Books In Print, a directory of books currently

1-800-368-5888 except DC and VA available from publishers.

703-557-1938 in DC and VA Magazine and newspaper articles

The EPA offers more than 100 publications designed to Business and professional magazines provide

help small businesses understand how they can comply information that is more current than that found in

with EPA regulations. books and textbooks. There are a number of

indexes to help you find specific articles in

U.S. Food and Drug Administration (FDA) periodicals.

FDA Center for Food Safety and Applied Nutrition

200 Charles Street, SW In addition to books and magazines, many libraries offer

Washington, DC 20402 free workshops, lend skill-building tapes and have

The FDA offers information on packaging and labeling catalogues and brochures describing continuing education

requirements for food and food-related products. opportunities.
20 U.S. Smli Business Administration