U.S. Small Business Administration                           PM-2



                 EMPLOYEES: HOW TO FIND AND PAY THEM


                     Personnel Management Series


_________________________________________________________________

While we consider the contents of this publication to be of 
general merit, its sponsorship by the U.S. Small Business
Administration 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

INTRODUCTION

STAFFING YOUR FIRM
     Setting Personnel Policies
     Determining Needed Skills
     Finding Applicants
     Application Forms
     Interviewing Job Applicants

ESTABLISHING A PAY SYSTEM
     Who Needs a Pay Administration Plan?
     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
     Employee Leasing
     Payroll Service Contractors
     Service Contracting

INFORMATION RESOURCES

_________________________________________________________________

INTRODUCTION

Finding and keeping qualified employees are crucial to the 
success of any small business.

Many staffing issues confront the employer: job descriptions, pay
schedules, work rules, motivation, recruiting, interviewing,
hiring, training, supervising, evaluating, retaining and firing.

There also are a multitude of laws and regulations confronting
employers, including the following:

     *     Immigration Reform and Control Act of 1986

     *     Civil Rights Act (Title VII on employment
           discrimination)

     *     Equal Employment Opportunity Act

     *     National Labor Relations Act

     *     Fair Labor Standards Act

     *     Employee Retirement Income Security Act (ERISA), 
           Pension Reform Act of 1974

     *     Consolidated Omnibus Budget Reconciliation Act (COBRA)

     *     Occupational Health and Safety Act

     *     Right-to-Know Chemical Act

     *     Federal Rehabilitation Act of 1973

     *     Age Discrimination in Employment Act

     *     Drug Free Workplace Act of 1988

     *     Vietnam Era Veterans Readjustment Assistance Act of 
           1974

     *     Worker Adjustment and Retraining Notification Act of
           1988

     *     Americans with Disabilities Act of 1990

And, of course, there are the many payroll-related reports and
payments required by the Internal Revenue Service.

All have a bearing on hiring and conduct of the workplace.

This publication suggests guidelines for creating employment
policies that meet the needs of your business as well as
alternatives to ease administration and operating burdens.
_________________________________________________________________

STAFFING YOUR FIRM

A business is only as good as the people who staff it. To
effectively manage your small store or shop, you must take time 
to find and hire the right employees.

This section discusses the process of staffing a small retail or
service business: setting personnel policies, determining the
skills and abilities needed, finding applicants, developing
application forms and interviewing prospective employees.

Staffing is critically important to a business, regardless of its
size. All firms take the same risk in hiring a new employee;
however, the smaller the firm, the greater the consequences in 
lost time and money of hiring (and then firing) the wrong 
employee.

Large companies have developed effective hiring techniques and
procedures to lessen this risk. If you, the owner-manager of a
small firm, are going to effectively manage your operation you,
too, must apply good staffing techniques.

Setting Personnel Policies

First, know yourself. Know what business you are in. Know your
personal abilities and weaknesses, and try to anticipate how you
will deal with the situations that arise in the daily operation 
of your business.

Standardize matters such as hours of work, time record keeping,
paid holidays, vacation, conduct and dress regulations, wages,
promotions, overtime, separation procedures, severance pay, 
pension and retirement plans, health care benefits and grievance
procedures. Do not leave these matters to the whim of a 
supervisor. Establish employment and training procedures to get 
the job done the way you want it done.

When you have developed personnel policies, put those that affect
employees in writing and give each employee a copy. For the small
business, this statement may consist of one or two typed pages. 
For larger operations, it forms the core of an employee handbook.
It is very important to have written personnel policies. They 
help to resolve minor issues quickly; in more complicated 
matters, courts can rely on them as authority.

Consider written policies for the following areas:

Hours. Consider the number of work hours per week, the number of
days per week, evening and holiday work, and the time and method 
of payment for both regular and overtime hours. Unnecessary 
payment of overtime at premium rates cuts profits. With planning,
you should be able to organize your employees' work to keep
overtime at a minimum. When peak periods occur, consider using
part-time help paid at regular rates.

Compensation. The bulk of the retail salesperson's earnings 
should come from a base salary competitive with that offered by
other local firms. It may be possible to supplement the base 
salary with an incentive such as a small commission or quota 
bonus plan. Try to relate the incentive both to your goals and to
the goals of your employees. Whatever plan you choose, be sure 
each employee understands it completely. 

Employee benefits. Consider offering your employees discounts on
merchandise, free life insurance, health insurance, a pension 
plan and tuition payments to schools and colleges. You might also
look into joining other merchants in a group disability plan and 
a group workers' compensation plan. Such plans could mean a
considerable savings in your premium costs. (For details see SBA
publication PM3, Managing Employee Benefits.)

Retirement. What are your programs for retirement benefits to
supplement Social Security, such as pension plans and annuity 
plan insurance?

Leave. How long will vacations be? Will you specify the time of 
the year they may be taken? With or without pay? Will you allow
employees time off for personal needs, emergencies in the family,
holidays, special days such as election day, special religious
observances, Saturday or Sunday holidays? What about lunch hour 
and work breaks during the day? What about jury duty, service in
the local volunteer fire department or the local National Guard
and Civil Air Patrol units?

Training. Be certain each employee has adequate training for the
job. In a small business, the training responsibility normally
falls to the owner-manager. If you have supervisors, each one 
must recognize the importance of being a good teacher and must
schedule time to teach new people.

Probation. At the beginning of employment it is usually a good 
idea to have a probation or trial period of 60 to 90 days to make
certain the employee is a good fit for your operation. Problems 
can be identified and corrected. Probation also is useful for
correcting serious performance problems that develop during the
course of employment.

Grievances. Regardless of the quality of the employment you 
offer, there will be conflicts with employees. Plan for 
grievances and establish procedures for handling them. Consider 
the employee's right to demand review and establish provisions 
for third party arbitration.

Promotion. Consider promotion matters including normal increases 
of wages and salaries, changes of job titles and the effect of 
your company's growth on employee advancement. Smoking. Your 
policy for smoking on the job or on the work premises should be
clear and enforced.

Substance abuse. Use or abuse of alcohol or illegal substances on
the job is usually grounds for termination, especially after one 
or two warnings (your written policy will state the number of
warnings required). But what of use or abuse outside work, when 
the aftereffects affect job performance through tardiness, 
absence, inattention, mood swings, avoidable accidents and so on?
Are you aware of local social services available to help troubled
employees? Your policy on substance abuse must be clear, in 
writing and enforced.

Safety and security responsibilities. Every employee has certain
responsibilities to help preserve safe and secure working
conditions, be it opening the doors in the morning or locking up 
at night, tending a cash register, being alert for shoplifting,
being alert for conditions that can cause injury, knowing what to
do in case of a robbery or other emergency. Your training program
should include this information.

Attire. Do you require uniform attire? If so, who provides and 
pays for uniforms -- you or the employee? Do you have other
requirements for attire? These should be stated clearly, as 
should requirements for safety or sanitary garb. 

Personal use of company equipment or facilities. Occasionally an
employee may ask to use company equipment or facilities, such as 
a telephone, copy machine, facsimile machine, word processor,
typewriter or tools. Limits or prohibitions on such use should be
clear from the beginning of a person's employment. 

Confidential information. What you see here or hear here, stays
here! These are good watchwords for every employee, to protect 
not only the business but its customers too. Gossip, faulty
conclusions based on incomplete information, speculation or
premature discussion of company plans or expectations can 
seriously harm and perhaps destroy a business or its customers. 
You should warn employees of this danger.

Personnel evaluation. You should periodically evaluate each
employee's performance. What factors will you consider? Will you
ask the employee's opinion of his or 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
deficiencies in writing and set a deadline for improvement (see
earlier comments on Probation)? Will you make salary adjustments
and training recommendations based on your review?

Termination. Although termination is distasteful to many business
owners, it is wise to have a written policy on matters such as
layoffs, seniority rights, severance pay and the conditions that
warrant summary discharge. Document in writing all events leading
to a summary discharge, as this evidence will be critical in
determining your liability in unemployment compensation claims as
well as possible civil actions.

Determining Needed Skills

The trick to finding the right person for the job is to decide 
what skills are needed. Once you know what a job requires, you 
can match an applicant's skills and experience to it. 

The first step in analyzing a job is to describe it. Suppose, as 
a busy owner-manager, you want someone to relieve you of some of
your duties. Look at the functions you perform and determine your
strengths and weaknesses.

Suppose you decide you need help in the office. The phone is 
always ringing. Letters that need answers are piling up.
Merchandise must be ordered.

Once you have a job description on paper, consider the skills the
job requires. What is the lowest level of skill you can accept? 
In this example, assume you decide initially to hire a secretary,
but discover that secretaries are scarce and expensive in your
area. Word processors are almost as hard to find and nearly as
expensive as secretaries. Hiring a typist may be easier and 
cheaper than hiring a secretary or word processor. Many high 
school students are well qualified as typists, and many are 
seeking part-time work.

One additional point: When you start looking for someone to fill
your job, make sure you spell out exactly what you want. Say you
are advertising for a sales clerk. What should the applicant be
able to do? Tally sales receipts accurately? Keep a customer list
and promote your products to these people? Run the store while 
you are away? The job of sales clerk means different tasks to
different people. Make sure you know which skills the employee 
must have and which ones you can teach him or her.

Finding Applicants

When you have identified the skills needed you are ready to 
contact sources that can help recruit job applicants.

Each State has an employment service (sometimes called Job 
Service, Public Employment, Unemployment Bureau or Employment
Security Agency). All are affiliated with the United States
Employment Service, and local offices are ready to help 
businesses needing employees.

The employment service will screen applicants by giving aptitude
tests (if they are available for the skills you 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; however, the
employee or the employer must pay a fee to the agency for its
services.

Another source of applicants is a Help Wanted sign in your front
window. The disadvantages to this method are that unqualified
applicants may inquire about the job, and you cannot conduct an
interview and conduct your business at the same time.

Newspaper advertisements reach a large group of job seekers, and
you can screen them at your convenience. If you list a company
telephone number, you may end up on the phone instead of dealing
with your customers. A blind ad, using a box number at the
newspaper, can protect your identity while you screen 
applications.

Schools are a good source of job applicants. The local high 
school may have a distributive education program in which 
students work for you part-time while they learn about your
business. Many part-time students become permanent employees 
after they finish school.

You may find job applicants by contacting friends, neighbors,
customers, suppliers, present employees, local associations such 
as the Jaycees, service clubs to which you belong or even a nearby
armed forces base, where people may be leaving the service or 
their dependents may be seeking work. The downside of using this
method is that the goodwill of these sources may be affected if
they recommend a friend you do not hire or if you fire the person
they recommended.

Your choice of recruitment depends on your type of business, your
location and you. There are many possible sources to choose from --
if you are willing to invest the time and effort you will find 
the right applicant with the correct skills for the job.

Application Forms

The crucial part of your work is hiring the one right employee. 
You need some method of screening applicants to select the best 
one for the position.

The application form is a tool to ease the task of interviewing 
and selection. You need to collect sufficient information, but 
also to keep the form as simple as possible. Use care in seeking
personal information that is not job-related. You may copy the
sample form below.

Have applicants complete the application before you talk to them;
it makes an excellent starting point for the interview. It is 
also a written record of experience and former employers' names 
and addresses. Moreover, it is your first demonstration of how 
well the applicant follows instructions.

Remember, the Civil Rights Act of 1964 prohibits discrimination 
in employment practices because of race, religion, sex or 
national origin. Public Law 90-202 prohibits discrimination on 
the basis of age with respect to individuals who are at least 40
but less than 70. Federal laws also prohibit discrimination based
on physical handicap.

Public Law 99-603 prohibits the hiring of illegal aliens and
requires that you maintain certain documents indicating you have
obtained proof of citizenship or alien-worker eligibility from 
your employees.

When an applicant has had work experience, other references are 
not very important. However, if work experience is limited,
additional references may be obtained from other individuals, 
such as school counselors, who can give objective information.
Personal references are almost useless, as most applicants list
only people who have a kind word for them.

_______________________________________________________________

  NOTICE: This application is valid until __________________
  If you are still interested in employment at the end of this
  period you must file a new application.
  ____________________________________________________________

                    Application for Employment

Falsification of any information requested may be grounds for
refusal to hire or for termination should the falsity be
discovered after hiring.

Position ________________________________________________________

Name   __________________________________________________________
                 Last                First            Middle

Present Address:_________________________________________________
                     Street              City     State    ZIP

Telephone No.:  ________________________________________________

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 1 of 2
List below all present and past employment, beginning with most
recent (include military service, if relevant)

Name & Address  From  To   Name of   Reason      Weekly  Describe
   of Company   M/Y  M/Y  Supervisor for leaving Salary Your Work
_________________________________________________________________

_________________________________________________________________

_________________________________________________________________
_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

May we contact the employers listed above? _______

If not, indicate those you do not wish us to contact:

________________________________  _______________________________

________________________________  _______________________________

                    Signature ___________________________________

Date___________

Remarks:
_________________________________________________________________

_________________________________________________________________

_________________________________________________________________
_________________________________________________________________

_________________________________________________________________

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                                                      Page 2 of 2
_________________________________________________________________

Interviewing Job Applicants

The goal of the job interview is to find out as much as you can
about the applicant's work background, especially work habits and
skills. Your major task is to get the applicants to talk about
themselves and about their work habits. The best way to go about
this is to ask specific questions. What did you do on your last
job? How did you do it? Why was it done?

Evaluate the applicants' replies. Do they know what they are
talking about? Are they evasive or unskilled in job tasks? Can 
they account for discrepancies?

When the interview is over, ask the applicant to check back with
you later, if you think you are interested in hiring him or her.
Never commit yourself until you interview all likely applicants.
You want to be sure you select the right employee.

Next, verify the applicant's information. A previous employer is
usually the best source. Sometimes previous employers will 
provide information over the telephone, but it is usually best to
request information in writing and to ask for a written reply.

To ensure a prompt reply, you should ask previous employers a few
specific questions about the applicant that can be answered by a
yes or no check or with a very short response. For example: How
long did the employee work for you? _____ . Was his/her work poor
_____ average ______  excellent _______? Why did the employee 
leave your employ?

Once you verify the information on all applicants, you are ready 
to make a selection. The right employee can help you make money.
The wrong employee will cost you money in wasted time, materials
and perhaps customers.
_________________________________________________________________

ESTABLISHING A PAY SYSTEM

Pay administration is a management tool that enables you to 
control personnel costs, increase employee morale and reduce work
force turnover. A formal pay system provides a means of rewarding
individuals for their contributions to the success of your firm,
while making sure your organization receives a fair return on its
investment in employee pay.

This section provides time-tested concepts for determining
competitive pay levels and for maintaining fair pay relationships
among the jobs of a small company.

Who Needs a Pay Administration Plan?

Pay administration may be a term for something you are already
doing but haven't bothered to name. Or perhaps your organization
has not been paying employees according to any system, but 
waiting until unrest prompts pay adjustments -- using payroll
dollars to put out fires, so to speak.

A formal pay plan, one that lets employees know where they stand
and where they can go with respect to take-home dollars, won't
solve all of your employee relations problems. It will, however,
eliminate an area of doubt and rumor that may keep your work 
force anxious and unhappy -- and less loyal and more mobile than
you'd like them to be.

What's in it for you? In business -- particularly small business
-- good people make the difference between GO and NO GO. Many
people like a mystery, but not when it's about their pay. 
Employees under a pay plan they know and understand can see that 
it is equitable (fair) and equable (uniform), that pay isn't set 
by whim. They know what to expect and what they can strive for.
Such a plan can help you recruit employees, keep employees and
motivate employees. It can help you build a solid foundation for 
a successful business.

Developing the Plan

A foremost concern in creating a formal pay administration plan 
is to get the acceptance, understanding and support of your
management and supervisory employees. A well-defined, thoroughly
discussed and properly understood plan is a prerequisite for
success.

A formal pay plan doesn't have to be costly in time and money.
Formal doesn't mean complex. In fact, the more elaborate the 
plan, the more difficult it is to practice, communicate and carry
out.

In establishing a pay plan,

     *     define the jobs,

     *     evaluate the jobs,

     *     price the jobs,

     *     install the plan,

     *     communicate the plan to employees and

     *     evaluate employee performance under the plan.

Defining the Jobs

Unless you know each job's specifications and requirements, you
can't compare them for pay purposes. It's no surprise, therefore,
that the initial step of installing a formal plan is preparing a
job description for each position.

You may be able to write these descriptions yourself, as in many
small businesses the owner-manager at one time or another has
worked at just about every job. However, the best and easiest way
to put together this job information is to ask employees to
describe their jobs. Supervisors should be asked to review the
descriptions.

Prepare a simple form to be filled out by the employee (or by
someone interviewing the employee). This is the time to explain 
to employees what you are doing. Tell them you need their help to
develop the pay plan; that you are not trying to find out how 
well they are doing their jobs, just what they do. The form 
should contain the following categories:

     *     Job Title

     *     Reporting Relationship

     *     Specifications

     *     Primary Function (What is the main responsibility of
           the job?)

     *     Main Duties (List main duties in order of importance
           and estimate the percentage of time spent on each.)

     *     Other Duties (List duties not performed regularly.)

     *     Job Requirements

           --     Technical/Administrative Complexity

           --     Formal Education or Training Required*
 
           --     Experience or Background Required*

           --     Responsibility for Dollar Results

           --     Responsibility for Supervision

           --     Unusual Working Conditions


          *     Have your supervisors review these items, then
                decide if the levels of training and experience
                your employees have is really what you want for
                their positions.

It will take time to prepare job descriptions from the 
information your employees provide, and what you learn may have
other uses besides comparing jobs for pay purposes. For example,
you may discover that some employees are not doing what you 
thought they were or what they were hired to do. You may find you
want to make changes in their work routines. The information may
also be useful for

     *     Hiring, training and developing employees;

     *     Realigning duties in the organization;

     *     Comparing job data for salary surveys;

     *     Assuring compliance with various employment practice
           and pay rate laws and

     *     Evaluating job performance based on assigned duties.

Evaluating the Jobs

Nobody knows a scientific, precise way of deciding the exact 
worth of a particular job. Human judgment is the only way to put 
a dollar value on work. A good job evaluation method for firms 
with 100 or fewer employees is simple-ranking. It's a guess, too,
but a well-controlled guess.

Under the simple-ranking system, job descriptions are compared
against each other by ranking them according to difficulty and
responsibility. Using your judgment, you end up with a document
showing an array of jobs and the relative value of each to the
company.

After ranking the job descriptions by value to the firm, group 
jobs similar in scope and responsibility into the same pay grade.
Then arrange the groups in a series of pay levels from highest to
lowest. The number of levels depends on the total number of jobs
and types of work in your organization, but for a company with 
100 or fewer jobs, 10 or 12 pay levels is usually about right.

Pricing the Jobs

Thus far in establishing a pay system, you've looked only inside
your company. You also should look outside at the going rates for
similar work in your area. Because you have ranked and grouped 
jobs in pay levels, you won't have to survey each job. Survey 
those on each level that are easiest to describe and are most
common in local industry. Do try, however, to survey jobs with 
more than one level, for example, junior and senior typists.

You probably have neither the time nor the money to make such a
survey yourself; but you should be able to get all the data from
sources such as your local chamber of commerce, major firms in 
your area, or from such national sources as the U.S. Bureau of
Labor Statistics, the Administrative Management Society or the
American Management Association. If you belong to a trade
association, you may be able to enlist its help in determining 
the going rate for one or more jobs at each pay level.

Make sure you compare job descriptions, not just job titles. 
There can be great differences between what one organization and
another call their jobs -- one firm's janitor may be another's
environmental control engineer.

After you are satisfied that you are comparing apples and apples,
compute an average rate (the averages in this publication are
purely arbitrary) for each job and enter it on a worksheet as
follows:
      ______________________________________________________

       Pay Level        Position                Average Rate

          1          Clerk-typist                   $574
          2          Word Processor                  635
          3          Payroll Clerk                   687
          4          Secretary                       723
          5          Accounting Clerk                741
          6          Computer Operator               815
                     (and so on) 
     _______________________________________________________

You may need to adjust the average rates somewhat to maintain a
distinction between pay levels. The going rates for each pay 
level can then become the midpoints of your pay level ranges. 
(You can, of course, set midpoints above or below the survey
averages, based on your company's ability to pay, the length of
your work week, and the type and value of your benefit programs.)

Typically, the minimum rate in a level is 85 percent and the
maximum rate 115 percent of the midpoint. With this arrangement, 
an employee can increase his or her earnings by 35 percent
without a job change; thus, there can be performance incentives
without promotions.

You now have a pay range for each position in your organization. 
It will resemble the following example:

     _______________________________________________________

                       Pay Range -- Sales Clerk

       Pay Level       Minimum      Midpoint       Maximum

           1             $490         $575           $660
           2              530          625            720
           3              580          685            785
           4              615          725            835
           5              690          815            935
                      (and so on) 
     _______________________________________________________

A pay range will enable you to tell where your employees' pay and
pay potential stand in relation to the market rates for their 
kinds of work. It should show you at a glance where changes are
needed to achieve rates that are fair within your organization 
and pay that is competitive with similar businesses in your
community.

With a planned pay structure you should be able to tie individual
rates of pay to job performance and contribution to company 
goals. It should also provide enough flexibility to handle 
special situations.

Installing the Plan

At this point you have the general plan, but of course you don't
pay in general; you pay each employee individually. You must now
consider how to administer the plan for individual pay increases.

There are several approaches to pay increases:

     *     Merit increases to recognize performance and
           contribution;

     *     Promotion increases for employees assigned to 
           different jobs at higher pay levels;

     *     Progression to minimum for employees who are below
           the minimum or hiring rate for the pay level;

     *     Probationary increases for newer employees who have
           attained the necessary skills and experience to 
           function effectively;

     *     Tenure increases for time with the company; and

     *     General increases to help employees stay current with
           inflation and to keep pay competitive.

These approaches are the most common, but there are many
variations. Most annual increases are for cost of living, tenure 
or employment market reasons. Several, all or combinations of the
increase methods can be used.

It is helpful to have a form to document salary increases and
record the reasons. Over the years such records are good 
references for pay administration purposes.

Telling Employees About the Plan

Once your pay administration plan is in place, you must tell
employees about it. If setting up a good program is number one in
importance, a close number two is explaining the plan to 
employees.

Some employers write a personal letter to each employee, others
hold meetings to explain the plan and answer questions, still
others do both.

However you tell employees, be clear, honest and open in 
explaining how the plan works. This is a prime opportunity to 
build goodwill and good relations with your employees. Be sure 
your supervisors understand and can explain the plan to their
people. Explaining the plan to new hires is essential, and it is 
a good idea to review the plan periodically with all employees.

Performance Evaluation

Most employees in the American labor force are under a merit
increase pay system, although their pay increases frequently 
result from other factors. This approach involves periodic review
and evaluation of how well employees perform assigned duties. An
effective employee evaluation plan

     *     Achieves better two-way communications between the
           manager and the employee,

     *     Relates pay to work performance and results,

     *     Provides a standardized approach for evaluating
           performance, and 

     *     Helps employees see how they can improve by helping
           them understand job responsibilities and expectations.

Such a performance review helps not only the employee whose work 
is being evaluated, it also helps the evaluating manager gain
insight into the organization. An open exchange between employee
and manager can show the manager where improvements in equipment,
procedures or other factors might improve employee performance. 
Try to foster a climate in which employees can discuss progress 
and problems informally at any time throughout the year.

Again, to get the best results it is a good idea to use a form 
for evaluation. A typical form includes such job performance
factors as

     *     Goals achieved,

     *     Quality of performance,

     *     Volume of work,

     *     Effectiveness in working with others in firm,

     *     Effectiveness in dealing with customers, suppliers and
           other outsiders,

     *     Initiative,

     *     Job knowledge, and

     *     Dependability.

You can design your own form, using examples from books on
personnel administration, if necessary. Follow from your job
analyses and tailor your forms to the jobs.

How Can the Plan Help You?

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 answer is
hiring, keeping and encouraging good employees. Your pay plan 
will help you

     *     Recruit -- The pay ranges will provide competitive
           hiring rates for attracting high-caliber employees.

     *     Retain -- The performance evaluation plan and pay
           increase feature will encourage performance plus 
           growth and development within your organization.

     *     Motivate -- The pay plan will provide goals to keep
           employees interested in and enthusiastic about their
           present assignments and also provide the incentive to
           seek greater opportunity within your company.

Capable, interested and enthusiastic employees will help you win
the battle for business survival and growth.

Updating the Plan

Review your pay administration plan at least annually and adjust
where necessary. Don't forget to retrain supervisory personnel.
During your annual review of the pay plan, ask yourself the most
important question: Is it working? Are you getting the kind of
employees you want or are you just making do? What is the 
turnover rate? Do employees care about the business? In the end 
it is not the elegance of the plan or the beauty of the forms and
administration that matters; it is how the plan helps you to
achieve the objectives of your business.
_________________________________________________________________

ALTERNATIVE STAFFING SYSTEMS

How do you cope with unexpected personnel shortages? Many
businesses face this question because of seasonal peaking,
inventory taking, special projects, several employees
simultaneously on sick leave or an unexpected increase in 
business.

And what about coping with the rising costs of providing employee
benefits, as well as all the payroll record keeping required by
local, state and federal government? Or short- or long-term needs
of your business that require special expertise? This section
discusses alternatives available to meet these and other staffing
challenges. Options include

     *     Temporary help services,

     *     Employee leasing,

     *     Payroll accounting and

     *     Service contracting.

Temporary Help Services

Using the services of temporary personnel firms often provides a
convenient and economical solution to unexpected employee
shortages. This section explains these services, points out some
of their advantages and outlines steps to obtain the best 
possible results.

Almost every business needs extra help at one time or another. A
rush order comes in; the work load suddenly zooms, then drops 
back to normal. More employees than usual are absent because of
illness or vacations. A special project needs immediate 
attention. Seasonal demands must be met or inventories taken
without disrupting normal business. The extra-heavy work load 
puts a strain on you, on your employees and, if the overtime is
required, on your budget.

Temporary shortages of personnel are especially difficult for
smaller businesses. The staff is small and there is little 
leeway for shifting schedules, yet they cannot afford to keep 
extra employees when the work load is normal.

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 provide you with a wide variety of
people; some of the larger services handle complete departments,
including supervisors and workers.

What Is a Temporary Personnel Service?

A temporary personnel service is not an employment agency. Like
many service firms, it hires people as its own employees and
assigns them to companies that request help. When you use such a
service you are not hiring an employee, you are buying the use of
his or her time. The temporary personnel firm is responsible for
payroll, bookkeeping, tax deductions, workers' compensation, 
fringe benefits and all similar costs connected with the 
employee. You avoid recruiting, interviewing, screening and even
testing and training if these are necessary. Most national
temporary personnel companies also offer performance guarantees 
and fidelity bonding at no added cost to clients. In addition, 
they assume responsibility for reporting withholding tax, social
security and unemployment compensation to government agencies.

You can contract for a receptionist, typist, secretary, word
processing operator, bookkeeper, switchboard operator, product
demonstrator, packer, added sales personnel or many other types
of office, professional and industrial workers.

Consider temporary personnel when a temporary second shift allows
you to make better use of expensive equipment investments. Sales
blitzes to introduce products, special quarterly or year-end
invoicing, special telephone sales programs or order taking, and
seasonal catalog sales are other examples. Some companies 
contract for teams of temporary people to microfilm documents,
retrieve information and maintain files. Temporaries also are in
wide use at trade shows, product samplings and demonstrations.
National temporary firms offer the smaller company a way to 
handle a national marketing effort, to compete with larger
organizations without excessive permanent overhead.

You can contract for temporary personnel for a day or for a much
longer period. Some temporary personnel companies specialize in 
one type of help, such as office workers. Others supply a broad
range of personnel, from unskilled labor to accountants and
engineers.

Why Not Hire Your Own Temporary Personnel?

Hiring temporary workers on your own has several important
disadvantages. It may hamper your efforts to attract good 
permanent employees. Once an emergency is over, laying off
employees can lower morale among the regular employees and, if 
this happens too often, it may give your firm a reputation for
instability.

Another disadvantage is that you may not be able to get help when
you need it. There may be times when the labor market is tight 
and the skills you need are not readily available. Also, why 
waste time orienting new people for short-term employment?

The financial aspect of hiring short-term personnel is also of
major importance. Using temporary personnel may cost more than
hiring additional employees, although there are many costs not
usually considered. As an example, mandatory costs -- such as
social security, unemployment insurance and workers' compensation
amount to over 11 percent of the base salary. Payment for time 
not worked, including vacations, holidays and sick days, amounts 
to almost 9 percent. Company-paid benefits -- health insurance,
pension plans, discounts, record keeping, payroll and other
paperwork -- amounts to another 6 to 7 percent. Total hidden 
costs can be about 42 percent. Therefore, a basic $150 weekly
salary can cost about $213.

Advantages of Using a Temporary Service Firm

Workers supplied by a temporary service firm are quickly 
available. Usually they can start the day after a request is made
and, in some cases, are available the same day. Experienced and
well qualified, they need little assistance to begin functioning.
Thus, you can adjust to fast- breaking opportunities or problems
without interrupting regular production schedules.

Although the hourly rate paid to a temporary service firm is 
higher than the base salary of an employee you hired yourself, 
the cost of getting the work done is less. As noted earlier, 
using a temporary service firm does away with many costly 
personnel recruiting and record-keeping operations. In addition,
you save the cost of training, overtime and idle periods. When 
you use a temporary firm you pay only for the actual time worked.

Every company has a department in which turnover is high. By 
using temporary personnel for such jobs you can improve turnover
rates and reduce the number of unemployment claims against your
company until you have time to restaff. Claims experience
determines, in part, the cost of unemployment insurance; 
therefore, reduction of turnover can result in large savings for
your entire payroll.

When Not To Use a Temporary Service

In considering the use of a temporary service, weigh the
disadvantages to your company as well as advantages. Regular
employees who lose overtime pay because of temporary workers may
become a morale problem. Highly specialized work may require a
training period, which may make the use of temporary personnel 
less economical.

If you need a temporary worker for six months or longer you 
should hire a full-time employee. There are also cases in which 
the job is so complex it requires extensive supervision if the
worker is unfamiliar with your procedures. In such instances, it
may be more economical to pay overtime to a regular employee 
than to use a temporary worker.

What Will It Cost?

Charges by temporary service firms vary widely with the type of
help you contract. Obviously, rates are higher for the more 
skilled office or industrial worker than for the less skilled.
Rates vary from city to city also, as most temporary service 
firms pay employees the going rate in that particular area for a
given job. They charge you this rate, adding a basic markup for
administrative costs and a fair profit.

You pay an hourly rate to the temporary service firm. They pay 
the employee. Most reputable services do not charge for hours
worked by an unsatisfactory worker if you let them know promptly.
Normally you must notify them within four hours after the 
employee reports for work, but this requirement varies with
individual firms.

If you are to get the most for your dollar investment, you must
analyze your needs and plan to make the best possible use of the
time and skills of the temporary employee. The following 
guidelines will be helpful.

How To Select a Temporary Service Firm

There are many temporary service firms throughout the United
States. Some operate regionally and a few nationally. If you are
likely to need temporary workers, do some exploring in advance.

Check with your local chamber of commerce, your attorney, your
accountant, your banker. Look in the Yellow Pages of the 
telephone directory under Employment, Temporary, Employment
Contractors-Temporary Help or a similar heading.

Try to meet in person with an executive of the firm you select. A
short discussion will help him or her understand your operation,
problems and needs. You, in turn, can gain an understanding of
services the company provides.

Evaluate the company and its ability to serve you properly by 
these factors:

Reliability. Is the service well established, with a history 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.

Recruiting. Competition for skilled, reliable employees is 
intense. The firm with an aggressive recruiting program is more
likely to have the most skilled and reliable employees.

Testing and evaluating. How do its testing and evaluating 
personnel assure quality workers? Does the firm check references?

Training programs. Certain skills are always scarce. Does the
company train people in various aspects of office work, such as
modern office methods, word processing, records management? Are
typing and shorthand skills upgraded? Training is especially
important in areas such as word processing; the company should
carefully train operators on the newest types of equipment and in
the newest techniques.

Retention programs. Does the company have a good program to keep
qualified employees? This will ensure that you receive qualified
workers when you need them.

Professional permanent staff. The temporary service's permanent
staff should be experienced in the personnel field, knowledgeable
professionals who will understand your needs.

Knowledge of your needs. Does the firm make every effort to
investigate your needs? Do they understand what you are 
discussing with them?

Prompt service. The temporary service firm with a supply of 
workers available on short notice can be most important when you
are in a rush.

Quality control. Does the company check with you to determine the
quality of work temporary employees are doing?

Insurance protection. Does the firm protect your company with
adequate insurance coverage, including fidelity bonds and workers'
compensation?

Guarantee. Does the temporary service firm guarantee your
satisfaction with each temporary employee? Does it have a refund 
or guarantee policy? What are its terms?

Plan Early

The key to the successful use of temporary employees is to plan
what kind of help you will need, how much and when. Your accurate
information will help the temporary service to efficiently supply
your needs.

To plan properly, answer these questions:

     *     How seasonal is my business?

     *     Do any of my regular employees have to work overtime 
           to meet peak work loads? What does the overtime cost?

     *     If there is extensive overtime, will there be a
           performance lag and possible morale problems during
           regular working hours? With better planning can I
           spread peak work loads out over the year?

     *     Are my deliveries made on schedule?

     *     Do customers often order with rush jobs? If so, can I
           help them plan their needs further in advance?

     *     Are my employees' vacations scheduled around peak
           seasons?

     *     What extra help do I need to cope with these problems
           and to reduce costs?

Meet with key personnel who plan day-to-day operations. Study
production schedules. Note peak periods. Compare this year with
previous years. A pattern will emerge and you will be able to see
where some extra help can avoid problems and keep costs down.

What To Do When the Time Comes

It is extremely important to inform the temporary service of your
exact needs. A good temporary firm needs detailed descriptions of
your company and the positions you are filling. They will ask for
information about the department the employee will be working in,
duration of the assignment, working hours, dress code, smoking
rules and other important information. Will you need a copy 
typist or a clerk-typist, for example? Does the secretarial
position require shorthand or are there machine transcriptions to
type? What kinds of word processors, typewriters and office
equipment do you have? Does the employee need special knowledge 
or skills? If you define needs exactly you will get qualified
people and will not pay for skills not needed. Most larger
temporary service firms have special advisors to work with you 
and help you plan. In summary,

Estimate Your Needs

Decide specific requirements of the job. Exactly what talents do
you need? How long will you need the employee? Don't ask for
someone with higher qualifications than the work requires. On 
the other hand, don't try to economize by getting underqualified
help and expecting the worker to carry out tasks he or she cannot
handle.

Give the Temporary Help Service Full Information

If the temporary personnel firm is to help you get the best 
results at the lowest possible cost, you must provide detailed
information about the work. If possible, send samples of the work.
Be sure to give the exact location of your business, 
transportation available, parking information, and the name and
title of the person to whom the temporary employee will report.

Preparing for the Temporary Employee

Before the temporary employee reports for work

Tell your permanent employees. Let your staff know you will have
temporary extra help. Explain the reasons and ask their 
cooperation with the new employee.

Arrange for supervision. Appoint a permanent employee to 
supervise the temporary worker and to check occasionally on work
progress. Be sure the supervisor understands the job to be done
and his or her responsibility.

Prepare the physical facilities. Before the temporary worker
arrives, see that all necessary materials are available and
equipment is in place and in good working order. Organize the 
work so the employee can begin producing with a minimum of time
spent adjusting to the job and the surroundings.

Plan the work load. Establish schedules that are possible to
complete in the allotted time. Try to stay within time limits, 
but plan to extend the time period rather than crowd the 
employee. Rushing and overwork can cause costly mistakes.

Prepare detailed instructions. Describe your type of business, 
the products you manufacture or the services you offer. Be 
specific in outlining company procedures.

The Work Begins

You've made the preparations. The employee has arrived and is 
ready to start work. What now? How do you get a temporary worker
started? What should you expect? What if you're not satisfied?

Help the employee settle in. Receive the temporary employee as 
you would receive one hired permanently. Make the person feel 
like a member of your team. Explain where to hang coats, location
of the washroom, lunch hour and coffee breaks. Introduce the
temporary employee to the work supervisor and to permanent
employees in the same department: Ms. Jones will be here for a 
few days to help out. Or Mr. Smith will be here this week working
on the rush job.

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.

Expect the impossible. How much can you expect from a temporary
employee? Fully as much as you contracted 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:

     *     Did the productivity of the employee justify the cost?

     *     Was the work completed accurately and effectively?

     *     Did using a temporary worker benefit overall 
           operations?

     *     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.

Employee Leasing

Systems of employee leasing go back hundreds of years, to lent-
servant arrangements in England, in which landholders leased 
their own servants to other 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 garnishments for courts or other taxing 
           bodies,

     *     Auditing for workers' compensation insurance,

     *     Auditing for employee health insurance, credit union
           and so on, 

     *     Auditing for unemployment claims,

     *     Complying with COBRA regulations on various benefits,

     *     Reconciling employee paychecks,

     *     Posting state and federal tax records,

     *     Preparing end-of-year W-2 statements,

     *     Maintaining vacation and other paid leave records,

     *     Responding to payroll inquiries,

     *     Maintaining payroll updates and changes, and

     *     Preparing payroll audits for other insurance programs.

Employee leasing is not a way for employers to insulate 
themselves from legal responsibilities or liabilities. It can be
said that employee leasing occurs when one employer, while
contracting in good faith with an otherwise independent business,
has retained for itself sufficient control over the terms and
conditions of the employees who are on the payroll of another
employer.1 For this reason most employee leasing arrangements 
have joint employment implications.

In fact, one definition of employee leasing is a contractual
arrangement in which the leasing company is an employer of all or
part of the client's work force. Under this arrangement 
employment responsibilities and liabilities are allocated between
the leasing company and the client, while allowing the client to
retain essential management and control of its business. The
leasing company pays and reports wages and employment taxes out 
of its own accounts and has a right of direction and control of 
the leased employees.2 Note the definition does not say has the
right of direction and control, but has a right.

     1     Willey, T. Joe, "The Changing World of Employee 
           Leasing. National Staff Leasing Source Book for 
           Employee Leasing, Vol. 1, Encino, CA
     2     Willey.

Advantages of Employee Leasing

     *     An obvious advantage is that much of the time 
           previously spent on personnel management and 
           accounting can be directed toward other activities 
           that affect earnings and profit.

     *     Economies of scale in providing employee benefits is 
           an even greater advantage. For example, firms with 
           fewer than 25 employees have difficulty providing
           economical health benefits. An employee leasing firm
           can negotiate group health insurance premiums at a
           significantly lower cost for 100 or more employees.

     *     Leasing can provide a greater variety of employee
           benefits -- including cafeteria plans, group life
           insurance, disability insurance, payroll savings, 
           credit unions and certain retirement plans -- than
           might be available otherwise.

     *     Help is provided in defining personnel policies and
           compiling employee handbooks.

     *     Record keeping is uniform and easily audited.

Disadvantages of Employee Leasing

     *     The leasing company has a right to exercise certain
           controls over your employment policies. This can be a
           two-edged sword, a hindrance and a help.

     *     You retain a large measure of responsibility for your
           work force, its productivity and conduct.

     *     Terminating an employee may be more difficult as a
           leasing company will insist on certain documentation.

     *     Leasing is not a way to cut corners or avoid
           obligations.

What To Watch Out For

Before entering an employee leasing contract you should pay
particular heed to the following matters:

Labor union contracts. A labor union contract may prohibit you 
from engaging in employee leasing. Union members may view your
actions as a way of avoiding the terms of your contract.

State laws that affect hiring of certain professionals. Some 
states have laws on the hiring of certain professionals such as
attorneys, accountants and medical personnel.

Obtaining the consent of employees. Your employees should know
fully of your plans and why you are entering employee leasing. 
They should understand your continuing role in their employment 
and supervision, as well as the role of the leasing company and 
how it will affect them and the benefits they receive.

These items are of concern to your employee lessor, too.

The leasing company will likely require you to place the 
equivalent of one payroll in an escrow or trust account. You have
an obligation to meet payroll costs as regularly as if you were
paying employees directly.

How To Select an Employee Leasing Firm

You should evaluate the company and its ability to serve you
properly by these factors: reliability, professional staff,
knowledge of your needs, prompt service, quality control, 
insurance protection, guarantee.

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
           staff?

     *     Are the firm'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

     *     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 coverage -- are available
           from that firm. Top-rated firms may charge slightly
           higher premiums, but their coverage and service is
           reliable or they would not have top rating.

     *     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 accountant.
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

     *     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).

In these situations you enter a contract with a business to 
perform specific services, during a specific period or at a
specific time, for a specific price. The terms of the contract 
cite responsibility for providing any materials or equipment
necessary to perform the service and other requirements for
successful completion. It is the contracting firm's 
responsibility to provide staff, pay them and supervise them.

When contracting for services, it is wise to require

     *     References from other companies that have used the
           contractor and will comment on the quality of contract
           performance.

     *     Certificates of insurance demonstrating that the
           contractor has adequate liability and other coverage
           for its employees.

     *     Copies of required licenses for performance of certain
           services.

     *     Appropriate warranty or guarantee on the quality of the
           work.

     *     Clear payment schedule including, depending on the work,
           possible retainage (holding back of a portion of
           payments) pending satisfactory completion of a project.

Proposals for services usually are presented and detailed on
standard forms designed by the contractor. It is wise to have 
your legal counsel review the terms of the documents before you
sign them, to avoid any misunderstanding of your obligations. 
Such a review also may suggest amendments benefiting you that are
also acceptable to the contractor.
_________________________________________________________________

INFORMATION RESOURCES

U.S. Small Business Administration (SBA)

The SBA offers an extensive selection of information on most
business management topics, from how to start a business to
exporting your products.

This information is listed in The Small Business Directory. For a
free copy contact your nearest SBA office.

SBA has offices throughout the country. Consult the U.S. 
Government section in your telephone directory for the office
nearest you. SBA offers a number of programs and services,
including training and educational programs, counseling services,
financial programs and contract assistance. Ask about

     *     Service Corps of Retired Executives (SCORE), a 
           national organization sponsored by SBA of over 13,000
           volunteer business executives who provide free
           counseling, workshops and seminars to prospective and
           existing small business people.

     *     Small Business Development Centers (SBDCs), sponsored
           by the SBA in partnership with state and local
           governments, the educational community and the private
           sector. They provide assistance, counseling and 
           training to prospective and existing business people.

     *     Small Business Institutes (SBIs), organized through 
           SBA on more than 500 college campuses nationwide. The
           institutes provide counseling by students and faculty
           to small business clients.

For more information about SBA business development programs and
services call the SBA Small Business Answer Desk at 1-800-U-ASK-
SBA (827-5722).

Other U.S. Government Resources

Many publications on business management and other related topics
are available from the Government Printing Office (GPO). GPO
bookstores are located in 24 major cities and are listed in the
Yellow Pages under the bookstore heading. You can request a 
Subject Bibliography by writing to Government Printing Office,
Superintendent of Documents, Washington, DC 20402-9328.

Many federal agencies offer publications of interest to small
businesses. There is a nominal fee for some, but most are free.
Below is a selected list of government agencies that provide
publications and other services targeted to small businesses. To
get their publications, contact the regional offices listed in 
the telephone directory or write to the addresses below:

Consumer Information Center (CIO)
P.O. Box 100
Pueblo, CO 81002
The CIO offers a consumer information catalog of federal
publications.

Consumer Product Safety Commission (CPSC)
Publications Request
Washington, DC 20207
The CPSC offers guidelines for product safety requirements.

U.S. Department of Agriculture (USDA)
12th Street and Independence Avenue, SW
Washington, DC 20250
The USDA offers publications on selling to the USDA. Publications
and programs on entrepreneurship are also available through 
county extension offices nationwide.

U.S. Department of Commerce (DOC)
Office of Business Liaison
14th Street and Constitution Avenue, NW
Room 5898C
Washington, DC 20230
DOC's Business Assistance Center provides listings of business
opportunities available in the federal government. This service
also will refer businesses to different programs and services in
the DOC and other federal agencies.

U.S. Department of Health and Human Services (HHS)
Public Health Service
Alcohol, Drug Abuse and Mental Health Administration
5600 Fishers Lane
Rockville, MD 20857
Drug Free Workplace Helpline: 1-800-843-4971. Provides 
information on Employee Assistance Programs.
National Institute for Drug Abuse Hotline:
1-800-662-4357. Provides information on preventing substance 
abuse in the workplace.
The National Clearinghouse for Alcohol and Drug Information:
1-800-729-6686 toll-free. Provides pamphlets and resource 
materials on substance abuse.
 
U.S. Department of Labor (DOL)
Employment Standards Administration
200 Constitution Avenue, NW
Washington, DC 20210
The DOL offers publications on compliance with labor laws.

U.S. Department of Treasury
Internal Revenue Service (IRS)
P.O. Box 25866
Richmond, VA 23260
1-800-424-3676
The IRS offers information on tax requirements for small
businesses.

U.S. Environmental Protection Agency (EPA)
Small Business Ombudsman
401 M Street, SW (A-149C)
Washington, DC 20460
1-800-368-5888 except DC and VA
703-557-1938 in DC and VA
The EPA offers more than 100 publications designed to help small
businesses understand how they can comply with EPA regulations.

U.S. Food and Drug Administration (FDA)
FDA Center for Food Safety and Applied Nutrition
200 Charles Street, SW
Washington, DC 20402
The FDA offers information on packaging and labeling requirements
for food and food-related products.

For More Information

A librarian can help you locate the specific information you need
in reference books. Most libraries have a variety of directories,
indexes and encyclopedias that cover many business topics. They
also have other resources, such as

     *     Trade association information
           Ask the librarian to show you a directory of trade
           associations. Associations provide a valuable network
           of resources to their members through publications 
           and services such as newsletters, conferences and
           seminars.

     *     Books
           Many guidebooks, textbooks and manuals on small
           business are published annually. To find the names of
           books not in your local library check Books In Print,
           a directory of books currently available from
           publishers.

     *     Magazine and newspaper articles
           Business and professional magazines provide 
           information that is more current than that found in
           books and textbooks. There are a number of indexes to
           help you find specific articles in periodicals.

In addition to books and magazines, many libraries offer free
workshops, lend skill-building tapes and have catalogues and
brochures describing continuing education opportunities.