Proposed Tax Incentives Aim to Encourage Hiring

January 2010 saw the proposal of two important tax incentives aimed at encouraging businesses to increase hiring. Both tax credits provide incentives for hiring new workers, and one focuses solely on veterans. While neither tax credit is finalized yet, they could lighten the tax burden on businesses who have been financially hindered by recent economic conditions.

On January 29, President Obama proposed a tax credit worth up to $5000 for every new worker hired this year. The incentive is based on net employees; meaning only additional hires, not those that are hired to replace an employee that has left the company, are eligible. In addition, President Obama proposed a reimbursement of Social Security taxes businesses owe on increases in their payroll this year. If these tax credits gains congressional approval, businesses should be able to start claiming the credit on their 2010 taxes for new hires made this year. The total cost of these incentives is $33 billion, with an expected 1 million businesses positioned to benefit from it.

The other incentive was introduced by Rep. Deborah Halvorson (D-Ill.) on January 13. The Veterans Employment Today (VET) Act of 2010 (H.R. 4443) increases the work opportunity tax credit for hiring disabled veterans. Currently, employers can claim 40% of the first $12,000 in wages for every eligible veteran hired. The VET Action of 2010 would raise the amount of “qualified wages” to $15,000, allowing for a tax credit of $6000, an increase from the current maximum of $4800. The act also proposes that businesses that hire unemployed veterans be able to raise the amount of “qualified wages” from $6,000 to $7,500, which would allow for a maximum tax credit of $3,000. This bill has been referred to the House Committee on Ways and Means. For information on the current tax credits for hiring veterans, please read Tax Credits for Hiring Veterans.

While unemployment rates remain elevated, the last quarter of 2009 saw the largest rise in GDP in more than six years, with GDP rising at a 5.7% annual rate. Together with the upswing in the economy, these incentives may well help spur the hiring of millions of new workers. For more information on President Obama’s proposed tax credit, click here.

Clean Up Your Interview Questions!

Companies expect candidates to continue to advance their skills, stay on top of current industry trends and surpass expectations. So it should be no surprise that candidates expect the same from hiring companies. The interview process is constantly changing, and your process should be evolving with it. Below are some twists you can add to your tried-and-true interview questions in order to update them.

1. Interview Cliché: Tell me about yourself.
Why it’s weak: You may hear some information that’s valuable, but most likely you will get a synopsis of a resume you can read yourself, a blank stare, or some uncomfortable information.
New twist: Think about what you actually want to know from the candidate and ask. For example: The project mentioned in her cover letter that generated $500,000 in revenue? “What was one critical component in the creation of ABC project that you had responsibility in bringing to fruition?”

2. Interview Cliché: What is your biggest strength/weakness?
Why it’s weak: Answers to these questions are way too easy to fabricate. Often candidates answer as they’d like to see themselves, not how they are in reality. Likewise, asking a candidate for their biggest weakness will result in an answer that’s made to sound like strength, for example, “I’m sometimes too ambitious for my own good”
New twist: Ask for an example and follow up with questions. Biggest strength: How did it help you with this project? Biggest weakness: What did you learn from this?

3. Interview Cliché: How would your last boss describe you in five words?
Why it’s weak: When someone asks you to describe yourself, or how some else sees you, the results are likely to be inflated and overly positive.
New twist: Ask candidates questions that will allow them to display growth. “If I asked you to describe yourself going into your last job, what would you say? How would that description be different now?”

4. Interview Cliché: Describe a situation in which you have overcome a challenge or seen a project to its conclusion.
Why it’s weak: This type of question is too vague.
New twist: Ask questions that originate from accomplishments you find interesting on their resume. Try rephrasing this question with “What are you most proud of from the X campaign, and why?” You could follow up with a question like, “What would you do differently next time to make the campaign more successful?” or “How did this success spark ideas for your next project?”

5. Interview Cliché: Where do you see yourself in five years?
Why it’s weak: Candidates today barely know what their dinner plans are, much less where they want to be in five years. Many people move jobs often, and by pigeonholing them with this question, you could be missing out on a more revealing question.
New twist: Understand where a candidate’s head is at right now, while still learning what they hope to achieve. “What is the first thing you want to accomplish with this position?”

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Veteran Spotlight: Will Simmons

Will Simmons, a former U.S. Air Force Captain, recently transitioned out of the service and into a job with Actavis US, a leading generic pharmaceutical company, as a Manufacturing Supervisor. Since beginning his civilian career in November 2009, Simmons is enjoying success in his new career and anticipates upward mobility.

When asked by Hire a Hero, Hire a Vet why employers should consider hiring veterans, Simmons gave us his take on what sets veterans apart from their civilian counterparts. “Veterans usually have a tremendous work ethic. They are accustomed to doing what they are told and finding solutions to problems they encounter along the way. They have a ‘can-do’ attitude and often are very adept at successfully working both individually and in a team environment, with the key ability to easily transition between the two.”

Simmons cites the importance of intangible skills, such as leadership, poise, and life experience, that many veterans bring to the table, and the fact that Veterans often have a different mindset than those that have never served. He suggests that employers not base decisions solely on current or past positions in the military but consider such intangibles as well.

According to Simmons, many veterans are able to look a current problem or situation with a company and bring about a different solution than someone who does not have the experience of leading people and working as a team to reach a solution. In today's world, Simmons believes, every veteran has in some way either participated in, or directly supported, combat operations. This experience and related stress and pressure allow a veteran to appreciate and handle stress in a way that those who have not experienced would not be able to.

Simmons’ five years in the service were the proudest and most accomplished period in his life thus far, and he truly believes his military service directly contributed to the person he is today. It is because of this experience that Simmons advocates the hiring of veterans. With veterans, Simmons states, “You know you will be hiring somebody who has committed themselves to something greater and who, through military experience alone, often will bring that extra edge a business needs to succeed.”

Leaders’ Top Blind Spots

Even the best and brightest of leaders have blind spots, and often these unproductive behaviors that you may not see are visible to everyone else. These behaviors create consequences for you, your team and your company.

Here is a look at common blind spots and advice for recognizing and resolving them.

1. Going at it AloneSymptoms: Refusing offers of support, withdrawing from others, not talking about stresses or anxiety, and not including others in decision making.

Why it’s damaging: Isolating yourself creates anxiety and uncertainty to others, leaving room for frustrations to build and for people to fill in the blanks, spread rumors, and withdraw their efforts.

What to do: Talk to others about your tendencies to solve problems alone and ask them to point out when you are withdrawing, so you can stop excluding and start including.

2. An “I Know” AttitudeSymptoms: Having an answer for everything, fixed views, not listening, diminishing what others have to say, and arguing with anyone who does not share your point of view.

Why it’s damaging: Others feel devalued and angry. Innovation and creativity comes to a halt as the “I know” leader dominates the conversation and shoots down new ideas.

What to do: Recognize that this blind spot causes you to miss information and new ideas. Ask “What have I missed? What am I not seeing? How am I limiting new possibilities?”

3. Treating Commitments CausallySymptoms: Not making or keeping commitments, not delivering when promised, not providing a clear commitment, and making casual promises without the intent to keep them.

Why it’s damaging: People can no longer trust your word, and it reduces your credibility. The environment becomes overrun with sloppy promises, accepting excuses over results, and not holding each other accountable.

What to do: Be absolutely clear about what you are committing to. If you must take back a commitment do so prior to the promised deadline and take accountability for your impact.

4. Not taking a standSymptoms: Lacking clarity and direction on issues, not making decisions, reversing decisions already made, and lack of decisiveness.

Why it’s damaging: Confidence is lost in leaders who wait for consensus, are slow to reach decisions, or are unclear on their stance. Others spend their time trying to second guess what you really want.

What to do: Be clear about what you want and are willing to commit to, and stop making others read your mind.

5. Tolerating “Good Enough”Symptoms: Maintaining status quo, accepting things are fine the way they are, refusing to investigate solutions outside a comfort zone, and rejecting new ideas

Why it’s damaging: Others see their leader not demanding excellence and become discouraged. People want to be on a winning team and leaders lose support as people adopt a “nothing is ever going to change” attitude.

What to do: Take a look at why you are holding back. Why is this idea as good as it gets? Raise your level of leadership awareness and lead by example. This will inspire others.

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