In April 2007, the dean of admissions at the Massachusetts Institute of Technology, Marilee Jones admitted to lying for 28 years about her academic credentials. Jones had claimed she received three degrees from New York academic institutions, while in reality Jones had never completed an undergraduate degree.

This story is just one of many to come out in the news in recent years. From RadioShack Chief Executive Dave Edmondson to Former Federal Emergency Management Agency head Michael Brown to Notre Dame Football coach George O’Leary, the misrepresentations on resumes are astounding.

It’s not just high-level executives getting caught in the act. According to a recent Careerbuilder.com survey, 57 percent of hiring managers say they have found discrepancies on an applicant’s resume. Managers have most often found that applicants have changed hire or termination dates to cover employment gaps.

With the large number of misrepresentations found on resumes, it is increasingly important to check employment references, background information, and previous work history, and verify the information on a candidate’s resume before making a hiring decision. Look for things that don’t make sense. Check academic credentials and verify hire and termination dates. Also, a thorough interview can often ferret out discrepancies found on resumes.

Checking this information can be time-consuming, so consider outsourcing it to a vendor who specializes in background checks. It may not be worth you time to call and check on a candidate, but it may worth your money to find someone to do it for you. Consider the amount of money potentially lost due to a tarnished reputation as a result of inadequate hiring practices.

Samantha Bushard is an HR employee for the Idaho office of A Plus Benefits, Inc.

Where the Rubber Meets the Road is a series of Podcasts designed to highlight what A Plus Benefits has done for its clients. In this episode, Tricia Green of the Holiday Inn in Rock Springs, Wyoming discusses how A Plus Benefits relieves some of her administrative burden and provides an economical benefits solution for her employees.

 

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The importance of cash flow and liquidity to the success and survival of a small business is not a lesson that successful small businessmen need. They already know of its importance. What small businessmen might need however, is a toolbox of cash flow management tools. To this end I have shared a few thoughts on factoring and vendor credit as such tools. Another tool that is available to businesses of all sizes is the PEO.

Professional Employer Organizations provide many valuable services, most of which are easily recognized and well touted. However, there is a likely unknown positive side-effect of using a PEO, cash flow management.

For many small businesses, employee taxes are payable on either a monthly or quarterly basis. These tax bills are not small and leave many small businesses scrambling at the end of the month or quarter to come up with the cash to pay the government. However, when using a PEO, the PEO is responsible for paying the monthly or quarterly tax bill. As a result the PEO collects those taxes from the employer or small business as part of the regular payroll invoicing cycle. In this case the PEO acts as a type of savings mechanism. Although the small business will be forgoing the use of the funds the PEO collects a few weeks or months in advance, there will be no month or quarter end scrambling to pay the bill.

In most states businesses are required to pay a quarter of their worker’s compensation premium at the beginning of the year. The rest of the premium is then paid on a regular basis throughout the year. For many small businesses this initial payment of their worker’s compensation premium can be rather substantial. Not only can it be difficult to come up with the required sum at one time, but the small business forgoes the use of the funds used to pay the premium several months before the benefits of the insurance are consumed. PEOs help to smooth out cash flow by collecting the worker’s compensation premium as part of the regular payroll invoicing cycle. There can be no upfront payment required of the small business. This means your cash can be working for you in the bank or helping you to grow your inventory or extend vendor credit as you work to grow your business.

The PEO serves as a mechanism to smooth out cash flow. In neither of the above cases would you avoid payment of expenses. However, the PEO does help you manage the cash flow associated with the payment of these expenses and therefore represents another tool that can be used in your overall cash flow management strategy. Although it is unlikely that you would make your decision to use a PEO based solely on the cash flow management that they provide, it is a benefit that should be considered.

Richard Zollinger is a finance manager at American Express.

What are the clients of A Plus Benefits like? Rick Bartholomew, CEO of A Plus Benefits, Inc. discusses the types of companies that work with A Plus Benefits, as well as the current state of the company.

Rick Bartholomew, CEO of A Plus Benefits, Inc. discusses the PEO concept and how it can benefit small businesses.