Independent Contractor Compliance Blog

Many are predicting the economy will be recovering in the next 6 to 18 months. Every thing goes faster these days so once the recovery begins to catch, things will happen fast. The leaders (those who are ready) will get the best accounts and the best workers. Can you afford to sit back and wait until you are sure the economy has fully recovered before taking action? If you do, how will you compare to your competitors who are prepared to take action at the first signs of the recovery?

The predictions.

I’ve been studying various surveys, reports, opinions, news and other indicators searching for clues about the economy. It’s no surprise I found mixed predictions about the economy. They range from:

• We haven’t seen anything yet – the doom forecast – it’ll get worse.   
• The economy is getting better. The signs are everywhere.
• It’s already better, but we don’t see it because of the lag in measuring and reporting of sales and hiring.
• The economy is at the starting gate for a full recovery with a leaner – meaner business environment.

I like the “We’re at the Starting Gate with a Leaner-Meaner Business” prediction.  Why?

The economy depends on spending and people’s belief in the future. It’s a function of expectations and confidence. If you think the economy will be bad then you hold back on spending, hiring, new risks and other activities that tend to support the Gross Domestic Product (GDP). Spending stimulates the economy and creates jobs. Not spending has the opposite effect. So our perception of what will happen is the most important factor in determining the future of the economy.

It is a self-fulfilling prophecy and most perceive the economy is about to take off again. 

Who’s perceptions?

• The American Research Group, Inc. performed a telephone survey of 1,100 randomly selected adults, 18 years and older. Their report dated August 20, 2009, indicated 41% of Americans say the national economy is getting better, which is up from only 26% who said that in July. This shows movement towards a positive mass.
• The Bloomberg News reports that, “The U.S. economy shrank at a slower pace in the second quarter” (speculating this is) “a sign that the worst recession since the Great Depression may be winding down.”
• The Department of Labor and California’s EDD reports the UI rate is hovering at 11.9% in California and 9.4% nationally. Many predict unemployment has leveled off and will begin to fall – meaning the competition for highly qualified workers will soon begin.
• U.S. stocks are slightly higher, which is a precursor to recovery of the labor market. Specifically, as of this writing the Dow Jones Industrial Average is up 20 points, at 9301, and the S&P 500 index is up 3 points at 997.
• The Bank of Canada believes the world economy will be improving for the remainder of this year and 2010. It issued a news release on September 1, 2009, stating, “There are now increasing signs that economic activity has begun to expand in many countries in response to monetary and fiscal policy stimulus and measures to stabilize the global financial system… the recovery is [coming into existence].”

Are you positioning your business to take advantage of the positive surge in the economy and the business environment? 

Are you prepared to:

1. Operate in the new leaner-meaner economy?
2. Capture a larger share of the market?
3. Attract the best workers?
4. Avoid making costly mistakes?

Be a leader – don’t run with the pack.

Collabrus is in a position to cost effectively help you attract the best talent and to avoid costly mistakes.  Now is the time to act. Don’t wait until everyone else is doing it.

Waiting is just running with the pack.