PWNA Adds a Multitude of New Benefits in 2014Several additional member benefits planned for near future

For the past 12 months, the PWNA’s Benefits Committee has been diligently working to negotiate a number of valuable programs for its members. Several new benefits have been finalized and are now available to all PWNA members in good standing, with several more in the works.

“The PWNA Board’s goal was to negotiate exclusive benefits that would truly help our membership in some of the most important areas of their businesses,” explained Jim Gamble, who has spearheaded the committee’s efforts. “What we now have are benefits for the products they use, the marketing services the need, and their overall health and wellbeing. Many of these are programs that no other industry organization is offering and they have taken months of negotiations to finalize.”

Current PWNA Member Benefits

Free Web Page – every PWNA member in good standing can build their own company web page on the PWNA site. Companies can design the page themselves and post a variety of content, including photos and videos, so long as the page does not include any inappropriate material (e.g., foul language, pornography, etc.). The pages are fully search-engine optimized, and can serve either as the member’s actual web page, or as an additional Internet presence.

“This is a great opportunity to help PWNA members – especially those who are new to the industry – build their Internet presence, and there is absolutely no additional cost to PWNA members,” Gamble explained.

Sunbelt Rentals – the PWNA is in the process of negotiating a discount with Sunbelt Rentals, the amount of which will vary depending on the type/length of rental and the payment method used.

Additionally, Sunbelt will be offering its OSHA Lift Certification Course on Saturday, November1, at the PWNA Convention in Orlando. This is an extremely important training for anyone who uses lifts in their cleaning businesses, in that improper usage can result in injury or even death.

Sherwin Williams – PWNA members can receive up to 30 percent off at all Sherwin Williams stores nationwide.

Hot & Mighty – PWNA members will receive an exclusive discount of up to 20 percent off on Hot & Mighty environmental reclaim equipment.

PowerWash.com – All new or renewing members will receive a 50% discount on any detergent(s) and a 25% discount on all other products on a one-time purchase up to $500, a possible $250 value. (This offer is not good with any other offers.)

This is a sponsored article

Contact the PWNAwww.PWNA.orginfo@pwna.org800-393-7962

Health Insurance – the PWNA health insurance program is currently in open enrollment, and is being offered to all PWNA members who qualify. “I personally am using the PWNA health program and now have better benefits than I did with my previous carrier, plus I’m saving $9,000 per year,” said Gamble. A dental insurance program is available as well.

Additional Insurance Programs – both Joe Walters Insurance and Hagar Insurance are offering discounts on their pressure washing insurance programs. Programs are also being offered for auto insurance and life insurance as well.

Marketing Services – the PWNA has negotiated a member discount with a full-service professional marketing company that can provide a variety of services, from business cards, to flyers, to mailings, to email campaigns, and so on. The marketing provider can also help companies find the correct contact names for commercial clients, and develop strategic marketing plans for specific types of customers.

Gamble emphasized, “This is a full service, high-quality marketing agency. Their prices are going to be higher than the discount options that are out there, like Vista Print, but they offer an expanded list of top-quality services and their customer service is outstanding.”

Web Design – in addition to the free web page available to PWNA members, the PWNA has also negotiated a member discount with CliftonCreativeWeb.com, an award-winning Internet marketing and web design company.

More Benefits in the WorksThe PWNA is also in negotiations for a number of

additional benefits that will likely be available in the near future.

These include:Attorney ServicesTravel DiscountsBanking DiscountsRetirement PlansPayroll ServicesTire and Oil Change DiscountsAnd more. Additionally, an online PWNA bulletin board is also in

the works.And of course, the PWNA continues to provide

members with certification classes, educational resources, and amazing networking opportunities, like this year’s PWNA Convention, November 1-3 in Orlando.

New PWNA MembersDavid Alvert, Don’s Power Washing & Gutter Services LLC

Dennis Bunker, Clean & Clear Exterior Maintenance

Atzel Chavez, Aqua Clean Power Washing

David Drinard, Sunbelt Rentals, Inc.

Percy Evans, Status Clean, Inc.

David Galloway, Galloway Enterprises

Blake Hermanson, Hermanson Exterior Cleaning & Restoration

Davinder Kumar, Charge-On International, Inc.

Chuck Lavoie, Naveen Powerwash, Inc.

Robert Legndre, Higher Level Services

Kelsey Liebich, FNA Group

Terrence A. Smith, Carolina Commercial Kitchen

Mark Steinhauer, Clean Up Group

PWNA Vendor Profile

Cam Spray is a leading manufacturer of commercial pressure washers, drain and sewer jetters, and related equipment, parts, and accessories. Based in Iowa Falls, Iowa, this family-owned company began as Campbell Supply Company in the 1960s.

As an industrial distributor, Campbell Supply distributed Cat and Hypro pumps, and stocked everything needed to fabricate a complete machine – including the drive system, nuts, bolts, pumps and hoses.

Located in the heart of the agricultural industry, customers ranging from farmers to large bean and corn processing facilities were asking for all of the pieces to fabricate a pressure washer and advice on the best way to do it. It was not long before John Campbell, co-founder of Campbell Supply, decided it might be best to build the equipment in-house.

Cam Spray’s first two standard machines in the early ‘70s were electric-powered 800 psi and 1200 psi machines. Those two machines filled 80 percent of the requests for pressure washers. The other 20 percent of requests for machines became custom orders from customers that had special needs – i.e., design requests and operating constraints that could not be met by an “off the shelf” machine.

Cam Spray TodayOver 50 years later, Cam Spray is still owned by the same

family, with the second generation approaching 35 years of experience and third generation approaching 10 years. Christian values, established by John and Jim Campbell in 1962, still remain the heartbeat of the company today. As company president James Gillespie explains, Cam Spray believes in “treating employees, customers and vendors the way we want to be treated.”

Additionally, Cam Spray will still speak with every customer to determine not only what their needs are for the future, but find out what past problems and limitations have been in areas of machine capacity and design.

“It is our mission to not only supply quality products and service, but to solve problems for the customer,” explained Gillespie. “By asking questions about machine use, operators,

For More Information, Visit

www.CamSpray.com

To Learn More about the PWNA, visit www.PWNA.org

This is a sponsored article

Caption: Model 3040QH is a 13 h.p. Honda gas powered hot water pressure washer. The burner system is powered by 12Volt DC from the battery and engine charging system and burns kerosene or diesel fuel. This model is also available with a Hatz diesel engine as well, Model 3040QD. Producing 4 gpm @ 3000 psi, this machine is very portable power, easy to roll around a customer location and also on and off of a trailer, flatbed or van body. Comes with 50’ pressure hose, trigger gun, 4 nozzle set and is ready to run after unpacking.

Caption: Model CBG4055DT is a Hatz Diesel powered hot water model that operates 5.5 gallons per minute at 4000 psi. The trailer is road ready with electric brakes, full diamond plate deck and carries 300 gallons of water. Two reels sit on top of the rear tool box, one reel holds up to 200’ of pressure wash hose and the other reel holds 150’ of garden hose for filling the tank, or the operator can use hydrant fill where allowed.

and pitfalls of the past, we can help design a better machine to last longer for the customer.” Sometimes the machine for the job is a standard machine; other times custom is the best way to go. It is all based on the customer’s needs and wants.

Cam Spray produces over 180 different models of pressure washers that are electric, gas or diesel powered in many different styles, from wall mount, skid, cart, pick-up mount, van mount and trailer styles to suit almost every cleaning requirement. All 180 models can be found at www.CamSpray.com.

“You can find our equipment worldwide, from the oil fields to the battle fields, local schools to the local meat packer,” Gillespi added. “If you don’t see a machine that fits your application, we still build one-of-a-kind custom machines to your specifications.”

Cam Spray & the PWNACam Spray became a vendor partner with the Power

Washers of North America (PWNA) after being exposed to the training and partnering benefits that the PWNA offers.

“Customers will often ask for opinions and input on machinery and applications. As a manufacturer, our best advice is supported by the customers we have provided equipment to over the years. If a prospective buyer has not heard of PWNA, we guide them to the website and encourage them to become members to gain industry knowledge and training,” Gillespie explained. “Cam Spray may have many years of experience in building equipment, but PWNA membership represents the type of professionals using our products.”

Gillespie concludes by adding that Cam Spray can build equipment to do most any job, and the PWNA can supply training expertise, industry awareness and networking opportunities from professionals with years of experience. All those things together should add up to a win-win for everyone.”

How do we effectively manage compliance in the cleaning industry?

Compliance is a buzz word today that goes right along with regulations, oversight, rules and standards. However, does industry compliance really matter? And if so, how do we manage our industry’s compliance?

As a member or prospective member of an industry association, we all hold ourselves to the standard of compliance. Whether it’s an association’s own rules and standards, or a compliance group or code like the Occupational Health & Safety Association (OSHA), National Fire Protection Association (NFPA), International Fire Code (IFC), or one of the other international groups, we believe that association members are the best qualified to provide industry-specific services to the market.

National Organizations with uniform compliance standards face several challenges:

1. The regulations, rules and standards that govern each jurisdiction may not be uniform. The lack of a nationally-accepted standard for many industry associations lends to the inconsistency in the quality of work provided on a national level, sometimes even among industry members.

2. Industry association non-compliant companies compete with compliant companies and cut corners that can allow them to offer lower prices on products and services that generally do not meet the standards set by most associations.

3. Many of us have looked the other way with some compliance issues that may not have been required by the jurisdiction, but required by a standards organization. Then, when the

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By Brian Smith, Omni Containment Systems

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jurisdiction adopts the latest national or industry standard, we have to present the customer with a new requirement. Even though many industry associations have been beholden to larger national or international associations, we may not have felt it was necessary to keep a customer compliant if the jurisdiction did not require it, a potentially difficult discussion to have with a customer.

4. Interpretation and definition may vary. Most standards-related documents are ambiguous and give the Authorities Having Jurisdiction (AH J) leeway in the determination of compliance. The issue here is what one AJH deems compliant, another may determine does not meet the definition.

One example of this is NFPA96 8.1.1.1 that states that up-blast fans will have a “service hold-open” retainer. There are AHJ’s that deem a chain sufficient as a service hold-open retainer and others that say the retainer must actually hold the fan in place. This, and many other interpretations, put at-risk the validity of solutions and us as providers if there is a loss at our client’s business caused by an issue so broadly defined.

The best way to manage compliance, for us, is first to understand association codes, along with any supporting standards that we and our customers have an impact on. Discuss the ambiguous issues with our peers and ask

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About the AuthorBrian Smith is the Chief Operations Officer at Omni Containment Systems, LLC, a leader in Fats, Oils and Grease Containment Systems, with a foundation that began in 1987. To learn more, visit www.Omni Containment.com.

specifically for a clearer definition of the issues that affect us. While many code documents calls for Webster’s Dictionary to be the definitive definition for, many of us still struggle with the practical application of a dictionaries definition.

Second, once a definition is chosen, stick to it. As association members, we assume that we would hold ourselves to the association standards and, as such, any other standard we may follow. Train your staff to understand the standards and reward them for bringing customer into compliance. Doing so should be greater revenue during the upgrade and hopefully lower costs once finished.

For example, having proper access panels in place will increase the efficiency with which air hoods can be cleaned. By installing proper access, you meet the standard and lower your costs going forward – revenue for compliance and residual savings for efficiency that puts more money in your pocket.

Finally, challenge each other as peers in an organization committed to quality standards. When you hear a peer with issues related to compliance, help them understand not only the standards requirement but also the practical

application of the standard. For example, proper hinging of an exhaust fan not only reduces the chance of damage to a roof, fan and people working, it also speeds up the cleaning process by allowing the fan to be tilted quickly and safely, reducing labor cost and risk.

Compliance is not some buzz word to be set aside when we leave association meetings, only to be addressed when an AHJ decides to review our clients and test the standard. If we use our compliance as an asset to reduce risk, save labor, increase revenue and give us something to measure by, we as a group can begin to use industry and association-based codes and standards as selling tools. Compliance does not have to a bad word, but rather a buzz word for growing our companies while making them more efficient.

Five Customer Buying PrinciplesCustomer preferences are shaped by the options they’re presented

You just followed up on a quote to a customer for a job you were proposing to clean. Unfortunately, you learned that the customer decided to go with your competitor’s quote. You’re thinking to yourself, “I don’t know what these customers want anymore! I quoted what I thought they wanted, and I even lowered my price more than I wanted to, but I still lost the job!” You may be feeling like you just can’t make any money in this business any more.

We’ve all been there, and we’ve all had these exact same thoughts on occasion. What do customers really want today?

When talking to customers, you need

to understand that there are five principles that apply as they are going through the buying pattern. Every customer will go through all five of these steps as they make a buying decision. It doesn’t matter if they’re buying a car, a dinner out with their spouse, or a pack of bubble gum. Buyers will always go through all five principles. The only thing that differs is how fast they will move through the five.

The more expensive the purchase, the longer it will take to go through all five principles. If you’re buying a car, you’ll be very deliberate as you go through these five principles. If you’re buying a pack of gum, it will happen very quickly. If you understand these five principles, it has to change the way that we communicate with our customers.

By Bill Kinnard, Grandy & Associates

“5 Principles” 22

Sales

Principle 1: Customer preferences are shaped by the options they’re presented.

Think about it. If you’re looking to buy something that you don’t have a lot of knowledge about, you will ask other people. The first person will give you an opinion, and you’ll start to form yours. Then you’ll talk to another person, who may give you a differing opinion. That will change your opinion. The more people you talk to and the more research you do, the more your opinions will be shaped and formed. The same thing happens with your customers. As they see different options, it changes their preferences.

Keep this in mind as you’re putting together your proposals for your customers. Remember, your customers cannot buy what you don’t offer them. If you offer services but don’t tell your customers about them, you will never sell those services. If your customers truly knew what they wanted, they wouldn’t be asking you for your expert advice.

During the sales process, your job is to educate and inform the customer. It is during this stage that they will start to form their preferences for which option they will be purchasing. Ask questions and listen carefully to find out what’s important to them. Don’t prejudge your customer and assume you know what they want or need. Doing so will only prevent you from

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helping the customer purchase what they want and need from you.

Principle 2: Customers don’t understand value until you give them choices.

If customers don’t have something compare your price to, they don’t know if it’s a fair price or not.

Think of it this way: How often do your customers purchase your services over the course of a lifetime? Chances are it’s only a few times. As a result, they don’t know the value. They don’t know if it’s a good price or a bad price. They always need something to compare it to. If all you offer your customer is your lowest-price option, they’re going to want something to compare to. If all you offer your customers is your best, most expensive option, they’re still going to want something to compare it to. Give your customer something to compare. That way they can make up their mind as to which option has more value.

Principle 3: Customers tend to compromise. Give them options.

Customers need options. If you create a low-price option (i.e., “good”), a middle-priced option (i.e., “getter”), and highest priced option (i.e., “best”), it helps customers gain that need for comparison from principle #2. Then they are more likely to compromise and choose one option, rather than going to a competitor for prices as well.

Principle 4: Your presentation of options matters.

Based on principle 3, you will want to offer a “good/better/best” series of options. However, how you present these options impacts which one your customers choose.

Think about a car dealership. What’s the very first car that they put you in? Typically, it’s the most expensive car they have on the lot. Why? After all, not everybody looks like they are a candidate for the most expensive vehicle on the lot.

“Buying Principles” 24

About the AuthorBill Kinnard is the president of Grandy & Associates. To learn more about their products and services, or to subscribe to their newsletter, go to www.GrandyAssociates.com.

On the surface, the answer may seem obvious: they make more money on the more expensive car. But think about when you’re actually sitting in that car (they always want you to sit in the car and take it for a test drive). You’re thinking, “Wow – I look great in this car! I love the options. I love the panoramic roof. I love the heated and cooled leather seats. I need this car. I can’t afford this car. But I need this car!”

Why don’t they offer you the Yugo first? After all, you’re a Yugo-looking-kinda guy. Again, the answer may seem obvious in that they don’t make any money on the inexpensive car. But, it goes much deeper than that. It if you see the cheap car first, you will compare everything back to the price of the cheap car. How much will that AM radio cost in that Yugo?

Instead, if you look at the higher-priced car first, you will compare everything back to that. “But I love the heated and cooled leather seats. I don’t want to give those up! But, I also know that if I want a lower price, then I will have to give up something.”

When customers are buying your products and services, it’s the same thing. If you offer them your lowest-priced option first, they will compare everything to that. If you offer them your highest priced option first, they will compare everything to that.

Now, I really don’t care what your lowest-priced option is. I really don’t even care what your middle-priced option is. I do know this: Your highest-priced option needs to be your best option. Your customers will never buy what you don’t offer them. Offer your customers your “best” package first, then give them a “better” (middle) option, and give them your “good “system last. Then let them choose which system is best for them.

Just one more thing to consider. Every time I talk to contractors who excel in selling the best of the best, I ask them what their secrets are. In every case, the answer is the same. “I simply offer it.”

Remember, your customers can’t buy what you don’t offer them. Offer the best; let them choose.

Principle 5: Limit choices to avoid confusion for the customer.

Limit your choices to three. Too many choices introduces confusion. If the customer is overwhelmed, the answer will always be no.

Many of your customers will look at multiple options and be afraid to make a mistake. If they don’t pick any of the options presented, they won’t pick the wrong one. Too many choices will increase the chance of your customer deciding no. Don’t let that happen. Limit your choices to three, and make it easy for them.

If you think back on any recent purchases you have made – whether it be a cell phone, a restaurant meal, a pack of gum, or a car – you probably went through all five of these customer-buying principles. Remember, the more expensive the purchase, the longer and more deliberate you will be when going through each of the principles. The lower the price of the item, the faster you will go through the decision-making process. You look at the various choices that are available and zip through all five principles in about a half second. But you do go through them all.

If you understand the five customer buying principles, it means we have to change the way that we talk to our customers. If we pay attention to them, it will change the way our customers buy.

Glass Restoration Tools & AbrasivesBy Henry Grover

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The technology of engineering precision surfaces is in fact what glass restoration is all about. It is a polishing process using super-abrasives, which are based on either microscopic and/ or nanoscopic particles. This science is well founded in the optics industry, but has not yet completely crossed over into professional window cleaning. This is what I have been working on for many years.

There are very few true consultants to help window cleaners accomplish glass restoration, since the practice is to build companies that sell products. The people who do this are usually quite secretive, so they are not exactly eager to tell anyone specifically which super-abrasives they have used. Since there are virtually thousands of different choices out there, it would be impossible to figure this out. Yet it is very possible to generalize enough so as to accomplish a great deal.

The polishing tool itself is the first generalization I will make. (Note: I’m talking about the tool, not the pad.) It is what connects the polishing pad/ring to the drive shaft of the handheld rotary motor. This must be a universal joint configuration. It will allow a 12-degree variance of angle, such that the polishing disk will remain completely flat on the window at all times, which will help to eliminate any distortion waves as heavy stock is removed during scratch removal. Also it will help to eliminate what I call “abrasion haze,” which results from ripping into the glass with the edge of the polishing pad/disk. I have chosen a ring instead of a disk so that the greatest amount of pressure can be applied with the least amount of effort.

This “Wobble Wheel,” as I call it, can be used with any type of polishing pad/ring. Personally, I prefer hard felt for polishing because it allows me to use any type of super-abrasive-based compound. There are many other materials out there that

Technical

could be used with the wobble wheel as well. Some are designed to be used with wet compounds, too. Others are to be used with water only, such that the polishing particles are held within the material and are slowly released by the water. Then there are materials that are loaded with particles that remain within the pads. These are also used with water. Further, there are also materials that are used without water, except for the final step.

The full spectrum of glass restoration involves stain removal, scratch removal, and etched glass rejuvenation. The last two usually require particles around 120 microns. This step involves grinding, and the process involves a few different steps that require finishing with a cerium oxide in the area of only three to one microns. Cerium has been used for many years in the optics industry for polishing lenses and mirror blanks. It reacts with the chemistry of glass surfaces and abrades at the same time.

Abrasives are another important area to consider. The purity of super-abrasives is critical to their performance, and must be around 99.9 percent. They should be harder than glass. The shape of the particles should be chosen wisely. Flat particles tend to rub, which is a good quality, but they may not remove enough stock quickly enough. Cubic – as in some diamonds and cubic born nitrade – is another particle shape, which is good since the edges will cut well.

One idea involves blending the two different shapes to create a synergistic effect. Then there is the practice of adding particles/powders that are actually softer than glass. These tend to mitigate the harsh action of the other particles in the compound.

The bottom line here, however, is always to do the experiment and look very closely at the results in just the right way. But always use brand-new glass first before going to the field.

About the AuthorHenry Grover, Jr., specializes in product development for companies that perform glass restoration. He also writes an online newsletter called “The Vision Glass Detailer” (VGD), which is available for the asking at henrygroverjr.@gmail.com.

Become the BrandA great number of salespeople are

barely more than common hucksters, figments of their sales manager’s desires for greater sales and profits. It is a shame too, since all of them could improve vastly in a matter of seconds if only they had a slight change of heart. All they have to do is become the brand.

This is the most basic rule of good salesmanship, not a cosmic secret. Branding, or creating name recognition for a product or service, is the function of salespeople, yet few understand the concept. Said best by Hawk, the bad guy in the black hat on John Wayne’s western movie Rooster Cogburn, “You take my money, you wear my brand!”

This sentiment is, of course, mirrored by every company in America, albeit not as sinisterly put. Salespeople are needed for the generation of profits, so companies endeavor to hire those who are willing to become the “brand.” Devotion is expected and deserved in return for the paycheck, but rarely given. Few salespeople actually believe that devotion to the “brand” is

necessary; therefore, they fail to meet sales expectations.

Branding is something Roy C. Getz – chairman of the Ohio Restaurant Association and former senior vice president of marketing for Denny’s Restaurants – knows a lot about. He believes, “A clearly defined brand position is critical for ongoing success. We must develop our advertising and merchandising in such a way as to leverage our brand’s points of difference. Showing how we are different and better leads to ongoing business growth, the whole reason for branding.”

Good salespeople want their customers to remember what they represent. For me, I experience a thrill when a customer says, “Here comes the Marko Man!” Marko Janitorial Supply is my company name, my brand of cleaning products, and my livelihood. I take pride in it. When customers see me, I want them to remember I am more than just a nice guy in a suit. I want them to remember I represent a professional brand name worth having on

By Rick Meehan

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Sales

“Become the Brand” 28

answer in a single short sentence, you’ve already failed before you get started selling. Do your company a favor and don’t waste branding bucks. Embrace the brand to improve sales.

It is lack of devotion that breaks a brand. The top complaint I hear from defunct salespeople is, “They [the company] didn’t give me what they said they would.” My joiner is, “Did you give them all you said you would?” By that I mean, “Did you become the brand for them?” After all, salespeople are most times the only faces seen of a company by the customer. They are the company in the minds of their clientele. That’s why devotion is so important, to make believers out of customers. If a salesperson does not believe in the products he or she represents, how would anyone else be able to? Just as the bad guy always wears black - a branding technique used by writers and promoters of movie and television Westerns - a salesperson should don the garb of his or her brand. Wear the hat!

Most companies spend advertising dollars for little do-lollies like logo business cards, logo pens, logo ball caps, logo T-shirts, logo coffee mugs and other logo sundries. For a while my company offered magnetic signs which could easily be applied to car doors and removed as needed. Do you think a single one of our salespeople would use them besides myself as sales manager? No! They were too embarrassed to put them on their cars. We had logo caps and shirts at one time too. Do you think a single one of our salespeople would wear them besides myself as sales manager? No! They were too important to wear anything with a logo. When salespeople are not proud enough of what they represent to take advantage of expensive branding tools at their disposal, do you think they will make it? NO!

I sell toilet paper, hand towels, mop buckets, floor finish, disinfectants, and all sorts of cleaning products. What my customers remember upon seeing me is that I sell toilet paper. So be it! As long as they remember my brand and put my toilet tissue on their holder, I have succeeded as a salesperson. I put up with the jokes because every chuckle is yet another branding technique. “Hey, do you sell John Wayne toilet tissue? You know, the kind that’s rough and tough and don’t take !2#1!&%! from nobody?” Nope. I don’t. I leave that to my competition, pardner; however, if you want something worth using, buy it from me. You’ll find my company logo on every box just to remind you of where to come for skid paper.

My point is this: it doesn’t matter what you sell but how you represent it. Do yourself and your company a favor and earn your keep by understanding how important it is to talk up the brand. This one simple change in the manner of a sales call will dramatically increase sales over time. It is a fundamental shift in thought. I am the Marko Man. Marko stands for quality products, excellent personalized service, and competitive pricing. What does your brand stand for? If you can’t state the

About the AuthorRick Meehan is the Vice President of Marko Janitorial, a full-service janitorial supplier. To learn more, visit www.MarkoInc.com.

Laying off workers...sort of

Even though a business may be non-seasonal, it can still experience significant swings in the amount of revenue it takes in; sometimes things are very busy, while at other times things may be slow. Businesses that have dramatic work reductions often terminate members of their staff in order to make ends meet, but it can be the wrong thing to do. If you’re experiencing slow times but don’t want to lose valuable help by laying off staff, explore whether you can use a work-share program to tide you, and your workers, over until business improves.

Work-share programsThese are state-level programs

that provide partial unemployment compensation for workers who have their hours reduced because of a temporary slowdown in the employer’s business. In states with work-share programs (also referred to as short-time compensation, shared work programs, or other

terms), workers can continue on the company payroll while receiving partial unemployment compensation benefits. This arrangement applies only if an employer voluntarily agrees to participate in the program.

To participate, an employer must experience a serious reduction in business that causes the company to cut hours, usually shifting workers from full-time to part-time. Rules vary from state to state. For example, the state of Washington requires that there be a reduction of at least 10%, but not more than 50%, in hours and at least two permanent employees must be enrolled in the program. In California, which started its work-share program in 1978, there must be a minimum of two employees comprising at least 10% of the employer’s workforce who have a reduction in weekly wages and hours of at least 10% but not more than 60%; corporate officers and major stockholders cannot participate to receive benefits. In New York’s program,

By Barbara Weltman

Management

29 eClean Magazine

major stockholders cannot participate to receive benefits. In New York’s program, the reduction in hours must be between 20% and 60%, and the employer cannot hire additional workers to replace the reduced hours.

Employers then complete some paperwork to trigger participation in their state’s work-share program. This paperwork identifies eligible employees (those with reduced hours).

Once the employer is in the plan, the employees can receive partial state unemployment benefits, which make up for some of their lost wages. For example, if a business experiences a 20% reduction in business and cuts hours accordingly, employees would receive 20% of unemployment benefits to which he/she would be entitled if they had been laid off.

A business can use the program more than once; it’s not a one-time option. In New York, for example, its Department of Labor approved 877 employer plans under the state’s Shared Work Program for 2013, and of these, nearly half had participated in 2012. But employers had to be re-approved by filing a new request for participation and undergoing a review to ensure that they still met eligibility requirements.

Barbara Weltman is an attorney, prolific author with such titles as J.K. Lasser's Small Business Taxes, J.K. Lasser's Guide to Self-Employment, and Smooth Failing as well as a trusted professional advocate for small businesses and entrepreneurs. She is also the publisher of Idea of the Day® and monthly e-newsletter Big Ideas for Small Business® and host of Build Your Business Radio. She has been included in the List of 100 Small Business Influencers for three years in a row. Follow her on Twitter: @BarbaraWeltman.

About the Author

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or call 800-311-8360

Benefits and drawbacks of work-share programsBenefits for employers:• Retaining good employees who are already

trained• Avoiding future costs for rehiring, retraining,

and recruiting when times improve• Maintaining diversity in the workplace

(normally, younger workers would be let go first and these workers may represent added diversity within the company)

Benefits for employees:• Maintaining income• Keeping health coverage and other employee

benefits

Drawback for employers:• Unemployment taxes are increased because of

the claims made against them

Drawback for employees:• The partial unemployment benefits do not

completely replace lost wages

States with programs

More than half the states and the District of Columbia have work-share programs in place or will have them ready in the next two years. These include:

Arizona Arkansas California

Colorado Connecticut District of Columbia

Florida Iowa Kansas

Louisiana (not yet implemented) Maine Maryland

Massachusetts Michigan Minnesota

Missouri Nebraska New Hampshire

New Jersey New York Ohio

Oklahoma Oregon Pennsylvania

Rhode Island Texas Vermont

Virginia Washington Wisconsin

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