Never hire an American employee

First take note of the title of this posting -- Never hire an American employee -- where I have very intentionally made a distinction between employee and worker. There is just cause for this.

The United States is currently experiencing the deepest and most protracted period of labour demand withdrawal since the Great Depression. In a presidential election year the reasons behind this are as narrow as they are polarized.

The two factions of the Incumbent Party are embattled in a blame game and have each proposed numerous bills for the purported purpose of creating jobs. However, the reality is that neither faction produces any jobs. Instead it has been their actions that have led to reduced demand for American employees.

For most companies advertising for help produces nothing more than a parade of "applicants" wasting their time and resources by doing nothing more than submitting applications. Rarely are these actual applicants, but are instead people routinely applying for the sole purpose of satisfying a government requirement in exchange for obtaining a welfare handout.

Cyclical financial gyrations are a part of the normal market process. There will be periods of high worker demand and periods of lower worker demand. This is one of the reasons why I try to get my clients to have cash on hand available for two years worth of necessary expenses. I have rarely encountered anyone who can meet this simple readiness strategy. Instead many American workers place onerous demands on employers that are beginning to rival the French. They feel that they have an entitlement to employment and the benefits.

Employers are no longer willing to accept the risks associated with hiring new employees. An 06 July 2012 U.S. Labor Department report showed that companies asked workers to contribute more hours rather than hire additional employees. A report released today by the National Association for Business Economics indicated that only 23% of the employers surveyed planned to add new staff in the next six months. That is down from the April report where 39% who responded then said that they planned to do so. Clearly just in the past few months employers have shifted their thinking about hiring new employees and instead have sought to increase the workload of their current employees. It's because of the up front non-wage costs that employers don't want to hire. This is exactly what employees want. They have demanded all the add-on and perks that make it more cost effective for employers to pay overtime rather than hire additional staff. Employees are creating a wealth divide -- more for me, none for you unemployed -- by demanding those perks.

It's what are called fringe benefits that are greatly restricting employment now. Employers face significant costs and risk to bring in a new employee. First, which is prominent in the latest news headlines, are the sick care cost -- the expense associated with pre-purchasing medical services for our slothful and unhealthy population. There is also the risk of employee theft which accounts for more than shoplifting. There is a multitude of causes of action for which employees may sue. Pack on top of that the administrative costs of compliance with government regulations. Not to be lost among these other aspects is the underlying purpose for having an employee -- productivity.

As I encounter and speak with CEO's from a wide range of goods and service providers I hear echoed the same sentiment that I make through my observations -- generally American employees are unreliable, lazy, unintelligent and have no dedication to the employer.

This was apparent to me in the construction industry. Immigrant labourers arrived on time everyday, were skilled and efficient in their trades, worked fully for extended periods of time and were satisfied with a reasonable wage. In contrast American employees seemed to have a penchant for seeking an excuse not to work. Often took breaks to smoke cigarettes or because they "were tired" and they also needed constant supervision. With so much costs and risks associated with hiring an American does it seem logical that more employers would not be outsourcing their employee needs?

An election in November will do nothing to alter the dismal employment situation in the United States now. Rather, the first step that needs to be taken is for the electorate to chose candidates that will adopt the Laissez Faire principles that will allow employers to thrive and expand thereby seeking to hire more Americans. Then Americans need to make themselves employable. If more Americans understood the economic principle of marginal costs then maybe they would be more appreciative of the opportunities that employers provide.

It's their own selfishness that has led to the decline of worker demand in the United States and those so-called workers are now getting their just rewards.

Anyone who wants work can find it or make it. If you need assistance in making yourself more employable and ensuring your financial security then please visit my website and contact my scheduler to make an appointment to meet with me.

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©2012 Stuart Showalter, LLC. Permission is granted to all non-commercial entities to reproduce this article in it's entirety with credit given.