How to Be in Compliance with the New DOL 7% Disability QuotaSEPTEMBER 17, 2013 | BY SARAH ROYAL

There’s been a lot of talk about the Department of Labor’s new 7% Rule officially announced last month, requiring government contractors to take affirmative action to ensure that 7% of the individuals they hire are individuals with disabilities. Here’s what you need to know:

Utilization goalEstablishes a nationwide 7% utilization goal for hiring qualified individuals with disabilities (IWDs). Contractors will apply the goal to each of their job groups, or to their entire workforce if the contractor has 100 or fewer employees and must conduct an annual utilization analysis.

Data collectionRequires that contractors document and update annually several quantitative comparisons for the number of IWDs who apply for jobs and the number of Requires that contractors document and update annually several quantitative comparisons for the number of IWDs who apply for jobs and the number of IWDs they hire.

Invitation to Self-IdentifyRequires that contractors invite applicants to self-identify as IWDs at both the pre-offer and post-offer phases of the application process, using language prescribed by OFCCP.

Incorporation of the EO ClauseRequires specific language to be used when incorporating the equal opportunity clause into a subcontract by reference.

RecordsRecords AccessClarifies that contractors must allow OFCCP to review documents related to a compliance check or focused review, either on-site or off-site, at OFCCP’s option.

ADAAARevises definition of “disability” and nondiscrimination provisions of implementing regulations.

Because of the auditing component of this new rule, contractors need to ensure that (1) they are in compliance with equal opportunity laws during the interview process, and (2) they are in compliance with disability documentation and record-keeping to ensure that individuals with disabilities are indeed employed on their contracts. So, how can contractors get help ensuring compliance? One way is to think about employed on their contracts. So, how can contractors get help ensuring compliance? One way is to think about hiring a staffing firm that specifically manages the recruitment, interviewing, and hiring of individuals with disabilities. It can be an effective, consolidated way to meet the quota while employing competent, successful individuals.

Remember—regardless of whether or not you agree with the philosophy behind it, it’s still a rule that is now in effect. The best way to approach it is to embrace the business benefits that come from hiring people with disabilities, and get into compliance.

Do you have any suggestions for the recruitment of qualified individuals with disabilities? Leave a comment below!Do you have any suggestions for the recruitment of qualified individuals with disabilities? Leave a comment below!

Looking to Improve Your Bottom Line?FEB. 27, 2013 | BY SARAH ROYAL

Are you concerned about reducing costs, increasing productivity and reducing employee turnover? Of course you are, and of course every successful busi-ness owner would explore any and all ways in which to do so. So, have you considered hiring workers with disabilities?

There is strong evidence that supports the business case for employing people with disabilities, outside the traditional corporate social responsibility argument that it’s good for your business image. (Although, this alone could be a compelling enough case: according to The Conference Board, 87% of consumers agree or strongly agree that they prefer to give their business to companies that employ people with disabilities.) Companies that have started to employ people with disabilities show that their hiring decisions positively impact its bottom line in the form of reduced costs, increased productivity, and reduced employee turnover. It’s true: When Walgreens started employing people with disabilities in their distribution centers, they cut costs by 20%. Simple workarounds, like replacing words and numbers with colors and symbols and decreasing the distances employees need to travel within the facility, was all it took to increase profitability across the board.

MoreoveMoreover, small changes to tailor jobs to the needs of employees can also increase productivity. As you can imagine, productivity for everyone—workers with and without disabilities—increased at Walgreens’ distribution centers after they implemented those workarounds. And at Carolina Fine Snacks, productivity rose from 70% to 95% after they started hiring people with disabilities.

Companies that employ people with disabilities see lower rates of employee turnoveCompanies that employ people with disabilities see lower rates of employee turnover, which is especially significant as the hidden cost of employee turnover really can extend far beyond the bottom line. Marriott Hotels found that among employees with disabilities, its turnover rate was just 6% as compared to 52% in their overall workforce. Similarly, Washington Mutual (now JP Morgan Chase Bank) found an 8% turnover rate among employees with disabilities, as compared to 45% in the general population. Pizza Hut, too, found a 20% turnover rate among employees with disabilities, as compared to 150% among employees without disabilities.

These established companies show there is a clear business case for hiring people with disabilities.These established companies show there is a clear business case for hiring people with disabilities. As a smart business owner, why wouldn’t you give this a try?

Interested in improving your bottom line by hiring people with disabilities? Ask us about it.

Make a Commitment to Food Packaging CertificationsJUNE 18, 2013 | BY SARAH ROYAL

Most people take it for granted that their food is safe, and put a lot of trust into food companies when they say that their products are this-, that-, and the oth-er-free. More and more, health concerns and dietary restrictions need to be communicated to consumers in a clear, effective manner—and that needs to be backed up by certifications within all of the packaging plants that the product travels through all the way through the process. This is especially important with the advent of FSMA, the most sweeping overhaul of the food safety compliance system since 1938.

Here’s a highlight of some of the certifications we use, and why they’re important for both food companies and consumers:

• Food and Drug Administration (FDA) Certified Compliant Clean Rooms are key to food ingredient segregation for primary food packaging, ensuring that nothing but the actual product is filled into sterile containers. This certification and segregation is also essential for allergen control and ensuring that no contaminants enter the product.

• Third-party surprise inspections by American Institute of Baking International (AIB) are arguably the highest standard in the industry, and essential for “real-time” inspections in which managers and supervisors have zero time to “prep” the facility. As with many things, it’s important for third parties to assess your processes and your facility in order to continuously improve and protect your customers and consumers. assess your processes and your facility in order to continuously improve and protect your customers and consumers.

• OU Kosher certification for Kosher products is one of the longest-standing food certifications on record, and is growing in relevance today—not strictly due to religious regions, but for health reasons, as consumers understand the cleanliness and quality that food processing facilities need to maintain to hold this certification.

• Organic certification is huge and still growing these days, and being certified in Oregon through Oregon Tilth and nationwide through the USDA is especially important to food companies who need to maintain their products ‘organic especially important to food companies who need to maintain their products ‘organic’ status all the way through the entire co-packaging operation.

• Certified Gluten-Free by The Gluten Intolerance Group is essential for products to be Certified Gluten-Free, a label increasingly important for gluten-intolerant consumers and those with Celiac disease.

• Hazard Analysis Critical Control Points, or HAACP, is a methodology used for preventing food safety hazards, and is also a critical component of a FSMA preparedness plan. HAACP, when paired with Good Manufacturing Practices, provides the best way to control food product production as it is happening, rather than just by testing the finished product. happening, rather than just by testing the finished product.

Committing to these standardized food packaging certifications should not only be practiced for safety concerns, but also as good business: The public consciousness is changing, and people read food labels very carefully. Processors, packagers, and every institution that has a hand in the production of food should understand and make a commitment to the certifications that their customers care about.

Safety & Temporary Staffing: What You Need to KnowAPRIL 8, 2013 | BY SARAH ROYAL

In a recent Interpretation Letter, OSHA outlines how its laws and regulations are applied to employers with temporary staff and staffing agencies. Essentially, the letter explains that staffing agencies and the companies that hire them are responsible for creating a partnership in which both parties are responsible for keeping all employees safe.

When it comes to training, itWhen it comes to training, it’s expected that the temporary staffing agency ensures that employees receive necessary training and that the host company provide worksite-specific training. This is why when we tour a customer’s facility, we are on the lookout for equipment that could potentially be dangerous for staff who are untrained—and will work with our customer to develop worker training around it.

ItIt’s also important to have a working partnership when it comes to reporting so that incidents are properly recorded. You already know that when your employ-ees are injured on the job, the incident is recorded in your OSHA 300 report—but you may be surprised to learn that the same is pretty much true for your temporary staff. According to OSHA, the party responsible for day-to-day supervision of temporary employees is responsible for reporting work-related inju-ries and illnesses on their 300 report. This is different from workers’ compensation, which many staffing agencies handle (including DePaul Industries).

In the event that OSHA conducts a random audit and finds unsafe workplace conditions, both the host employer and staffing agency will be cited. Why does this matter? OSHA fines are costly—not to mention the impact on your reputation.

WWe all agree that workplace injuries are bad—no one wants their employees or anyone else to get hurt. Beyond this, though, as OSHA reminds us, it’s bene-ficial to your bottom-line to prioritize safety, even if you’re leaving other HR needs to a staffing firm. Beyond fines and citations, when employees have to miss work due to injury, their workload, of course, must be passed on to other workers or additional staff must be brought on to pick up the slack. The ma-chinery and equipment used in light industrial job environments, while safe when used properly, can become a threat to workplace safety if misused. So on top of losing staff, an injury in the workplace will likely mean damaged equipment. This is all majorly detracts from productivity, which majorly detracts from the amount of revenue you’re able to bring in.

It’s in everyone’s best interest that staffing companies, the companies they work with, and their employees work together to create a partnership focused on safety. Starting off with a safe workplace with fully-trained staff—whether they’re your own or temps for hire—will help your business run smoothly and effi-ciently. You win, your employees win, and—oh yeah—your balance sheet does, too.

If you’re interested in creating a partnership and maintaining a safe work environment, give us a call.

The Conduit Between Business & DisabilityMARCH 27, 2013 | BY SARAH ROYAL

With recent articles on the number of people receiving federal disability benefits rising (“Unfit for Work” by Chana Joffe-Walt, NPR) and the growing employ-ment gap between people with and without disabilities (“Scant Progress on Jobs for Disabled Americans” by Jennifer Kerr, Associated Press), concerns are high regarding people with disabilities—their disparity in their rates of employment, the reasons for the increase in disability benefits, and especially, their economic contributions to or drains on society.

Joffe-Walt discloses that 14 million people receive a disability check from the federal government each month—a check that is often seen as a disincentive to find work, though the average payment is at poverty level—and also discloses that states actually pay companies like Public Consulting Group to move as many people as possible onto federal disability.

Kerr points out that although the Americans with Disabilities Act of 1990 was passed over twenty years ago, the job numbers for people with disabilities hav-en’t budged, and that the number of people with disabilities working has actually decreased in the last four years.

This is, quite obviously, a massive issue, with billions of dollars spent by the federal government only to result in fewer people with disabilities actually partici-pating in the labor force.

But it doesn’t represent the entire picture. There are organizations and businesses successfully working on the opposite side—actively creating viable em-ployment opportunities for people with disabilities and reducing the number of people on federal disability programs. Most people with disabilities truly want to work, and when given the right opportunity (and in some cases the right accommodations, which average less than $500) can become extremely dedicated and valuable employees. The right conduit—an organization that is able to speak to the needs of both people with disabilities and the businesses where the jobs are—will make that happen on a large scale. Itjobs are—will make that happen on a large scale. It’s just going to take an effort on the part of commercial business to want to engage with that conduit, to tap into this overlooked and under-leveraged workforce as a strategic advantage.

There is a solution here: We need to realize that disability doesn’t have to be seen as a detriment to a successful worker. In fact, in some cases it can be an asset, with statistics showing that workers with disabilities are often more loyal, less absent, and more productive. Commercial companies hire workers with disabilities from successful conduit organizations like DePaul Industries and others because they’re right for the job and get the job done—and, as a bonus, they benefit from a healthy dose of corporate social responsibility.

If we’re really serious about moving more people with disabilities oIf we’re really serious about moving more people with disabilities off of federal and other governmental support and into the workforce, the biggest slice of new hires needs to be in the commercial sector. Running the numbers on the Bureau of Labor Statistics disability figures, it will require that approximately six million jobs will need to be filled by people with disabilities in order to close this employment gap between people with and without disabilities. The 110 million job commercial sector, five to six times the size of the public sector, is the only sector with the realistic capacity to create those jobs.

There will always be individuals who, unfortunatelThere will always be individuals who, unfortunately, will try to game the system. But the reality is that many people with disabilities are already key assets to commercial companies, and many more want to be—they just need to be matched to the right jobs. To eliminate barriers and to benefit businesses, individu-als, and the federal government, it’s going to take strategic efforts on the part of business to collaborate with organizations making that match.

The Hidden Costs of Overtime (and How to Save them with Temp Staffing)MARCH 28, 2014 | BY SARAH ROYAL

As business picks up here and there during the busy season, overtime sometimes presents itself as a solution to extra odds and ends that need to get done. From the perspective of a business owner, it’s usually just about paying a premium cost for a little bit more of your current employees’ time — little harm done, right? Before jumping to conclusions on the topic, as always, it’s important to plan — and here are three perhaps more hidden costs of overtime that you’ll want to consider before diving in:

» Productivity DeclineThink about your work schedule.Think about your work schedule. The longer you work through the week, the more your productivity declines. According to a Stanford University study, pro-ductivity during a 60-hour work week, when worked by employees used to working 40-hour work weeks, was less than two-thirds that of what it was when 40- hour weeks were worked. It’s important to consider your employee’s health and well-being and not stretch them past their limits.

» Increased Accidents & MistakesAlong with productivity decline, of course, comes a potential increase in accidents and mistakes made on the job. This becomes especially important when working in light industrial and factory environments, but is also important to consider when talking about accounting jobs, or jobs in which a superb attention to detail is required. The more hours these employees work, there’s much more of a chance that even more subsequent hours will need to be worked in order to fix mistakes or recuperate from an unfortunate mishap.

» Morale DeclineFinallFinally, productivity decline and accidents not withstanding, pushing your core employees to the brink is bad for morale. Sure, employees might appreciate a bit of a cash bump in the short run, but consistently asking them to work beyond what they originally signed up to do isn’t going to help anyone — least of which the company itself.

So, what to do? First, proper business planning and anticipating busy times is key to ensuring that everyone knows (mostly) what to expect in the weeks and So, what to do? First, proper business planning and anticipating busy times is key to ensuring that everyone knows (mostly) what to expect in the weeks and months ahead. Secondly, partnering with a staffing or recruiting firm to bring on temporary or contract workers to fill in those busy gaps will both keep your core employees fresh and happy, as well as boost your productivity and efficiency in the busy times. Once the busy season calms down, the temps can be released — or, alternatively, once your business is bolstered by the additional work, you can consider bringing one of those temps into your core workforce. The choice is yours.

This post is part of a month-long blogging series for DePaul Industries: One blog post every weekday for a month! Stay tuned throughout March 2014 for This post is part of a month-long blogging series for DePaul Industries: One blog post every weekday for a month! Stay tuned throughout March 2014 for more posts on staffing, security, packaging, social enterprise and hiring individuals with disabilities.

The Rise of Private Labeling (and What It Means for Your Brand)MARCH 12, 2014 | BY SARAH ROYAL

Once upon a time, consumers knew whether or not they were purchasing a ‘generic’ brand, and its display was often markedly different from the popular brands it appeared alongside on the shelf. Today, however, entire stores of ‘private labels’ (like Trader Joe’s) abound, and companies are increasingly moving towards offering their own label right next to national brands — and ensuring that it actively competes with them.

Private labeling can be done for any number of consumer goods, but our particular focus is Private labeling can be done for any number of consumer goods, but our particular focus is food products. Supermarkets, particularly, love to keep the true identity of where its private label brand food products originate hidden from consumers, often because it’s outsourced to food processors and packag-ers like DePaul Packaging and other processors in the Pacific Northwest. And that’s OK. As fewer consumers believe that a national brand name absolutely signifies ‘top quality,’ more and more supermarkets and other food product distributors are understanding that they can capitalize on a better profit margin by leveraging their own generic brand to leveraging their own generic brand to look like a national brand. Chief Marketing Officer for Safeway Diane Dietz told Food Manufacturing magazine, “In many cases, people are buying some of our brands and think it’s a national brand.”

Capitalizing on the power of your own label and your own company or store name is a smart idea. Consumers love options, and it’s easier than ever for a store to outsource the development, processing, labeling, and packaging of a private label brand to third-party professionals. There’s good economic reason to do so, too: According to Private Label Strategy: How to Meet the Store Brand Challenge, gross margins on private label brands can be up to 30% higher than manufacturer brands. That’s pretty significant for your business.

Slight diSlight differentiation in the private label product offering, too, can make a huge difference in consumer loyalty. By targeting the specific demographic that shops at your store, and by slightly modifying the offering of your private label vs. the national brand to this demographic, the results can be astounding. For example, Consumer Reports tested private label cereals vs. national brand cereals, and consumers overwhelmingly chose the private label brands. It’s an opportunity to be more flexible, more accommodating, and more daring.

Need more guidance on how to start developing your own private label? Need more guidance on how to start developing your own private label? Give us a call — we’re working on private labels for a multitude of companies right now!

This post is part of a month-long blogging series for DePaul Industries: One blog post every weekday for a month! Stay tuned throughout March 2014 for more great tips and tricks.

Three Questions to Ask Before Starting a Social VentureOCTOBER 19, 2012 | BY SARAH ROYAL

One of the biggest operational challenges of nonprofit organizations is securing a steady stream of funding. Operating a social enterprise, in which earned income is brought in while simultaneously creating social value, can be a very tempting solution for many organizations looking to diversify.

Spelling of social enterpriseThere are several thoughts to take into consideration, though, before jumping into the world of social enterprise. It’s very tempting, and can be extremely viable for many organizations, but be sure to ask these questions about your motivations first:

Is there demand for your venture?

ThereThere’s a reason that 80% of new businesses fail within the first five years. It’s incredibly difficult to run one, and the market can be pretty unforgiving. You need to ask yourself if there is market demand for the social venture you’re creating. Is there really a dearth of bakeries or catering companies in your area, or does it just sound like an appealing idea? Do your research—find out if you’ll even be able to compete before you do anything else.

Does the potential venture align with your mission?

After you’ve determined that there is significant business demand for your venture, you need to consider the mission output. Is the social value of the venture After you’ve determined that there is significant business demand for your venture, you need to consider the mission output. Is the social value of the venture directly correlated with its business growth? Or put another way: Beyond funding, how will the venture support your organization’s mission? If you are a youth employment organization, for example, and you have youth working at your social venture, you’ve got earned revenue aligned with mission right there.

What is the purpose of creating a social venture in the first place?

Like any other venture, you need to ask yourself what the objective of it is. Is it strictly to diversify your fundraising stream? Will the potential funds earned Like any other venture, you need to ask yourself what the objective of it is. Is it strictly to diversify your fundraising stream? Will the potential funds earned supplement or support administration, or a particular program? Is it the best possible investment of your funds, or could you add better value overall with a partnership? There’s no one answer, but make sure you know what you’re aiming for before you begin, so you know whether or not you succeed.

51% MONEY VS. 49% MISSION

So let’s say you ask yourself all of the right questions and get the right answers—and it’s a go. How do you carry out your social venture operations? How do you balance a for-profit revenue model within a nonprofit social mission framework?

Good question.Good question. There’s a whole lot of tension that can develop in a social venture. For example, in our organization, we might have a high revenue-yielding opportunity that might not create that many jobs. Other times, we might have an opportunity to create several jobs in the short term that might not yield that much revenue. It’s all in the balance, and the way we approach the balance is with the concept of 51 to 49, or 51% money and 49% mission. This crucial per-spective ensures that we don’t neglect our social mission, nor our responsibility to maintain the business value that sustains it. It’s a balance of direct and in-direct mission fulfillment.

This concept and others will be discussed at length on Friday, November 2, 2012. The San Diego Association of Nonprofits (SANDAN), in conjunction with AKT LLC, will host Social Enterprise: A Growth Strategy for Nonprofit Organizations from 8:30 a.m. to 10 a.m. in sunny San Diego, CA. DePaul Industries’ President & CEO Dave Shaffer will present on the 51 to 49 concept and others, and discuss the struggles and triumphs of a social venture strategy.

Click here to register or to learn more about the November 2nd Social Enterprise event!