American employers are facing increasing burdens when it comes to hiring, especially for blue-collar positions. On top of recruiting challenges in a tight labor market, employers must navigate complex and frequently changing compliance rules around issues like healthcare, family leave, accommodations, and more. 

Unfortunately, the risks and costs associated with non-compliance have also grown over time. To make matters worse, employers now face increasing threats of litigation from rejected applicants alleging discriminatory hiring practices.

As a result, many employers — especially small and midsize businesses — are thinking twice before bringing on new hires. Some are even opting to freeze hiring altogether rather than expose themselves to compliance violations, lawsuits, or unbudgeted costs. 

“While this is understandable,” shares Jason Lamonica, COO of Spec on the Job, “widespread hiring freezes could spell trouble for an economy already teetering on the edge of recession after the pandemic’s blows.” 

Worker shortages have already emerged across many blue-collar fields like manufacturing, construction, and restaurants. Prolonged hesitancy around hiring threatens to lengthen any economic downturns and dampen the prospects for a timely recovery.

“Employers clearly need support, not more obstacles, to hire with confidence again,” says Lamonica. “Only then can job growth and economic gains have a chance to get back on track.” 

However, with litigation and regulatory risks mounting, hiring managers are understandably anxious. Unless policymakers take reasonable steps to simplify compliance rules, curb frivolous lawsuits, and provide hiring incentives, more and more positions may remain vacant for longer. The impacts on struggling industries and everyday Americans looking for jobs may be extremely painful.

The Main Challenges Around Hiring

When hiring new employees, particularly in blue-collar roles, employers must grapple with several key compliance challenges that have grown increasingly complex and risky in recent years.

One central area is providing affordable healthcare coverage and other statutory benefits. With costs escalating sharply, keeping up with annual reporting rules, and facing stiff penalties for violations, health insurance mandates have become a migraine for hiring managers. Additionally, a slew of state and local paid leave laws have been enacted to require sick days, family leave, bereavement leave, and more. Ensuring compliance with this patchwork of varying standards leaves companies exposed.

Employers aiming to follow best practices around inclusion and accommodation needs are also at heightened risk of litigation. Despite acting in good faith, businesses may face lawsuits if a candidate deems a question improper or an adverse decision discriminatory. For example, Title VII of the Civil Rights Act “protects employees and job applicants from employment discrimination based on race, color, religion, sex, and national origin.” 

According to Lamonica, employers with 15 or more employees must provide reasonable accommodation for employees’ sincerely held religious beliefs, practices, or observances that conflict with work duties “unless doing so would cause undue hardship for the employer,” he says. 

But exactly does “undue hardship” mean? Defending against allegations of this sort has increased, “and this has caused some employers to reconsider their hiring processes,” notes Lamonica. 

Finally, the most diligent hiring managers struggle to stay fully informed as legislation and regulations shift frequently while enforcement regimes toughen. An unintentional misstep could still yield fines or open the door to legal action, but few small or midsize business owners realistically have the time or resources to ensure every “i” is dotted and “t” crossed properly.

Facing this triple threat of complex requirements, litigation risks, and constantly moving goalposts, it is no wonder hiring managers are skittish about adding jobs. The associated burdens appear to outweigh the benefits for many companies these days, dimming outlooks for job seekers and economic growth alike. 

However, several reasonable reforms could help rebalance the scales.

The Broader Economic Impacts

Hiring freezes arising from increased compliance burdens and litigation fears do not bode well for an economy striving to recover from the impact of the COVID-19 pandemic. Worker shortages have already emerged as a hindrance in many blue-collar sectors like restaurants, manufacturing, and construction, and job openings outnumber qualified applicants across trades where demand remains steady or growing. Without an influx of new hires, project delays and production lags are expected to continue without an influx of new hires.

Supply chain disruptions may also intensify if trucking, warehouses, and ports lack adequate personnel for critical operations. As post-pandemic demand from consumers and businesses picks back up, worker shortfalls could mean lost sales, delayed orders, and myriad frustrations. Many industries are still ramping capacity back to pre-2020 levels, but persistent hiring struggles will only undermine this progress.

Over the long term, talent gaps are likely to also drive up labor costs. With fewer skilled workers available to meet operational needs, competitive wages and benefits must follow. Particularly if nationwide labor participation rates remain depressed following COVID-19, employees have negotiating leverage that necessitates higher compensation packages from employers looking to staff up. These rising costs may eventually filter down to consumers in the form of price hikes.

Ultimately, “every business slowed by short-staffing or facing unbudgeted costs from compliance missteps translates into another micro-level drag on macroeconomic turnaround efforts,” shares Lamonica. Aggregated over thousands of small and midsize companies, reduced output and revenue numbers can lengthen any recession. Alleviating hiring burdens could provide a societal lift when it is sorely needed.

Potential Solutions

While the risks and frustrations hiring managers feel are valid, steps can be taken to ease the growing burdens they face. Good-faith employers eager to add jobs amidst economic uncertainty deserve support, such as policy reforms and updated employer guidance to help resolve multiple pain points constructively.

To ease the compliance burden on employers, policymakers could streamline duplicative or contradictory regulations by standardizing the rules nationwide, providing clear safe harbor checklists, and guiding companies through the complex web of requirements. Additionally, measures aimed at curbing frivolous lawsuits over hiring practices could enable honest dialogue between employers and applicants without fear of legal retaliation as long as legitimate discrimination claims remain protected. 

Governments could also incentivize hiring through tax credits for jobs in high demand locally and via partially publicly-funded apprenticeship programs that train workers for roles suffering talent shortages. With a combination of simplifying compliance, reducing frivolous lawsuits, and implementing hiring incentives, good-faith employers would regain the confidence to accelerate their hiring capacities and contribute to economic recovery.

With balanced reforms like these, employers can regain the confidence to accelerate hiring, secure in the knowledge that good-faith efforts will not be punished. “This way, our economic engine can restart firing on all cylinders again,” Lamonica says. 

By constructively addressing legitimate employer anxieties, policymakers can pave the way for growth all stakeholders will share. Workers sidelined by the pandemic could find family-supporting jobs, struggling businesses may return to profitability with relief from exaggerated hiring burdens, and communities can access the talent and services needed to thrive once more.

 

Published By: Aize Perez

By: Omri Hurwitz

On today’s episode of Startups On Demand, I am joined by Eldad Tamir, CEO and Founder of FINQ – an AI-powered investment platform for everyone, where big data and science replace the biased human intermediary.

Today, Eldad talks about how FINQ has revolutionized the FinTech and investment landscape and explains how this AI has beaten the S&P 500 through data collection and analysis.

Omri: Thank you so much for being here today, Eldad. I want to start a little bit for the audience in the US that doesn’t know all about you because here in Israel, you’re a big-time celebrity. Tell us a little bit about your background.

Eldad: I started my career as a student at the University, so that’s almost like everyone else. Then, I had this bit of luck that I started working in one of the first-ever venture funds in Israel. It was really the beginning of the industry a long time ago, sometime in the mid-80s. 

I then did my master’s at the MBA and I really enjoyed the wealth of information of really understanding the high-tech business in Israel. I also did some managing consulting work later and lectured at the Tel Aviv University of Finance. I started Tamir Fishman 20 years ago and grew that up to be a big business here, doing both Investment Banking and Investment Management. 

I also participated in the local Shark Tank in Israel. I do a lot of media in Israel, kind of explaining to people what’s going on in the capital markets in the economy. So, you know, it’s always hard to translate financial economic issues into something people understand for some reason. The language is still kind of old. So I’m having fun, and generally, that’s amazing. 

Omri: There aren’t a lot of people who started in venture and made the shift into the capital markets. How come you made that transition?

Eldad: I like to do a lot of things. You know, a venture by itself is not as interesting. People who know me know for a fact that. Venture is one part of investing. There are many, many other fixed income and equities, hedge funds, and tons of products out there on the market, and venture is quite a small niche with a lot of PR. I always say I entered the investment world through venture, but that was not enough for me because there are many, many other products out there.

Omri: How did Tamir Fishman start?

Eldad: I went to management consulting, and from there, I went to a company named Evergreen. It’s a well-known firm here, and I started doing everything, like building the first asset management company and venture fund and creating a lot of affiliates with US-based companies for the first time in Israel. So I brought US companies to work in high-tech here in Israel, and then I left. Consulting is really not good enough for me because to tell other people what to do usually they do nothing with it, and so it’s not satisfying. And then, I went to work for one big investment company, and I realized that it was not for me because 90% of the time, it’s politics. Then I went to start my own kind of Investment Bank or investment house, whatever you want to call it. I wanted to do my own thing in the early days.

Omri: Let’s talk about FINQ. Now, there’s an AI that’s beating the market. Can you talk more about that?

Eldad: It’s like I had that vision for ages because I had my career both in capital markets investing the venture fund. Some people say fintech. But really, nothing happened in fintech. You know, transferring money through an application is not fintech. Fintech is combining those two worlds to create a third world, but if you look at the market today, fintech really is irrelevant because it doesn’t really help the clients. There’s almost nothing. Even the robo-advisors are kind of an extension of the old world. 

So, what we have created with FINQ is really a revolution. A revolution in terms of how we all utilize finance, like the same revolution that happened in many other industries. Like the way we take vacations, right? Once you called a travel agent, you would do practically what they told you to do, right? You need to have trust, right? Not in the data but in the person. Was that trust based on data? No. And this whole industry changed, right? Today, you look at data to decide which vacation spots you want to take. 

In the financial world, everything is still like in the 20s – there’s no change, right? Nothing really happened. There was a need and a huge market. Then we looked at the analog world – what does work for people who have money? And it’s like the family office model where people don’t buy products from the salesperson. Instead, you go to the family office. They do the gathering of limited data and then tell you what’s good and what’s not good. They have this supervision over the products, and they tell you when to buy, and they know what your goals are. That’s what we’re doing: a digital family office for the masses. 

AI really is the technology that’s needed here because we have to process tons of data. We have to know what the client wants, and by combining that, we create a lot of value for the customer. Now, it’s based on data. It’s based on science. And if you think of it, it will do better than any other family office. It will do better than the biased salesperson, the biased insurance agent, or the biased bank clerk, by definition, almost. So it’s really fun.

Omri: Let’s talk technical – how does FINQ’s AI work?

Eldad: I can tell you for sure that we are the biggest collector of equity market stocks, bonds, and funds in the world today. When we collect data, we put them in three families. Each family has a lot of branches, but to simplify it, we collect what we call professional data. Professional data is data from professional people who know the market, like research analysts, hedge funds, and people who analyze stocks and capital markets. But we don’t collect just one data – we collect all the data. So it’s not like one smart person telling you something, and if you think of it, if you get one smart person, you’re still gambling, right? But if you get 10,000 people who know a specific stock and talk about it and have their insights on it, you probably will get it right 90% of the time. It’s a huge difference. So, we collect data from the professionals. We collect what we call data from the masses, from not-too-professionals, because they also move markets, right? We need to know what the street thinks so it doesn’t matter if it’s right or wrong. It influences the market. 

This is the New World. The street power now can be measured. I don’t have to think about it or to ask about it. I can give you a digital number each day, each minute, about each stock and what the street thinks about it. Then obviously, the third factor is the company itself. Data that comes out in reporting in a company. We don’t just take the data as it is. We put it into our hundred algorithms and check them and see what works and what doesn’t work, and once we take all that data and put it together in machine learning and AI, you get science. 

Published by: Martin De Juan

In the fast-paced world of hospitality, we see trends come and go all the time. Saurabh Abrol’s journey, however, is a testament to the enduring power of passion and expertise. As the brains behind Le Malt Hospitality Group, Abrol began his empire with Le Malt Lounge, Le Malt Royale, and Le Malt Imperiale.

Abrol’s latest quest? Adding a family-friendly dining experience to his roster for his daughters to enjoy. Since opening Meximodo in Metuchen, NJ, the lively Mexican eatery has quickly captured the hearts of locals and tourists alike. With a stellar blend of family, authenticity, and innovation, it’s not hard to see why.

From Le Malt to Meximodo

Every entrepreneur starts with a dream, and Abrol’s dream wasn’t just about creating restaurants – it was about crafting memorable experiences. His focus on customer service and unforgettable ambiance laid the groundwork for each destination. Meximodo, the latest addition, is more than a restaurant – it’s a manifestation of Abrol’s commitment to family, authenticity, and fresh ideas.

Bringing Authentic Flavors of Mexico Stateside

Responding to his daughters’ wish for a family-friendly spot, Abrol and his team, led by Chef Antonio Carballo, set out on a culinary journey to Mexico City. After exploring the Coyoacan Market and soaking in the city’s diverse flavors, the team returned home ready to bring the essence of authentic Mexican cuisine to Meximodo.

Chef Carballo’s undeniable skill adds a contemporary twist to tasty Mexican classics. Meximodo’s menu, featuring dishes like grilled corn with a smoky puree and inventive chiles en nogada, promises both crave-worthy and visually appealing options. With a record-breaking selection of over 1,000 tequilas and mezcals, Meximodo offers an unparalleled dining experience for even the most discerning palates.

Exploring Meximodo’s Unique Atmosphere

Meximodo was created to be a celebration of Mexican culture and a unique dining adventure. The lively indoor dining room mixes traditional Mexican elements with modern design, creating a cozy and welcoming atmosphere. The vibrant bar, adorned with a La Catrina mural, buzzes with energy, serving up creative craft cocktails and classic Margaritas alike.

The semi-private Rose Room offers an intimate setting for private events with its Tulum lounge-inspired decor. The outdoor patio, set in the heart of Metuchen’s bustling downtown plaza, transports diners to the lively streets of Mexico City with its modern yet rustic feel.

Each of Meximodo’s dining spaces is carefully curated to offer a unique facet of Mexican culture and culinary expertise. Together, they create a holistic and immersive dining experience, ensuring that every visit to Meximodo is a journey through diverse atmospheres, each with its own distinct flavor and charm.

Crafting a Legacy

From Le Malt Lounge to Meximodo, Saurabh Abrol’s journey has been more than a simple tale of business growth. It’s a story of ambition, resilience, and a steadfast commitment to excellence.

Meximodo’s opening signals a new chapter in the Le Malt Hospitality Group’s legacy, showcasing the fusion of family values, authentic culinary experiences, and Abrol’s visionary spirit. As we savor Meximodo’s flavors, we look forward to discovering what Abrol has in store next for the Le Malt brand.

 

Published By: Aize Perez