Welcome to the Small Business Rundown. Each day, we bring you stories that impact small business owners and their workforce.
Today’s we’ll start by looking at the White House’s attempts to stimulate the economy with the cut to payroll taxes. Then we’ll look at some of the pros and cons of using social media outlets to screen candidates before looking at the way that California is leading the charge to get more women in the boardroom. Take care!
President pitches payroll tax cut as coronavirus relief measure
In addition to the $8.5 billion rescue package, President Trump has proposed a payroll tax cut to help businesses deal with losses due to the coronavirus. The tax cut is part of the White House’s attempts to create a stimulus package after the 2000-point drop of the Dow Jones on Monday.
The Number: 0%. The president’s proposed cut would lower payroll taxes to 0% for the rest of the year.
The Quote:“We are to be meeting with House Republicans, Mitch McConnell, and discussing a possible payroll tax cut or relief, substantial relief, very substantial relief.”
The role of social media in screening job applicants
When it comes to getting background information on potential employees, HR managers often turn to social media outlets to dig deeper into the applicants’ personal lives. While this can be an effective way to connect with younger workers and gain insight into peoples’ integrity and work ethic, it’s important to remember that there are drawbacks, too. People don’t always portray themselves accurately online, and hiring managers can be unintentionally swayed by candidates’ religious or political statements.
The Number: 70%. In 2018, 70% of employers used some form of social media as a way to screen potential employees.
The Quote: “People can also lie on social media as easily as they can on a resume.”
California law brings gets more women in the boardroom
In 2018, California passed a law requiring publicly-traded companies to have at least one female on their board of directors, resulting in more high-level business women coming to the state. The emphasis on gender diversity is gaining traction around the country — and around the world — as Washington, New Jersey, and New York consider similar legislation.
The Number: ⅕. Among the top 3,000 publicly traded companies in the country, only one out of every five board members is a woman.
The Quote: “I look back at the IPOs over the last four years and the performance of IPOs where there’s been a woman on the board in the U.S. is significantly better than the performance of IPOs where there hasn’t been a woman on the board.”