With the National Focus back on Health Care it prompted me to write about a specific flaw I think that exist in the system. Cobra coverage and it’s negative, after affects it leaves on a company and it’s Health Care plan.

Don’t get me wrong. Cobra is a necessary bridge for an employee that has lost their job for any reason and needs the safety net that Cobra provides for them and their family. But, should every former employee be eligible for Cobra? I think not.

A bit of background. We had an employee quit Advancement in October 2007 to start their own company. A noble endeavor. However, they started this company two months before they quit, using information obtained from my company. I sued this person and we settled out of court for an undisclosed sum. At the same time this individual signed up for Cobra ( Advancement’s plan ) and remained on it for the legal limit, 18 months. Without knowing any of the details, there have been claims by this individual.

Now we are up for renewal for the company’s medical plan. Because of our claims history, including those on Cobra, we are faced with a significant increase in premiums in the coming months. Cobra claims were among the highest in our company in this last policy year.

My point is, given the circumstances I just described, should every former employee be eligible for Cobra? After almost two years, I feel this individual unjustly continues to penalize this company and it’s employees.

Yes, changes need to be made and I feel this is just one example.

Remember the good old days, before the recession. That was about 18 months ago. In January 2008 the National unemployment rate was 4.9%. Engineering jobs were very plentiful for most specialities. In fact, there was a severe shortish of experienced Engineering talent in some fields.

At a 2007 Staffing Industry Forum I attended, it was reported that US colleges were not graduating enough Engineers to meet the demand. 100,000 more Engineers were needed every year than there were graduating. That demand and shortfall, as stated at the time, was expected to continue for at least a decade – 10 years.

Obviously the demand, along with so many other professions, has dropped dramatically – for now. The silver lining to this recession is there is expertise and talent available today that companies spent tens of thousands of dollars trying to hire just a year and a half ago and couldn’t. Hard working, creative people, that were employed 18 months ago, are sitting on the sidelines waiting to go back to work and prove their worth. Companies that know they will need this talent as the economy starts to turn around are wise to examine this opportunity today, rather than wait.

There will be a shortish again, probably sooner rather than later. For those who wait, the selection of top people will wear thin quickly and you will most like pay a premium for who you can hire. My advice is (as crazy as it might sound to you right now), don’t wait. Plan for the future now and be positioned for growth with the best personnel available and leave your competition behind.

Ray Kaufman hired me into the Contract Staffing business at the age of 17, right out of High School as a Contract Draftsman. I will turn 60 this year, you can do the math. He sold me his company, Advancement, in 1996. Afterward he stayed on with the company. Not many people can say that they have had a business relationship with someone for 42 years. At the end of June Ray will be retiring.

Ray started Advancement in 1971. Over a 26 year span he built a successful Engineering and Design contract staffing operation. For many years he virtually ran the company by himself. He would get the openings from his clients and then go about filling them. Ray always maintained a loyal following of customers and contract employees, successfully filling hundreds of positions. I still feel that he is one of the most capable recruiters I’ve ever worked with.

Ray was my boss, my competitor, and eventually my employee ( although I never thought of him that way ). But more than that, he has been a trusted friend and advisor through all these many years. He has always served as an example of how I should conduct myself in business. Work hard, have fun and don’t take yourself too seriously. Deal with situations head on and trust your instincts. Have a love and a passion for what you do. Appreciate what you have, but don’t flaunt it. He doesn’t stick his nose in your business, but he is there for you anytime you need to talk. In short, Ray is a “class act”. Oh yeah, one more thing, he is one of the best dressed guys I’ve ever known.

I am fortunate and eternally grateful Ray has been in my life in such a profound way. I’ll miss working with Ray, but if I need him, I know he’ll always be there to help me. Good luck and thank you Ray.