This guide is designed to help U.S. businesses successfully hire and retain individuals moving from welfare to work. Section 1 discusses the different circumstances created by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and how those changes affect business. Section 2 reviews bottom-line benefits realized by companies participating in welfare-to-work programs. Section 3 discusses how businesses can take advantage of the Work Opportunity Tax Credit, the new welfare law's wage subsidy program, and indirect incentives for business that help them retain employees. Section 4 debunks the common misperceptions associated with the welfare population, illustrating that they are a diverse population with work experience and the drive to become permanently employed. Section 5 discusses the first steps a business should take when deciding whether to begin hiring public assistance recipients. It provides a step-by-step process to conduct a situational analysis and build a strategic plan leading to success. Section 6 illustrates how businesses can successfully tap into the growing market of intermediary organizations that act as brokers between companies and the public sector to provide businesses with work-ready individuals. It lists successful intermediaries and contact information. Section 7 presents examples of welfare-to-work programs started by small, medium, and large companies. The appendix provides website addresses to access additional welfare-to-work information and resource listings and a glossary. (YLB)