Welcome to The Fordyce Letter:

The Fordyce Letter

Straight Talk for the Recruiting Profession


John Zappe

John has been writing about recruiting and employment for nearly a decade,and has worked in the field for almost twice as long. He traces his connection to the employment industry back to the beginning of the commercial Internet when he managed some of the earliest news oriented websites. These offered job boards, which became highly popular with users. John worked with agencies and large employers on job postings, resume search, and campaigns, before consulting with media companies on audience development and online advertising sales.

Articles by John Zappe

Marketing

A Job Seeker’s ‘Bill of Rights’



jobseeker bill of rights-Wunderland

jobseeker bill of rights-WunderlandSix year old Wunderland Group says too often job seekers don’t have a clear understanding of what a recruiter “can and should do for them.” To help them, the Chicago-based staffing firm created what it calls “The Job Seeker’s Bill of Rights.”

In a fashion worthy of the creative agencies for which it sources and places direct hires, and temp and contract workers, Wunderland designed an infographic detailing 11 rights. Among them are the rights to:

Industry News

LinkedIn Revenue Up. Rate Increase Coming



Job board rev q3 2014

Job board rev q3 2014The LinkedIn revenue juggernaut rolled on over the summer, growing by 45%, with recruitment accounting for the largest share of the $568 million the company brought in from July through the end of September.

Reporting its 3rd quarter financial results after the U.S. markets closed this afternoon, LinkedIn said it earned 52 cents a share after excluding stock-based compensation. The consensus of Wall Street analysts was the adjusted earnings would be 39 cents a share. LinkedIn also beat their $557.49 million revenue forecast.

Taking into account the cost of the shares it gives employees as part of their compensation, LinkedIn lost $4.3 million, almost a million more than it reported in the 3rd quarter 2013.

Sourcing

Americas Sourcers Not As Savvy As the Rest of the World



Sourcing response rates global survey

Sourcing response rates global surveyDespite inventing the job of sourcer, professionals in the U.S. are less technically skilled at it than their counterparts in the rest of the world.

They are more reliant on paid LinkedIn accounts and InMail introductions than are sourcers elsewhere, yet they are ahead in using Google+, Twitter, and especially Facebook, which is used by an average of 46% of American sourcers versus a global average of 37%.

And, regardless of region, sourcers who pick up the phone to reach candidates have a far better response rate than other contact methods.

At first glance, these findings from the Global Sourcing Survey produced by Alexander Mann and Social Talent would seem to suggest American

Industry News

Staffing Index at Highest Point Since 2007



ASA Staffing Index 10.28.2014

ASA Staffing Index 10.28.2014Staffing activity has reached its highest point since the start of the Great Recession nearly seven years ago, and, if the trend continues, could set a new record before the end of the year.

The American Staffing Association’s Staffing Index now stands at 104.75, just shy of the record 105.28 set for the week ending December 9, 2007. The Index measures weekly changes in temporary and contract employment as reported by agencies invited to participate in the weekly survey.

Staffing industry employment increased 0.34% from the prior week, the ASA reported, and was 4.22% higher compared with the same week last year.

Industry News

Updated LI Terms: Content Is Yours and Don’t Spam



LinkedIn logo

LinkedIn logoFor most recruiters, LinkedIn’s updated user agreement that goes into effect Thursday doesn’t change much. Recruiter customers will still be able to search for candidates, download profiles, send InMails, and generally source as they have before.

The biggest change is that LinkedIn says you own the content you post on the site. That, and the simplicity and clarity of the wording of the updated terms of service, have earned LinkedIn kudos with one writer calling the changes “monumental for the industry.” More about that later.

For recruiters who use LinkedIn mostly or exclusively for sourcing, the impact of the updated TOS is minimal. The most significant addition is one that limits the use of information in member profiles. It bans sharing or disclosing “information of others without their express consent.” That’s a restriction that doesn’t apply to Talent Solutions customers, but it does to others. A recruiter who captures information from a public profile could, technically, be found in violation of the TOS, however policing such a casual use is practically impossible. More likely, the provision is there to backstop the prohibition against the wholesale downloading or scraping of member information, as was the case with HiringSolved.

Industry News

Fed Says Demand for Staffing Services Increasing



fordyce-default

Reports from the Federal Reserve say shortages of skilled workers in a variety of  trades are showing up here and there across the U.S., putting pressure on employers including staffing firms to raise wages.

In the latest edition of the “Beige Book,” the Fed said employment was growing at about the same rate it has for the last few months, a rate it previously described as “modest.” Staffing services, however, were particularly singled out as a growth area.

Said the Fed in the report out Wednesday, “Staffing services increased in many Districts, including New York, Philadelphia, Cleveland, Richmond, Chicago, and Dallas. Philadelphia indicated that staffing requests increased for both temporary and permanent positions.”

Industry News

Is Google Switch to W2 Security Guards the Start of a Trend?



Google logo

Only days after Google announced it would stop using outside security contractors in favor of hiring its own force, the move is already being described as the possible start of a trend.

The Wall Street Journal said what Google does “can be influential.” A Forbes report said “Should the move turn into a Silicon Valley trend, it could be the beginning of significantly improving the fortunes of thousands of people in the service industries.”

Pressure has been building for a few years to improve pay and benefits for the thousands of Silicon Valley contractors who provide security, prepare and serve meals, clean offices and handle other non-tech services.  Now, Google’s decision to hire some 200 security guards as employees, rather than continue contracting with a security staffing firm, is likely to encourage renewed efforts by unions in the pro-labor San Francisco Bay Area.

Industry News

Forecast: Temp Hiring Growth Strong Through Year End



2014 Palmer forecast q4

2014 Palmer forecast q4On the heels of a survey finding that a quarter of all employers plan to add temporary staff this quarter comes a forecast that agency staffing will increase 8.7% over last year.

Temp industry consultant G. Palmer & Associates says temp employment will average 2.978 million workers in the fourth quarter. For the last quarter of 2013, the average was 2.739 million, with the Bureau of Labor Statistics reporting temp agencies employed a record 2.934 million workers in September.

Uncategorized

Big Seasonal Hiring, Growing Headcount Will Make Recruiting Tougher Yet



Hiring plan chart 2014

Hiring plan chart 2014In what could be the strongest finish since before the recession, an increasing number of employers say they intend to hire full-time permanent workers this quarter.

CareerBuilder’s quarterly survey of employers found 29 percent of them expect to add permanent headcount before the end of 2014, an increase of four percentage points over those saying that last year.

While hiring expectations don’t necessarily translate into action, so far this year more employers have ended up hiring more than what they told CareerBuilder they planned.

Uncategorized

Temp Hiring Helps U.S. Add 248K New Jobs In September



Temp workers Sept 2014

Temp agencies continue to play a key role in creating new jobs, contributing 19,400 to September’s surprisingly strong 248,000.

This morning’s jobs report from the Bureau of Labor Statistics showed hiring was strong across a number of sectors in September, which helped push down the unemployment rate to a six-year-low of 5.9%.  The report also adjusted upward the Bureau’s counts of hiring in August and July, increasing both by a combined 69,000 jobs. August’s initial anemic 142,000 estimate, which surprised analysts and prompted worrying about a hiring pause, was upped to 180,000.