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

Business Development, Industry News

Jobs Follow Angel Investments



Venture capital investments

Venture capital investmentsSearch firms looking for growth markets might take a look at where angel investors are betting their money. In the first half of the year, over half the new investments went to three sectors: software, healthcare and retail.

Two of those three are among the most competitive when it comes to hiring. Especially for tech startups, the competition for talent is not just against other like-sized firms, but against giants like Apple and Microsoft and Google.

In a post more than two years ago discussing how to recruit for startups, Robert Woo said, “If a stellar developer even comes within the vicinity of the office, he/she will be snatched up faster than an intern can be stuffed in the server room to make space.”

According to the Center for Venture Research at the University of New Hampshire, software got the largest share of investments with 37% of total angel investments in the first half of this year. Healthcare services/medical devices and equipment and retail each got 10% of the total investment dollars. Biotech was close behind with 9% of the total. IT services and Industrial/Energy got 7% each to round out the Center’s list of the top 6 largest sectors. Smaller percentages went to a variety of other startups and young firms in other sectors.
Industry News

New Bullhorn CRM Designed to Aid Sales Growth, Spot Trends



Bullhorn CRM screenshot

Bullhorn CRM screenshotNo longer a temporary fix for a sudden spurt in a company’s workload, contingent staffing has become such a strategic part of the corporate workforce mix that predictions are temps will soon account for more than 20% of the Fortune 500 headcount.

With that growth comes a need for greater sophistication by staffing firms to predict client demand, enhance productivity, and uncover opportunities from the dozens of client and potential client contacts a busy agency makes every day.

That’s what Bullhorn’s newest iteration of its CRM was designed to do.

Industry News

New Facebook Business Service Being Developed



fordyce-default

Facebook logoFacebook is testing a new professional service specifically intended to be used in the workplace.

The company has so far been mum about “Facebook at Work.” However, the Financial Times, which disclosed the secret project, said it is designed as a collaboration tool, allowing users to share documents, communicate with colleagues and build networks of professional contacts. Because it will enable users to keep their social network completely separate from their professional one, the new service is being considered a competitor to LinkedIn and to services from Google and Microsoft.

Industry News, Staffing

Are You Ready For the Affordable Care Act?



ACA illustration

ACA illustrationIn less than two months, businesses with 100 or more workers will be required to provide some sort of healthcare coverage for their employees.

This includes staffing companies who are employers of record. And it has potential consequences for those who use back office providers who serve as the W2 employer of record.

The rules of the Affordable Care Act can be complicated. For instance, the health plan must provide “minimum value” and it must be “affordable.” Even the rules for determining how many employees you have is not nearly as simple as counting up the number of paychecks you issue. The formula includes your FTEs, which are calculated by adding regular hours, holiday hours, paid time off, and overtime and dividing by 120.

Industry News

Veterans Unemployment Declines As Companies Make Good On Promise



veterans day 2014

As America honors its military veterans today, there is encouraging news on the jobs front: The unemployment rate for the nation’s veterans has declined sharply in the year since the last Veterans Day.

Thanks to a nationwide focus on hiring veterans, and especially younger veterans who served in the post 9/11 military, unemployment for all veterans went from 6.9% in October 2013 to 4.5% last month. The national unemployment rate dropped 1.4 percentage points to 5.4%. (All percentages are non-seasonally adjusted.)

Contributing to the sharp decline was a project launched three years ago by JPMorgan Chase and 10 other large employers. As its name implies, the 100,000 Jobs Mission committed to hiring 100,000 veterans by the end of 2020. Now, with more than 170 companies participating, the project has employed more than 190,000 former military.

Industry News

Temp Staffing Continues to Grow; Economy Adds 214K Jobs As Unemployment Declines



Econ Index Oct 2014

Temp employment Oct 2014For the ninth consecutive month job creation topped 200,000, adding 214,000 new non-farm jobs last month. Meanwhile, the unemployment rate edged down to 5.8%, the lowest in six years.

Temp staffing continued its steady climb, adding 15,100 workers, down from September’s adjusted upward count of 17,800. For the nine months from January through September, temp added an average of 17,300 workers a month. For the same period in 2013, the average growth was 14,600.

The Bureau of Labor Statistics, which released the monthly employment report this morning, also adjusted upward its overall job estimates for August and September, adding 31,000 more jobs to the totals announced previously. The numbers are seasonally adjusted.

Industry News

Reporting a Strong 3rd Q, Monster Names New CEO



recruitment revenue Q3 2014
Tim Yates

Tim Yates

Like so many companies these days, Monster hired a boomerang to be its new leader, announcing Tuesday morning that former CFO and current director Tim Yates will be the company’s new CEO.

The announcement was made by Sal Iannuzzi, the company’s chairman, and now former CEO and president, during the quarterly financial conference call with investment analysts. After discussing Monster’s financial performance, which surpassed Wall Street’s predictions on both earnings and revenue, Iannuzzi said he was stepping down for undisclosed personal reasons. He will remain on the board as non-executive chairman.

Such explanations might ordinarily signal a forced change of command over board unhappiness with performance or strategy or both. And with Monster’s stock trading at historic lows, it’s a reasonable assumption. However, Monster’s Three Pillar strategy, unveiled in May, shows signs of paying off. Monster’s earned 5 cents a share in the 3rd quarter, beating the 3 cents a share Wall Street predicted. Revenue grew to $191.2 million, compared to analysts’ estimates of $189.9 million.

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