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

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.

Uncategorized

ADP Says 213,000 New Private Sector Jobs In September



ADP employment for Sept. 2014

ADP employment for Sept. 2014

With the announcement this morning that September’s private company payrolls grew by 213,000, economists are optimistic it foreshadows an even more robust government report due Friday.

HR services and payroll processor ADP and its partner Moody’s Analytics, said 213,000 new jobs were created in the private sector last month, up from August’s revised 202,000 estimate, and just above economists’ predictions of about 209,000.

“All the leading indicators for the job market look good,” said Mark Zandi, Moody’s chief economist. He predicts the Labor Department will report 220,000 total new jobs were created last month, an estimate shared by economists polled by MarketWatch, and not much higher than the Bloomberg estimate of 215,000.

Industry News

California Law Now Makes Employers Liable For Staffing Firm Violations



California flag and capitol

California flag and capitolCalifornia employers will now share liability with their labor contractors for complying with  state labor and wage laws, including safety and workers’ compensation laws.

Governor Jerry Brown signed into law the hotly contested AB 1897, which extends to nearly all employers rules that previously applied to temps and contract workers in the agricultural, construction and garment industries.

Candidates

Remind Your Candidates It’s Time to Update That Resume



resume with pen

resume with penWhen was the last time you had your candidates update their resume? Ever?

It’s not a job anyone relishes, but as every recruiter knows only too well, when that job order pops up, there’s not time enough to coach your MPC through the resume revise. Having a fresh resume on-hand can help make the difference between a sendout and a no-sale.

So even though there’s only a few days left in September, take advantage of  Update Your Resume Month to urge your candidates to freshen theirs.

Industry News

Temp, Healthcare, Construction: Bright Spots In Disappointing August Jobs Report



Econ indicators Aug 2014 v2

Econ indicators Aug 2014 v2Only a handful of industry sectors lead by temp, healthcare and construction added jobs in August, the weakest month this year for U.S. jobs growth.

In what can only be described as a disappointing report, the Labor Department this morning said the economy created a mere 142,000 jobs in August, a number far off the 220,000 to 230,000 economists forecast. Unemployment inched down to 6.1% from 6.2%.

It was the smallest increase yet this year, and follows six months of gains over 200,000 jobs each. Going into August, the monthly average gain in new jobs was 230,000.

Temp grew by 13,000 jobs, bringing the year’s total to 124,500 new temp jobs. On average, staffing firms are adding 15,600 new jobs a month this year. That puts the industry ahead of where it was last year at this point, when the average monthly increase was 14,000 jobs.