Welcome to The Fordyce Letter:

The Fordyce Letter

Straight Talk for the Recruiting Profession


Industry News

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.

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.

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.”