Welcome to The Fordyce Letter:

The Fordyce Letter

Straight Talk for the Recruiting Profession


Industry News

Industry News

Direct Hire Fees Grew in 2014 With Pharma Paying Best



Average placement fees 2014

Note: A report for the staffing industry similar to those referenced here was released by Bullhorn earlier this year.

Direct hire fees are showing signs of stabilizing around the 21% of salary mark, while a tightening job market is growing the number of job orders yielding even higher fees.

A new report from BountyJobs says the average annual placement fee in 2014 was $22,113, a 6.3% increase over 2013, and 19.4% increase since 2010, when the recovery was just gaining steam.

Covering five years of data and some 35,000 job orders posted on the recruitment marketplace, the 2015 Direct Hire Agency Benchmarking Report provides the first look at some key placement trends among the mostly contingent search firms that are part of the BountyJobs network.

The report shows that at least on the network:

Industry News

Corporate Tax Departments Turning to Search Firms



2015 Tax Hiring report cover

Even as they increasingly look to their in-house recruiters to help them fill jobs, corporate tax accounting leaders say they expect to lean more heavily this year on search firms to fill jobs.

With 69% of the 356 surveyed leaders saying they expect to replace turnover and grow their departments, just over 8 in 10 of them will rely on their HR staff for help recruiting. They’ll also use job boards to find talent, which 49% report is “difficult” or “very difficult” to find.

However, 46% say they’ll also use contingency firms and 23% will turn to retained search firms to fill vacancies.

Industry News

Cyber Attacks Targeted CareerBuilder Customers



CareerBuilder

Update: CareerBuilder says the issue with infected emails has been resolved and is not an ongoing problem. In an email this morning (5/15), a spokeswoman said, “The attack has been addressed, affected customers were notified right away and no other incidents have occurred.”

If you are a CareerBuilder customer, be careful what resumes you open. It could be malware. Or worse.

For the last few weeks, attackers have been sending CareerBuilder customers malicious attachments disguised as resume documents in response to their online job postings. Because they appear to be trustworthy and come through the job site’s mail platform, unwitting recruiters open the document and even forward the emails to hiring managers and others, unleashing a bit of code that then automatically downloads the malware. Once that happens, the program can steal data or wreak other havoc.

Industry News

Recruit ‘s Staffing Business Up 10% On Year



Recruit logo

The fifth largest staffing company in the world, Japan’s Recruit, said staffing sales grew 10.3% (in U.S. dollars), ending the 2014 fiscal year at $5.66 billion.

Recruit’s international (not including Japan) staffing sales were $2.4 billion, an increase of 12.7% over the year before. The company credited a “moderate expansion trend” in Europe and North America and a favorable exchange rate for the growth.

Recruit Holdings Co., Ltd., which also owns jobs aggregator Indeed.com, released its financial results in Tokyo yesterday. Overall, the conglomerate reported total sales of $10.9 billion.

Indeed came close to doubling its net sales revenue for the 12 months ended March 31, growing from $201.3 million U.S.) to $386.8 million (at the current exchange rate).

Industry News, Staffing

Facebook Sets Minimum Pay, Benefits For Staffing Firms



Silicon Valley pay disparity chart

Facebook logoOne of Silicon Valley’s giants said today it will require its staffing vendors to pay their workers at least $15 an hour and give them paid sick leave and vacation.

Facebook COO Sheryl Sandberg announced the new policy in a blog post today.

“We are implementing a new set of standards on benefits for contractors and vendors who support Facebook in the US and do a substantial amount of work with us. These benefits include a $15 minimum wage, minimum 15

Industry News

Jobs Rebound in April; Temp Also Grows



Temp workers April 2015

Hiring rebounded last month as employers added 223,000 new workers to U.S. payrolls, providing relief to worries of a jobs slowdown.

Temp help, which had shown a decline in two of the last three months, was strongly in positive territory this morning, adding 16,100 new jobs in April.

The overall increase in jobs nationally was well within the range economists were expecting in advance of this morning’s release of the Labor Department’s monthly employment report. Economists also correctly predicted the continuing drop in the national unemployment rate to 5.4 percent, the lowest since April 2008.

Most major industry sectors saw gains, though manufacturing was barely in the plus category, adding a mere 1,000 jobs. The biggest losses were in mining, where layoffs and furloughs in the oil and gas fields, cut 15,000 jobs.

In addition to the strong temp showing in April, the government revised its numbers for February and March. February still showed a decline, but it was reduced from an initial cut of 7,800 to a still negative 4,400. In March temp improved from an initial report of 11,400 new temp jobs to 13,200.

Industry News

Jobboard Revenues Suggest Global Hiring May Be Slowing



Recruitment revenue q1 2015

Monster this morning reported per share earnings that again beat Wall Street expectations, though its revenue for the first quarter of the year fell short of analysts’ forecasts.

The company earned 8 cents a share, after accounting for stock based compensation and restructuring costs. Without those one-time costs, earnings were 9 cents per share. Revenue came to $183.7 million; Wall Street wanted $187.1 million.

Global currency exchange rates took a toll on Monster’s overseas operations, costing it a 13 percent decline in international revenue. Even adjusting for the difference in exchange rates from Q1 of 2014, Monster’s international revenue was off 1 percent. North America also was down, declining 4 from the same quarter last year. Bookings, though, were up 6 percent in North America. Bookings are signed contracts.

These are the data points. What they suggest for the future is harder to read. The company said it expected to earn between 7 and 11 cents per share in the current quarter. Analysts forecast 8 cents.

Industry News

Is Hiring Slowing? Economists Watchful, But Unworried



ADP apil 2015

Worried investors sent stocks lower today after ADP said private employers added 167,000 jobs in April, the smallest increase in 16 months and well below the 200,000 economists were forecasting.

Compounding the surprise, the HR services and payroll processing company revised down its initial jobs report for March, lowering the already disappointing 189,000 to 175,000.

The significance of the ADP report is often questioned by economists since the numbers rarely track with the government’s monthly employment report, which it precedes by a day or two. Surveys of economists’s forecasts show they expect the government report this Friday to put April’s job growth somewhere around 225,000.

“The ADP is no fortune teller,” said BNP Paribas economist Bricklin

Industry News

Career Sites Forecasting Light Q2



Recruitment revenue q1 2015

LinkedIn got hammered today after it scaled back its financial outlook and reported the slowest quarterly growth since it went public in 2011.

Despite another record setting revenue quarter, investors dumped shares in after-hours trading, sending the stock down by as much as 25 percent or more than $50 a share. LinkedIn closed at $252.13.

It was after the New York markets closed that LinkedIn announced it earned 57 cents a share, a penny more than Wall Street’s  consensus forecast. (Including stock-based compensation and other items typically excluded by analysts, LinkedIn lost 34 cents a share.)

Revenue for the first quarter came in at $637.9 million, also better than expected.

Industry News, Marketing

How Did Mobilegeddon Treat You Today?



Screen Shot Google mobile friendly search

Did you notice any change in visitor traffic to your website today?

An untold number of sites have, the result of Google changing how it ranks search results for users on a mobile device.

Today Google unleashed its newest search ranking update, giving priority to mobile friendly sites and demoting those that aren’t. We first told you about this coming change last week. The change only affects the results presented to users when searching on a smartphone or other portable, but not tablets or desktops. That’s enough of a change to be noticeable, since 50% of searches now come from mobile devices.