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The Fordyce Letter

Straight Talk for the Recruiting Profession


Industry News

Industry News

Staffing Awards Winners Announced



Best of staffing logo

Inavero, the staffing agency quality rating firm, has named the winners of its annual Best of Staffing award, giving the nod to 160 agencies whose clients gave them high marks for meeting their hiring needs.

In a second category, this one the top scorers as rated by the talent they placed, Inavero named 116 agencies. Many of these were double-winners, earning a berth on both the rankings by clients and by the talent.

According to Inavero, the Best of Staffing Award was earned by fewer than 2% of all staffing agencies in the U.S. and Canada, winners earned satisfaction scores more than three times higher than the industry average.

Industry News

Monster’s Strategy: ‘All the People, All the Jobs’



Job board Q4 2014 financials updated

New Monster logoAfter a so-so end to a so-so year, Monster executives are pinning their hopes for a company makeover on a lineup of new products, some to be introduced in the next few months, others launched last year and a few legacy tools like Power Resume Search.

“We’re building a new Monster,” COO Mark Stoever, declared during a conference call with analysts this morning.

In optimistic, if subdued language, he and President and CEO Tim Yates, discussed the company’s fortunes as they detailed the product portfolio they maintain will again make Monster a major player in recruitment sourcing.

The company’s year-end financial report out this morning suggests it has mileage to make up. Monster earned 7 cents a share in the last quarter of 2014, after excluding certain one-time expenses, including a $326 million charge against goodwill. The per share earning was a penny above Wall Street’s forecast.

On the other hand, at $186.2 million, revenue was down 6.3% from the same quarter in 2013, coming in 3.3% below analyst expectations. For the full year, Monster saw its revenue decline 4.7%, bringing in $770 million, which was just a bit more than a third of what high-flying LinkedIn reported last week.

Industry News

Temp Agencies Shed Jobs As Economy Gains Jobs, Grows Wages



Econ data Jan 2015

Econ data Jan 2015Temp agencies cut jobs January, shedding 4,100 workers even as the overall economy added  257,000 new jobs, handily beating economists’ predictions the number would be closer to 230,000.

The Labor Department’s monthly Employment Situation report this morning also said unemployment rose slightly to 5.7 percent from 5.6 percent as more workers opted to join the labor force. In addition, average hourly wages increased by 12 cents, the largest gain in months. Wage growth has been stagnant, hovering around 2 percent annually since the end of the recession.

The drop in temp jobs was foreshadowed by the American Staffing Association’s Staffing Index, which at the end of January, was well off its December high. January, historically, is an up and down month for staffing agencies. Of the last 10 years, temp agencies have shed jobs in six, the result of reductions in seasonal staffing.

Industry News

Staffing Index Off December High As Overall Hiring Slows



ADP Report 1.2015

ASA Staffing Index 1.2015After adding a hefty 253,000 jobs in December, private employers slowed their hiring in the first month of the year, adding an estimated 213,000 jobs in January.

This morning’s National Employment Report from HR services company ADP and its partner Moody’s Analytics, was below consensus forecasts from economists who had pegged the increase between 220,000 and 240,000. The report  revised up the initial December count from 241,000 to 253,000.

Mark Zandi, chief economists for Moody’s, blamed cuts in the energy industry for the slower than expected growth. “Businesses in the energy

Industry News

Firm Says Execs Got 17% Pay Hike Offers In 2014



Executive-stockimages-free

Executive search firm Salveson Stetson Group says the senior executives it placed last year received an average pay hike of nearly 16%, and, for the first, out-of-work candidates got offers matching those given to employed executives.

Manufacturers, however, made offers well above the Salveson Stetson average. Manufacturing executives got a 25% pay hike. Human resource executives also did well, seeing an increase of 20%.

Broad implications can’t be drawn from the firm’s data since only 20 executives participated in its annual survey. But it does provide texture to other reports of a resurgence in manufacturing and growing demand for HR professionals.

Industry News, Staffing

Forecast: Staffing Jobs to Grow By 135k This Quarter



Palmer 2015

Palmer 2015Industry consultant G.Palmer & Associates has a bold, and aggressive  forecast for the staffing industry: temp help in this first quarter will surge by 10.5%.

“Our forecast for the 2015 first quarter follows recent trends demonstrating growth and indicating another increase in demand for temporary workers, marking the 20th consecutive quarter of year-over-year increases,” said Greg Palmer, founder and managing director of of the staffing industry consultancy.

The predicted year-over-year growth is a big percentage, even for as fast a growing jobs sector as staffing. But it’s not the first big forecast the Newport Beach, Calif. firm has made. In 2010 Palmer predicted demand for temp workers would increase 20.9% in the last quarter of the year. The prediction was off, but only some. Temp growth that quarter grew 19.2%.

Industry News

Tech Firms Agree to Pay $415 Million In Anti-Poaching Case



Apple

AppleA $415 million settlement proposed by four tech giants could become one of the largest anti-poaching awards if a federal judge approves.

Apple, Google, Intel Corp and Adobe Systems agreed to the amount in a court filing yesterday. A previous offer of almost $325 million was rejected last summer by the judge in the class action case, which was filed in 2011.

Industry News

Fed Reserve Says Shortage of Skilled Workers Is Putting Pressure On Wages



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Fed reserve district mapAcross the country, employers and the agencies that help them fill jobs are feeling increasing pressure to raise pay for workers with special skills.

In the last several weeks, hiring nationally has generally continued to be good and, for most jobs, wages have been flat, said the Federal Reserve today in its period report on business conditions. It’s so called Beige Book summarizes reports from business and employment contacts in the 12 Fed districts to provide a ground level view of conditions.

In various parts of the country, reports from staffing firms and direct employers indicate growing wage pressure for jobs as varied as IT professionals, healthcare workers, skilled trades and truck drivers.

“Significant wage pressures continued to be limited largely to workers with particular technical skills,” the Fed’s Beige Book noted, with nearly ever Fed district reported a shortage of skilled workers.

Industry News

December Sees 252k New Jobs, Capping Strongest Job Growth In Years



Econ indices Dec 2014

Temp workers Dec 2014Capping the end of the strongest 12 months of job growth since well before the recession, employers added 252,000 jobs in December as the unemployment rate fell to 5.6%, its lowest level since June 2008.

Economists had expected a strong year end jobs report from the Labor Department, but were predicting growth closer to about 240,000 jobs and only slight change in November’s 5.8% unemployment rate.

“The economy has some momentum,” Robert Shapiro, chairman of Sonecon, an economic consultancy, told The New York Times before this morning’s report was released. “I think it’s kind of hit a stride with respect to job creation.”

Besides the strong December numbers, the Bureau of Labor Statistics, which compiles the data, adjusted up its previous counts for November and October, adding 50,000 more jobs than initially reported.

Industry News

Jobs Up 241,000 in December. Staffing Hits New Highs



ADP Dec 2014 jobs graphic

ADP Dec 2014 jobs graphicThe economy was on a roll in December, ending the year with 2.5 million more private sector jobs than it had when last January’s cold winds ushered in the year. ADP, the payroll and HR services firm, says private employers added 241,000 new jobs last month, the fourth consecutive month that ADP’s National Employment Report showed job growth over 200,000.

“The job market continues to power forward,” said Mark Zandi, chief economist of Moody’s Analytics which compiles ADP’s payroll data. “At the current pace of job growth, the economy will be back to full employment by this time next year.”