Welcome to The Fordyce Letter:

The Fordyce Letter

Straight Talk for the Recruiting Profession


Industry News

Fees, Industry News

Here’s How To Get Fees You Didn’t Expect



Jeff Allen mug

Fee Catcher home pageIt’s not that the Internet could ever replace you.

It’s that the Internet is like this huge, unattended, 24-hour candy superstore – fully stocked with candy-dates. Sweet-toothed “clients” skate through the aisles, tasting the free samples. Then, they just help themselves to the ones they like best. Sugar-highed, they skate right out the back door.  Ergo, “back-door hires.”

Your name’s on the wrapper from A to Z: an Abba-Zaba resume. No problem. Just rip it off and “rip it off.”

You might never know that candidate who didn’t make it months ago, now has, and before your fee-year’s expired.

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.

Industry News

August Hiring Dips; SHRM Predicts Strong Manufacturing Job Growth This Month



Econ indicators Aug 2014 v1

Nonfarm employment compare Aug 2014The hand-wringing over today’s ADP private employment report should not be taken as evidence of any kind of sudden reversal of hiring.

The 204,000 private sector jobs ADP and its forecasting partner, Moody’s Analytics, said were created in August demonstrates that the hiring surge of the last several months still has legs. That the number was less than the 215,000-220,000 jobs economists expected and the lowest count since March, may be disappointing, but the August dip is familiar to any recruiter with more than a few years experience.

Industry News

Hiring Programmers. Degree Not Required



Glassodoor Q2 employee survey

Glassodoor Q2 employee surveyBy a surprisingly large percentage, CIOs  put more emphasis on skills and experience than on tech degrees from prestigious universities.

A Robert Half Technology survey of some 2,400 chief information officers at companies with more than 100 employees found 71% place “more weight on skills and experience than on whether or not a candidate attended college/university.” Another 12% said university prestige didn’t matter at all.

Now, that’s not to say most tech executives complete ignore degrees — 17% say they put at least some weight on a candidate’s education. But what the majority look for first are candidates who can get the job done.

Industry News

Staffing Firms Dominate Inc. 5000 HR Category



Inc. 5000 top 10

Inc. 5000 top 10Inc. magazine is out with its annual list of the 5,000 fastest growing private companies in the U.S. This year, 199 self-described human resource companies made the list, many, if not most of them recruiting and staffing firms.

The largest staffing firm is Elwood Staffing with $763 million in revenue last year. The company places temps in several areas from administrative and clerical positions to the skilled trades. It’s direct placement division — Elwood Professional – conducts searches for mid-level professionals on up to CEOs.

Industry News

Employers Taking More Time Than Ever to Fill Jobs



time to fill by industry

The time to fill open positions has reached a national average of just about 25 days, the lengthiest job vacancy period in the 13 years covered by the DICE–time to fill by industryDFH Vacancy Duration Measure.

The monthly report on time to fill and recruiting efforts says that on average it took 24.9 working days (Monday-Saturday) in June to post, source, and hire a new employee. That’s more than nine days longer than it took at the height of the recession in July 2009. Then, the average was 15.3 working days.

The lengthening time to fill is having a serious impact on search firms. Data from MRINetwork says growing numbers of candidates are taking alternative offers while clients make up their mind. As a consequence, 81%

Industry News

Crowdsourcing Arms Race: $100k for a President



NRG employee referral

NRG employee referralCandidate referrals are taking on the feel of an arms race.

The payments have been escalating: $5,000, then $15,000 (plus a shot at a trip around the world), then $20,000 and $30,000.

Now, NRG Energy, a Fortune 250 power and energy company, has trumped the others, putting up $100k as the reward to the person — individual recruiters can play, but not agencies — who refers the next president of a new NRG division.

 

Yes, indeed, NRG will pay you $100,000 if you refer a U.S. candidate who gets selected as president of NRG Home. If you refer yourself, the money goes to charity, but you get to pick which one.

Jennifer Wallace, NRG senior vice president for human resources says the company “wanted the referral fee to generate excitement and drive people to action. The position we are searching for is a unique one, so our crowdsourcing campaign had to be innovative as well.”

People can only refer one person, and it has to be done by August 22. Use this form to do the referring. The job description is here. The fine print is here.

Industry News, Staffing

With Temp Hiring Growing, Bullhorn Acquires VMS Vendor



Art Papas

VMS Access logoLarge employers with high seasonal and temp hiring needs used to be the primary users of VMS and MSP services. That began to change more than a decade ago, as companies, witnessing the explosion of contract developers and others by the tech industry, saw the strategic value of bringing on temporary workers.

Ironically, the Great Recession accelerated the process. During the first difficult years, companies laid off their contingent workers before their full-timers, discovering what the seasonal hirers already knew: A contingent workforce can be RIFed quickly without paying unemployment (unless they were the employer of record), severance, or risking the negative publicity that comes with wholesale layoffs.

Betting on the continued growth of the contingent labor market, Bullhorn today announced it acquired its VMS tech partner The Code Works, and its primary product, VMS Access. No purchase price was disclosed.

Industry News

Monster Has Weak 2nd Quarter



Job board revenue Q2 2014

Job board revenue Q2 2014Although it’s much too early yet for Monster’s ambitious “three pillars” strategy to become the transformative force executives are predicting, the financial markets were hoping the company did a little better in the 2nd quarter of the year than in the first quarter.

It didn’t.

After Monster reported earning 8 cents a share on revenue of $194.4 million, and lowering its financial outlook for the current quarter, investors sold off shares of the struggling company at twice the normal volume, pushing down its price almost 13% by early afternoon. Monster stock closed Monday at $6.62 a share. Not long before the market’s close, the stock was off 15.6% to $5.59.

Industry News

July Makes It 6 In A Row For +200K New Jobs



Temp workers July 2014

Temp workers July 2014For the sixth consecutive month, the U.S. added more than 200,000 new jobs, a streak not seen since 1997.

Data from the government’s Bureau of Labor Statistics said 209,000 new jobs were created in July across a broad swath of industries.The agency also adjusted upward by 15,000 its initial numbers for May and June.

Healthcare, one of the consistently strong growth areas throughout the last several years, added 21,500 workers, though hospitals and nursing homes and care facilities cut a combined 14,300. Temp employment was up, but by 8,500 workers, the smallest increase since October.