Welcome to The Fordyce Letter:

The Fordyce Letter

Straight Talk for the Recruiting Profession


Industry News

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



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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.

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.

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.