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The Fordyce Letter

Straight Talk for the Recruiting Profession


Industry News

Industry News

Are We Nearing A World Without Passives?



Job seeker motivations linkedin 2014

Talent trends overGetting the cold shoulder from your LinkedIn prospects? Maybe it’s just bad luck that you’re sourcing for high demand candidates who may be in that rarefied category called “super passive.”

Most of the workers of the world who visit LinkedIn are open to a new job and, in the U.S. 43% of them are open to talking to recruiters. Even the ranks of the super passives are in decline, dropping 25% globally (from 20% to 15%) since a survey in 2012.

In the largest survey the business networking site has undertaken, more than 18,000 LinkedIn visitors shared their attitudes about job prospecting and career satisfaction. Several hundred from each of 26 countries participated, in many cases expressing very similar feelings about how actively they are looking for a new job and what it is that would prompt them to make a switch. (The full report is available

Industry News

Private Sector Adds 139k Jobs In February; Weather Blamed



ADP Feb 2014 job growth by company size

ADP Feb 2014 job growth by company sizeMother Nature is again being blamed for slow job growth, following this morning’s release of new job estimates that are among the lowest in months.

ADP’s National Employment Report says the economy added a meager 139,000 new private sector jobs in February, well below the 155,000 to 160,000 consensus estimates of labor analysts.

The report, which included annual revisions to previous ADPs reports, adjusted January’s private sector numbers to 127,000 from an initial 175,000.

Industry News

Supreme Court to Decide Temp Workers Overtime Claims



amazon lawsuit TV

amazon lawsuit TVA case that has the potential to cost staffing companies — and, in turn, their clients — hundreds of millions of dollars is headed to the U.S. Supreme Court.

The justices agreed to hear a FLSA suit against Amazon’s temp worker provider Integrity Staffing Solutions over whether workers should be paid for the time they spend going through company security on their way home.

Two former employees provided by Integrity who worked at Amazon’s two Nevada warehouses sued the retailer’s staffing firm demanding to be paid for the 20-25 minutes it routinely takes them to clear the daily security check. Because the case was filed as a class action, it could affect many or most  of the estimated 38,000 temps at Amazon’s three dozen U.S. warehouses and distribution centers.

Mark Thierman, a labor and employment attorney with Thierman Law Firm in Reno represents the workers. He says that with turnover, the number of potential class action participants could reach 100,000 and, if they should win, the cost could reach into the hundreds of millions.

Industry News

Monster Pushes Deeper Into Social Media Sourcing Acquiring Two Recruiting Startups



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Monster logoAll but given up for dead when it failed to sell itself, Monster today showed there’s life yet in the venerable job board.

The company announced it bought recruiting startups TalentBin and Gozaik. The terms were not disclosed, but whatever the deal, it isn’t large enough to trigger a disclosure filing with the Securities and Exchange Commission.

Nor did Monster say how it intends to integrate the companies.

“The acquisition of TalentBin and Gozaik completes one key component of a larger strategy designed to help our business grow,” said Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide. “We look forward to sharing more details about these plans at our investor briefing event later this year.”

Industry News, Staffing, The Business of Recruiting

Bullhorn Survey Offers Insights On Revenue, Placement Success, Comp



stay in business

Revenue by recruiter bullhorn 2013Bullhorn is out today with a survey of staffing and recruiting firms that is so full of useful and enlightening information it’s hard to know where to begin.

Here’s just a sample of what the 20 page report covers:

  • 77% of the 1,337 firms met or exceeded their revenue goals in 2013;
  • Revenue per recruiter at the smallest firms averaged $266,000; at the largest firms it was almost twice that;
  • Owners, CEOs, and partners of retained firms earned, on average, $230,000 last year. Those heading contingent firms averaged $149,000. Recruiters at retained search firms averaged $84,000. At retained firms, they averaged $84,000;
Industry News

LinkedIn Buys Matching Service As It Plans For Job Posting Push



Econ data Jan 2014

LinkedIn_logoLinkedIn made a sort of history today. For the first time since going public three years ago the company’s stock price dropped even though LinkedIn beat Wall Street’s expectations for earnings and revenue, and, for good measure, announced it had acquired a fast-growing matching-based job board for not much cash.

Reporting its fourth-quarter financial performance after the markets closed this afternoon, LinkedIn said it earned 39 cents a share on revenue of $447.2 million. The company simultaneously announced it had acquired Bright.com, a two-year-old startup that matches jobs to seekers by scoring the latter on how well they fit the position.

The $120 million price will only require LinkedIn to come up with about $36 million in cash, a pittance for a company with $803 million in the bank. The balance will be in LinkedIn stock, which, after dropping more than 7 percent in after-hours trading, is now around $207 a share.

Industry News

Monster Sees Hiring Improving Here and Worldwide



4th Q job board financials 2013

Monster logoGlobal job board operator Monster Worldwide reported a stronger finish to 2013 than analysts were expecting, beating their average earnings estimate by 5 cents a share and their revenue estimate by $3.4 million.

The company reported this m0rning it earned 11 cents per share versus the 6 cents a share analysts were predicting. Monster also offered a rosier outlook for the current quarter, forecasting it would earn between 6 cents and and 10 cents per share.

Wall Street liked what it heard, bidding up the stock by more than 20 percent to $7.13 a share just after the opening.

Industry News

Job Growth Got Off To A Slower Start in January



Change-in-Nonfarm-Private-Employment-January-2014

Change-in-Nonfarm-Private-Employment-January-2014Snowy cold weather and a dose of post-holiday caution kept hiring softer in January than many economists were expecting. HR services company ADP and Moody Analytics reported this morning that 175,000 private sector jobs were created last month, 10,000 to 14,000 fewer than the average of analyst predictions.

The report sent stocks lower this morning, although other economic reports suggested there is more strength in the economy than this week’s deep drop in financial markets might suggest. The Institute for Supply Management, which helped set off Monday’s market decline with a weaker than expected manufacturing report, this morning reported  its services index rose to 54 last month from 53 in December. The ISM’s services employment index was also up.

Industry News

Dice Optimistic About 2014



Dice Holdings 2013

Dice Holdings 2013Despite missing on earnings, investors gave Dice Holdings a bye this morning, liking the revenue numbers it posted for the 4th quarter of 2013 as well as what the company sees for this year.

Some slowing in the niche job board company’s security clearances jobs site (ClearanceJobs.com) was more than offset by gains in other areas, and by contributions from the sites Dice acquired when it bought onTargetjobs last fall and the IT Job Board in July. Improvement in the finance sector in Europe and Asia staunched the decline in revenue at eFinancialCareers.

Industry News

Recruiting Trends You Need to Know



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The recruiting industry is growing and evolving, yet I see many recruiters with their head buried in the sand!

In all honesty much of the structure of recruiting firms now mirrors the look and feel of a firm in 1975. Sure we have added PC’s, job boards, LinkedIn, etc, yet most still use the same tired structure and processes as the industry used decades ago.