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The Fordyce Letter

Straight Talk for the Recruiting Profession


Industry News

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.

Industry News

CareerXroads Survey: Agency Placements Took Big Jump In 2013



Careerxroads Job board data 2014

CareerXroads source of external 2014Evidencing the increasing difficulty of recruiting quality talent for key positions, employers turned to search firms to fill more of their openings last year, nearly doubling the percentage of jobs filled by independent recruiters from 2012.

The 50 employers, some with more than 200,000 workers, who took part in the just released source of hire survey by the recruiting consultancy CareerXroads, reported filling 5.9% of their external opening with candidates from third party agencies.

It’s the largest agency share since CareerXroads began asking about third party placements in 2003. That year, employers attributed 1.2% of their external hires to agencies. In 2012, employers said 3.1% of their hires came from agency referrals.

Industry News

Tech Worker Numbers Continue to Grow; Temp Is 3rd Fastest Sector



Techserve alliance June 2014

Techserve alliance June 2014The number of IT workers grew at a pace faster than the national jobs rate, and better than many other sectors, including healthcare.

Temp, however, grew faster than all but two other sectors tracked by the Bureau of Labor Statistics.

TechServe Alliance, the national trade association of the IT and engineering staffing industry, reports IT employment grew 3.2% from June 2013 to June 2014, adding 144,200 workers. The Alliance says there were 4,664,800 IT jobs as of last month.

Industry News

Recruiter Survey: Candidates Are Driving the Job Market



Who's driving the market MRI 2014

Who's driving the market MRI 2014It’s a job seekers’ market, but hiring managers haven’t yet fully adjusted to the change, with 40% of them taking almost a month to make an offer, only to find out in many cases that their candidate is turning them down.

Better than 8 in 10 of the MRINetwork recruiters participating in the semi-annual MRINetwork Recruiter Sentiment Study said today’s employment market is candidate-driven, a 25 point jump from the 2012 study. That means the professional, executive and managerial candidates who are the majority of those recruited by MRI franchise offices can be  more demanding when it comes to the nature of the work they want, the companies they’re willing to work for, and the compensation and benefits they’ll accept.

Industry News

3 LinkedIn Developments You Should Know About



fordyce-default

LinkedIn_logoNote: Between updates LinkedIn regularly makes to its product lines, and the latest acquisitions, something is always new at the business networking site. From our sister site, Sourcecon.com, here’s an update on the latest developments.

LinkedIn acquired news alert startup Newsle. Newsle uses machine learning technology to update subscribers when their connections publish new content on the web. I’m hoping this will make my news feed more bearable and relevant as the technology is integrated into LinkedIn’s platform. For more details, see this post from Forbes.

Industry News

Temp, Fulltime Hiring Outlook Strong For Rest of Year



Average number of vacancy days dice

CB Mid-year hiring plans 2014Employers are expressing more optimism about the future and it’s showing in their hiring plans for the rest of this year.

CareerBuilder’s Midyear Job Forecast says more employers expect to add headcount in the next several months than said that last year. Employers told CareerBuilder they will add to the ranks of full and part-time workers, and 33% will increase their temp or contract staffing workers.

In addition, the temp staffing forecast from G. Palmer and Associates predicts a 7.6% increase in hiring in this current quarter.