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The Fordyce Letter

Straight Talk for the Recruiting Profession


Industry News

Industry News

Temp Staffing Continues to Grow; Economy Adds 214K Jobs As Unemployment Declines



Econ Index Oct 2014

Temp employment Oct 2014For the ninth consecutive month job creation topped 200,000, adding 214,000 new non-farm jobs last month. Meanwhile, the unemployment rate edged down to 5.8%, the lowest in six years.

Temp staffing continued its steady climb, adding 15,100 workers, down from September’s adjusted upward count of 17,800. For the nine months from January through September, temp added an average of 17,300 workers a month. For the same period in 2013, the average growth was 14,600.

The Bureau of Labor Statistics, which released the monthly employment report this morning, also adjusted upward its overall job estimates for August and September, adding 31,000 more jobs to the totals announced previously. The numbers are seasonally adjusted.

Industry News

Reporting a Strong 3rd Q, Monster Names New CEO



recruitment revenue Q3 2014
Tim Yates

Tim Yates

Like so many companies these days, Monster hired a boomerang to be its new leader, announcing Tuesday morning that former CFO and current director Tim Yates will be the company’s new CEO.

The announcement was made by Sal Iannuzzi, the company’s chairman, and now former CEO and president, during the quarterly financial conference call with investment analysts. After discussing Monster’s financial performance, which surpassed Wall Street’s predictions on both earnings and revenue, Iannuzzi said he was stepping down for undisclosed personal reasons. He will remain on the board as non-executive chairman.

Such explanations might ordinarily signal a forced change of command over board unhappiness with performance or strategy or both. And with Monster’s stock trading at historic lows, it’s a reasonable assumption. However, Monster’s Three Pillar strategy, unveiled in May, shows signs of paying off. Monster’s earned 5 cents a share in the 3rd quarter, beating the 3 cents a share Wall Street predicted. Revenue grew to $191.2 million, compared to analysts’ estimates of $189.9 million.

Industry News

LinkedIn Revenue Up. Rate Increase Coming



Job board rev q3 2014

Job board rev q3 2014The LinkedIn revenue juggernaut rolled on over the summer, growing by 45%, with recruitment accounting for the largest share of the $568 million the company brought in from July through the end of September.

Reporting its 3rd quarter financial results after the U.S. markets closed this afternoon, LinkedIn said it earned 52 cents a share after excluding stock-based compensation. The consensus of Wall Street analysts was the adjusted earnings would be 39 cents a share. LinkedIn also beat their $557.49 million revenue forecast.

Taking into account the cost of the shares it gives employees as part of their compensation, LinkedIn lost $4.3 million, almost a million more than it reported in the 3rd quarter 2013.

Industry News

Staffing Index at Highest Point Since 2007



ASA Staffing Index 10.28.2014

ASA Staffing Index 10.28.2014Staffing activity has reached its highest point since the start of the Great Recession nearly seven years ago, and, if the trend continues, could set a new record before the end of the year.

The American Staffing Association’s Staffing Index now stands at 104.75, just shy of the record 105.28 set for the week ending December 9, 2007. The Index measures weekly changes in temporary and contract employment as reported by agencies invited to participate in the weekly survey.

Staffing industry employment increased 0.34% from the prior week, the ASA reported, and was 4.22% higher compared with the same week last year.

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



fordyce-default

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.