Welcome to The Fordyce Letter:

The Fordyce Letter

Straight Talk for the Recruiting Profession


Staffing

Business, Fees, Staffing

Stop Being Bullied: It’s About How Much the Client Saves. Not What You Charge



Negotiation image - freedigital

Negotiation image - freedigitalThere’s a nasty little trend that seems to have permeated our industry, and I am baffled to understand why or how. Frankly speaking, there are far too many recruiting firms who either do not realize or significantly undervalue what precious assets temporary employees can be to their business.

As a rule, our industry is far too willing to allow clients to tighten the thumbscrews on temp bill rates, and simply roll over and cave at the first sign of pushback or hesitation. Too many of us practically give away temps at huge discounts, often out of desperation and because we’ve been tricked into reactionary fear thanks to our old friend, the economic recession.

If you find yourself sheepishly nodding in agreement, consider this a wake-up call: Providing our services for a profit is priority one!

Yes, I love what I do but no, I’m not going to be so impertinent as to suggest for one minute that I’d do it for free. You are here to make money — and I hope you value your work enough to insist on making a lot of it — by not letting margin and profit slip through your fingers.

Business, How-To, Staffing

Marketing Basics To Help You Jump Start Your New Temp Business



Marketing business sales

Companies across the United States want to streamline their processes. Flexibility, efficiency, and cost savings are necessary to survive in this new economy. Contract staffing allows companies to achieve those goals and become productive at the same time.

There are three pieces of good news here for recruiters. One is that the companies you are already working with for direct hire placements probably need contractors, and you already have those business relationships established.

The other piece of good news is that any recruiter, regardless of size, can add contract staffing to their business model if they use a full service back-office provider. The back-office should handle the financial, legal, and administrative tasks so you don’t have to deal with funding, contracts, time sheets, payroll, taxes, workers compensation, background checks or any other administrative issue.

Staffing, Weigh In!

Are Recruiting Firms A Bad Idea?



Kiala Kazebee

In a recent post written by Neil Patel for Quicksprout, he states, “In most cases recruiting firms don’t have the best candidates. Why you may ask? It’s because talented people don’t need recruiters to help them find a job.”

That’s a pretty loaded statement.

Patel then goes on to say,

If someone is really good at what they do, they’ll constantly be bombarded with job offers.

Recruiting firms are not the temp agencies of yore. Patel needs to update his information.

Industry News, Staffing

Dice Financials: Staffing Firms ‘Very Active’ In Q1



Dice Holdings logo

Direct tech hiring may be a little soft today, but staffing firms are powering the recruiting market, looking to fill orders for temp and project workers that employers need, but are hesitant to bring on permanently.

“Staffing firms in the technology space are definitely very active today,” said Scot Melland, chairman, CEO and president of Dice Holdings, “and they’re seeing their businesses do pretty well.”

Speaking to financial analysts during a Q1 conference call this morning, Melland said, “Companies are still leaning towards outsourcing talents to contractors, as well as staffing firms, rather than hiring full time.”

Industry News, Staffing

Q2 Temp Hiring To Increase Again



Palmer forecast q2 2013

Palmer forecast q2 2013U.S. employers may be hesitant to hire permanent, full-timers, but they’re bringing on temporary and contract labor faster than they have in months.

The Palmer Forecast says demand for temporary workers will grow at a rate 5.9% faster this quarter than in the same period last year. And that follows a first quarter growth rate that was 6% ahead of 2012.

“Our forecast for the 2013 second quarter follows recent trends showing growth and indicating another increase in demand for temporary workers,” says Greg Palmer, founder and managing director of industry  consultant G. Palmer & Associates. It’s the 14th consecutive quarter of year-over-year growth in hiring for temporary workers, he added.

Business Development, Entrepreneurship, Staffing

Adding Temp To Your Services? Here’s How To Market It



fordyce-default

marketingCompanies across the United States want to streamline their processes. Flexibility, efficiency, and cost savings are necessary to survive in this new economy. Contract staffing allows companies to achieve those goals and become productive at the same time.

There are three pieces of good news here for recruiters. One is that the companies you are already working with for direct hire placements probably need contractors, and you already have those business relationships established.

The other piece of good news is that any recruiter, regardless of size, can add contract staffing to their business model if they use a full service back-office provider. The back-office should handle the financial, legal, and administrative tasks so you don’t have to deal with funding, contracts, time sheets, payroll, taxes, workers compensation, background checks or any other administrative issue.

Contract Staffing, Staffing

Demand Grows For Locum Tenens Nurse Practitioners and Physician Assistants



Doctor and stethescope - free digital

Doctor and stethescope - free digitalFaced with a growing need for doctors and a shrinking pool from which to hire, hospitals, medical groups and other healthcare providers are turning in record numbers to nurse practitioners and  physician assistants on a temporary basis to fill the gap.

Staff Care, part of AMN Healthcare, the nation’s largest healthcare staffing firm, said its requests for temporary physician assistants (PAs) and nurse practitioners (NPs) soared last year, going from under 2% of its requests in 2010 to 10% last year.

“When hospitals and medical groups and others start using temporary providers in greater numbers, it generally means they can’t find enough practitioners in those areas,” Staff Care spokesman Phil Miller told the Dallas Business Journal.

Industry News, Staffing

Q2 Forecast: Hiring Slows; Temping Not Much Affected



CareerBuilder

CareerBuilderHiring is slowing from last year, and the trend is predicted to continue at least through the rest of the first half of the year. But temp hiring won’t be much affected, says a new report from CareerBuilder.

The job board’s quarterly employment forecast says the U.S. should expect somewhat slower permanent, full-time hiring through the end of June than it saw for the same period last year. That comes on the heels of a first quarter that was slightly better than what CareerBuilder’s survey foresaw three months ago, but which was still down from 2012.

Of the more than 2,000 hiring managers and human resource professionals distributed across industries and company sizes polled for the report, 26% said they expect an increase in their full-time, permanent headcount this quarter. Last year, CareerBuilder reported 30% foresaw a Q2 increase, and later, found 34% actually did add staff.

Industry News, Staffing

Roundup: Legal Developments You Should Know



Counsel's Corner

Note: This article is not intended as legal advice. In all instances the reader is cautioned to consult with legal counsel when utilizing this information.

A part of the professional obligation of every person engaged in the staffing industry is to try to be current in the happenings of the legal world as it affects staffing industry activity. Here are some of the recent highlights. I welcome all comments and questions, and will try to reply promptly.

California’s Commission Contract Law

Effective January 1, 2013 a new California law requires that employees entering into employment agreements which involve compensation, even in part, on a commission basis must be provided a written contract detailing how the commission is computed and paid. Employers must provide the employee with a signed copy of the commission agreement, and obtain a signed acknowledgement of receipt of the copy. Not all commission and bonus arrangements are covered and it is not clear if the new law requires employers to implement written agreements with present employees having unwritten or verbal commission agreements. Best advice is to consult an attorney to get the answer.

A Busy EEOC in 2012

The most frequently filed charges were for retaliation (37,836), race (33,512) and sex discrimination,

Industry News, Staffing

Staffing Companies Could Be Losers In H-1B Reform Efforts



US Capitol

US CapitolStiff new immigration laws introduced by Iowa Republican Senator Chuck Grassley could stop staffing companies from bringing in H-1B visa holders.

Declaring that “Somewhere along the line, the H-1B program got side-tracked,” Grassley reintroduced legislation tightening up the entire H-1B program. Similar efforts by the Senator last year went nowhere, but with the renewed effort in Congress to enact some form of immigration reform, some of his proposals could get make it into law.

A group of four Democrats and four Republicans –the so-called Gang of Eight — have been working for weeks to come up with a bi-partisan immigration reform bill. Among the thornier problems has been the issue of guest worker visas, especially in regard to the flow of low-skilled workers for jobs in construction.

Creating a path to citizenship, or at least removing or reducing the threat of deportation for the estimated 11 million undocumented immigrants is also part of the reform package the group says will be ready to present to Congress after it returns in April from its spring break.