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The Fordyce Letter

Straight Talk for the Recruiting Profession


Staffing

Staffing

6 Issues That WIll Impact Staffing in 2015



Workers cheering - freedigital

Contract staffing had quite a year. The “temporary help services sector” added jobs and broke records month after month in 2014. This growth continues even now that direct hiring has finally bounced back from the recession.

So what does 2015 hold for contract staffing? Happily, we are expecting even more growth. Here are the anticipated contract staffing trends for 2015:

1. Continued adoption of blended workforce models 

One of the biggest trends we have observed is the transition from a traditional, direct hire workforce to a blended workforce model that incorporates both direct hires and contractors.

Industry News, Staffing

Forecast: Staffing Jobs to Grow By 135k This Quarter



Palmer 2015

Palmer 2015Industry consultant G.Palmer & Associates has a bold, and aggressive  forecast for the staffing industry: temp help in this first quarter will surge by 10.5%.

“Our forecast for the 2015 first quarter follows recent trends demonstrating growth and indicating another increase in demand for temporary workers, marking the 20th consecutive quarter of year-over-year increases,” said Greg Palmer, founder and managing director of of the staffing industry consultancy.

The predicted year-over-year growth is a big percentage, even for as fast a growing jobs sector as staffing. But it’s not the first big forecast the Newport Beach, Calif. firm has made. In 2010 Palmer predicted demand for temp workers would increase 20.9% in the last quarter of the year. The prediction was off, but only some. Temp growth that quarter grew 19.2%.

Staffing

Are You Ready to Become A Staffing Firm of Choice?



Candidate selection-free

Contract staffing is on a roll and does not appear to be slowing down anytime soon.

In December, it hit an all-time high with almost 3 million jobs. Some experts predict that 40-50% of the workforce will be contract by 2020. This is great news for recruiters who offer contract staffing, but there is a caveat — competition for top contract talent is getting fiercer. Candidates will be looking closely at how recruiting firms can help them meet both their career and personal goals. How can you establish your firm as the firm of choice for top contract candidates?

Traits of Top Contract Candidates

First, let’s see what makes up a top contract candidate. Of course, you are going to look for many of the same things you would look for in a direct hire. Do they have the required skills set and experience? Do they have a good track record of getting results? But beyond these factors, there are a number of traits that often correlate to great contract candidates:

Fees, Staffing

Are You Leaving Money On the Table When Your Temp Goes Perm?



Sales shopping global - free

Sales shopping global - freeHaving trained or consulted with hundreds of temporary staffing services and contract staffing firms around this country, I am continually amazed by the variety of approaches utilized to handle the transfer of an employee from the staffing services payroll to the payroll of the client’s organization. The term most commonly used to describe this process is “Temp-to-Hire”.

My purpose here is not to discuss whether or not you should charge your client a conversion fee for the temp-to-hire process. Rather it is to provide you with a conceptual foundation on which to make that determination. Consider the following two realities.

Industry News, Staffing

Are You Ready For the Affordable Care Act?



ACA illustration

ACA illustrationIn less than two months, businesses with 100 or more workers will be required to provide some sort of healthcare coverage for their employees.

This includes staffing companies who are employers of record. And it has potential consequences for those who use back office providers who serve as the W2 employer of record.

The rules of the Affordable Care Act can be complicated. For instance, the health plan must provide “minimum value” and it must be “affordable.” Even the rules for determining how many employees you have is not nearly as simple as counting up the number of paychecks you issue. The formula includes your FTEs, which are calculated by adding regular hours, holiday hours, paid time off, and overtime and dividing by 120.

Staffing

The Cream of the Crop Is Choosing to Work Contract



Randstad contract manager graphic

Randstad contract manager graphicThere is a common misconception that contract workers are lower-level or not the “cream of the crop.” This misconception stems from the picture many people have in their minds of the clerical or blue collar temps of the past who mostly took temporary work when they couldn’t find a traditional job.

But today’s contractors can be found in nearly every industry and in positions up to and including the C-suite. Companies can truly find cream of the crop contract candidates, particularly in the technical, professional, and healthcare arenas. For many candidates, contract staffing is no longer a last resort or simply a path to direct employment, it is a chosen lifestyle.

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.

Contract Staffing, Staffing

Outsourcing: The Fastest Way to Get Your Temp Business Started



Backoffice provider services chart

Backoffice provider services chartSo you’ve decided to add contract staffing to your business model. That’s great!  By doing so, you will become a sole-source provider who is able to solve ALL of your clients of their staffing issues.

But before you start taking contract staffing job orders, you have an important decision to make: are you going to run your own back-office, which entails becoming the employer of your contractors and handling all the employment tasks, or are you going to outsource that responsibility to a contract staffing back-office?

Jeff's On Call!, Staffing

Can I Protect Myself From Being Temp-Napped?



ask-jeff4

Hi Jeff,

Thanks for providing such a great site.

I have a question regarding the validity of buyout clauses in temporary employment contracts. I own a small contingency staffing business in CA. I’m wondering whether a staffing firm can legally defend a buyout clause in their W2 offer letters or 1099 independent contractor contracts to prevent a candidate simply approaching a different supplier for the same client and engaging with them for their services in the same role?

We’ve had issues where the candidates once placed, negotiated a better deal with a competing agency, and simply switched to their employ instead. This is done with the blessing of clients who don’t seem to care that we were the ones who recruited the consultant in the first place. In general, client contracts are biased to favor the client, in that there is no restriction about receiving the same candidate from a different vendor.

If so, is there a specific form the buyout clause needs to take, i.e. specific wording that it should include, preclude?

How-To, Staffing

5 Ways to Overcome the ‘Perfect Candidate’ Syndrome



fordyce-default

org chart for sourcingDoes it seem like your clients are dragging their feet when it comes to hiring? It’s not your imagination. According to The New York Times, it is taking companies an average of 23 business days to fill vacancies compared with just 15 days in 2009, and the duration of the interview process at major companies like Starbucks, General Mills, and Southwest Airlines has nearly doubled since 2010.

Many employers blame it on a lack of skilled labor. While that may be true in some sectors, it appears that the real problem is that many companies don’t really want to hire in this uncertain economy, so if they have to hire, they will only settle for the “perfect candidate.”