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The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles tagged 'trends'

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.

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.

Business, Fees

Trends You Can’t Afford To Ignore



Mike Gionta

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.

On the other hand, I have seen some recruiters go 180 degrees the other way by attempting to do all their business via email, job boards, and LinkedIn without really trying to build deep personal relationships with their clients and candidates.

So where is the industry going? What are the trends that are showing that they will alter the way we do business? These are questions I asked a while ago at my closed door retreat and mastermind meeting with 16 of my platinum coaching members.

Because I had recruiting firm owners representing three countries, 10 different states, and multiple industry disciplines the emerging trends and strategies came from multiple perspectives.

Here are just a few of the trends and ideas that emerged:

Staffing

Analyst Says Temps Could Be 50% Of The Workforce



Temp workers July 2012

The world is suddenly waking up to the discovery that employers are bringing on temp and contract workers at a pace that will soon surpass the peak numbers of 2006.

Subscribers to The Fordyce Letter first read about the surge in temp workers in the May issue. Following the release of the June employment numbers by the Bureau of Labor Statistics, FordyceLetter.com reported, “There are now 2.534 million contract and temp workers in the U.S., a number just a few months shy of exceeding the all time high of 2.657 million reached in August 2006.”

Now, U.S. News says “Temp Workers Make Huge Comeback.” The article points out that the staffing industry has regained almost all the jobs lost in the recession, while other employers have added just over half the ones they shed. It’s not simply a sign of cautious employers bringing in extra help while waiting to see what the economy will do, but evidence of a trend.

Staffing

Staffing Hires A Bright Spot In Gloomy June Jobs Report



us-bureau-of-labor-statistics-logo

Temp workers accounted for just under a third of the new jobs created in June, providing one of the few bright spots to an otherwise lackluster employment report.

The Labor Department’s Bureau of Labor Statistics said temp and contract hires added 25,200 jobs to the U.S. economy in June, representing 31.5% of the 80,000 new jobs created during the month. It’s the third consecutive month in which staffing services have added workers. Since the beginning of the year, the temp workforce has grown by 137,300, accounting for 15.2% of the total new jobs.

There are now 2.534 million contract and temp workers in the U.S., a number just a few months shy of exceeding the all time high of 2.657 million reached in August 2006.

Temp jobs, which dropped like a rock during the early part of the recession, first began to turnaround in the fall of 2009, growing strongly in 2010 and, except for several slow months in the spring and summer last year, have continued their upward trajectory. It’s one of the few bright spots in the government’s monthly hiring report.

Uncategorized

Boomers Look Toward Jobs With Purpose



MetLife work survey

If you think that the career decisions of the baby boomers don’t affect you, think again.

We can’t deny that Baby Boomers comprise a large percentage of our population. According to U.S. News, there are now more Americans age 65 and older than at any other time in U.S. history. Transgenerational.org says that this year America’s 50 and older population will reach 100 million.

Now more than ever, adults are active much later in life. They are active professionally, working longer, which impacts younger people by limiting their opportunities for advancement.

Industry News

IT Hiring Driven By Contract Work Says Dice.com



IT specialty unemplyment rates

Contract tech hiring is driving employment in the tech sector, which now has an unemployment rate of 4.4%, just slightly more than half the national average, reports IT niche job board Dice.com.

“Companies are using flexible talent more — creating opportunities,” says Dice, explaining that, ” Technology consulting is contributing to job growth – with more than 20,000 positions added in the ?rst quarter.”

According to the job board, network architects have the lowest rate of unemployment — .5% — while computer support specialists have the highest at 6.3%, still well below the unadjusted national rate of 7.7%. (Unemployment rates for specialities is not seasonally adjusted.)

Dice says there is “significant optimism” for tech staffing through the end of the year. It cites analysts’ expectations of double-digit staffing revenue growth and improved margins, particularly for healthcare IT.

Industry News, Social Media

Newspaper Help-Wanteds: All But Gone



Newspaper employment revenue 2011

Remember when you spent Mondays fielding calls prompted by your help-wanted ad  in the Sunday paper?

It wasn’t that long ago — not even a dozen years ago — that newspapers were where  recruitment dollars went. In 2000, the watershed year for newspaper employment advertising, the take came to nearly $9 billion, and some newspapers — the Dallas Morning News and the (San Jose) Mercury News in particular — had Sunday jobs  sections  larger than today’s entire editions.

Last year, according to the Newspaper Association of America, employment advertising revenue was $743.4 million, far below the combined $1.1 billion in North American revenue of industry leaders CareerBuilder and Monster. The last time newspaper employment revenue was so low was in 1977 when it totaled $589.4 million. In today’s dollars, that would be $2.2 billion.

Business Development, For Managers

Here’s The Next Big Thing In Healthcare Placements



medical symbol

Not that long ago, all the buzz in healthcare was about the nursing shortage. Hospitals, skilled care facilities, medical offices, not to mention those other providers we don’t generally think of — insurers and public health centers among them; it seems everyone was hunting nurses.

Today, the nursing shortage has eased, and so have billings. To be sure, experienced nurses with special skills are still in demand, and recruiters who have developed an expertise in filling these niches are doing well. So are agencies working in parts of the country where supply is more limited.

For everyone else, take heart. There’s still plenty of business elsewhere in healthcare. As a whole, the industry is expanding rapidly with demand for professionals and skilled workers (and even entry-level) approaching record levels.

Business, Business Development, For Managers, Industry News

Source Of Hire Survey Suggests New Business Directions



Source of hire chart

America’s largest companies are still turning to third party agencies for help with their difficult to fill jobs at about the same rate they have for the last few years.

A recent source of hire survey by the CareerXroads consultancy found 2.8% of all external hires last year came from third party recruiters. That’s down from 2010, but it’s still a marked improvement from the worst of the recession.

Indeed, third party agency use ebbs and flows with economic conditions, as the accompanying chart of large employer data shows. Over the long term, however, the downward trend in the use of contingent recruiters is clearly evident.

In 1997, the Employment Management Association found that 10.4% of hires were attributed to contingent recruitment firms. Search firms sourced another 2.1%. Three years later, the association found 6.8% of hires coming from agencies and 1.6% from executive search.

What changed? Part of the explanation is that Internet usage exploded during that time. In the 1997 survey only 2.1% of hires were sourced from the Internet. In the 2000 report, the EMA found 27.4% of hiring was being done online.

Despite that meteoric rise in online sourcing, it would be wrong to say the Internet is entirely responsible for reductions in the use of third party recruiters. More probably, as many HR leaders have reported, large employers have bolstered their in-house recruiting programs, diminishing the need to go outside.

This in-sourcing hits at exactly the sweet spot for third party recruiters — earners in the upper payscales, but not executive level, and the harder-to-fill critical jobs. As more attention has been focused on talent management, the largest employers — the ones that participate in the CareerXroads annual survey — have put ever more emphasis on developing their own pipelines to ensure a steady stream of candidates-in-waiting.

Certainly, the thesis is reasonable, however, the data on source of hire nationally, over time, just isn’t strong enough to draw firm conclusions. For instance, the EMA surveys polled a far different group of employers than did CareerXroads. For data purists then, it’s not quite as bad as apples to pineapples, but more like comparing different types of apples.

Still, the CareerXroads data alone shows a general decline in third party hires among the survey participants. Furthermore, 54.3% of the employers said all of their full time hiring is done with in-house recruiters.

What this suggests is that to grow a business, agency owners aren’t looking to the biggest companies, but at those more in the mid-range. Employers with a modest recruiting staff, or with generalists filling multiple roles, are the most likely to need the help of outside recruiting professionals when critical openings arise.

The Association of Executive Search Consultants 2011 recruitment survey found companies most likely to turn to contingent recruiters to fill jobs in the $100k-$200k range. “Overall respondents saw strengths in contingency recruiting,” the survey notes, “when timelines were limited and cost was an issue.”

What kind of company does that describe, if not mid-sized firms and smaller companies with specialty jobs?