Debbie Fledderjohann's Posts - RecruitingBlogs2024-03-19T08:24:12ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohannhttps://storage.ning.com/topology/rest/1.0/file/get/1526966792?profile=RESIZE_48X48&width=48&height=48&crop=1%3A1https://recruitingblogs.com/profiles/blog/feed?user=20ei5xy6s7m3g&xn_auth=no2015 Contract Staffing and Recruiting Trendstag:recruitingblogs.com,2015-01-21:502551:BlogPost:18590362015-01-21T21:42:12.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="https://www.topecheloncontracting.com/files/2014/11/6-recuiting-staffing-trends-2015-8025-300x199.jpg" target="_blank"></a></p>
<p>2014 was a big year for contract staffing. The “temporary help services sector” added jobs and broke records nearly every month. This growth continues even now that direct hiring has finally bounced back from the recession.…</p>
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<p><a href="https://www.topecheloncontracting.com/files/2014/11/6-recuiting-staffing-trends-2015-8025-300x199.jpg" target="_blank"></a></p>
<p>2014 was a big year for contract staffing. The “temporary help services sector” added jobs and broke records nearly every month. This growth continues even now that direct hiring has finally bounced back from the recession.</p>
<p><a href="https://www.topecheloncontracting.com/files/2014/11/6-recuiting-staffing-trends-2015-8025-300x199.jpg" target="_blank"></a></p>
<p><strong><a href="https://www.topecheloncontracting.com/files/2014/11/6-recuiting-staffing-trends-2015-8025-300x199.jpg" target="_blank" style="font-weight: normal;"><img src="https://www.topecheloncontracting.com/files/2014/11/6-recuiting-staffing-trends-2015-8025-300x199.jpg" class="align-left" style="padding: 2px;"/></a></strong></p>
<p>So what does 2015 hold for contract staffing? Happily, we are expecting even more growth. Here are the likely contract staffing trends for 2015:</p>
<p><a href="https://www.topecheloncontracting.com/files/2014/11/6-recuiting-staffing-trends-2015-8025-300x199.jpg" target="_blank"></a></p>
<ol>
<li><strong>Continued adoption of blended workforce models -</strong> One of the largest trends we have noticed is the gradual change from a conventional, direct hire workforce to a blended workforce model that includes both direct hires AND contractors. In the blended workforce model, companies utilize a small base of traditional, direct hire employees aided by a group of contractors that can be scaled to meet business needs. This provides companies with flexibility, cost savings, and reduced liability. This trend has grown over the last few years and is poised to advance even farther in 2015.</li>
<li><strong>Growth of technology</strong> <strong>-</strong> The growth of the Internet and mobile devices has changed employment, allowing employees to work remotely and paving the way for “virtual teams.” In fact, according to <em><a href="http://www.fastcompany.com/3038990/how-i-get-it-done/how-to-manage-remote-workers-like-theyre-right-in-the-office" target="_blank">Fast Company</a>, </em>the number of people working from home at least one day a week increased by 80% between 2005 and 2012. These remote workers are the ideal candidates to take on the type of project-based work that is characteristic of contract assignments.</li>
<li><strong>Generation Y and Generation X choose contracting lifestyles -</strong> The newer members of the workforce<strong> </strong>like contracting because the lifestyle offers variety, flexibility, and greater control over their careers. Accordingly, we will continue to see more workers from these generations deliberately choose contract assignments over traditional jobs.</li>
<li><strong>Boomers retiring -</strong> On the other side of the equation, Baby Boomers are feeling financially secure enough to retire, creating an experience scarcity for many industries and companies. This will encourage an already growing trend known as <a title="Hot New Niche: Retiree Re-Staffing" href="https://www.topecheloncontracting.com/blog/hot-new-niche-retiree-re-staffing/"><strong>retiree restaffing</strong></a> where companies bring retirees back as consultants on a contract basis to make use of their expertise. Boomers also like the flexibility of these arrangements which let them remain effective in the workforce and supplement their retirement funds.</li>
<li><strong>Obamacare impact</strong> <strong>-</strong> The employer mandate of the Affordable Care Act (ACA or Obamacare) began rolling out January 1, 2015. This element requires employers with 50 or more full-time employees to furnish affordable healthcare insurance to those employees. Those with 100 or more employees must comply this year or be penalized, while employers with 50-99 full-time employees have a respite until 2016. We expect that the phasing in of the employer mandate will further encourage contractor usage as employers try to lower their full-time employee headcount.</li>
<li><strong>Top contract staffing industries stay the course</strong> <strong>-</strong> We predict contract staffing will remain strong in Information Technology (IT), always the ideal industry for contracting, as well as in Engineering/Manufacturing, Healthcare (white collar professionals with 4-6 years of education), and Accounting/Finance. However, contract staffing has been growing and will continue to do so for a large variety of business professionals. In fact, we don’t envision any sector remaining unaffected by contract staffing.</li>
</ol>
<p><a href="https://www.topecheloncontracting.com/files/2014/11/6-recuiting-staffing-trends-2015-8025-300x199.jpg" target="_blank"></a></p>
<p>If the economy continues to grow as predicted, it may be a very good year for recruiters. Contract staffing is a pivotal part of that growth. Therefore, one of the best ways to make certain of a successful 2015 and beyond is to ensure you are offering contract staffing as an option to both your clients and candidates.</p>Critical Obamacare Facts for Staffing Firmstag:recruitingblogs.com,2014-11-11:502551:BlogPost:18399492014-11-11T18:23:35.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p>It seems like we've been hearing about the Affordable Care Act (ACA or Obamacare) employer mandate for forever. If nothing changes, the provision will finally start to take effect January 1. With that in mind, let's review some critical facts about the law for staffing firms.</p>
<ul>
<li>If you have 50 or more full-time or "full-time equivalent" employees, you will have to provide healthcare insurance to full-time employees under the employer mandate. This includes ALL W-2 employees on your…</li>
</ul>
<p>It seems like we've been hearing about the Affordable Care Act (ACA or Obamacare) employer mandate for forever. If nothing changes, the provision will finally start to take effect January 1. With that in mind, let's review some critical facts about the law for staffing firms.</p>
<ul>
<li>If you have 50 or more full-time or "full-time equivalent" employees, you will have to provide healthcare insurance to full-time employees under the employer mandate. This includes ALL W-2 employees on your payroll, whether they are in-house employees or contractors.</li>
<li>You may NOT have to comply in 2015, though. Employers with 50-99 full-time employees can put off compliance until 2016. Keep in mind, though, that you will not qualify for this delay if you reduce your headcount specifically to put off compliance.</li>
<li>You cannot create separate divisions or firms to get around the employer mandate. <span>Companies and divisions under common ownership are considered to be one company. </span></li>
<li><span>Another bad method for avoiding costs and liability under Obamacare is ending or denying assignments. This can run afoul of Section 510 of ERISA which makes it illegal for employers to make employment decisions to keep an employee from qualifying for or keeping benefits. You could face ERISA fines and even class-action lawsuits if you try this.</span></li>
<li><span>A safer way to avoid Obamacare costs and liability is to outsource the employment of your contractors to a contract staffing back-office. As the legal employer of the contractors, the back-office becomes responsible for Obamacare compliance. This includes providing the required healthcare insurance.</span></li>
</ul>
<p><span><em>This general summary of law should not be used to solve individual problems since changes in fact situation may require a material variance as to the applicable law. This article is for information purposes only and should not be construed as legal advice.</em></span></p>
<p><em><em><a href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a href="https://www.topecheloncontracting.com/?utm_source=recruitingblogs&utm_medium=blog&utm_content=blog&utm_campaign=blog">Top Echelon Contracting, Inc.</a></em></em></p>4 Common Background Check Restrictions to Watch for When Placing Contractorstag:recruitingblogs.com,2014-11-05:502551:BlogPost:18381892014-11-05T18:30:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557545323?profile=original" target="_self"><img class="align-right" height="195" src="http://storage.ning.com/topology/rest/1.0/file/get/1557545323?profile=original" width="263"></img></a> When it comes to background check compliance, the Fair Credit Reporting Act (FCRA) gets most of the attention. However, there is more than just federal law to consider. More and more states and localities are creating their own criminal background checks laws that you must make sure are followed when checks are run on your contractors<span style="font-size: 13px;">. Even if…</span></p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557545323?profile=original" target="_self"><img src="http://storage.ning.com/topology/rest/1.0/file/get/1557545323?profile=original" width="263" height="195" class="align-right"/></a>When it comes to background check compliance, the Fair Credit Reporting Act (FCRA) gets most of the attention. However, there is more than just federal law to consider. More and more states and localities are creating their own criminal background checks laws that you must make sure are followed when checks are run on your contractors<span style="font-size: 13px;">. Even if you outsource this task to a third party background screening service or a contract staffing back-office, you still want to be sure your contractor background checks are being handled properly.</span></p>
<div class="entry-content"><p>Here are some common restrictions that are applied at the state and local levels:</p>
<ul class="golddots">
<li><strong>Ban the Box</strong> – Do you ask about contract candidates' criminal history on your application? If so, you will want to check for any Ban the Box legislation where you are placing contractors. These laws make it illegal for employers to ask applicants about criminal records. Some laws only apply to public employers. Others include private businesses. They also have different rules about when in the process you CAN ask the question. Remember that even if you are not bound by a specific law with regards to this issue, it is generally considered best practice to wait until a contingent job offer has been made.</li>
<li><strong>Arrest records</strong> – Just because someone has been arrested in suspicion of a crime doesn't mean they will be convicted. Therefore, a number of areas restrict or prohibit the use of arrest records to make employment decisions.</li>
<li><strong>Length of Time</strong> – You may also be restricted in how far back you can look. The <a title="Fair Credit Reporting Act" href="http://www.consumer.ftc.gov/sites/default/files/articles/pdf/pdf-0111-fair-credit-reporting-act.pdf" target="_blank">Fair Credit Reporting Act (FCRA)</a>, already prohibits the use of many non-conviction records that are older than seven years old. Certain areas may also apply time limits to conviction records, but some laws waive this restriction if the salary will exceed a certain amount or if the person will be working in specific positions. For example, credit reporting agencies in California generally can't disclose records that are seven years old or older. However, older records CAN be used if the person is underwriting life insurance involving $250,000 or more. In Colorado, the 7-year restriction on records can be lifted if the person will be making $75,000 or more per year.</li>
<li><strong>Taking adverse action </strong>- In some areas, you can't take adverse action based solely on a conviction. You must take other factors into account - relationship of the conviction to the specific position, how long it is has been since the candidate was convicted or released, whether or not they have been formally rehabilitated, etc.</li>
</ul>
<p>This is not a comprehensive list but rather some of the most common examples. The point is to be sure to watch out for laws that may be stricter than federal law. Keep in mind also that even if two states have a similar law, the level of restrictions within those laws may vary. The Ban the Box laws in one state may allow you to ask about a candidate's criminal background after the first interview, but in another state, you may have to wait until you have made a job offer. You can see how complicated this can be. Using a background check screening service can make it easier, but be sure to choose a reputable one that stays up on the ever-changing laws. Also, be aware that these varying laws may cause delays in running background checks. You will want to make sure your clients know how long it could take. If they require that contractors clear a background check before they can start, this could impact the start date.</p>
<p>And as always, you want to be sure that the FCRA and the EEOC’s guidelines are always followed. By staying in compliance with ALL applicable laws, you can make sure that your contractor background checks protect your firm and clients rather than causing harm.</p>
<p><em>This general summary of law should not be used to solve individual problems since changes in fact situation may require a material variance as to the applicable law. This article is for information purposes only and should not be construed as legal advice.</em></p>
</div>4 Things Staffing Firms Need to Know About Marijuana Legalizationtag:recruitingblogs.com,2014-10-28:502551:BlogPost:18360482014-10-28T16:30:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<div class="entry-content"><div class="shareaholic-canvas"><div class="shareaholic-share-buttons-container shareaholic-ui"><div class="shareaholic-share-buttons-wrapper shareaholic-ui"><p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557540282?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/1557540282?profile=RESIZE_320x320" width="300"></img></a> As several states pass laws legalizing marijuana, contractor drug testing is becoming more complicated for recruiting and staffing firms. Here are the <strong>three key things you need to know…</strong></p>
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<div class="entry-content"><div class="shareaholic-canvas"><div class="shareaholic-share-buttons-container shareaholic-ui"><div class="shareaholic-share-buttons-wrapper shareaholic-ui"><p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557540282?profile=original" target="_self"><img width="300" src="http://storage.ning.com/topology/rest/1.0/file/get/1557540282?profile=RESIZE_320x320" width="300" class="align-right"/></a>As several states pass laws legalizing marijuana, contractor drug testing is becoming more complicated for recruiting and staffing firms. Here are the <strong>three key things you need to know about state marijuana laws:</strong></p>
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<p><strong><span>1. Every state laws is different</span></strong></p>
<p>Only two states allow the <strong>“recreational”</strong> use of marijuana: Colorado and Washington. There are another 20+ states that allow the use of <a title="states with medical marijuana laws" href="http://norml.org/legal/medical-marijuana-2" target="_blank"><strong>medical</strong> marijuana</a>, but even those laws differ with regards to what types of health conditions qualify, how much may be possessed, whether it can be grown in the home, and more.</p>
<p><strong>2. Marijuana use is still illegal on the federal level. </strong></p>
<p>Smoking pot is still against the law regardless of what state laws may say. However, marijuana use is still on the rise. According to <a title="Quest Drug Testing Index" href="https://www.questdiagnostics.com/home/physicians/health-trends/drug-testing" target="_blank">the Quest Diagnostics Drug Testing Index</a>,the percentage of <strong>positive marijuana tests among American workers has increased by 6.2%</strong> in the past year. </p>
<p>That rate has risen by more than 20% in both Colorado and Washington. Besides state legalization, “relaxed societal views” are being pointed to for the increases marijuana use.</p>
<p><span><strong>3. </strong>You still have the right not to work contractors testing positive for pot. </span></p>
<p>Employment experts and attorneys agree that <strong>companies still have a right to have a drug-free policy that prohibits marijuana use. </strong>However, there are a couple of variables to consider. For instance, you can decide to allow the use of medical marijuana. Using a <a title="IntelliCorp preferred pricing for recruiters" href="https://www.intellicorp.net/marketing/branding/echelon/default.aspx" target="_blank">third party screening service</a> makes this is a little easier. They typically will ask a worker for additional information when a positive result is received. If the worker produces a prescription for the drug, you as the employer will receive a negative result and will not be aware that the contractor uses medical marijuana.</p>
<p><strong>4. Future court decisions could impact employers' ability to enforce drug-free policies in the future.</strong></p>
<p>For example, a<a title="Bloomberg on medical marijuana case" href="http://www.businessweek.com/articles/2014-08-07/medical-marijuana-user-sues-company-that-fired-her" target="_blank"> pending case in the Colorado Supreme Court</a> questions whether the state’s law against terminating employees for participating in legal activity outside of work applies to marijuana usage. In another case, a New Mexico medical marijuana user claims her termination violates the state’s Human Rights Act prohibiting discrimination against people with serious medical conditions. Other cases are questioning how the Americans with Disabilities Act applies. So far, courts have ruled in the employer’s favor, but what happens if a future case goes the employee's way or if federal law changes?</p>
<p>For now, the main thing is to just keep the issue on your radar. And as always, be sure that any drug-free policy is clear and has been enforced consistently.You also want to be sure to always follow the proper procedures under the <a title="Fair Credit Reporting Act" href="http://www.consumer.ftc.gov/sites/default/files/articles/pdf/pdf-0111-fair-credit-reporting-act.pdf" target="_blank">Fair Credit Reporting Act (FCRA)</a>.</p>
<p><em>This general summary of law should not be used to solve individual problems since changes in fact situation may require a material variance as to the applicable law. This article is for information purposes only and should not be construed as legal advice.</em></p>
<p><em><em><a href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a href="https://www.topecheloncontracting.com/?utm_source=recruitingblogs&utm_medium=blog&utm_content=blog&utm_campaign=blog">Top Echelon Contracting, Inc.</a></em></em></p>
</div>Close Your Most Difficult Job Orders By Year's End!tag:recruitingblogs.com,2014-10-23:502551:BlogPost:18353112014-10-23T18:30:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557546406?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/1557546406?profile=original" width="160"></img></a> Can you believe it is the fourth quarter of 2014 already? For many recruiters, this is "crunch time," where they try to close as many placements as possible before the end of the year. But as clients continue to <a href="https://www.topecheloncontracting.com/blog/clients-dragging-feet-hiring-decisions-heres-solution/" title="Hiring Decision Delays">drag their feet on hiring…</a></p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557546406?profile=original" target="_self"><img src="http://storage.ning.com/topology/rest/1.0/file/get/1557546406?profile=original" width="160" class="align-right"/></a>Can you believe it is the fourth quarter of 2014 already? For many recruiters, this is "crunch time," where they try to close as many placements as possible before the end of the year. But as clients continue to <a title="Hiring Decision Delays" href="https://www.topecheloncontracting.com/blog/clients-dragging-feet-hiring-decisions-heres-solution/">drag their feet on hiring decisions</a>, you may be finding it harder to reach that goal. You can try talking up your best candidates and warning clients about the dangers of long hiring processes, but you can't force them into hiring decisions before they are ready.</p>
<p>There is another possible solution, though: <strong>contract-to-direct hire arrangements</strong>. These arrangements allow companies to initially utilize a worker on a contract basis and later convert them to a direct hire if they want.</p>
<p>This addresses a number of traditional job order killers, including:</p>
<ol>
<li><strong>Hiring freezes and budget constraints - </strong>Companies are also are taking a hard look at their bottom lines this time of year. As a result, they may scale back or freeze hiring plans. This can put your current job orders with them at risk, but don't give them up for dead. Sure, hiring freezes and constraints keep clients from hiring direct, but they may be able to utilize contractors because they typically come from a different budget than direct hires. When the budget loosens up or they start a new fiscal year, they may then be able to convert the contractors to direct hires.</li>
</ol>
<ol start="2">
<li><strong>Economic instability - </strong>Even companies who are doing well are still worried about the economy, and with good reason. The upcoming Congressional elections could result in total upheaval where there is already political unrest. Employment regulations keep increasing. And no one knows what the upcoming employer mandate of the Affordable Care Act (ACA or Obamacare) will do to the economy and individual businesses. With all these question marks, companies are feeling less than secure about permanently adding to their overhead. With contract-to-direct, they can address their staffing needs risk-free. If the economy does go south, they can end the contracts, but if it gets more stable, they can extend direct hire offers to their contractors.</li>
</ol>
<ol start="3">
<li><strong>The "Perfect Candidate Syndrome" - </strong>When companies do need to hire, they seem to be holding out for the “perfect” candidate. Great candidates are being turned down if they don't have 100% of the company's requested qualifications. For recruiters presenting great candidates, this is extremely frustrating. If a client is on the fence about a candidate you believe in, you can offer that candidate on a contract-to-direct basis. That way they can evaluate the candidate on the job. If the candidate is a great fit, the client can then convert them to a direct hire. If not, the company can end their contract and try someone else. This option is increasingly being used by companies to ensure cultural fit.</li>
</ol>
<p><br/> Besides saving placements, contract-to-direct also gives you the opportunity to make more money. You are paid for every hour the candidate works during the contract period and even more if they work overtime. Plus, <strong>you can earn a conversion fee</strong> if company hires them direct.</p>
<p>Offering your clients the contract-to-direct alternative can not only help you end 2014 on a high note but also strengthen your relationships with clients, ensuring many successful years to come.</p>
<p><em><em><a href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a href="https://www.topecheloncontracting.com/?utm_source=recruitingblogs&utm_medium=blog&utm_content=blog&utm_campaign=blog">Top Echelon Contracting, Inc.</a></em></em></p>The Solution to Retirement-Driven Skills Shortagestag:recruitingblogs.com,2014-10-16:502551:BlogPost:18333782014-10-16T20:50:28.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p>Just as news about the economy is finally starting to take a more positive slant, companies face another challenge: the loss of experienced and knowledgeable workers due to Baby Boomer retirements.</p>
<p>Of course, this is no surprise. Approximately 76 million people were born between 1946 and 1964, placing them in the Baby Boomer generation. The financial crisis delayed the inevitable as many Americans found their retirement funds depleted and were forced to delay retirement. But Boomers…</p>
<p>Just as news about the economy is finally starting to take a more positive slant, companies face another challenge: the loss of experienced and knowledgeable workers due to Baby Boomer retirements.</p>
<p>Of course, this is no surprise. Approximately 76 million people were born between 1946 and 1964, placing them in the Baby Boomer generation. The financial crisis delayed the inevitable as many Americans found their retirement funds depleted and were forced to delay retirement. But Boomers are starting to feel more comfortable and are beginning to retire. The labor force participation rate for those 55 and over rose during the recession, but now is on a downward trend, according to <a href="http://fivethirtyeight.com/features/what-baby-boomers-retirement-means-for-the-u-s-economy/" target="_blank"><em>FiveThirtyEight Economics</em></a>. Additionally, 17% of Baby Boomers now identify themselves as retired compared to 10% in 2010</p>
<p>Even with the "advanced notice" and the number of available workers still in the marketplace, Baby Boomers have many traits that make them nearly irreplaceable:</p>
<blockquote><ol>
<li><strong>Work ethic</strong>— Many Baby Boomers defined themselves in large part by their work and were known for their "nose to the grindstone" philosophy.</li>
<li><strong>Leadership</strong>—The presence and the knowledge if these workers can be invaluable to an organization and can have a major impact on younger workers.</li>
<li><strong>Perspective</strong>— In contrast to our “Immediate Gratification” modern society, Boomer have the admirable ability to put things into a long-term perspective.</li>
<li><strong>Experience</strong>—Not only are the years they spent at a specific company valuable, but experience in the industry as a whole is a great resource for companies. </li>
</ol>
</blockquote>
<p>The last one, of course, is the big one. Experience cannot be gained overnight. It is so vital in some industries and companies that the sudden loss of certain experienced workers can be crippling. For example, <a title="companies retain older workers" href="http://www.staffingindustry.com/Research-Publications/Publications/CWS-3.0/July-2-2014/Retiring-Not-so-fast-say-employers" target="_blank">Staffing Industry Analysts</a> points to high-level technical engineering, an area where skills shortages have already been reported. Some of these careers are not being pursued by younger workers. Even when they are, they require years of hands-on-experience. Companies are starting to reach out to youngsters as early as high school to try to drum up interest in these careers, but that does not solve the immediate problem.</p>
<p>Some companies are actually asking their retirement-aged workers to stay longer. In a trend called Retiree Restaffing companies are also bringing back retired workers as consultants on a contract basis. Not only does the company benefit from the retiree’s knowledge and experience, but these arrangements also meet the needs of retirees who need to supplement their retirement income or want to be engaged in the workforce on a limited basis. Working on a contract basis provides them with the income and flexibility they are seeking. Currently, 33% of “independent workers” (contractors, temps, freelancers, etc.) fall into the Baby Boomers generation.</p>
<p>There is a potential problem, though. Companies often try to re-engage these workers as Independent Contractors who are paid on a 1099 rather than W-2. This provides tax advantages to both the company and worker, but often these workers don't meet the <strong>IRS' <a title="IRS Independent Contractor Guidelines" href="http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee" target="_blank">strict guidelines</a> for proper Independent Contractor classification. </strong>The more right a company has to control and direct the worker, the less likely it is that the worker can be an Independent Contractor Government agencies on the state and federal level have been cracking down on worker misclassification. Bringing back a retiree who was previously paid on W-2 and suddenly paying them on 1099 could be a major red flag. </p>
<p>You can offer a <strong>safer alternative. </strong>Offer to make the worker a W-2 contractor and <strong>outsource their employment to a contract staffing back-office.</strong> If the company has candidate in mind, great. If not, you can recruit an older worker with experience in the industry to help them bridge their skills/knowledge gap.</p>
<p>Numerous recruiting firms are now concentrating solely on placing older workers in contract positions in response to the Retiree Restaffing trend. You don’t need to limit your placements to Boomers in order to be successful, though. All you need to do to cash in on this trend is offer Retiree Restaffing to clients and have retirees in your database who would be willing to return to the workforce on a contract basis.</p>
<p><em><em><a href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a href="https://www.topecheloncontracting.com/?utm_source=recruitingblogs&utm_medium=blog&utm_content=blog&utm_campaign=blog">Top Echelon Contracting, Inc.</a></em></em></p>The Secrets of Contract Staffing Success as Told By a Veteran Recruitertag:recruitingblogs.com,2014-10-02:502551:BlogPost:18302482014-10-02T15:30:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><img class="align-left" height="223" src="http://storage.ning.com/topology/rest/1.0/file/get/1557537432?profile=RESIZE_480x480" width="335"></img></p>
<p>Recruiting is all about relationships. Contract staffing is no exception. Getting contract job orders depends on your ability to nurture existing relationships with clients and creating new ones.</p>
<p>When it comes to <a href="https://www.topecheloncontracting.com/blog/5-ways-build-stronger-recruiter-client-relationships/" title="Build Recruiter-Client Relationships">building client relationships</a> <strong>Linda Blakemore, President and Owner of the …</strong></p>
<p><img width="406" src="http://storage.ning.com/topology/rest/1.0/file/get/1557537432?profile=RESIZE_480x480" width="335" class="align-left" height="223"/></p>
<p>Recruiting is all about relationships. Contract staffing is no exception. Getting contract job orders depends on your ability to nurture existing relationships with clients and creating new ones.</p>
<p>When it comes to <a title="Build Recruiter-Client Relationships" href="https://www.topecheloncontracting.com/blog/5-ways-build-stronger-recruiter-client-relationships/">building client relationships</a> <strong>Linda Blakemore, President and Owner of the <a href="http://www.apgsearch.com/" target="_blank">Atlantic Pacific Group</a> in Laguna Beach</strong>, is an expert. That explains why she has been so successful on both the contract staffing and direct hire sides of her business. She shared some of her <strong>secrets for success</strong> with us:<strong> </strong></p>
<h4><strong>LISTEN to Clients</strong></h4>
<p>Really listening to clients may be the most important step to relationship building. It starts by asking the right questions to learn what their biggest staffing challenges are. Then you can recommend the best solution, whether it be a direct hire, contractor, contract-to-direct arrangement, or another staffing alternative. Focusing on their specific staffing challenges allows to to be more than just a vendor and instead become what Blakemore calls a <strong>“Talent Acquisition Partner.”</strong> </p>
<h4><strong>Niche Selection is Key</strong></h4>
<p>Fortunately, you are probably already in the niche that will allow you the best chance for success. You know your current niche well and already have a stable of candidates who may also be willing to work on contract. This was the case for Blakemore. She had a strong client base and stable of candidates in the human resources, accounting, and finance niche. The pool of candidates was especially important because it allowed her to present contract candidates quickly, and speed is of the essence in contract placements. If you cannot successfully generate contract staffing leads in your current niche, there are many other <a title="Hot Industries for Contract Staffing 2013" href="https://www.topecheloncontracting.com/blog/hottest-industries-contract-staffing-2013/">hot industries for contract staffing</a> to explore, such as <strong>Information Technology, Healthcare, and Manufacturing/Engineering.</strong></p>
<h4>Talk to the Right People</h4>
<p>Conventional wisdom has been for recruiter to go to hiring managers or department heads for contract job orders because they were the ones with the staffing needs. That is changing. As contractors are utilized more extensively as part of the new blended workforce model, HR is often responsible for ALL talent acquisition in medium to large size companies. Therefore, they likely will know where the open positions are in the entire organization. And if they are in charge of selecting approved vendors, you won't get very far if you don't go to them first. Even if you are working directly with the hiring manager, try to keep HR in the loop. “If you try to go around HR, you are not going to win any brownie points,” Blakemore said.</p>
<h4><strong>Tell Them About Contracting, and Then Tell Them Again</strong></h4>
<p>You should introduce your contract staffing services during your very first meeting with a potential client. “I typically introduce myself to clients from a search perspective, but during the first meeting, I also let them know that I provide contractors in that specific niche,” Blakemore said. Don't forget to notify all your current direct hire clients, too. Statistics show that <strong>80% of</strong> <strong>a</strong> r<strong>ecruiter's contract staffing business comes from their direct hire clients. </strong>“Keep reminding them. They will forget you had that conversation three or six months later,” she added.</p>
<h4><strong>Follow up </strong></h4>
<p>Following up initial conversations with a <a title="contract staffing marketing document" href="https://secure.topecheloncontracting.com/recruiters/marketing.aspx">marketing document</a> gives clients a tangible reminder about your firm and its contract staffing services. Blakemore's marketing information tells clients about the staffing alternatives she offers, including contract staffing, payrolling, and contract-to-direct hire. It also explains the simply weekly process for contracting and provides key information on insurance coverage.<strong> </strong></p>
<h4><strong>Referrals</strong></h4>
<p>A side effect of positioning yourself as THE source and expert in your niche is referrals. Clients will love to talk about you if you solve their staffing problems. Candidates will also be happy to spread the word to other candidates, especially if you pay candidates well and offer them quality benefits. “I’ve learned that professional contract candidates want a great <a title="Contractor Benefits" href="https://www.topecheloncontracting.com/contract-workers/benefits/">benefits</a> package,” Blakemore said. “My back-office offers them medical, dental, vision, and life insurance, plus a 401(k). The benefits not only attract quality candidates, they help you to retain them and place them on one contract assignment right after another. Your clients and candidates can be one of your best lead generators.”</p>
<p>Again, <strong>it all comes down to relationships, relationships, relationships.</strong> Get to know your clients. Get to know their culture. Find out what their pain points are. By doing so, you will become a true business partner who will be able to get ALL your clients job orders, contract and direct. Same thing goes with candidates…. Relationships!</p>
<p><em><em><a href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a href="https://www.topecheloncontracting.com/?utm_source=recruitingblogs&utm_medium=blog&utm_content=blog&utm_campaign=blog">Top Echelon Contracting, Inc.</a></em></em></p>Will Obamacare Be a Windfall or Downfall for Your Recruiting Firm?tag:recruitingblogs.com,2014-09-18:502551:BlogPost:18273272014-09-18T13:30:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557536448?profile=original" target="_self"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/1557536448?profile=RESIZE_320x320" width="250"></img></a> It looks like the highly debated <strong>employer mandate</strong> provision of the Affordable Care Act (ACA or Obamacare) may really go into effect. Barring any last minute changes, the mandate will be effective on January 1, 2015, for certain employers. </p>
<p>Employers have been preparing for this for some time. Some have instituted hiring freezes or cut employee hours to…</p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557536448?profile=original" target="_self"><img width="250" src="http://storage.ning.com/topology/rest/1.0/file/get/1557536448?profile=RESIZE_320x320" width="250" class="align-left"/></a>It looks like the highly debated <strong>employer mandate</strong> provision of the Affordable Care Act (ACA or Obamacare) may really go into effect. Barring any last minute changes, the mandate will be effective on January 1, 2015, for certain employers. </p>
<p>Employers have been preparing for this for some time. Some have instituted hiring freezes or cut employee hours to reduce or eliminate their costs under the law. Obviously, this is bad news for direct hire recruiters. Less hiring means fewer direct hire job orders. But <strong>recruiters who also provide contract staffing services could find the employer mandate</strong> <strong>to be a huge windfall.</strong></p>
<p>First, let's quickly review <strong>what the employer mandate actually is.</strong> It is the provision of the ACA that requires employers with 50 or more full-time or “full-time equivalent” employees to provide health coverage to its full-time employees. The provision will first kick in for those with 100 or more employees, who must start providing coverage on January 1, 2015. Those with between 50-99 employees can delay compliance until January 2016 as long as they don't reduce their workforces specifically to qualify for the delay.</p>
<p>Failure to comply can result in a <strong>$2,000 penalty per employee</strong> per year. Employers could also incur a penalty if they provide coverage but that coverage does not meet the law's minimum value and/or affordability standards.</p>
<p>But offering coverage can be cost prohibitive, too, especially for employers that don’t currently offer health insurance. Besides the employer contributions, there are also costs associated with understanding the law and administering the benefits. </p>
<p>Employers using hiring freezes, hour reductions, and layoffs to avoid the mandate risk their company's growth, productivity, profitability, and ability to attract quality workers. Some may think 1099 independent contractors (ICs) would be a better option, but the risks associated with that can be even worse. The IRS has strict guidelines for who can be an IC. If an employer is found to have misclassified ICs, they not only face the traditional fines, penalties, and back wages but once the employer mandate kicks in, they could also incur <a title="independent contractor misclassification obamacare fines" href="https://www.topecheloncontracting.com/blog/misclassifying-independent-contractors-may-trigger-obamacare-fines/">fines for failing to offer insurance to the misclassified workers</a> under that employer mandate. </p>
<p>Another safer option is for companies to use contractors who are the legal employees of a <strong>contract staffing provider (back-office)</strong>. As the legal employer, the back-office is responsible for providing healthcare insurance and the cost and administrative burden that comes with it.</p>
<p><strong>This is where you can turn Obamcare into a windfall for your firm.</strong> You can be the one to recruit and provide the contractors to your clients and then outsource their employment to a contract staffing back-office service. While Obamacare may result in the lost of some direct hire job orders, you can easily replace them with contract staffing job orders . . . and enjoy the consistent income that comes with those placements.</p>
<p>This can also help you attract star candidates. Under the ACA's "individual mandate," most Americans must now carry health insurance that meets the regulated minimum value standard. Many catastrophic plans some ICs carry don’t comply, so they have to find an individual plan that does, either privately for through the state or federal exchanges. You can provide another option - making them a contractor who is the legal employee of a contract staffing back-office that provides ACA-compliant healthcare insurance. This allows them to continue to enjoy the variety and freedom they have as an IC along with the perks that come with being a W-2 employee.</p>
<p>The first step to turning the employer mandate into a windfall for your firm is to align yourself with a quality contract staffing back-office that will become the legal W-2 employer for the contractors you place. Otherwise, YOU could be liable for ACA compliance. <strong>The back-office should be ACA-compliant and provide health coverage to your contractors.</strong></p>
<p>Will Obamacare be a downfall or a windfall for your firm? By providing contractors employed through a quality contract staffing back-office, you have the opportunity to turn it into a windfall. The choice is yours!</p>
<p><em>This article is for informational purposes only and should not be construed as legal advice.</em></p>
<p><em><em><a href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a href="https://www.topecheloncontracting.com/?utm_source=recruitingblogs&utm_medium=blog&utm_content=blog&utm_campaign=blog">Top Echelon Contracting, Inc.</a></em></em></p>Contract Staffing No Longer Last Resort for Candidatestag:recruitingblogs.com,2014-09-11:502551:BlogPost:18256032014-09-11T18:51:12.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p>Once upon a time, workers typically took contract staffing positions when they couldn't find a direct hire position. Those days are gone. Now, many workers WANT to be contractors. <strong>Contracting is not a last resort. It's a conscious choice.</strong></p>
<p>Currently, 17.7 million Americans are identified as "independent workers (contractors, temps, freelancers, business owners, etc.), according to the…</p>
<p>Once upon a time, workers typically took contract staffing positions when they couldn't find a direct hire position. Those days are gone. Now, many workers WANT to be contractors. <strong>Contracting is not a last resort. It's a conscious choice.</strong></p>
<p>Currently, 17.7 million Americans are identified as "independent workers (contractors, temps, freelancers, business owners, etc.), according to the <a title="State of Independence in America report" href="http://www.mbopartners.com/state-of-independence/independent-workforce-index.html" target="_blank">2013 MBO Partners State of Independence in America report</a>. The majority of them (77% ) say they want to remain independent. The fact that direct hire employment is not the end goal marks a major shift in the American workforce. Let's see why this is happening.</p>
<ol>
<li><strong>Flexibility -</strong> In the MBO Partners study, 73% of the participants said <strong>flexibility is more important than making the most money. </strong>This isn't all that surprising given the increasing emphasis on “work-life balance.” For workers juggling work and family obligations, flexibility isn’t just a perk, it’s a necessity. Contracting can help them gain that flexibility by allowing them to work more convenient hours, work away from the office, and take more time off.</li>
<li><strong>Satisfaction, Challenge, and Meaning -</strong> Many workers want to do more than just earn a paycheck. They want to do something that provides satisfaction, challenge, and meaning in their work This is especially true of Millennials. Contract assignments can fulfill this need because companies often use contractors to meet critical deadlines or complete projects, allowing workers to quickly see the impact of their work. Once they are done with assignment, they are able to move on to new challenging projects, preventing boredom. Contracting is a great solution for workers stuck in jobs where they see little opportunity for advancement.</li>
<li><strong>Financial Security - </strong>No matter how important flexibility and job satisfaction may be to candidates, they still need to make a living. The days of spending your entire career with one company are gone, and the illusion of <a href="https://www.topecheloncontracting.com/blog/contract-jobs-secure-direct-hire/?utm_source=recruitingblogs&utm_medium=blog&utm_content=choosing-contracting&utm_campaign=contractor-advantages" target="_self">job security</a> was shattered with the mass layoffs of the recession. In contract assignments, workers know from the get-go that their assignments are temporary. They usually know approximately when they will end rather than being blindsided by a sudden layoff. They often work with recruiters who have a vested interest in keeping them actively working in contract assignments. They are also paid for every hour worked and can earn overtime for any hours worked over 40 during a work week. When they are employed through a contract staffing back-office, they usually also have access to a full menu of benefits, including Affordable Care Act-compliant healthcare insurance; dental, vision, and life insurance; and 401(k).</li>
</ol>
<p><strong>Recruiters: Are You On Board?</strong></p>
<p>One reason some recruiters shy away from offering contract staffing is because they are afraid they won't be able to find contract candidates. But as you can see, that should not be a problem. So what is stopping you? Tell clients that you offer contract staffing. Tell candidates about contract staffing opportunities. Advertise contract staffing on your website. You will be placing contractors before you know it!</p>
<p><em><em><a href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a rel="nofollow" href="https://www.topecheloncontracting.com/?utm_source=recruitingblogs&utm_medium=blog&utm_content=blog&utm_campaign=blog">Top Echelon Contracting, Inc.</a></em></em></p>Is Your Recruiting Firm at the Mercy of the Economy?tag:recruitingblogs.com,2014-09-03:502551:BlogPost:18241142014-09-03T17:30:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p>As a recruiter, have you ever felt like your livelihood was at the mercy of economic whims? That you are travelling down a winding path without a map? If so, taking a look at recent statistics could provide the map you are looking for. <strong>All signs pointing to contract staffing in all economic conditions</strong>.</p>
<p>Forty-two percent of employers told CareerBuilder that they planned to hire contractors in 2014. If you look at the Bureau of Labor Statistics jobs reports for the past…</p>
<p>As a recruiter, have you ever felt like your livelihood was at the mercy of economic whims? That you are travelling down a winding path without a map? If so, taking a look at recent statistics could provide the map you are looking for. <strong>All signs pointing to contract staffing in all economic conditions</strong>.</p>
<p>Forty-two percent of employers told CareerBuilder that they planned to hire contractors in 2014. If you look at the Bureau of Labor Statistics jobs reports for the past several months, it appears employers are following through with their plans as the "Temporary Employment Services" penetration rate continues to rise. That rate, which calculates the number of contract jobs as a percentage of total employment, <strong>has risen for 19 of the past 20 months</strong>, according to Bloomberg.</p>
<p>It's typical for contract staffing to grow following a recession as employers test the hiring waters, but usually it declines again when the overall job market rebounds. This time around, contract staffing growth continues<strong> despite solid overall job growth</strong>.</p>
<p>It appears that there is a fundamental shift in the employment landscape where <strong>employers are utilizing contractors as part of an ongoing strategy in a blended workforce model </strong>. Let’s see what is driving this shift.</p>
<ol>
<li><strong>Rising Healthcare Insurance Costs </strong>- Employers of all sizes, especially those that will be subject to the upcoming employer mandate of the Affordable Care Act (ACA), are struggling with increasing healthcare costs. How will they cover those costs? Contract staffing provides a solutions. A third party (recruiting firm or contract staffing back-office) becomes the legal employer for the contractors and assumes responsibility for providing benefits.</li>
<li><span style="font-size: 1em;"><strong>Increasing Regulatory Burden</strong> - Besides </span>Obamacare, employment regulation in general is increasing on the federal, state, and even local levels. Again, contract staffing offers relief from this regulatory burden because the third party employing the contractors assumes all of the responsibility and liability for legal compliance.</li>
<li><strong style="font-size: 1em;">Political Unrest - </strong>Employers are still keeping a cautious eye on Washington as Congress continues to dispute issues that impact employment (spending debates, tax code, immigration reform, etc.). The November elections also promise some upheaval because all of the House of Representative seats and a third of the Senate seats will be contested.Contractors provide a level of flexibility in this volatile economy. Companies can quickly add staff when they have the business to support it and just as quickly reduce staff to respond to economic changes.</li>
<li><strong style="font-size: 1em;">Getting the Right Fit </strong>- While the jobs reports show that companies are finally warming up to hiring, they only seem to want to do so if they can find the perfect candidate. According to <em>The</em> <em>Washington Post</em> recently reported that <strong>it takes 25 working days for companies to fill the average job opening</strong>, the longest delay recorded since tracking of this statistic began in 2001. To ensure the perfect fit, more companies are turning to <strong>contract-to-direct arrangements</strong> where a candidate is brought in on a contract basis so the company can evaluate their skills on the job. </li>
<li><strong style="font-size: 1em;">Candidates Forge New Path - </strong>More workers are adopting contract staffing as a lifestyle to gain needed flexibility. Due to their project-based nature, contract positions typically allow a greater array of scheduling options. And because contractors are typically paid on an hourly basis and are paid for every hour they work, their earning potential is higher. Workers also like the variety contract assignments offer.</li>
</ol>
<p>These issues are not going away anytime soon, so we can only expect contract staffing growth to continue. Experts expect contractors to comprise 40-50% of the American workforce by 2020. That is why contract staffing should be a key component of your strategic planning, helping you<strong>:</strong></p>
<ol>
<li><strong>Smooth peaks and valleys of direct hire.</strong> Because you are paid for every hour your contractors work, contracting provides steady, predictable income to sustain your business between direct hire placements.</li>
<li><strong>Secure client loyalty.</strong> There is no better way to strengthen client relationships than being able to satisfy ALL their staffing needs (direct hire AND contract staffing).</li>
<li><strong>Close more placements.</strong> Again, contract-to-direct arrangements help you speed up the hiring process. It also can addrss other issues that can kill placements, such as hiring freezes, placement fee objections, and more.</li>
<li><strong>Exit strategy.</strong> Eventually you will want or need to sell your business, whether it is to retire, do something different, or other reasons. Contract staffing makes your firm more valuable due to the consistent income your contractors are generating for it.</li>
</ol>
<p>Yes, the economy can play a huge role in your success as a recruiter but you have options. By adding contract staffing to your business model, you can take the wheel of your future and establish a map to success!</p>
<p><em><em><a rel="nofollow" href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a rel="nofollow" href="http://www.topecheloncontracting.com/">Top Echelon Contracting, Inc.</a></em></em></p>Millennials Ready to Change the Workforce - Is Your Firm Ready for Them?tag:recruitingblogs.com,2014-08-27:502551:BlogPost:18229602014-08-27T17:00:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557536821?profile=original" target="_self"><img class="align-left" height="174" src="http://storage.ning.com/topology/rest/1.0/file/get/1557536821?profile=RESIZE_320x320" width="246"></img></a> It appears that Millennials (or Generation Y if you prefer) aren't just a part of the workforce, they are poised to take it over and make fundamental changes.</p>
<p><strong>The most common age in the current workforce is now 22,</strong> followed by 23 and 21, according to …</p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557536821?profile=original" target="_self"><img width="300" src="http://storage.ning.com/topology/rest/1.0/file/get/1557536821?profile=RESIZE_320x320" width="246" class="align-left" height="174"/></a>It appears that Millennials (or Generation Y if you prefer) aren't just a part of the workforce, they are poised to take it over and make fundamental changes.</p>
<p><strong>The most common age in the current workforce is now 22,</strong> followed by 23 and 21, according to <a title="Common age in workforce" href="http://www.thewire.com/national/2014/05/celebrate-millennials-you-now-represent-the-most-common-age/371521/" target="_blank">TheWire.com</a> For the first time since 1947, the most popular age in the workforce no longer falls into the Baby Boomer generation.</p>
<p>This puts Millennials, those born roughly between the early 80's and early 2000's, in the position to really influence how work works. To some who stereotype this group as as self-entitled job hoppers, this may be seen as a bad thing.</p>
<p>But renowned employee recognition expert <a title="employee recognition expert" href="http://www.drbobnelson.com/" target="_blank">Dr. Bob Nelson</a> recently urged his email subscribers to<strong> embrace this movement because </strong>Millennials can make positive changes in the workforce, including:</p>
<ol>
<li>Putting an emphasis on meaningful work</li>
<li>More recognition and respect for workers</li>
<li>Autonomy and flexibility</li>
<li>Opportunities to constantly learn and grow</li>
<li>Incorporating fun into the workplace</li>
</ol>
<p><span>"I’m convinced that as the Millennials come to dominate the workplace in number (an estimated 48% of all workers will be from the Millennial generation by 2020 and 75% of all workers by 2025), so too will <strong>they come to dominate workplace attitudes and expectations</strong>," Dr. Nelson said.</span></p>
<p>As this happens, it appears that a number of them will achieve their goals through alternative staffing arrangements. Statistics show that <strong>40-50% of the American workforce will be contingent by the year 2020.</strong> This trend has already begun as more than half of "independent workers"(contractors, freelancers, consultants, etc.) stated in the <a href="http://info.mbopartners.com/rs/mbo/images/2013-MBO_Partners_State_of_Independence_Report.pdf">MBO Partners 2013 State of Independence Report</a> that they <strong>deliberately chose an independent work arrangement</strong> <strong>over traditional direct hire positions</strong>. The reasons echo the desires listed above. For 78% of independent workers, making a difference with their work was a key benefit to their work arrangement. Forty-five percent chose independent work because their previous employers did not recognize their value.</p>
<p>Specifically, structured contract staffing arrangements are gaining popularity. Contract staffing is when workers perform services for one company while being the legal employer of a third party, such as a recruiting/staffing firm or a contract staffing back-office. Due to the project-based nature of contract assignments, workers enjoy a wider range of flexible scheduling options and the opportunity to continually learn and grow through a variety of projects. It is also <strong>easier for them to see the impact of their work because they are often working on projects or meeting critical deadlines.</strong></p>
<p>Workers in contract staffing arrangements can enjoy this flexibility, variety, and job satisfaction without sacrificing the perks of traditional employment. Because contractors are the legal employees of a third party, they receive a regular paycheck, typically with direct deposit, and are often offered benefits, including health, dental, vision, and life insurance and 401(k).</p>
<p>Yes, <a title="5 Tips for Avoiding Challenges in Recruiting Millennials" href="https://www.topecheloncontracting.com/blog/5-tips-avoiding-millennial-recruiting-challenges/">placing Millennials can sometimes be challenging</a>, but <strong>they are the future of the American workforce.</strong> You can attract and retain top-notch Millennial candidates by offering a variety of enticing contract opportunities. And if you can't offer the benefits and other perks they are seeking, no worries. You can outsource their employment to a contract staffing back-office that does have the ability to offer those things.</p>
<p><em><em><a href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a rel="nofollow" href="http://www.topecheloncontracting.com/">Top Echelon Contracting, Inc.</a></em></em></p>Protecting Your Firm and Client From Co-Employmenttag:recruitingblogs.com,2014-08-21:502551:BlogPost:18220982014-08-21T19:30:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557534669?profile=original" target="_self"><img class="align-left" height="166" src="http://storage.ning.com/topology/rest/1.0/file/get/1557534669?profile=RESIZE_320x320" width="248"></img></a> If you outsource the contract staffing back-office tasks or are considering doing so, it's probably because you are trying to avoid the liability associated with having contractors.</p>
<p>But without a properly established relationship between you, your back-office, your client, and your candidate, you could end up stuck with employment liability and…</p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557534669?profile=original" target="_self"><img width="200" src="http://storage.ning.com/topology/rest/1.0/file/get/1557534669?profile=RESIZE_320x320" width="248" class="align-left" height="166"/></a>If you outsource the contract staffing back-office tasks or are considering doing so, it's probably because you are trying to avoid the liability associated with having contractors.</p>
<p>But without a properly established relationship between you, your back-office, your client, and your candidate, you could end up stuck with employment liability and responsibility.</p>
<p>Co-employment is when two or more parties share potential or actual employer responsibilities for an employee. If there is an employment law violation in a contract staffing situation, <strong>the </strong><strong>liability</strong><strong> could be shared by all of the "co-employers." </strong></p>
<p>You want to make sure this is not you . . . or your client. A key way to ensure that is to make sure your contract staffing back-office service has<strong> contractual documents in place with the end client AND the candidate (contractor).</strong></p>
<p>Let's start with the master agreement between the back-office and the end client. A properly worded master agreement should leave no doubt who is the legal employer. In fact, it should specifically state that the back-office is the contractor's legal employer. It should also spell out the responsibilities the back-office will assume, including:</p>
<ul class="golddots">
<li>Payroll, including withholding and paying all applicable taxes</li>
<li>Complying with all federal, state, and local laws, including:<ul>
<li>Title VII of the Civil Rights Act of 1964</li>
<li>The Civil Rights Act of 1966</li>
<li>The Equal Pay Act</li>
<li>The Americans with Disabilities Act of 1990 (ADA)</li>
<li>The Occupational Safety and Health Act (OSHA)</li>
<li>Wage and hour laws</li>
<li>Family and medical leave laws</li>
<li>Military leave laws</li>
<li>Immigration and naturalization laws</li>
</ul>
</li>
<li>Offering Affordable Care Act-compliant benefits</li>
<li>Carrying the proper insurances policies (Commercial General Liability, Professional Liability, etc.)</li>
<li>Workers' Compensation</li>
</ul>
<p>An employment agreement should also be in place between the back-office and the candidate. The contractor should acknowledge in this agreement that <strong>they are not, under any circumstance, the employee of the end client.</strong> The agreement should also have the contractor waive any right or claim to participate in the end client's benefit benefits or compensation plans.</p>
<p>The proper contractual agreements can go a long way to protecting you and your client from legal liability. Make sure that your back-office has these contractual agreement with the end client and candidate so you don't have any surprises along the way.</p>
<p><em><em><a rel="nofollow" href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a rel="nofollow" href="http://www.topecheloncontracting.com/">Top Echelon Contracting, Inc.</a></em></em></p>Financial Stakes for Worker Misclassifcation Getting Steepertag:recruitingblogs.com,2014-08-12:502551:BlogPost:18206532014-08-12T18:37:51.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557535944?profile=original" style="float: left;" target="_self"><img class="align-full" height="198" src="http://storage.ning.com/topology/rest/1.0/file/get/1557535944?profile=original" width="256"></img></a> Incorrectly classifying 1099 independent contractors (ICs) as W-2 employees has been a risky proposition for quite some time now. But as government agencies increasingly work together to end the practice, the financial stakes keep getting higher. </p>
<p>The government is very concerned about worker misclassification due to the loss of tax revenue it…</p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557535944?profile=original" style="float: left;" target="_self"><img src="http://storage.ning.com/topology/rest/1.0/file/get/1557535944?profile=original" width="256" class="align-full" height="198"/></a>Incorrectly classifying 1099 independent contractors (ICs) as W-2 employees has been a risky proposition for quite some time now. But as government agencies increasingly work together to end the practice, the financial stakes keep getting higher. </p>
<p>The government is very concerned about worker misclassification due to the loss of tax revenue it causes. When companies classify workers as ICs, they don't pay the employer portion of taxes on those workers. Therefore,the Obama administration has been cracking down on this practice.</p>
<p>For a long time, the IRS was somewhat of a lone ranger in this crackdown. However, that changed when the Department of Labor (DOL) launched its Misclassification Initiative in 2011. The DOL has since <a href="http://www.dol.gov/opa/media/press/whd/WHD20132180.htm" target="_self">collected more than $18.2 million in back wages</a> for more than 19,000 workers. But the real key to the Misclassification Initiative is the "Memorandums of Understanding" the DOL is signing with the IRS and state agencies. By signing these MOU's, the DOL and the other agencies agree to share information about worker misclassification cases. Therefore, employers are likely to face a wider range of costs, including:</p>
<ul class="golddots">
<li>Back taxes, failure-to-pay penalties, and late filing penalties</li>
<li>Back pay, including overtime, and liquidated damages</li>
<li>Back unemployment taxes and penalties</li>
<li>Penalties for failing to pay Workers’ Compensation premiums</li>
<li>Civil penalties (for example, in California, civil penalties can reach $25,000 per violation!)</li>
<li>Penalties for missing I-9 forms (required for employees)</li>
<li>Interest on back taxes</li>
<li>Attorneys fees</li>
</ul>
<p>Do your clients utilize ICs? If so, you may want to urge them to to look at their IC workforce to ensure that everyone really qualifies for that classification. Each IC should meet the IRS guidelines, which can be found at <a href="http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee" target="_blank">http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee</a></p>
<p>You can provide additional help by converting their ICs to W-2 employees whose employment is outsourced to a contract staffing back-office. This allows them to avoid the employment costs and hassles without risking the financial implications that come with misclassification.</p>
<p><em><em><a rel="nofollow" href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a href="http://www.topecheloncontracting.com/">Top Echelon Contracting, Inc.</a></em></em></p>How to Become the Recruiter of Choice for Contractorstag:recruitingblogs.com,2014-08-06:502551:BlogPost:18194622014-08-06T15:30:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557538261?profile=original" target="_self"><img class="align-left" height="124" src="http://storage.ning.com/topology/rest/1.0/file/get/1557538261?profile=original" width="186"></img></a> It appears that we are now entering a candidate-driven market in BOTH the direct hire AND contract staffing worlds. As candidates increasingly <a href="http://www.topecheloncontracting.com/blog/contract-jobs-secure-direct-hire/" title="Is Contract Staffing MORE Secure Than Direct Hire?">choose contract staffing as a lifestyle,</a> recruiters are becoming more concerned about…</p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557538261?profile=original" target="_self"><img src="http://storage.ning.com/topology/rest/1.0/file/get/1557538261?profile=original" width="186" class="align-left" height="124"/></a>It appears that we are now entering a candidate-driven market in BOTH the direct hire AND contract staffing worlds. As candidates increasingly <a title="Is Contract Staffing MORE Secure Than Direct Hire?" href="http://www.topecheloncontracting.com/blog/contract-jobs-secure-direct-hire/">choose contract staffing as a lifestyle,</a> recruiters are becoming more concerned about being <strong>the recruiter of choice for contract candidates</strong>.</p>
<p>The first step towards this is understanding what contract candidates want. Fortunately, it's not all that different from what ALL workers want, but how recruiters go about satisfying those needs may be a little different than it is for direct hire candidates.</p>
<ol>
<li><strong>Good pay.</strong> One big reason that candidates like contract staffing is the pay structure. Unlike a direct position where they would likely be paid on a salary basis, most contract assignments are hourly. That means contractors get paid for every hour they work and even more if they work overtime. To establish a competitive pay rate, you can start with the average salary a direct hire would make in a similar position and divide it by 2080 (the typical number of hours worked in a year). Sites such as <a href="http://www.bls.gov/oes/current/oes_stru.htm#11-0000">Bureau of Labor Statistics</a><span> and </span><a href="http://www.salary.com/index.htm" target="_blank">www.salary.com</a> are also available to help you do salary research. </li>
<li><strong>Insurance Benefits. </strong>A worker may not have expected insurance benefits for contract assignments in the past, but that is changing. Staffing Industry Analysts found in its <a href="http://www.staffingindustry.com/Research-Publications/Publications/CWS-3.0/April-23-2014/Temps-Healthcare-Insurance-Sources" target="_blank">2014 Temporary Worker Survey</a> that <strong>nearly half of professional contractors DO receive healthcare insurance while on assignment.</strong> This is even more important to contractors<strong> </strong>now that the Affordable Care Act (ACA or Obamacare) requires most Americans to carry healthcare insurance. As benefits costs continue to increase nationwide, contractors are looking at their TOTAL compensation package, not just their regular pay, when deciding whether to accept a position. Can you provide the benefits contractors are seeking? If not, you may want to consider outsourcing their employment to a contract staffing back-office service that can offer those benefits because without them, you may not be able to attract and retain star contractors.</li>
<li><strong>Great assignments. </strong>Contract candidates want quality assignments where they can easily see the impact of their work. They want a flexible schedule. Your ability to satisfy those needs directly impacts your ability to attract great contract candidates. To get the greatest variety of assignments, there are a number of ways you can market your contract staffing services to clients to get contract job orders. The first and easiest way is to ask all of your direct hire clients if they have contract staffing needs. There are also endless ways to promote your services through the <a title="Marketing Contract Staffing on the Internet" href="http://www.topecheloncontracting.com/blog/internet-marketing-contract-staffing/">Internet </a>and more <a href="http://www.topecheloncontracting.com/blog/contract-recruiters-do-not-need-to-be-marketing-wizards/">traditional means</a> to get a wider range of clients and contract job orders.</li>
<li><strong>Communication.</strong> All workers seek effective communication, but it is perhaps even more critical in contract staffing arrangements because there are more parties involved (the recruiter, the company, perhaps a back-office service). Contractors often see you as their first point of contact because they may not be able to get the feedback they desire from the client company. They may ask you how the assignment is going from the client's perspective. If they have a tentative end date, they may also need you to discuss the possibility of extension. You don't have to spend a lot of time on this communication. Just check in with the contractor occasionally. That simple courtesy can help you create a loyal contractor who you can place again and again on contract assignments.</li>
</ol>
<p><em><em><a href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a rel="nofollow" href="http://www.topecheloncontracting.com/">Top Echelon Contracting, Inc.</a></em></em></p>Are You Settling for Mac and Cheese?tag:recruitingblogs.com,2014-08-04:502551:BlogPost:18190332014-08-04T14:37:54.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://www.topecheloncontracting.com/files/2014/07/Are-you-settling-for-mac-and-cheese-2333.jpg"><img alt=" Roast pork, red wine. Dinner." class="alignnone size-medium wp-image-61808" height="233" src="http://www.topecheloncontracting.com/files/2014/07/Are-you-settling-for-mac-and-cheese-2333-300x233.jpg" style="float: left;" width="300"></img></a> Don't you just love the feeling of closing a direct hire placement? That big placement fee reminds you that all the work you put into your placements is worth it. Maybe you even splurge and celebrate with a fillet mignon dinner.</p>
<p>But what happens when the big placement fee runs out? Do you worry about when the next one will come? Do you start cutting back and…</p>
<p><a href="http://www.topecheloncontracting.com/files/2014/07/Are-you-settling-for-mac-and-cheese-2333.jpg"><img class="alignnone size-medium wp-image-61808" style="float: left;" src="http://www.topecheloncontracting.com/files/2014/07/Are-you-settling-for-mac-and-cheese-2333-300x233.jpg" alt=" Roast pork, red wine. Dinner." width="300" height="233"/></a>Don't you just love the feeling of closing a direct hire placement? That big placement fee reminds you that all the work you put into your placements is worth it. Maybe you even splurge and celebrate with a fillet mignon dinner.</p>
<p>But what happens when the big placement fee runs out? Do you worry about when the next one will come? Do you start cutting back and eating macaroni and cheese?</p>
<p>Recruiters often wonder what advantage there is to adding contract staffing to their business models. The biggest advantage is the consistent cash flow it provides. This can help you bridge the periods between direct placements. You may even be able to enjoy filet mignon everyday.</p>
<p>How is this possible? Well, contractors generate income for you every hour they work and even more when they work overtime. When the<strong> </strong>inevitable direct hire dry spells hit, you have your contract staffing income to sustain you. No more worrying about whether you will be able to pay your bills. No more taking job orders that you know in your gut are bad business. Contract staffing allows you to be more choosy and focus your efforts on better opportunities.</p>
<p>It can even help make your firm recession-proof. Recruiters often find that their contract placements cover all their overhead costs. That means direct hire placement fees are pure profit. This make a huge difference during a recession. We hope we don't see another one for a long time, but we all know there will be one eventually. Contract staffing can help you not only survive but<strong> thrive in all economic conditions.</strong></p>
<p>You will also likely see a <strong>boost</strong><b> in your overall sales.</b> Companies like working with one recruiter who can solve all their staffing problems, so offering contract staffing can increase client loyalty. That loyalty often leads to more contract AND direct placements, not to mention<strong> referrals</strong>. Your contract staffing services can also attract new clients who may throw your their direct hire business as well.</p>
<p>With this major advantage, you would think ALL recruiters would be doing contract staffing, right? But some are still holding out. Why? Well, a number of them have bought into the myth that contract staffing is significantly more difficult than direct hire. It really isn't, though. When you outsource the employment of your contractors to a contract staffing back-office service, that service hanleds all the employment liability and tasks, including background checks and drug screenings, payroll processing and funding, tax witholdings and filings, Workers' Compensation, unemployment, employee paperwork, and benefits administration, including ACA (Affordable Care Act or Obamacare) compliance. When you place your contractors through a back-office service, your tasks remain largely the same as with a direct hire placement: you match the candidate to the job order and negotiate the fees.</p>
<p><em><em><a rel="nofollow" href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a href="http://www.topecheloncontracting.com/">Top Echelon Contracting, Inc.</a></em></em></p>Which Offers More Job Security: Direct Hire or Contract Staffing?tag:recruitingblogs.com,2014-07-23:502551:BlogPost:18168172014-07-23T20:30:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557533101?profile=original" target="_self"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/1557533101?profile=original" width="299"></img></a> In the not so distant past, the title question would have been a no-brainer. Direct hire, right? After all, workers in contract staffing were often referred to as temps. Certainly a work arrangement that is temporary by it's very nature could not be more secure than traditional employment.</p>
<p>But we are now living in a post-recession world, a world where there…</p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557533101?profile=original" target="_self"><img src="http://storage.ning.com/topology/rest/1.0/file/get/1557533101?profile=original" width="299" class="align-left"/></a>In the not so distant past, the title question would have been a no-brainer. Direct hire, right? After all, workers in contract staffing were often referred to as temps. Certainly a work arrangement that is temporary by it's very nature could not be more secure than traditional employment.</p>
<p>But we are now living in a post-recession world, a world where there is <strong>no such thing as a permanent job.</strong> It is rare today for workers to spend their entire careers with a single employer. For this reason, we purposely do not use the word "permanent" to refer to direct hire positions in our <a href="http://www.topecheloncontracting.com/blog/" target="_blank">Recruiter's Contract Staffing Blog</a>, and many recruiters follow the same rule. Jobs have and can end with little or no notice, leaving laid off workers shellshocked, scrambling to update their resumes and start their unexpected job search. </p>
<p>Many people think taking a contract position poses a bigger risk. How does someone know that they will be able to find work when an assignment is over? Well, as they say, knowledge is power. <strong>Knowing that an assignment will end allows workers to prepare for</strong> <strong>it, </strong>unlike layoffs in traditional employment<strong>. </strong>Contractors keep their resumes up-to-date and line up future assignments. They know that an employer will never be as vested in their future employment as they are, so they learn to depend on themselves secure ongoing work.</p>
<p>Or they depend on a recruiter like you to help them. Contract assignments usually start with a tentative end date. When that date nears, you have an excuse to touch base with your client. If they confirm the assignment will end, you can start working on securing your candidate's next contract position. (By the way, this is also a good way to <a href="http://www.topecheloncontracting.com/blog/5-ways-build-stronger-recruiter-client-relationships/" target="_blank">strengthen client relationships</a> and get more job orders). In the absence of a tentative end date, clients may give you a heads up when an assignment is about to end with enough advance notice to allow you to line up another "gig" for the contractor before the current assignment officially ends. The beauty of this for recruiters is that, rather than placing a candidate only once and earning one placement fee, <strong>you can earn that fee over and over by placing the same great candidate.</strong></p>
<p>Contracts are also often extended, lasting much longer than expected. They can even turn into direct hire positions, which is great for you because you can earn a <a title="Free Conversion Fee Agreement Language" href="http://www.topecheloncontracting.com/contract-staffing/conversion-fee-agreement/">conversion fee</a> over and above what you earn while the contractor is working.</p>
<p>Job security is just one of many reasons candidates are choosing contract staffing as a lifestyle:</p>
<ul class="golddots">
<li>Flexibility - The project-based nature of contract positions allows better work-life balance because it's less likely that the contractor will have to keep a 9-to-5 schedule.</li>
</ul>
<ul class="golddots">
<li>Earning potential - Contractors are paid for every hour worked, including overtime hours.</li>
</ul>
<ul class="golddots">
<li>Enhance resume - Contractors can make themselves more marketable by picking up new knowledge and skills with each assignment.</li>
</ul>
<ul class="golddots">
<li>Variety - Working on contract allows workers to try different types of work, projects, companies, and even geographic locations.</li>
</ul>
<p>If you do not already offer contract staffing to meet your clients needs, you may want to start. Doing so is not only vital to keep clients happy but also to attract quality candidates who prefer contract assignments. </p>
<p><em><em><a rel="nofollow" href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a rel="nofollow" href="http://www.topecheloncontracting.com/">Top Echelon Contracting, Inc.</a></em></em></p>Companies Taking Longer Than Ever To Hiretag:recruitingblogs.com,2014-07-16:502551:BlogPost:18154482014-07-16T16:00:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557531384?profile=original" target="_self"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/1557531384?profile=RESIZE_320x320" width="300"></img></a> Recent statistics on the job market provide a positive outlook for both the direct hire and contract sides of recruiters' desks. But on the heels of that good news is a less positive statistic: it is taking companies an<strong> average of 25.1 days to fill open positions, </strong>according to the …</p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557531384?profile=original" target="_self"><img width="300" src="http://storage.ning.com/topology/rest/1.0/file/get/1557531384?profile=RESIZE_320x320" width="300" class="align-left"/></a>Recent statistics on the job market provide a positive outlook for both the direct hire and contract sides of recruiters' desks. But on the heels of that good news is a less positive statistic: it is taking companies an<strong> average of 25.1 days to fill open positions, </strong>according to the <a href="http://www.washingtonpost.com/news/rampage/wp/2014/07/09/jobs-are-staying-vacant-longer-than-ever/" target="_blank"><em>Washington Post</em></a>. This is the longest duration since the statistic has been tracked. It only took employers 15.3 days to fill positions in in July 2009 when the recovery first began.</p>
<p>There are currently 9.5 million unemployed individuals compared to <a href="http://www.bls.gov/news.release/jolts.nr0.htm" target="_blank">4.6 million open jobs</a>. Plus employed individuals are finally starting to feel confident enough now to look for a new job. So what gives?</p>
<p>A number of experts and recruiters say the long hiring process is a result of a mismatch between the skills that available workers have and those that are needed. Employers hiring for specific positions and in specific industries are definitely encountering this skills shortage. But a number of experts deny that this is the whole problem. For example, Catherine Rampell points out in the <em>Washington Post</em> that if a skills mismatch were the only obstacle, there would be an overall increase in wages as companies compete for the small number of qualified individuals, but there is not. Also, four regional branches of the Federal Reserve and former chairman Ben Bernacke could not verify a bonafide skills crisis when they looked into the issue. They concluded that “current skills mismatches are limited,” <a href="http://www.inc.com/magazine/201404/cait-murphy/is-the-skills-gap-exaggerated.html" target="_blank">Inc.com reported</a>.</p>
<p>There are many other factors at play that are contributing to the hiring decision delays:</p>
<ol>
<li><strong>Economic instability - </strong>The economy is getting stronger, but there is still a lot of uncertainty driven by political disputes, the expected turnover in Congress due to the November Elections, the unknown impact of the Affordable Care Act (ACA or Obamacare), and more. This uncertainty is making employers less than confident about hiring direct. With the recession fresh in their minds, no one wants to hire only to go through devastating layoffs.</li>
<li><strong>More employment regulations</strong> – It's not just the ACA that is worrying employers. Employment legislation is increasing on every level, even down to the <a title="Is Your Staffing Firm in Compliance with the Myriad of Local Laws?" href="http://www.topecheloncontracting.com/blog/staffing-firm-compliance-myriad-local-laws/">local level</a>. For example, an increasing number of states and localities are passing paid sick leave laws. If they have to comply, employers must figure out how to administer the leave and how to cover the costs. The regulatory burden is heavy on employers minds and is a major consideration whenever they go to hire.</li>
<li><strong>Unemployed mindset</strong> – Employers tend to avoid unemployed candidates because they think there must be something wrong with them if they are not actively employed.The 3 million people considered to be “long-term” unemployed, meaning they have been out of work for 27 weeks or more, have an especially hard time finding work. Citing data from an Evolv study,<a href="http://www.bloomberg.com/news/print/2014-04-04/long-term-unemployed-make-for-just-as-strong-hires-study.html" target="_blank">Bloomberg reported </a>that callbacks for those with 8 months of unemployment is 45% lower than those out of work only a month.</li>
<li><strong>Requiring the “perfect” candidate </strong>- Companies don't seem to want to settle for anything less these days than the proverbial "purple squirrel". Inc.com reports that 67% of hiring managers said they “don’t feel like they have to settle for a candidate without the perfect qualifications.” This leads to the disqualification of candidates for something as simple as having one year less than the requested years of experience on their resumes. Those who make it to the interview process may go through several interviews and still not be hired. Meanwhile, clients are giving recruiters fits asking for more options even after quality candidates have been presented.</li>
</ol>
<p>Failing to act in the face of these issues may actually cause more problems for companies. For starters, the longer a hiring process is dragged out, the higher the risk that the company will lose quality candidates. While the position remains vacant, companies have no choice but to overtax their existing employees, which impacts productivity and retention. Not hiring also hampers future growth. </p>
<p>There is a way that you can help clients speed along the hiring process: <strong>offering candidates on a contract-to-direct basis</strong>. This addresses all of their fears. Because candidates are the legal employees of a third party (you as the recruiter or an outside contract staffing back-office service that you utilize), that third party assumes the responsibility for legal compliance. If economic uncertainty is their concern, they can hire someone on a contract basis and convert them to a direct hire when they feel more secure.</p>
<p>And when the purple squirrel fails to materialize, contract-to-direct arrangements can help clients try quality candidates. They can evaluate the workers’ performance and work ethic during the contract period and then decide whether or not to extend the direct hire offer. Recruiters are telling us that a number of companies are requiring a contract period for most of their new hires.</p>
<p>Long hiring processes are not good for you, your clients, or your candidates. Fortunately, there is an option that can help everyone – contract staffing.</p>
<p><em><em><a rel="nofollow" href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a rel="nofollow" href="http://www.topecheloncontracting.com/">Top Echelon Contracting, Inc.</a></em></em></p>Latest Jobs Report = Great News for Recruiterstag:recruitingblogs.com,2014-07-09:502551:BlogPost:18143112014-07-09T20:00:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557533063?profile=original" target="_self"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/1557533063?profile=original" width="320"></img></a> Finally some good news on the economy: The United States added 288,000 jobs last month and unemployment dropped to 6.1%, the lowest point since September 2008,according to the latest <a href="http://www.bls.gov/news.release/empsit.nr0.htm" target="_blank">Employment Situation Summary for June…</a></p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557533063?profile=original" target="_self"><img src="http://storage.ning.com/topology/rest/1.0/file/get/1557533063?profile=original" width="320" class="align-left"/></a>Finally some good news on the economy: The United States added 288,000 jobs last month and unemployment dropped to 6.1%, the lowest point since September 2008,according to the latest <a href="http://www.bls.gov/news.release/empsit.nr0.htm" target="_blank">Employment Situation Summary for June</a><a href="http://www.forbes.com/sites/samanthasharf/2014/07/03/jobs-report-u-s-economy-added-288k-jobs-in-june-unemployment-dropped-to-6-1/" target="_blank">.</a> </p>
<p>The job gains were shared by a variety of industries, giving the recovery the type of boost economists (and recruiters) have been looking for since the recession ended.</p>
<p>But if you are a recruiter, this is only part of the good news. The other part is that over 10,000 of the jobs added were in the "temporary help services" sector. With these additional jobs, a new all-time high temp penetration rate was achieved.</p>
<p>That rate, which calculates the number of contract jobs as a percentage of total employment, is now at 2.0677%. That percentage has risen for 19 of the past 20 months, <a href="http://www.bloomberg.com/news/2014-06-13/temporary-help-record-aids-u-s-staffing-firms-chart-of-the-day.html" target="_blank">according to Bloomberg.</a></p>
<p>That means if you are a recruiter working a blended (direct hire and contract staffing) desk, you can expect success on both sides of your business. If this was like other recessions and recoveries, the popularity of contract staffing would likely be declining. Companies have typically used contract staffing to test the hiring waters immediately following a recession and then returned to direct hiring when the overall job market improved. That does <strong>not </strong>appear to be the case this time as contract staffing growth remains strong.</p>
<p>These numbers illustrate the <strong>fundamental shift toward a new <a title="How the New Blended Workforce Model Impacts Recruiting" href="http://www.topecheloncontracting.com/blog/new-blended-workforce-model-impacts-recruiting/">blended workforce model</a> in which employers utilize both direct hires and contractors as part of a long-term business strategy.</strong> This model allows companies to remain flexible to respond to ever-changing business demands, continued economic uncertainty (<a title="How Will Obamacare Impact Hiring and Recruiting?" href="http://www.topecheloncontracting.com/blog/will-obamacare-impact-hiring/">healthcare reform</a>, political unrest, etc.), and increasing employment regulations. Workers are also driving this new model as they increasingly adopt contract staffing as a way to achieve work-life balance and increase their earning potential. As a result, experts predict that contractors will comprise 40-50% of the entire workforce by 2020.</p>
<p>In other words, <strong>contract staffing is not going away.</strong> Companies and candidates have embraced contracting, so if you want to remain competitive in this new environment, you will want add contract staffing to your business model . . . and enjoy a new steady stream of income as a result.</p>
<p><em><em><a rel="nofollow" href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a rel="nofollow" href="http://www.topecheloncontracting.com/">Top Echelon Contracting, Inc.</a></em></em></p>Recruiters: Get the Most from Internet Marketingtag:recruitingblogs.com,2014-07-07:502551:BlogPost:18139112014-07-07T15:30:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557531013?profile=original" target="_self"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/1557531013?profile=RESIZE_320x320" width="200"></img></a> The Internet provides so many ways to promote your recruiting firm and its contract staffing services. Are you getting the most out of it? Here are some tricks on how to best utilize the most common common Internet mediums:</p>
<p><strong>Your Firm's website</strong></p>
<p>Can visitors easily tell that you offer contract staffing without digging too far into your site? Make…</p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557531013?profile=original" target="_self"><img width="200" src="http://storage.ning.com/topology/rest/1.0/file/get/1557531013?profile=RESIZE_320x320" width="200" class="align-left"/></a>The Internet provides so many ways to promote your recruiting firm and its contract staffing services. Are you getting the most out of it? Here are some tricks on how to best utilize the most common common Internet mediums:</p>
<p><strong>Your Firm's website</strong></p>
<p>Can visitors easily tell that you offer contract staffing without digging too far into your site? Make sure you at least<strong> have a paragraph on your website devoted to contract staffing.</strong> </p>
<p>If possible, add a whole contract staffing page for clients and ANOTHER one for candidates. These pages should specify the benefits of contract staffing for both groups and why they should utilize YOUR services. Keyword-rich contract staffing pages will allow you to get found by companies and candidates who are searching the Internet for recruiters who provide contracting services. Better yet, create and REGULARLY contribute to a <a title="Should Recruiters Blog?" href="http://www.topecheloncontracting.com/blog/recruiters-blog/">blog</a> dedicated to contract staffing. With a blog, you can share your expertise and set yourself apart as an expert in your niche.</p>
<p><strong>LinkedIn</strong></p>
<p>Chances are, you are no stranger to this site, but are you using it to its full advantage? The first place to check is your personal and company profiles. Like your website, you want to make sure these profiles clearly show that you offer contract staffing. Specifically, you have 120 characters in the headline of your personal profile for your title, so make sure some of those characters mention contract staffing, contractors, contracting, or something similar so potential clients and candidates can find you. Also, consider joining and participating in in LinkedIn Groups in your niche. Participating in discussions and posting RELEVANT content in Groups is a good way to differentiate yourself. You may want to start by reading others’ conversations and commenting on them before you start posting your own discussions. Another option is to start your own Group to further expand your name recognition. Regardless of whether you are posting in other groups or your own, always <strong>provide USEFUL information. Avoid being self-promotional.</strong></p>
<p><strong>Twitter</strong></p>
<p>Many recruiters simply post their job openings, so it's easy to stand out by doing something different. Try retweeting others’ posts, commenting, and starting your own discussions by tweeting relevant and useful information. You will want to use hashtags, which are created by putting a # in front of phrases for which you think people will search. Check out trending hashtags at <a href="http://hashtagify.me/" target="_blank">hashtagify.me</a></p>
<p><strong>Facebook</strong></p>
<p>Marketing on this network continues to get more challenging especially since Facebook changed its algorithm, making it nearly impossible for businesses to get seen by simply creating good posts, according to <a href="http://www.socialmediaexaminer.com/facebook-marketing-declines-with-mari-smith-and-jay-baer/">Social Media Examiner</a>. This means you may have to pay for advertising to get any traction on Facebook. However, there is a silver lining. Facebook's “Open Graph” search allows you to easily search its massive database (over a billion active users are on the site). Because the search is built around natural language rather than keywords, you can locate contract candidates with very specific criteria. Read more about it here: <a href="http://www.topecheloncontracting.com/blog/sourcing-contract-candidates-facebook/">www.topecheloncontracting.com/blog/sourcing-contract-candidates-facebook/</a></p>
<p><strong>Google+</strong></p>
<p><a href="http://www.mercurynews.com/business/ci_26009387/google-after-three-years-future-social-network-still" target="_blank">Google says</a> its social networking site isn't going anywhere, despite the recent departure of its creator. And considering that it has more ACTIVE users than LinkedIn (according to <a href="http://www.social-hire.com/social-recruiting-advice/4452/how-to-recruit-on-google" target="_blank">Social-Hire.com</a>) you should not ignore this site. You may find that you like some of its unique features. Perhaps the most useful is the fact that it allows you to segment connections into customizable Circles. You can tailor different posts to candidates and clients and even segment contacts into different industries if you have multiple niches. The sites video chats called Hangouts may be an affordable way for you to explore video interviews. This is great for contract placements that need to be made quickly and/or remotely. The site's “Communities" are similar to LinkedIn’s Groups, so that might be another feature to check out. Remember, Google+ is very visual, so be sure to use eye-catching images on your posts.</p>
<p><strong>Pinterest</strong></p>
<p>You may consider Pinterest to just be a hobby site, but some recruiters are actually finding success there, particularly when reaching out to candidates. Creative contractors, like Graphic Artists and Web Designers, often share work on Pinterest. You can find them by searching for terms such as “resume,” “cv,” and “portfolio.” You can also try branding on Pinterest by providing tools and information that can help candidates do their job better. For instance, if you recruit Web Designers, they may enjoy posts with uniquely designed pages. People in education may appreciate classroom tips. To learn about how one recruiting firm has successfully used Pinterest, check out our article about <a title="Can Pinterest Work for Recruiters?" href="http://www.topecheloncontracting.com/blog/can-pinterest-work-recruiters/">PediaStaff’s Pinterest Profile</a>.</p>
<p>These are just some of the more common Internet vehicles you can use to spread your contract staffing message, but there are countless others that are just waiting to be discovered. Don't be afraid to experiment and learn about other sites. You never know what could give your firm that extra boost you are looking for.</p>The Secret Behind the Most Successful Recruiterstag:recruitingblogs.com,2014-06-25:502551:BlogPost:18120552014-06-25T15:32:56.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p>What separates a highly successful recruiter from an average one? Well, over the past 20 years in the contract staffing industry, we have noticed one characteristic that seems to set the best recruiters apart from the rest - their keen ability to <strong>build strong recruiter-client relationships</strong>. Sounds simple enough, but what does that really mean? Specifically, we have found that <strong>recruiters who are successful in contract staffing AND direct hire do the following…</strong></p>
<p>What separates a highly successful recruiter from an average one? Well, over the past 20 years in the contract staffing industry, we have noticed one characteristic that seems to set the best recruiters apart from the rest - their keen ability to <strong>build strong recruiter-client relationships</strong>. Sounds simple enough, but what does that really mean? Specifically, we have found that <strong>recruiters who are successful in contract staffing AND direct hire do the following things</strong>:</p>
<ol>
<li><strong><strong>REALLY Know Their Clients.</strong> </strong>Those who just throw as many resumes as possible at clients to see what “sticks” give recruiters a bad name. The most successful recruiters only send a few highly targeted resumes. To do that, they have to do more than just a little "homework" on potential clients. They really have to really understand the company's culture, recruitment process, and what a candidate needs to do succeed there. To that end, many of these recruiters insist on meeting potential clients in person, and if possible, at the client's location. During these meetings, the recruiters meet with as many people as they can, ask detailed questions, and tour the facility. </li>
<li><strong>Offer a variety of staffing solutions.</strong> Successful recruiters know that if you don't offer all the staffing solutions a client may need, they may go to another firm. Therefore, they make sure they have a good mix of staffing alternatives, including direct hire, traditional contract staffing, contract-to-direct hire, payrolling, 1099 independent contractor to W-2 employee conversions, retiree re-staffing, and internships/co-ops. Giving clients just one point of contact for all their staffing needs is a great way to build loyalty.</li>
<li><strong>Sell a SOLUTION, Not a Person. </strong>Clients may know that they have a staffing problem, but they may not know that one of the alternative staffing arrangements mentioned in #2 can solve those problems. Instead of simply trying to fill a position with a direct hire, ask some <a href="http://www.topecheloncontracting.com/blog/6-questions-to-ask-to-get-contract-job-orders/">open-ended questions </a>to determine the client's exact need. You can then suggest a viable solution that may fit their need better than a direct hire. For example, try asking if they have a special project or upcoming deadline. If so, you may suggest a traditional contract staffing arrangement. Are they under a hiring freeze? Mention that a contract-to direct situation can allow them to bring in help on a contract basis and then convert them to direct hire when the hiring freezes lifts because contractors typically come out of a different budget. By providing viable solutions, you position yourself as a true partner, not just a vendor.</li>
<li><strong>Become an employment resource </strong>Besides staffing solutions, companies may look to you as a resource regarding employment laws and issues. Therefore, be sure you are keeping up on on issues such as healthcare reform (aka <a href="http://www.topecheloncontracting.com/?s=obamacare">Obamacare</a>), wage and hour regulations under the Fair Labor Standards Act (FLSA), and proper worker classification (<a href="http://www.topecheloncontracting.com/?s=independent+contractor">1099 independent contractor vs. W-2 employee</a>).</li>
<li><strong>Follow Up.</strong> Of course, you are always in frequent contact with the client when you are actively working a job order. But don’t forget to follow up with potential clients when you DON'T get the job order. Call them occasionally just to touch base. You want to be sure to stay at the top of their mind so that when they DO have a need, they think of you first.</li>
</ol>
<p>Anything you can do to add value for your client builds stronger relationships. By doing building those relationships, you will not only retain current clients, you can can also gain new ones through <strong>referrals and word of mouth</strong>. Simply putting your client first can elevate you to the status of a highly successful recruiter who can thrive under even the most difficult conditions.</p>
<p><em><em><a rel="nofollow" href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a rel="nofollow" href="http://www.topecheloncontracting.com/">Top Echelon Contracting, Inc.</a></em></em></p>Healthcare Costs Drive Business Decisions, Impacting Recruiters, Candidates, and Companiestag:recruitingblogs.com,2014-06-18:502551:BlogPost:18109492014-06-18T17:04:33.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p>No matter how you feel about the Affordable Care Act (ACA or Obamacare), it is clear that employer-sponsored health insurance has become more expensive and complicated over the past several years. This reality is forcing many companies to make difficult business decisions that are impacting everyone in the employment arena.</p>
<p>Experts estimate that health insurance <strong>premiums for employer-sponsored plans have gone up 80-100%</strong> in the past decade. As a result, 49% of…</p>
<p>No matter how you feel about the Affordable Care Act (ACA or Obamacare), it is clear that employer-sponsored health insurance has become more expensive and complicated over the past several years. This reality is forcing many companies to make difficult business decisions that are impacting everyone in the employment arena.</p>
<p>Experts estimate that health insurance <strong>premiums for employer-sponsored plans have gone up 80-100%</strong> in the past decade. As a result, 49% of employers surveyed by Aflac for their <a href="http://www.marketwatch.com/story/new-study-highlights-how-cost-containment-efforts-of-us-businesses-affect-employee-benefits-and-american-workers-2014-05-28">Aflac Workforce Report</a> stated that cost containment, including healthcare insurance costs, is their top business issue. In 2011, only 28% said the same.</p>
<p>“The research shows how the need to control costs is driving workforce decisions," said Teresa White, executive vice president and chief operating officer for Aflac Columbus. "For four consecutive years, we have witnessed this growing trend and can foresee the possible ramifications for the U.S. workforce."</p>
<h3>Why Health Insurance Premium Are Increasing</h3>
<p>Before we explore those business decisions, let's look at the drivers behind these <strong>ever-increasing premiums</strong>. First there is the ACA, which according to <em><a href="http://www.forbes.com/sites/scottgottlieb/2014/04/07/health-plan-premiums-are-skyrocketing-according-to-new-survey-of-148-insurance-brokers-analysts-blame-obamacare/" target="_blank">Forbes</a> </em>is driving increases in the following ways:</p>
<ol>
<li>Commercial underwriting restrictions - Some examples of these restrictions include the requirement that insurers must cover participants' children up to age 26 and the elimination of pre-existing condition exclusions and lifetime limits on coverage.</li>
<li>Premiums can no longer be based on age</li>
<li>New taxes and fees on insurance companies, which are passed employers</li>
<li>The requirement that plans include "Essential Health Benefits" such as ambulatory patient services, emergency services, substance abuse disorder services, etc.</li>
</ol>
<p>However, we must consider a number of other factors:</p>
<ul>
<li>Aging population</li>
<li>Unhealthy lifestyles</li>
<li>Expensive technological advances</li>
<li>Lack of pricing information to help healthcare consumers to make cost-effective choices</li>
</ul>
<p>Small employers often face particularly steep premium increases because their participant pool is not large enough to absorb high medical bills. Just one sick employee with high claims <strong>can easily result in a massive premium increase at a smaller organization</strong>. The same claims may not even cause a ripple at a large company.</p>
<h3>Cost-Containment Methods</h3>
<p>So where does the money for these increases come from? That is something each employer has to decide, and the choices are often difficult:</p>
<ol>
<li><strong>Cost-Shifting -</strong> Few employees can expect to go to the doctor and pay nothing out of pocket these days. That's because employers are selecting plans with higher deductibles, copays, coinsurance, etc., to minimize premium increases. According to <a href="http://www.marketwatch.com/story/new-study-highlights-how-cost-containment-efforts-of-us-businesses-affect-employee-benefits-and-american-workers-2014-05-28" target="_blank">the Kaiser Family Foundation</a>, the number of workers on high deductible plans has quadrupled since 2007. Some employers are also reducing the percentage of their contributions toward employees' benefits premiums. The end result of all of these techniques is that more of the cost is shifted to workers.</li>
<li><strong>Increasing costs of products/services -</strong> Another option is to increase the costs of goods and services, but there is a limit to how much companies can charge and still remain competitive</li>
<li><strong>Workforce decisions -</strong> There has been a lot of buzz about how some companies are avoiding hiring or reducing employee hours to part-time to get around the upcoming employer mandate of Obamacare. The mandate's effective date is a moving target, but it will eventually require employers with 50 or more full-time employees to provide healthcare insurance to those employees. But those subject to the employer mandate are not the only ones adjusting their workforces to contain costs. Premium increases are impacting companies of ALL sizes, not just the so-called large employers subject to the employer mandate. Therefore, these and other difficult employment decisions (e.g., freezing raises) are popular cost containment measures across the board.</li>
<li><strong>Eliminating healthcare coverage -</strong> The cost and administrative burden of healthcare insurance is so overwhelming for some employers that they have chosen to drop coverage. For those who fall under the Obamacare employer mandate, they will face fines eventually, but they have determined it is less expensive to "pay" rather than "play" (offer coverage). Still, all employers risk damaging their employer branding when they drop coverage. </li>
</ol>
<h3>Impact on YOU, the Recruiter</h3>
<p>All of this affects you as a recruiter, as well. For example, don't be surprised if benefits start becoming a bigger part of candidate negotiations.Candidates are now more likely to consider the <strong>TOTAL compensation package</strong> offered, not just salary. You may find it difficult to recruit candidates for positions that do not include quality benefits.</p>
<p>Direct hire job orders may take a hit, as well, as employers try to contain costs. Your clients are still going to need to add staff to meet business demands though, so this is where contractors come in. There is evidence this is already happening as <a title="Contract Staffing Breaking More Records" href="http://www.topecheloncontracting.com/blog/contract-staffing-breaking-records/">contract staffing continues to grow</a>. If you do not have a contract staffing component to your business, now is the time to add it.</p>
<p>If you are an employer (in-house staff and/or contractors), there is more of a direct impact. You have to determine if you have to offer coverage under the employer mandate and if so, how you will do so. If you are not required to, you need to decide if you can attract quality candidates without it. Some recruiters outsource the employment of their contractors to a contract staffing back-office that provides contractor benefits. This allows them to brand yourself as a recruiting firm of choice without taking on the cost and administrative headaches of offering healthcare insurance.</p>
<p>The cost of healthcare is a problem with far-reaching effects. It is important as a recruiter to remain educated as this issue continues to evolve. You also want to be sure you put yourself in the best position to succeed by becoming a sole-source provider that offers clients a variety of staffing solutions, including contract staffing.</p>
<p><em><em><a rel="nofollow" href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a rel="nofollow" href="http://www.topecheloncontracting.com/">Top Echelon Contracting, Inc.</a></em></em></p>5 FLSA Basics Contract Staffing Recruiters Need to Know to Avoid Lawsuitstag:recruitingblogs.com,2014-06-12:502551:BlogPost:18101212014-06-12T14:00:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557531761?profile=original" target="_self"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/1557531761?profile=RESIZE_320x320" width="200"></img></a> As Wage and Hour lawsuits under the Fair Labor Standards Act (FLSA) continue to break records, it is important for recruiters to known the basics of the regulations to protect themselves and clients from these devastating lawsuits.</p>
<p><strong>FLSA lawsuits have increased 438% since 2000.</strong> There were 8,126 filed for the period between April 2013 and March 2014,…</p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557531761?profile=original" target="_self"><img width="200" src="http://storage.ning.com/topology/rest/1.0/file/get/1557531761?profile=RESIZE_320x320" width="200" class="align-left"/></a>As Wage and Hour lawsuits under the Fair Labor Standards Act (FLSA) continue to break records, it is important for recruiters to known the basics of the regulations to protect themselves and clients from these devastating lawsuits.</p>
<p><strong>FLSA lawsuits have increased 438% since 2000.</strong> There were 8,126 filed for the period between April 2013 and March 2014, which is an all-time high, <a href="http://www.shrm.org/hrdisciplines/compensation/articles/pages/flsa-suits-hit-record.aspx">according to the Society for Human Resource Management (SHRM)</a>, citing data from the Federal Judicial Center. This represents a nearly 5% increase over last year and is the seventh straight year of increases. This does not take into account the cases filed in state courts under state wage and hour codes.</p>
<div class="entry-content"><p>It is clear based on these numbers that the enforcement and focus on the FLSA is getting more intense. The publicity surrounding wage and hour issues is certainly helping drive this. For starters, there is the movement by some legislators on the state and federal level to raise the minimum wage. A number of states have increased theirs in the absence of federal legislation. President Obama also shined the spotlight on the FLSA when he directed the Department of Labor (DOL) to revise the regulations that allow certain workers to be <a title="White House Seeks to Make More Workers Eligible for Overtime" href="http://www.topecheloncontracting.com/blog/white-house-seeks-make-workers-eligible-overtime/">exempt from overtime</a> (“white collar exemptions”). This publicity is helping make employees more aware of the FLSA regulations and more likely to file lawsuits. </p>
<p>With this in mind, it's a good time to review some of the basics of the FLSA. If you have contractors and run your own back-office, you are responsible for complying with this law. Even if you do not employ any contractors or in-house staff, your clients look to recruiters as an employment resource, so it is important that you are familiar with these key provisions:</p>
<ol>
<li>Most employees must be paid overtime (<strong>1.5 times the regular pay rate</strong>) when they work more than 40 hours in a work week. Overtime (OT) laws in certain states are more generous to employees, so be sure you are familiar with any states in which you place candidates. For example, in California, employees earn OT for any hours worked over 8 in a work day and for their seventh consecutive day of work in a workweek.</li>
<li>Employers should never allow employees to work off the clock. They can request that employees get preauthorization before working OT, but if they do work enough hours to be entitled to OT, they must be paid accordingly.</li>
<li>As previously mentioned, the "white collar" exemptions allow some employees to be exempt from OT, but only if they fall into the <strong>Executive, Administrative, Learned Professional, Computer-Related, or Outside Sales</strong> classifications. Employees must meet specific requirements under these classifications to be exempt. Again, these classifications are under review by the DOL based on President Obama’s decree. You can view the CURRENT exempt requirements on the<a href="http://www.dol.gov/whd/regs/compliance/fairpay/fs17a_overview.htm" target="_blank"> DOL Web site</a>.</li>
<li>If someone is eligible for one of the white collar exemptions, they generally<strong> must be paid at least $455 a week on a salary (not hourly) basis.</strong> There are a couple of exceptions to that rule. Computer-Related professionals may be paid at an hourly rate of at least $27.63 per hour ($40.38 per hour in California). The salary requirements also do not apply to those under the Outside Sales exemption.</li>
<li><strong>Warn clients of the dangers of misclassifying W-2 employees as 1099 Independent Contractors.</strong> It is tempting to classify workers as independent contractors because<strong> </strong>they don’t earn overtime. However, <a href="https://secure.topecheloncontracting.com/recruiters/newsletter/2013_Fourth_Quarter.pdf">increased enforcement against the misclassification of workers</a> has made this risky. Employers could face IRS audits in addition to back wages from the DOL and penalties and damages from a variety of state agencies.</li>
</ol>
<p><em>This article is for informational purposes only and should not be construed as legal advice.</em></p>
<p><em><em><a rel="nofollow" href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a rel="nofollow" href="http://www.topecheloncontracting.com/">Top Echelon Contracting, Inc.</a></em></em></p>
</div>Taking the Pain Out of Millennial Recruitingtag:recruitingblogs.com,2014-06-04:502551:BlogPost:18090032014-06-04T17:00:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557533123?profile=original" target="_self"><img class="align-right" height="128" src="http://storage.ning.com/topology/rest/1.0/file/get/1557533123?profile=original" width="129"></img></a> How do you feel about recruiting Millennials? If the thought makes you involuntarily groan, you are not alone. Whether or not you believe the stereotypes about this young generation, also known as Generation Y, it's clear that some recruiters are experiencing challenges when trying to place them. </p>
<p>Before you throw in the towel, check out these <strong>tips for…</strong></p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557533123?profile=original" target="_self"><img src="http://storage.ning.com/topology/rest/1.0/file/get/1557533123?profile=original" width="129" height="128" class="align-right"/></a>How do you feel about recruiting Millennials? If the thought makes you involuntarily groan, you are not alone. Whether or not you believe the stereotypes about this young generation, also known as Generation Y, it's clear that some recruiters are experiencing challenges when trying to place them. </p>
<p>Before you throw in the towel, check out these <strong>tips for navigating the challenges involved with placing Millennials</strong>, who were generally born between the early 1980s and early 2000s:</p>
<ol>
<li><strong>Sometimes a bad candidates is just a bad candidate.</strong> The Millennial label tends to take the blame for any issues people have with young candidates. But you will always have entitled, arrogant, and just downright difficult candidates of ALL ages. Sometimes its not the generation, it's the person. </li>
<li><strong>Don't take anything for granted.</strong> Be prepared to do more coaching than you may be used to. Traditional courtesies such as dressing appropriately for an interview, not bringing up salary in the first interview, and using proper English and grammar in communication may be second nature to many job seekers, but don't assume that is the case with Millennials. Better to over-educate and over-prepare your candidates than find out from your client that they don't know how to present themselves. You may even want to consider purchasing <a href="http://www.topecheloncontracting.com/contract-staffing/online-training/#/documents">affordable online courses</a> on basic skills, such as interpersonal communication and business writing, for them. </li>
<li><strong>Clients may need to be coached, too.</strong> Your clients may automatically assume Millennials are job hoppers, entitled, or a number of the other generalizations that have been attached to them. There is little doubt that these newbies are going to have a different approach to work, but that could be beneficial. After all, Millennials are known for being good at multi-tasking, skilled critical thinkers, and technology wizzes. If your clients can overcome their potential biases, they may find some of their best employees within this generation.</li>
<li><strong>Be patient and understanding.</strong> Millennials' knack for asking a million questions may drive you nuts, but they want to make sure they are making the right decision. You can make this process easier by understanding upfront what they need. Millennials desire collaboration, technology, work-life balance, and innovation. It is also important to them that the company they work for is socially conscious and can fulfill their long-term career goals. By being aware of these and other needs, you can present opportunities that are the most likely to be a fit.</li>
<li><strong>Traditional employment just may not work for them.</strong> Some Millennials (and members of other generations for that matter) really are job hoppers. They need variety and will move on if they can't get it at their current job. Many also can't handle the structure of the traditional 9-5 workday and require a more flexible work arrangement. For these candidates, you may never be able to find a direct hire fit. On the other hand, contract assignments can provide the variety and flexibility they need, so you may want to present them for contract job orders rather than direct.</li>
</ol>
<p>Despite all the stereotypes, Millennials just want what everyone wants: a job that they can be proud of and enjoy and where they are respected. They want to make a living but not at the expense of having a life. As a recruiter, you have the opportunity to help them meet those goals while filling critical openings for your clients.</p>
<p><em><a rel="nofollow" href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a rel="nofollow" href="http://www.topecheloncontracting.com/">Top Echelon Contracting, Inc.</a></em></p>Keeping Unpaid Internships Legaltag:recruitingblogs.com,2014-05-27:502551:BlogPost:18068972014-05-27T17:30:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557532394?profile=original" target="_self"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/1557532394?profile=RESIZE_320x320" width="200"></img></a> Summer has FINALLY arrived (at least unofficially), and with it comes the traditional right of passage for many college students: the summer internship. Internships can be a great opportunity for both the students AND the companies utilizing their services. Of course, the intern can pick up some great experience. Meanwhile, the company benefits from some additional help at…</p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557532394?profile=original" target="_self"><img width="200" src="http://storage.ning.com/topology/rest/1.0/file/get/1557532394?profile=RESIZE_320x320" width="200" class="align-left"/></a>Summer has FINALLY arrived (at least unofficially), and with it comes the traditional right of passage for many college students: the summer internship. Internships can be a great opportunity for both the students AND the companies utilizing their services. Of course, the intern can pick up some great experience. Meanwhile, the company benefits from some additional help at an affordable price.</p>
<p>But what happens when “affordable” actually is free? <strong>Unpaid internships are common, but they are increasingly coming under fire by the Department of Labor (DOL).</strong> Are your clients utilizing unpaid interns? If so, you may want to turn their attention to the <strong>six criteria of legal unpaid internships established under the Fair Labor Standards</strong> <strong>Act</strong> <strong>(FLSA)</strong> as stated on the DOL’s <a title="new fact sheet on Internships Under the Fair Labor Standards Act. " href="http://www.dol.gov/whd/regs/compliance/whdfs71.htm" target="_self">fact she</a><a title="new fact sheet on Internships Under the Fair Labor Standards Act. " href="http://www.dol.gov/whd/regs/compliance/whdfs71.htm" target="_self">et on Internships</a>:</p>
<ol>
<li>The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment.</li>
<li>The internship experience is for the benefit of the intern.</li>
<li>The intern does not displace regular employees, but works under close supervision of existing staff.</li>
<li>The employer that provides the training /internship derives no immediate advantage from the activities of the intern, and on occasion its operations may actually be impeded.</li>
<li>The intern is not necessarily entitled to a job at the conclusion of the internship.</li>
<li>The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.</li>
</ol>
<p>The DOL has been paying more attention to illegal unpaid internships in recent years. Not only that, interns who believe their unpaid status to be illegal are proactively filing class action lawsuits. You may have heard about the <a href="http://articles.latimes.com/2014/apr/06/business/la-fi-ct-hollywood-interns-unpaid-internships">ongoing lawsuit between former interns for the film “Black Swan” and Fox Searchlight Pictures</a><u>,</u> but companies and cases don't have to be so high profile to be burned by these lawsuits, which can result in companies having to pay back wages, damages, and fines. In fact, statistics show that <strong>nearly half of all interns are unpaid.</strong> That means <strong>there is a good chance your clients are utilizing unpaid interns, quite possibly illegally. </strong></p>
<p>You may want to give your clients a heads up regarding the potential pitfalls of unpaid internships. They may want to reevaluate their programs to make sure they are being implemented in accordance with the FLSA. But that doesn't mean they have to abandon their internship programs, which can be a great way to identify and groom potential talent. Nor do they have to hire interns as traditional employees, taking on all the risk, liability, administration, and additional costs that come with employees. As a recruiter, you can offer to convert their interns to contractors who will become W-2 employees of a contract staffing back-office, which will handle all of the employment responsibility and liability. Plus, this can provide a great source of additional summer income for you as a recruiter.</p>
<p><em><a rel="nofollow" href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a rel="nofollow" href="http://www.topecheloncontracting.com/">Top Echelon Contracting, Inc.</a></em></p>The New Workforce Model Recruiters Need to Be Aware Oftag:recruitingblogs.com,2014-05-21:502551:BlogPost:18058612014-05-21T19:20:05.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p>As <a href="http://www.topecheloncontracting.com/blog/contract-staffing-breaking-records/" target="_blank">the popularity of contract staffing continues to grow</a>, we have noticed a shift in the way that contractors are being used. Rather than simply being a stop-gap measure in limited circumstances or to test the hiring waters during difficult economic times, we are seeing employers <strong>building a blended workforce model that integrates contractors as part of a deliberate, long-term…</strong></p>
<p>As <a href="http://www.topecheloncontracting.com/blog/contract-staffing-breaking-records/" target="_blank">the popularity of contract staffing continues to grow</a>, we have noticed a shift in the way that contractors are being used. Rather than simply being a stop-gap measure in limited circumstances or to test the hiring waters during difficult economic times, we are seeing employers <strong>building a blended workforce model that integrates contractors as part of a deliberate, long-term business strategy.</strong></p>
<p>This model consists of a small core group of traditional, direct hire employees surrounded by a larger outer ring of contractors. The direct hires in the core typically have the experience and longevity that drives stability and growth of the business. Therefore, high turnover in this group is highly disruptive. Meanwhile, the contractors in the outer ring are generally responsible for day-to-day tasks and critical projects. While their work is no less important, turnover in this ring does not have as big of an impact on the business. </p>
<p><img class="alignleft wp-image-61463 align-center" src="http://www.topecheloncontracting.com/files/2014/05/How-the-New-Blended-Workforce-Model-Impacts-Recruiting-4871.jpg" alt="How-the-New-Blended-Workforce-Model-Impacts-Recruiting-4871" width="382" height="203"/></p>
<p>Companies like this model because of the flexibility it provides. <strong>The outer ring can </strong><strong>easily </strong><strong>be adjusted based on business demands</strong>. It can grow quickly when extra help is needed, which is especially important with sudden and unexpected peaks. The outer ring can also be reduced quickly when the need passes. This helps companies avoid the ugly layoffs that typically accompany a reduction in force because contractors know from the get-go that their assignments will end.</p>
<p><strong>Here are some examples of how this model is being used:</strong></p>
<ol>
<li>A company is need need of major computer hardware and/or software upgrades that were neglected during the recession and slow recovery. Rather than hiring directly, they can bring in contractors for a limited time to complete the projects.</li>
<li>Contracting helps manufacturers navigate frequent ups and downs in production because engineers and other highly skilled contractors can be brought in as needed.</li>
<li>Following major disasters, insurance companies need more adjusters and other workers. They can use contractors to increase their staff during these times without permanently adding to their overhead.</li>
<li>Accounting firms experience annual crunch times, such as year-end reconciliations and tax season. They can bring in auditors, accountants, and tax experts on a contract basis so they don't have an over-inflated staff the rest of the year.</li>
</ol>
<p>There are countless other ways this workforce model is being used. Rather than assume open positions will be direct, companies adopting the blended workforce model are analyzing each position to determine whether it may be better suited to the outer ring of contractors.</p>
<p>If you already offer contract staffing, get ready for a surge in job orders, if you haven't already. Companies utilizing this model will have a consistent need for contractors. And because those contractors are responsible for more critical tasks, companies need the quality talent that only you can provide. You may want to consider <a title="Is Your In-House Contracting Back-Office Holding You Back?" href="http://www.topecheloncontracting.com/blog/in-house-contracting-back-office/">expanding your business into additional states and industries</a> to further capitalize on this trend.</p>
<p>For recruiters NOT offering contract staffing, the time to start is NOW. <strong>T</strong>he business is there for the taking - recruiters report that <strong>80% of contract job orders come from their existing direct hire clients.</strong> All you have to do is let your clients know you can place contractors. If you utilize a contract staffing back-office, you can start taking job orders NOW because there will be no ramp-up time or upfront financial investment.</p>
<p>Times are changing rapidly, and the employment landscape is changing with it. But this is a situation where change can be very good. If you can provide direct hires AND contractors, you are the position to become a valued staffing partner to your clients rather than just a vendor. </p>
<p><em><a href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a href="http://www.topecheloncontracting.com/">Top Echelon Contracting, Inc.</a></em></p>Direct Hire vs. Contract Placementstag:recruitingblogs.com,2014-05-14:502551:BlogPost:18047322014-05-14T16:00:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557532787?profile=original" target="_self"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/1557532787?profile=RESIZE_320x320" width="200"></img></a> There tends to be a huge fear factor involved with contract staffing, mainly due to the misconception that it is extremely complicated and too different from direct hire. <span style="font-size: 13px;">But as many recruiters take advantage of the…</span></p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557532787?profile=original" target="_self"><img width="200" src="http://storage.ning.com/topology/rest/1.0/file/get/1557532787?profile=RESIZE_320x320" width="200" class="align-left"/></a>There tends to be a huge fear factor involved with contract staffing, mainly due to the misconception that it is extremely complicated and too different from direct hire. <span style="font-size: 13px;">But as many recruiters take advantage of the</span> <a href="http://www.topecheloncontracting.com/blog/contract-staffing-breaking-records/" target="_blank" style="font-size: 13px;">growing popularity of contract staffing</a><span style="font-size: 13px;">, they are finding that</span> <strong style="font-size: 13px;">contract placements are really not that different from direct hire.</strong></p>
<p>Here are the main steps of contract placements:</p>
<blockquote><ol>
<li>Get the job order.</li>
<li>Locate the candidate.</li>
<li>Negotiate rates.</li>
<li><strong>Employ the contractor and handle the employment tasks. (Outsource)</strong></li>
</ol>
</blockquote>
<p><br/> Do those first three steps look familiar? They are same things you have to do for a direct hire, right? While the rates are a little different, it's easy once you understand the process for determining the hourly rate structures and <a title="How to Establish Contract Bill Rates" href="http://www.topecheloncontracting.com/blog/establish-bill-rates/">markups</a> that will be charged to the client company.</p>
<p>Therefore, the biggest difference between direct hire and contract placements is the "back-office" tasks associated with being the legal employer of the contractor. Fortunately, <strong>those tasks can be outsourced</strong> to a contract staffing back-office. By outsourcing, you can concentrate on the tasks that you are already familiar with.</p>
<p>The other option is to take on those tasks yourself and become the employer of your contractors. In that case, you need to allow yourself plenty of ramp up time before you start taking contract placements. You will need to get set up to withhold taxes and obtain Workers' Compensation insurance in each state in which you plan to place contractors. You'll want to decide how you will <a title="4 Payroll Funding Options for Contract Staffing Recruiters" href="http://www.topecheloncontracting.com/blog/4-payroll-funding-options-contract-staffing-recruiters/">fund payroll</a> (by yourself or through a third party funding company). You will need to decide if you are going to offer <a title="Why Recruiters Should Consider Offering Benefits to Contractors" href="http://www.topecheloncontracting.com/blog/why-recruiters-offer-contractor-benefits/">contractor benefits</a> (or if you are required to under the Affordable Care Act) and get those benefits set up. These are just a few things to consider if you want to be the legal employer. It is also important to line up sufficient administrative support (both human and electronic) to handle the day-to-day tasks, including:</p>
<blockquote><ul>
<li>Legal contracts with the contractor and the client</li>
<li>Payroll processing (on at least a biweekly basis)</li>
<li>Tax withholdings and filing</li>
<li>Background checks and drug screenings</li>
<li>Unemployment claims</li>
<li>Workers' Compensation</li>
<li>Invoicing clients and managing accounts receivables</li>
<li>Benefits administration, if applicable</li>
<li>Employee issues</li>
<li>Employee terminations</li>
<li>Keeping up with and complying with the complicated web of local, state, and federal employment laws</li>
</ul>
</blockquote>
<p>These tasks are often what scares many recruiters away from contract staffing. But again, if you outsource them, you are left with the typical recruiting tasks. If you do choose to outsource, be sure to <strong>select a FULL-SERVICE back-office</strong> that will become the legal employer of your contractors and handle ALL of the employment tasks and legal liability. You don't want to have to wrangle with complicated contractor issues when you should be focusing on revenue-producing recruitment tasks.</p>
<p><em><a href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a href="http://www.topecheloncontracting.com/">Top Echelon Contracting, Inc.</a></em></p>Could Your Recruiting Firm Be Hit By an Obamacare Audit?tag:recruitingblogs.com,2014-05-07:502551:BlogPost:18037122014-05-07T17:30:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557532465?profile=original" target="_self"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/1557532465?profile=RESIZE_320x320" width="200"></img></a> When it comes to the Affordable Care Act (ACA or Obamacare), the dreaded <a href="http://www.topecheloncontracting.com/blog/impact-final-obamacare-employer-mandate-rules-recruiting-staffing-firms/" title="How the Final Obamacare Employer Mandate Rules Impact Staffing Firms">employer mandate</a> has received most of the attention. But <strong>there</strong> <strong>are other…</strong></p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557532465?profile=original" target="_self"><img width="200" src="http://storage.ning.com/topology/rest/1.0/file/get/1557532465?profile=RESIZE_320x320" width="200" class="align-left"/></a>When it comes to the Affordable Care Act (ACA or Obamacare), the dreaded <a title="How the Final Obamacare Employer Mandate Rules Impact Staffing Firms" href="http://www.topecheloncontracting.com/blog/impact-final-obamacare-employer-mandate-rules-recruiting-staffing-firms/">employer mandate</a> has received most of the attention. But <strong>there</strong> <strong>are other Obamacare provisions that demand employers' attention and carry their own penalties</strong> for non-compliance.</p>
<p>For example, there are "market reforms" that have added protections for participants in group healthcare plans, such as the requirement that plans extend dependent coverage to children up to age 26. To ensure that employers are in compliance with these market reforms, the Department of Labor recently announced that its COBRA audits will now include ACA audits. Just one violation could result in a <strong>penalty of $36,500</strong>.</p>
<p>Employers, including recruiters if they employ their contractors and/or in-house employees, could encounter an audit of their ACA-related documents if they are subject to COBRA audits. Our third party COBRA administrator, <a href="http://newsroom.infinisource.com/dol-increases-audits-to-enforce-aca-compliance/">Infinisource</a>, recommends that employers keep an easily accessible binder or file that includes the following documents:</p>
<ul>
<li>A sample of the written notice sent notifying plan participants that dependent coverage had been extended to children up to age 26.</li>
<li>A copy your coverage denial notice and a list of anyone it was sent to.</li>
<li>Plan limits for each plan year on or after Sept. 23, 2010.</li>
<li>Notice that the lifetime limit on the dollar value of benefits no longer applied and that an individual may once again be eligible for coverage.</li>
<li>Any documents specifying annual limits for each plan year on or after Sept. 23, 2010.</li>
<li>Any documents establishing grandfathered health plan status, if applicable.</li>
<li>Choice of provider notice for obstetrics or gynecology.</li>
<li>Documents related to preventative and emergency services.</li>
<li>The plan’s review procedure.</li>
<li>Notices regarding benefit determinations.</li>
<li>Agreements between the plan and any vendor that provides external reviews.</li>
</ul>
<p>Each violation could result in an <strong>excise tax of $100 per day for each individual affected</strong>. That means that a single mistake that affects only one person for an entire year could cost an employer $36,500.</p>
<p>It is important to note that, unlike the employer mandate, the market reform provisions are not limited to employers with 50 or more full-time employees. If you provide a group healthcare plan,<strong> you</strong><strong> must comply with the market reforms even if you don’t meet the 50-employee threshold</strong>. The only way to be exempted from SOME of the provisions is if you have a grandfathered plan. If the market reforms apply to you, you should be prepared for an ACA audit. If it does not, you should warn your clients who may be subject to these audits. </p>Hiring Managers vs. HR for Contract Job Orderstag:recruitingblogs.com,2014-04-30:502551:BlogPost:18024852014-04-30T19:30:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557525522?profile=original" target="_self"><img class="align-left" height="149" src="http://storage.ning.com/topology/rest/1.0/file/get/1557525522?profile=original" width="265"></img></a> A common questions we hear from recruiters who are new to contract staffing is<strong> “Where do I go for contract job orders?”</strong> Conventional wisdom has been to go to the hiring manager rather than human resources (HR).</p>
<p>That's because the direct hire and contract hiring processes were often handled separately, so much so that HR may not have been aware of open…</p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557525522?profile=original" target="_self"><img src="http://storage.ning.com/topology/rest/1.0/file/get/1557525522?profile=original" width="265" class="align-left" height="149"/></a>A common questions we hear from recruiters who are new to contract staffing is<strong> “Where do I go for contract job orders?”</strong> Conventional wisdom has been to go to the hiring manager rather than human resources (HR).</p>
<p>That's because the direct hire and contract hiring processes were often handled separately, so much so that HR may not have been aware of open contract positions within organizations. Many recruiters still hold the belief that the hiring manager is the best source for contract job orders, but that may not be true in today's business environment. </p>
<p>As companies move more toward <a href="http://www.topecheloncontracting.com/contract-staffing/newsletter/">blended workforce models </a>that incorporate BOTH direct hires and contractors, HR is increasingly directing ALL hiring efforts. Therefore, bypassing human resources could cause you to miss out on some great contract staffing opportunities.</p>
<p>At a recent industry convention, veteran contract staffing recruiter Linda Blakemore gave a presentation on contract staffing in which she urged recruiters to start with HR departments because they tend to have the best feel for hiring, both direct and contract, throughout an entire organization.</p>
<p>“Recruiters are often surprised when I tell them I work with HR. They ask me, ‘Don’t they get in the way,’” said Blakemore, who is the owner of the Atlantic Pacific Group. “I say, ‘No, I need them.’ Even if HR is not your niche, don’t be afraid to talk to them. They often know what needs to be filled.”</p>
<p>Blakemore shared her reasons for starting with HR:</p>
<ol>
<li><strong>Get on the approved vendor list. </strong>HR often tells<strong> </strong>hiring managers NOT to give job orders to vendors. THR often is in charge of choosing vendors, so if you want to get on the approved vendor list, you need to start with HR.</li>
<li><strong>They have the inside scoop.</strong> Because they are on the front line when it comes to employee issues, they can quietly give you a heads up when a future opening is likely, like when employees are on performance plans or someone is about to take a leave of absence.</li>
<li><strong>Get your foot in the door.</strong> By starting with HR, which is Blakemore's main niche, she often gets introduced to other areas of the organization, which leads to more job orders.</li>
<li><strong>You don't want to burn any bridges. </strong>“HR holds onto the contracting piece very, very tightly,” Blakemore said. “If you try to back-door it, you aren’t going to win any brownie points.”</li>
</ol>
<p>The hiring manager may still be your go-to person in smaller companies. But when there is an HR department, you should try to keep them in the loop even if you already have an established relationship with a hiring manager or HR has given you the okay to work directly with the hiring managers. This approach has gained Blakemore the appreciation and respect of the HR department as well as additional, unexpected job orders.</p>
<p>“They appreciate the heads up on things so they don’t get blindsided,” Blakemore said.</p>
<p><em><a href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a href="http://www.topecheloncontracting.com/">Top Echelon Contracting, Inc.</a></em></p>3 States Recruiters Hate to Place Contractors Intag:recruitingblogs.com,2014-04-24:502551:BlogPost:18015522014-04-24T20:30:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557526608?profile=original" target="_self"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/1557526608?profile=RESIZE_320x320" width="200"></img></a> The legal compliance and liability that comes with placing contractors is no treat no matter where you are located, but in some states, employment regulations are getting so complicated that recruiters are turning down contract business in those areas.</p>
<p>Let’s take a look at the<strong> three hardest states in which to place…</strong></p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557526608?profile=original" target="_self"><img width="200" src="http://storage.ning.com/topology/rest/1.0/file/get/1557526608?profile=RESIZE_320x320" width="200" class="align-left"/></a>The legal compliance and liability that comes with placing contractors is no treat no matter where you are located, but in some states, employment regulations are getting so complicated that recruiters are turning down contract business in those areas.</p>
<p>Let’s take a look at the<strong> three hardest states in which to place contractors:</strong></p>
<p><strong>California</strong></p>
<p>You are probably best off assuming that California will have its own laws for just about everything, so tread carefully with all employment issues there. For starters, they have what is probably the most complex wage and hour code that is particularly generous to employees when it comes to <a href="http://www.dir.ca.gov/dlse/faq_overtime.htm">overtime</a>.</p>
<p>Where most American employees only get overtime when they work over 40 hours in a week, overtime in California is based on the number of hours worked <span style="text-decoration: underline;">per day</span> and the number of <span style="text-decoration: underline;">workdays in a workweek</span>. The state also has its own laws for <a href="http://www.dir.ca.gov/dlse/faq_minimumwage.htm">minimum wage</a> and for <a href="http://www.dir.ca.gov/dlse/faq_paydays.htm">how and when employees are to be paid.</a> </p>
<p>They have state-specific laws governing E-Verify, credit checks, and more, and the state was recently named <strong>the worst one for employment tax laws</strong> on XpertHR’s <a href="http://www.staffingindustry.com/site/Research-Publications/Daily-News/Company-says-California-worst-for-employment-tax-laws-29697">Payroll Misery index</a>. A number of California localities have their own employment laws as well. San Francisco, for example, is among a growing number of localities that have established their own <a href="http://www.topecheloncontracting.com/blog/5-must-know-paid-sick-leave-laws-contract-staffing-recruiters/">paid sick leave (PSL) la</a><a href="http://www.topecheloncontracting.com/blog/5-must-know-paid-sick-leave-laws-contract-staffing-recruiters/">ws</a>.</p>
<p>These laws are complex and vary by locality, leaving recruiters and employers to figure out if they must comply, how to track the leave, and how to administer the program.</p>
<p><strong>New York</strong></p>
<p>New York was also named one of the worst states for employment tax laws by XpertHR, and it has its own <a href="https://labor.ny.gov/workerprotection/laborstandards/workprot/lshmpg.shtm">minimum wage</a> law as California does. And like San Francisco, New York City has its own <a href="http://www.topecheloncontracting.com/blog/staffing-firm-compliance-myriad-local-laws/">PSL law</a>. NYC was also the first <span style="text-decoration: underline;">city</span> to pass legislation to prohibit the discrimination of the unemployed. Employers in the state are required to notify newly-hired employees in writing of their hourly rate, overtime rate, and payday. For contractors, this requirement is fulfilled through the <a href="https://labor.ny.gov/formsdocs/wp/LS51.pdf">New York LS51 Form</a>.</p>
<p><strong>New Jersey</strong></p>
<p>New York's neighbor is the third worst state for employment taxes, according to XpertHR. It's also one of the most popular for paid sick leave laws - two cities within the state (Jersey City and Newark) have them. It was also the first <span style="text-decoration: underline;">state</span> to ban discrimination of unemployed applicants.</p>
<p>Only you can determine if it's worth the extra time, money, and frustration to accept contract placements in these and other difficult states. You have to figure out if the amount of business you can pick up and the profit margin offset the liability and frustration. </p>
<p>But in general, turning down business is usually not a great move for your profits or your reputation. Instead, you may want to consider outsourcing the employment of your contractors (or at least those in particularly difficult states) to a contract staffing back-office provider that will handle all of the employment tasks and legal compliance for those contractors.</p>
<p>That way, you can <strong>enjoy the additional revenue</strong> from taking placements in these states <strong>WITHOUT the state compliance frustration</strong>.</p>3 EASY Steps to Determining Contract Bill Ratestag:recruitingblogs.com,2014-04-15:502551:BlogPost:18001022014-04-15T14:30:00.000ZDebbie Fledderjohannhttps://recruitingblogs.com/profile/DebbieFledderjohann
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557525645?profile=original" target="_self"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/1557525645?profile=RESIZE_320x320" width="300"></img></a> One of the biggest stumbling blocks that keeps recruiters from pursuing contract placement opportunities is confusion over determining the rates, particularly the hourly bill rate that is charged to the client company. But once recruiters understand the formula, <strong>establishing bill rates can be quite simple.</strong></p>
<p>First, let's look at what makes up the…</p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/1557525645?profile=original" target="_self"><img width="300" src="http://storage.ning.com/topology/rest/1.0/file/get/1557525645?profile=RESIZE_320x320" width="300" class="align-left"/></a>One of the biggest stumbling blocks that keeps recruiters from pursuing contract placement opportunities is confusion over determining the rates, particularly the hourly bill rate that is charged to the client company. But once recruiters understand the formula, <strong>establishing bill rates can be quite simple.</strong></p>
<p>First, let's look at what makes up the <strong>hourly bill rate:</strong></p>
<h4 style="text-align: center;"><strong><span style="color: #000080;">Hourly <span style="text-decoration: underline;">Pay</span> Rate + Tax Burden + G&A (Back-Office) + Recruiter Share =<br/> Hourly <span style="text-decoration: underline;">Bill</span> Rate</span></strong></h4>
<p><br/> Determining bill rates can be made easier by following a simple <strong>three-step process:</strong></p>
<ol>
<li><strong>Establish a bill rate range.</strong> Asking the client for a range of bill rates that they will accept helps you as you work through the rest of the process because you will know if you are in the ballpark.</li>
<li><strong>Determine contractor pay rate.</strong> What the contractor will be paid on an hourly basis is the largest single component of the bill rate so it is a<strong> logical place to start when actually calculating a proposed bill rate.</strong> There are multiple methods for determining the pay rate. If you are trying to place an experienced contractor, they can likely tell you what they want to make per hour. You can then determine whether that is reasonable based on their education, experience, skill set, etc. For new contract candidates, you can determine how much someone in a similar position would make annually on a salary basis. You can draw from own experience in the niche, the candidate's current or previous salaries, or from research (try sites such as the <a href="http://www.bls.gov/oes/current/oes_stru.htm#11-0000">Bureau of Labor Statistics</a> or <a href="http://www.salary.com/index.htm" target="_blank">www.salary.com</a>). Then you will want to convert the annual salary to an hourly pay rate by dividing it by 2,080 (the average number of working hours per year). There are a number of factors aside from education, experience, and skills that could adjust that hourly pay rate upward or downward:<ul>
<li>Assignment length - Higher pay rates are normally necessary for short-term contracts to attract quality candidates.</li>
<li>Conversion potential - The pay rate can be closer to a direct salary if the position is likely to convert to direct.</li>
<li>Benefits - Quality benefits (health, dental, vision, and life insurance, 401k, etc.) can justify a lower pay rate.</li>
<li>Unemployed period - The longer a candidate was unemployed, the lower the pay rate may be.</li>
</ul>
</li>
<li><strong>Apply a multiplier (mark-up).</strong> Now that you have an hourly pay rate, you can apply an average multiplier to calculate the company's bill rate. Traditionally, the average multiplier has been between 1.51 and 1.67. It was at 1.60 for March 2014. A number of factors can affect that average, though. For example, some locations, such as New York City, call for a higher multiplier. It may also be higher for hard-to-find and in-demand positions, such as healthcare. Once you have selected a mark-up, simply multiply it by the pay rate to get the proposed bill rate. <strong> EXAMPLE:</strong> $45.67/hr pay rate x 1.60 = $73.07/hr bill rate</li>
</ol>
<p>The margin between the pay rate and the bill rate covers the tax burden, G&A, and the recruiter share. Here is a breakdown of these three factors:</p>
<ul>
<li><strong>Tax Burden</strong> - Contractors are usually W-2 employees of the recruiting/staffing firm or of a contract staffing back-office utilized by the firm. When a worker is paid on W-2, there is a tax burden that includes state and federal taxes, Workers' Compensation, etc. The burden varies by state and job classification.</li>
<li><strong>G&A (General and Administrative)</strong> - This refers to the costs assumed by the firm or back-office tied to the legal, financial, and administrative duties associated with contract placements.</li>
<li><strong>Recruiter profit </strong> - The remainder of the margin after the tax burden and G&A is recruiter profit. Therefore, the wider the margin between the contractor pay rate and the company bill rate, the more profit there will be. </li>
</ul>
<p>Contract staffing can be very lucrative for recruiters. Since you already know how to recruit candidates, once you learn the basics of rate negotiations, the rest is easy!</p>
<p><em><a href="http://www.linkedin.com/in/dfledderjohann">Debbie Fledderjohann</a> is the President of <a href="http://www.topecheloncontracting.com/">Top Echelon Contracting, Inc.</a></em></p>