Is your contingent workforce program delivering high quality?
When a company implements a contingent workforce program, it expects a wide range of benefits. Costs should drop. Quality of candidates should improve. Life should generally get easier. But how can a business be sure that its program is delivering? What can’t be measured can’t be improved. By developing periodic performance metrics to track a contingent workforce program, a company can determine which areas are performing well –and which need to improve. Research analysts at Staffing Industry Analysts suggest that contingent workforce programs should be graded in four categories: quality, efficiency, risk and cost. This is the first in a series of four blogs that will describe how each of these categories can be measured to ensure your contingent staffing program is working for you. Today, let’s talk quality. Metrics evaluating candidate quality quantify how well the staffing provider submits contractors that meet the requirements of the position and can deliver
Freshly minted college grads see improved job outlook
For the first time since 2007, spring graduates can look forward to a double-digit increase in hiring. According to the National Association of Colleges and Employers (NACE), companies plan to hire 19.3 percent more graduates in 2010-11 than they did in 2009-10. This number has grown stronger since fall, when employers indicated they would increase hiring of new grads by 13.5 percent. Other numbers bode well for new graduates as well. While the number of applications employers received for each opening has risen nearly 45 percent since last year at this time, the number of open positions has nearly tripled. As a result, the average number of applications per position has almost been cut in half, from 40.5 in 2010 to just over 21 currently. Hiring increases are being seen across almost all industries, with the strongest being: Oil and gas extraction Chemical (pharmaceutical) manufacturers Computer and electronics manufacturers Finance,
The rising tide of unemployment taxes
If asked to name one reason staffing overheads are about to rise, most companies have a simple answer: SUTA. In this multi-part blog series, we are exploring the factors expected to cause bill rate increases in the staffing industry over the coming months. In this entry, which is part five, we will explain the significant effect that increased unemployment taxes will have. For other factors that cause costs to rise, please visit our overview on rising costs, as well as later entries on rate card clients, markup-based clients, and payrolling situations. Please note that federal unemployment taxes (FUTA) have been omitted from this discussion for brevity. However, they behave in much the same manner as SUTA taxes but represent a small fraction of SUTA’s cost impact. First, a brief explanation of unemployment taxes. SUTA, or State Unemployment Tax Authorities, levy taxes on all businesses that employ workers in their respective states.
Interview basics for managers
Sometimes, a simple conversation can get your company in trouble. During the interviewing process, several managers may get their crack at job candidates. They ask a wide range of questions, take notes, and then chat about the potential employees. Unfortunately, each stage of the game is fraught with peril. If the wrong questions are asked, or the wrong notes are taken, candidates could slap the organization with a discrimination claim. To minimize the risk of these lawsuits, team members taking part in the interview process should understand some basic rules. In most cases, these relate to protected classifications under the law. Put simply, no question or discussion during the interview should imply discrimination against candidates based upon: Gender Age Race Color Religion National origin Marital status Pregnancy Disability In some jurisdictions, additions to this extensive list include sexual orientation, transexualism and transgenderism. Knowing that all of these protected classifications come
Rising costs to hit payrolling hard
Are staffing costs about to rise? That’s the question we’re exploring in a multi-part blog series. This is part four, in which we will examine the situation for payrolling clients. As explained in part one, several factors are coming together that may result in higher costs for client companies. In part two, we discussed how rate card clients can maintain high quality and low turnover in the coming months. Most recently, in part three, we looked at how the situation may affect markup-based clients. Two sets of rising costs may affect the staffing world in the long term. Employees are facing: - Increased gasoline prices - A reset of the Social Security tax in 2012, which will push paychecks down by 2 percent At the same time, staffing companies will be affected by: - A rise in both state and federal unemployment tax rates, which are both expected to increase
Social media can impact your employability
“There’s a picture of him doing what?” That’s the shocked question recruiters ask each other all too frequently as they research job candidates. On Facebook and other social media sites, we find all kinds of interesting photos, videos and comments. Job candidates have been filmed while out drunk at a bar. They’ve appeared in photographs that are very close to pornography. Some have even bragged about their use of illegal drugs. Let’s face it. Your social life loses its privacy when it is posted on social networking sites. And your actions, photos and thoughts can impact your employability, in the present or the future. Take it from a recruiter. Whether you are currently looking for a job, or plan to find a job at any time in the future, you should keep some guidelines in mind when posting online: Now has become forever. Having a great time in college? That’s
Background checks getting risky for employers
Are you protecting your organization, or discriminating against job candidates? That’s the question raised by the U.S. Equal Employment Opportunity Commission (EEOC), as well as some state and local governments. These entities seem to be cracking down on two pre-employment screenings that, until now, have been considered good business practice by many organizations: criminal background checks and credit checks. Companies have been relying on these screening devices for good reason. If it hired an individual with a criminal record, an organization might later be held liable for negligence if that person harmed an employee or customer. Similarly, if a company failed to conduct a credit check on an employee who subsequently embezzled funds, shareholders could sue. Yet under new initiatives by the EEOC, both credit histories and criminal background checks are being viewed in an unfavorable light. The EEOC has determined that some employment criteria may seem neutral, but it
Pinnacle honored as outstanding supplier
Last week, Pinnacle received a great honor when AT&T chose us as one of its outstanding suppliers for 2011. Since 2001, the telecommunications giant has been one of our premier clients. Thanks to mutual hard work and a productive partnership, it’s a relationship that has gone on to benefit both of our companies for the last decade. It is a true privilege to earn this recognition. As an entrepreneur, this is a very special honor which only reinforces the client-focused approach we live and breathe at Pinnacle every day. “We are proud of our long-standing tradition of providing unparalleled, innovative products and services to our business and residential customers,” said Tim Harden, president of AT&T Supply Chain and Fleet Operations. “We’re successful on that front in large part thanks to extraordinary suppliers like Pinnacle Technical Resources that consistently go above and beyond, exceeding our expectations and helping exceed those of
What kind of entrepreneur are you?
The word “entrepreneur” gets thrown around like a one-size-fits-all label. Generally seen as risk-taking business owners, entrepreneurs may also be viewed as slick operators, workaholics or casual careerists. Ultimately, in my mind, there are two kinds of entrepreneurs. Both can be wildly successful, fulfilled and happy with their positions. The real challenge? Deciding which kind of entrepreneur you are – and which kind you want to be over the long term. Which one are you now? Lifestyle entrepreneurs generally work hard and play hard. These successful business owners do what they do so they can enjoy a particular way of living, whether that means travel, hobbies, sports or a focus on family. Some lifestyle entrepreneurs consider their business to be a job that allows them to support more important facets of their lives. Other lifestyle entrepreneurs work on a part-time basis, again to support their choice of living conditions and
How markup-based clients can adjust to rising bill rates
This is part 3 in a series of blogs on the looming rise in bill rates. As we discussed in part 1, a confluence of factors are expected to put upward pressure on bill rates for staffing clients. These factors include: Wage inflation driven by overall inflation in the economy Rising state and federal unemployment taxes driven by years of high unemployment Expiration of the 2 percent Social Security tax holiday in January 2012 Higher interest rates due to inflation and evolving fiscal and monetary policies Rising gasoline prices Likely increases in workers’ compensation rates (due to higher claims) In part 2, we outlined strategies that rate card clients could use to maintain high quality and low turnover amid rising rates. Today’s blog addresses markup-based clients. In the staffing industry, many clients pay their staffing providers based on a markup. For example, if a worker is paid $40 per hour