The Recruiter’s Contract Staffing Blog

It’s no secret that the Obama administration is a little less than employer-friendly.  But while all employers may be on guard, those in the healthcare industry should be especially careful as they become the target of more intense scrutiny for wage and hour law violations, according to recent articles in the New York Times and The Wage & Hour Defense Blog.

Over the past decade or so, “work/-life balance” has become a bit of a buzz phrase as workers try to better accommodate their family lives, interests, hobbies, etc., while still putting food on the table.  While this may seem like a recent phenomenon, a www.ere.net article titled “Work/Life Balance and Labor Day” examines how integrating work with other aspects of life used to be a natural way of doing things and how the different generations currently working are bringing that philosophy back.

It may seem strange to address the subject of turnover given the current state of the economy and still-high unemployment rates. But according to a recent article in the Society For Human Resource Management’s Staffing Management Magazine, turnover, particularly early turnover, is a costly problem that many industries are facing despite the economy.

The economy has forced many candidates who swore that they would never, ever relocate to reconsider their positions, and contracting is a great way to take the sting out of that decision.

One reason contracting is a great option for those who feel forced to relocate is that the jobs are most often short-term.  They allow the worker to buy time while waiting for a job to open up closer to home rather than having to pick up and move permanently.  For those who are willing to make a permanent change, a contract-to-direct situation is a great option because they can try out the new job and city without having to make a long-term commitment. If they don’t like what they see, they can opt not to take the permanent position and try something else.

When it comes to hiring, employers often have a pre-designated set of criteria that they expect of candidates. They may require a certain level of schooling, certifications, or experience.  Anyone lacking those attributes are most often disqualified immediately.  But are those requirements keeping them from finding the best candidates?

That is the question raised by a recent itWorldCanada.com blog post titled “Are biases keeping you from hiring the best candidates?” The article focuses on criteria often expected of Information Technology candidates, but employers often seek many of these same qualities in candidates they consider for all types of positions:

A recent USA Today article provides some potential good news for the economy and hiring.  It reports that companies are increasing their capital spending, begging the question: Are jobs far behind?

According to the article, spending on equipment and computer software incresased by 21.9 percent in the second quarter of this year as compared to the first.  And a Corporate Executive Board survey of 400 companies revealed that 51 percent of those companies plan to boost their capital spending in the next 12 months.  Top Echelon Contracting also noted this trend in a blog post last month where we reported that many companies are finding they can no longer put off computer upgrades and are investing more in Information Technology as a result.

A recent Crain’s Detroit Business article titled “Economic clouds have a silver lining for staffing firms” provides some new statistics showing what Top Echelon Contracting has blogged about numerous times – that employers are hiring more contractors during the economic recovery.

According to the article, temporary/contract staffing has led all other sectors, adding 379,000 jobs since September.  There has been steady growth in employment/contract staffing over the past 24 weeks, with contract staffing showing a 25% increase in July 2010 compared to July 2009.

The recently enacted unemployment benefits extension bill signed by President Obama on July 22 may make it easier for some workers to take advantage of temporary/contract work.

Before the bill was signed, accepting temporary/contract work could result in lower unemployment benefits for the worker.  Why?  After a worker has received federal unemployment benefits for 52 weeks, federal law requires the state unemployment agency to review the worker’s wages to determine if enough had been earned to qualify the worker for regular state benefits.  Many workers who had accepted short-term assignments during that time found that their unemployment benefits were reduced as the temporary/contract assignment, rather than their previous permanent work, was used as the base to determine their unemployment rate.

We recently blogged about a prevailing trend by employers to only hire the “perfect candidate” and the extreme ways they are weeding out “imperfect” candidates, such as not considering anyone currently unemployed and using credit checks more frequently.  Given the current economic climate and employers’ reluctance to hire at all, this may be the attitude you encounter the most.  But you may also find yourself grappling with employers at the opposite end of the spectrum, those who make what a recent www.ere.net article calls the “Butts in Chairs” request.  Simply put, these employers are not concerned about quality of hire but simply want to get the position filled, or to use the article’s analogy, put a butt in the chair.

While most employees may not be so fed up with their jobs that they would curse out a customer and jump out of a moving plane like the JetBlue flight attendant we’ve heard so much about, it’s becoming clear that they are getting burnt out and that employers may have to start hiring to ease the burden.

In the article “It’s Official: We’re All Burnt Out,” CNNMoney.com reported on recent Department of Labor statistics showing that worker productivity fell 0.9 percent in the second quarter, which represents the first decline in productivity in 18 months.  Many see this as a sign that employers can no longer cut costs by reducing their workforces and working remaining employees harder as was the trend throughout the recession and beyond.

The most recent employment statistics from the U.S. Bureau of Labor Statistics offers little good or bad news.  The unemployment rate in July remained unchanged at 9.5 percent, and the private sector gained 71,000 jobs.

Again, manufacturing and healthcare are leading the way.  Manufacturing employment increased by 36,000 in July, and the motor vehicles and parts sector had fewer seasonal layoffs than they normally have in July. Manufacturing has added 183,000 jobs since December.

Healthcare employment went up by 27,000 jobs in July and has gained 231,000 jobs over the past 12 months.

A recent post on our sister company Top Echelon Network’s Recruiter Training Blog discusses hiring managers’ reluctance to hire anyone but the “perfect candidate.” In the quest for this mythical “perfect candidate,” some companies are throwing down new, stringent mandates, such as not considering anyone who is currently unemployed and checking credit reports more frequently.

According to a recent Newsweek article titled “The Big Hiring Freeze”, profits at some of the country’s biggest companies, such as IBM, are up.  Industrial Companies in the Standard & Poor’s 500 Index are sitting on $838 billion.  So where are all the jobs?

Well, according to the article, it could be a number of things.  Many companies are making greater use of stock options for executive compensation, and decreasing payroll is one of the best ways to increase profits and, along with them, stock prices.  It’s also possible that companies have developed a “bunker mentality” due to the Obama administration’s less than employer-friendly new policies.

A recent report by www.CNNMoney.com shows that manufacturing growth is continuing, although at a slower pace than in previous months.

Citing information from the Institute for Supply Management (ISM) index, the article states that even though manufacturing’s numbers in July were lower than in June, they still represent 12 consecutive months of manufacturing growth.  The index also showed that of the 18 manufacturing industries surveyed by the ISM, 10 showed growth, including plastics, rubber, electrical equipment, and appliances.

Perhaps the best news to come from the index, though, is that there was a notable jump in hiring.  This shows a continuation of trends Top Echelon Contracting previously reported on this blog: that manufacturing was leading the way in job growth and that manufacturing/engineering is one of the hottest areas in contract staffing.

The National Association of Personnel Services (NAPS) will hold its Annual Conference from September 29-October 2 at the Hyatt Regency St. Louis at The Arch St. Louis, MO.  Top Echelon Contracting President Debbie Fledderjohann will be a speaker, and Top Echelon Contracting, in conjunction with Top Echelon Network, will be exhibitors.

This year’s conference will have a strong focus on contract talent due to the increased interest in contracting among companies of all sizes.  For more information and to register for the conference, visit NAPS Annual Conference Web page.