(Editor’s Note: This is the next in a series of guest blog posts about contract staffing, courtesy of Top Echelon Contracting, the recruiter’s back-office solution.  Similar posts will appear in future issues of The Pinnacle Newsletter Blog.)

You think you’ve found the perfect candidate for your client’s tough job order.  He passed the phone interview and the following three in-person interviews with flying colors.  He aced all of the skills and assessment tests.  He has all of the qualifications and seems to be a perfect cultural fit.

But while your client deliberates over whether this is really the BEST they can do, your candidate takes another job.

A slow hiring process wears candidates down and ultimately costs you time and money as you start the search process over and over again.  Dragging out a search can also deter candidates before they even apply.  According to www.ere.net citing a Randstad survey, candidates start to think there is something wrong with a job posting if it remains unfilled after 72 days.

Mark Bull, the UK CEO of Randstad, told ERE that the best applicants can often be found early in the process and that employers should have the courage to act quickly.

“If they don’t, they have to be prepared to see that job seeker walk into the arms of a competitor who is willing to move faster,” he said.

You can help make that decision easier for your client by offering to provide that candidate on a contract-to-direct basis. This gives the client the opportunity to “try-before-they-buy” risk-free.  And in the meantime, you prevent losing a quality candidate . . . and the placement fee.

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888.627.3678
dfledderjohann@topecheloncontracting.com
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(Editor’s Note: This is the next in a series of guest blog posts about contract staffing, courtesty of Top Echelon Contracting, the recruiter’s back-office solution.  Similar posts will appear in future issues of The Pinnacle Newsletter Blog.)

Demand for temporary/contract workers in the professional sector is expected to exceed previous records in 2012 and 2013, according to Staffing Industry Analysts’ U.S. Staffing Industry Forecast.

Specifically, the IT Staffing and Engineering/Design industry segments within the Professional/Specialty sector are expected to beat previous records for staffing revenue.  IT Staffing’s revenue previously peaked in 2000.

This year, the industry is expected to generate 107% of 2000’s revenue by the end of this year and 116% in 2013.  In 2012, Engineering/Design is expected to bring in 106% of the revenue from its previous peak year of 2008 and 111% in 2013.

Meanwhile, the usage of “temps” in the office/clerical industry appears to be declining. It is projected that in 2012, the industry will only hit 85% of its previous 2006 peak and only 89% in 2013.

This correlates with what Top Echelon® Contracting has been experiencing.  Engineering and IT have landed in our top three industries for contract placements for the past several years, and we are expecting the same for 2012.  We have particularly seen an increase in the engineering/manufacturing sector and have begun accepting more placements in this area.

So what does this mean to you as a recruiter?  Well first of all, if you are looking for a niche in which to offer contract staffing services, it’s pretty clear that IT and Engineering are good places to start and have longevity.

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888.627.3678
dfledderjohann@topecheloncontracting.com
Connect with Debbie on LinkedIn.
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(Editor’s Note: This is the next in a series of guest blog posts about contract staffing, courtesy of Top Echelon Contracting, the recruiter’s back-office solution.  Similar posts will appear in future issues of The Pinnacle Newsletter Blog.)

How important is workplace flexibility to working adults? It’s important enough that 45% would sacrifice a portion of their salary to get it, according to a Staffing Industry Analysts article citing a Moms Corps survey.

They are also willing to give up increasingly large percentages of their salaries to get that flexibility. This year, they said they would be willing to take an 8.6% pay cut. Last year they said they would only be willing to slash their pay by 5.8%.

In addition, the survey found that:

• 67% believe they can “have it all” when it comes to work-life balance.
• 53% said they could get more done if they could occasionally work from home.
• 60% said that the economy has no impact on their desire for workplace flexibility.

This growing need for workplace flexibility is one of the major reasons more workers are choosing to become contractors. Contract staffing can help workers gain flexibility by allowing them to:

1. Work hours that are convenient for them.  Contract assignments are often project based, so companies may allow flexible daily or weekly work schedules, as long as the work gets done on a timely basis.
2. Not be tied to an office.  If a candidate has what they need at home, they can often work between their home and office. Smartphones, the Internet, and other technological advances are making this more and more feasible
3. Take control of their free time.  New employees typically only get one week of vacation, two tops. Even if they are willing to take the time unpaid, they often are not allowed. With contracting, if they want to take an extended vacation or take the summer off to be with their children, they simply don’t take an assignment during that time. Many contractors choose to take assignments in other states to take advantage of the opportunity to travel. They actually look at this as a vacation of sorts in which they can explore new areas, cultures, etc.

Do your candidates need or want more flexibility in their work? If so, you way want to suggest contract staffing as an option. By providing a way for them to achieve work-life balance, you can make yourself the recruiter of choice for top candidates in your niche.

— — —

888.627.3678
dfledderjohann@topecheloncontracting.com
Connect with Debbie on LinkedIn.
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(Editor’s Note: This is the next in a series of guest blog posts about contract staffing, courtesy of Top Echelon Contracting, the recruiter’s back-office solution.  Similar posts will appear in future issues of The Pinnacle Newsletter Blog.)

The myth that workers only become contractors to obtain a direct hire position has been officially debunked by a recent Randstad study.

Over 2,000 employed adults were surveyed for the Randstad Workforce360 Study. The study found that 78% of the temporary/contract workers surveyed felt their experience was positive.  In fact, many have chosen contract work over direct hire positions for the following reasons:

• Schedule flexibility (selected by 31% of respondents)
• Better pay (28%)
• More control over career (21%)

Of the temporary/contract workers surveyed, 86% reported that their level of job satisfaction was very good or excellent, compared to 73% of permanent/direct hire employees.  In addition, 54% of the contractors strongly agreed with the statement, “I am paid what I’m worth.” Only 42% of direct hires stated the same.

In addition, the survey found that one-third of contractors occupy high-level positions. This relates to a trend Top Echelon® Contracting has reported on numerous times called executive temping.

One of the biggest reasons recruiters don’t offer contract staffing is that they’re afraid they won’t be able to find candidates.  This study shows that candidates’ attitudes toward contract staffing have changed dramatically.  Contract positions are no longer the jobs they take because a direct position is not available. More and more, candidates are choosing contract positions over traditional employment.

The only way you’ll know if your candidates are willing to work as contractors is to ask them.  You may be surprised by how many would prefer the option to work on contract.

And if you run your contractors through TEC’s back-office, they’ll be happy to know that they’ll be offered a full menu of benefits, including healthcare insurance offered through Anthem Blue Cross and Blue Shield.  This is in addition to a weekly paycheck with the option of direct deposit.

— — —

888.627.3678
dfledderjohann@topecheloncontracting.com
Connect with Debbie on LinkedIn.
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(Editor’s Note: This is the next in a series of guest blog posts about contract staffing, courtesy of Top Echelon Contracting, the recruiter’s back-office solution.  Similar posts will appear in future issues of The Pinnacle Newsletter Blog.)

What does a worker who has only been out of work for a month have in common with one who has been unemployed for six months to a year?

It appears they are both just as likely to be rejected for a job based on their employment status (or lack thereof), even as legislators move to make “unemployed discrimination” illegal.

A recent Huffington Post article discusses a study in which 47 human resource professionals were asked to review resumes that were identical except that half stated the candidate was currently employed, and the other half indicated the candidate had been unemployed for one month.  The HR professionals gave the currently employed candidate higher marks for competence and hireability.

The study also found that unemployed candidates who are laid off are not viewed any more favorably than those who quit their jobs.  However, candidates who were laid off because the company went under do appear to get more sympathy.

Employer’s’ preference for selecting candidates who are currently employed is nothing new, but the practice came under fire last year when job postings emerged specifically stating that unemployed candidates would not be considered.  As a result, lawmakers on both the state and federal level have considered legislation against unemployed discrimination.

New Jersey passed a law last year banning job ads that are found to discriminate against unemployed candidates. This past May, the District of Columbia took it a step further with legislation that made unemployed status a protected class, according to the Littler Mendelson law firm.  The law makes it illegal for employers in the District of Columbia to refuse to hire candidates based on their employment status.

So what are you seeing out there in the trenches?  Do employers tend to reject unemployed candidates, even if they have only been out of work a short amount of time?

— — —

888.627.3678
dfledderjohann@topecheloncontracting.com
Connect with Debbie on LinkedIn.
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(Editor’s Note: This is the next in a series of guest blog posts about contract staffing, courtesy of Top Echelon Contracting, the recruiter’s back-office solution.  Similar posts will appear in future issues of The Pinnacle Newsletter Blog.)

In response to the growing need for skilled labor in the engineering and manufacturing sector, Top Echelon Contracting has worked with our insurance underwriters to allow the placement of more CNC machinists in a wider variety of work environments.

TEC already places a wide range of professionals in engineering and manufacturing positions.  In fact, engineering and manufacturing accounted for 18% of TEC placements last year.  As more manufacturing jobs are coming back to the United States, we wanted to expand our ability to place CNC machinists to address the growing need.

Alan Carty, President and CEO of Automationtechies and Automation.com, recently spoke to us about the role of CNC machinists in today’s industries.

“The CNC machinist job is dramatically different from the machinist role of 20-plus years ago,” Carty said.  “Today it is a hybrid position that not only requires the traditional machinist’s skills, but more technically advanced skills, such as CNC programming.”

Carty added that the need for skilled workers is tied closely to the increasing factory automation.

“Companies have been holding back because of the economy, but now the time has come to expand and start hiring,” Carty said.  “There is currently a strong demand for factory automation professionals.  In our niche, we are seeing more and more openings for process control engineers and automation/controls engineers, along with a multitude of other automation related opportunities.”

However, many of those openings are going unfilled as manufacturers struggle to find workers with the needed skills.  Manufacturing jobs, which were previously dominated by lower-skilled positions that only required a high school diploma, have changed dramatically since the recession.  Today’s jobs require some form of higher education or training.  But CFO.com reported that fewer than 10% of American teenagers are planning to pursue skilled-trade careers.

According to a recent survey by Deloitte Consulting and the Manufacturing Institute, there are approximately 600,000 unfilled manufacturing jobs.  Of the more than 1,100 manufacturing executives surveyed, two-thirds reported that they are facing a moderate to severe shortage of skilled labor.

Carty, who has been recruiting since 2000 and has a strong background in both direct hire and contract staffing, said there is currently a stronger demand for direct hire in his niche.  But he believes that as the number of automation projects continues to increase, contract staffing will also grow in this sector.

Contract staffing can help manufacturers with their automation projects and expansions in a number of ways.  First, contracting allows them to quickly bring in experienced skilled workers who can immediately have a positive impact on production.  Contractors also allow manufacturers to adjust their workforce based on the current demand for their products. They can utilize contractors when business is strong, and when there is a dip in business, they can end contract assignments without the negative press of a layoff.  In addition, contract staffing allows manufacturers to retain or bring back retirees who are already trained in their specific skill set.

CNC machinist opportunities span a wide range of industries and risk factors.  To find out if TEC can accept your CNC machinist contract placements, call us at (888) 627-3678.

— — —

888.627.3678
dfledderjohann@topecheloncontracting.com
Connect with Debbie on LinkedIn.
Follow Debbie on Twitter.

(Editor’s Note: This is the next in a series of guest blog posts about contract staffing, courtesy of Top Echelon Contracting, the recruiter’s back-office solution.  Similar posts will appear in future issues of The Pinnacle Newsletter Blog.)

The Sacramento Business Journal recently reported that lawsuits under the Federal Labor Standards Act (FLSA) have risen 33% over the past three years.  With that in mind, it seems like a good time to discuss when contractors must be paid for overtime.

First, let’s clarify what we mean by contractors. We’re are not talking about 1099 Independent Contractors.  We’re talking about workers who are placed on a contract basis at a client company and who are W-2 employees of a third party.

The FLSA requires that most W-2 employees be paid at a rate of 1.5 times their regular pay rate for any hours worked over 40 in a work week.  Some states have more stringent requirements.  For instance, workers in California must be paid overtime for any hours worked over eight in a day.

The FLSA does allow certain employees to be classified as exempt from overtime.  To be exempt, employees must also fall into one of the following classifications and be paid at least $455 a week on a salary (not hourly) basis:

• Executive
• Administrative
• Learned Professional

Keep in mind, however, that just calling someone an executive, for example, does not automatically make them exempt.  They must meet certain requirements to be considered exempt under one of these classifications.  Please see the exempt requirements provided on the Department of Labor’s website.

The rules are a little different for professionals working in computer-related and outside sales occupations.  Employees meeting the requirements for the computer-related exemption can be paid at an hourly rate if they are paid at least $27.63 per hour ($38.89 per hour in California).  Additionally, the salary requirements do not apply to those under the outside sales exemption.

If you’re placing contractors and run your own back-office, you are responsible for properly classifying contractors as exempt or non-exempt and paying overtime when required.  But even if you’re utilizing a contract staffing back-office that handles those responsibilities, it’s important that you’re aware of the requirements of the FLSA since your clients often look to you as an employment expert.

(This article is for informational purposes ONLY and should not be considered legal advice.)

— — —

888.627.3678
dfledderjohann@topecheloncontracting.com
Connect with Debbie on LinkedIn.
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(Editor’s Note: This is the next in a series of guest blog posts about contract staffing, courtesy of Top Echelon Contracting, the recruiter’s back-office solution.  Similar posts will appear in future issues of The Pinnacle Newsletter Blog.)
Not so long ago, many people felt compelled to choose between their career or family.  Now, as buzz phrases like “work-life balance” take over the workplace, the focus is on “having it all.”

While having it all may sound great in theory, it’s hard to come by in practice.  Juggling a full-time job and family responsibilities (which for many workers includes caring for children AND elderly parents) is not for the faint of heart.

That’s why, according to a recent Wall Street Journal article, many skilled professionals are turning to contract staffing.  In what the article calls “a major shift,” temporary/contract placements of college-educated professionals has outpaced those of clerical and blue-collar temps.

In fact, placements of contractors in healthcare, technology, engineering, science, law, and accounting are expected to make up 52% of the expected $100.3 billion staffing industry revenue in 2012, according to the article, citing Staffing Industry Analysts statistics.

The article states that the reason for this shift is that workers are trying to find work with a more flexible or part-time schedule.  Contract/temporary work is a viable route to flexible work, particularly for those with in-demand skills such as engineering, IT, programming, and social media.

The article further states that these workers make between $20-$200 an hour, but typically do not get benefits.  This is where you, as a recruiter, can really make a difference.  Lack of benefits is a major factor that often holds candidates back from considering contract work.

But you could place your highly skilled candidates as contractors and outsource their employment to a contract staffing back-office, such as Top Echelon Contracting, that provides them with benefits.  That way, they can enjoy the flexibility that is possible through contracting without missing out on the benefits they can gain through traditional, full-time employment.

As a recruiter, your job is to provide your clients with the best of the best.  By providing candidates with the opportunity to “have it all,” you can attract the highest caliber talent and, as a result, attract the best placement opportunities.

— — —

888.627.3678
dfledderjohann@topecheloncontracting.com
Connect with Debbie on LinkedIn.
Follow Debbie on Twitter.

(Editor’s Note: This is the next in a series of guest blog posts about contract staffing, courtesy of Top Echelon Contracting, the recruiter’s back-office solution.  Similar posts will appear in future issues of The Pinnacle Newsletter Blog.)

E-Verify is an online system that checks information provided on an employee’s Form I-9 (Employment Eligibility Verification) against data from the Social Security Administration and Department of Homeland Security.

While the system isn’t mandatory for all employers, there is federal legislation pending to change that.  And many employers are already required by state or local law or under federal contracts to run their employees through E-Verify.  But why should that concern you as a recruiter?

Well, if you’re placing contractors and running your own back-office, YOU are responsible for running your contractors through E-Verify, if required.  That means you need to keep up with the federal laws, as well as those in all of the areas in which you place contractors and make sure that you’re in compliance.

If you are required to E-Verify contractors, you’ll need to be trained and certified to use the system.  You must run new contractors through the system within three business days of their start date.  Of course, this is after you’ve had them complete Section 1 of the I-9 on their first day of work and you have completed Section 2, which is a task that also must be completed within three days of their start date.

Even if you use a contract staffing back-office, you still want to ensure that the back-office is running contractors through E-Verify when required.  Not only that, but many clients are requiring that contractors placed at their companies are run through E-Verify, even if not required by law.  If you want to get placements from those clients, you’ll want to be sure to use a contract staffing back-office that is certified to run E-Verify.

Your best bet is to align yourself with a contract staffing back-office, such as Top Echelon Contracting, that runs all of their contractors through E-Verify.  That way, you know all of your placements will be compliant with any applicable E-Verify laws and you won’t miss out on any placement opportunities.

(Editor’s note: this article is for informational purposes only and should NOT be considered legal advice.)

— — —

888.627.3678
dfledderjohann@topecheloncontracting.com
Connect with Debbie on LinkedIn.
Follow Debbie on Twitter.

(Editor’s Note: This is the next in a series of guest blog posts about contract staffing, courtesy of Top Echelon Contracting, the recruiter’s back-office solution.  Similar posts will appear in future issues of The Pinnacle Newsletter Blog.)

Like it or not, it looks like the Patient Protection and Affordable Care Act (PPACA), otherwise known as “Obamacare,” is here to stay.  Even if the upcoming election is a Republican landslide, experts say it is unlikely that the healthcare reform will be completely repealed.

One of the upcoming provisions worrying employers the most is the employer mandate.  Under this provision, employers with 50 or more full-time employees will be required to provide affordable healthcare insurance or pay a $2,000 annual penalty on each employee, minus the first 30 employees.

Even if they do offer insurance, they could be subject to penalties if the coverage is “unaffordable,” meaning that it costs more than 9.5% of an employee’s income or the employer pays less than 60% of the premiums.  And if they do offer coverage, their plan will be subject to new taxes and requirements under the PPACA that will increase their costs and administrative burden.

Even though the mandate won’t take effect until 2014, employers are already looking for ways to avoid these costs.  Some may shift some of their full-time employees to part-time to get below the mandate’s threshold.  Others may be tempted to classify workers as 1099 Independent Contractors, but since there has been a crackdown on worker misclassification at both the state and federal levels, this isn’t the wisest choice.

Some business owners are even considering breaking up their companies into smaller businesses to get around the employer mandate, according to a recent CNNMoney article.  But since the employer mandate looks at the total number of workers employed under common ownership, that also is not a viable option.

One possible solution is utilizing contractors who are W-2 employees of a recruiter or a contract staffing back-office.  In this scenario, it doesn’t matter how many hours the contractor works because they will be counted as an employee of the recruiter or back-office, not the company.

The demand for these types of positions has already surged since the recession due to economic uncertainty, employers’ desire for a flexible workforce, and increased employment regulations.  In fact, according to the American Staffing Association, temporary/contract positions accounted for 91% of job creation between June of 2009 and June of 2011.

Only time will tell if “Obamacare” really affects the number of contractors in the workplace, but as employers try to contain their costs, contract staffing offers a viable solution.  You’ll want to be sure that you’re able to provide contractors so that you can be a sole-source provider for your clients, able to handle ALL of their staffing needs.

But keep in mind, if you have more than 50 contractors and you run your own back-office, you’ll be subject to the employer mandate and will either need to offer insurance or pay the penalty.

If you outsource to a contract staffing back-office, the contractors will become their W-2 employees, so the back-office, not you, will be responsible for complying with PPACA.

(Editor’s note: this article is for informational purposes only and should NOT be considered legal advice.)

— — —

888.627.3678
dfledderjohann@topecheloncontracting.com
Connect with Debbie on LinkedIn.
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