(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.

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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 increased use of contractors over the past few years is more than just a knee-jerk reaction to the recession, according to a recent survey by Randstad.

The Randstad Workforce360 Study found that companies are beginning to view blended workforces – those that include a mix of traditional employees and contingent workers – as a long-term business strategy.

Of the 225 human resource managers surveyed, 67% are using contractors in some capacity. In addition, 71% of companies with blended workforces reported that the flexibility provided by their contractors has allowed them to “remain nimble” in the uncertain economy. Twenty-one percent of the companies surveyed plan to increase their contract worker population in the next year.

“What used to be viewed as a temporary stop-gap measure, the utilization of a contingent workforce alongside full-time talent is no longer a contingency plan,” Managing Director of Human Resources for Randstad US Jim Link said in a press release. “We believe this integrated staffing model will be fundamental to operational and fiscal success for the foreseeable future.”

This is no surprise to us at Top Echelon Contracting. We have noticed that companies are taking their use of contractors beyond what is typical in an economic recovery. In fact, many are implementing a whole new workforce strategy in which they maintain a core group of employees supplemented by a more flexible outer ring of contractors. As a result, Top Echelon Contracting experienced a 22% increase in commercial contract placements in 2011 and is seeing a continued upward trend this year.

This is good news for recruiters as it represents a whole new crop of placement opportunities. If you have previously only placed direct hire candidates, now is the perfect time to pursue contract staffing job orders.

The process for placing contractors is essentially the same as placing direct hires. In many cases it is actually easier because contract placements typically happen much quicker as companies try to meet an immediate need or deadline.

To learn how to add contract staffing to your business model, download our FREE Contract Training Kit.

— — —

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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.)

As the number of mobile devices and users increases rapidly,contractors are helping the wireless telecommunications industry keep up with the demand.

More than 3.8 million Americans are employed in this sector, which accounts for 2.6% of all U.S. employment, according to CTIA, the International Association for the Wireless Telecommunications Industry.  The association also predicts that wireless broadband investment will create as many as 205,000 jobs in the United States by 2015.

“Wireless providers are working feverishly to expand their network capacity, and the proliferation of smartphones, iPads, video conferencing, etc., are driving that demand in all sectors,” said Mike Zarnek, Executive Recruiter and President of Z Search Recruiting.

To keep up, wireless telecommunications companies must find workers with specific technical expertise in the industry.  But at the same time, they are not ready to commit to direct hires.  As a result, Zarnek, who has been recruiting in the industry for over 30 years, is seeing a “definite increase” in client requests for contractors.

“Contract staffing allows our clients to increase productivity without increasing overhead,” said Zarnek.  “Contract staffing is a practical management solution for covering peak workloads, extended absences, special projects, and more.  Employees are the foundation of any successful organization, while also being an expense.  Using contractors in certain situations shifts a fixed expense to a variable expense that can be increased or decreased based upon business needs.”

Z Search Recruiting provides direct hire and contract staffing solutions to the entire wireless industry, including the Wireless Carrier Market, RF, Microwave, DAS, Mobile Content, Mobile Advertising, 4G Infrastructure Providers, Mobile Handheld Device Manufacturers, LTE Infrastructure Providers, Network Monitoring and Optimization Services, Public Safety Communications, Antenna Design Firms, and Wireless Test and Measurement Services.

The firm utilizes the contract staffing back-office services of Top Echelon® Contracting (TEC) for its contract staffing placements. TEC has worked with Zarnek on 729 placements in this niche since 1996.

— — —

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For years, The Cornerstone, the newsletter of Top Echelon contract staffing, was sent to the Preferred Members of Top Echelon Network.  The Cornerstone was eventually discontinued in favor of another newsletter, Contracting Corner, which is now published once a quarter.

However, we still run contracting statistics in select issues of The Pinnacle Newsletter Blog.  These statistics include Non-Split Contract Placements, Split Contract Placements, and Non-Recruited Placements, among others.

Below are the most recent statistics regarding contract placements made by Preferred Member recruiters, courtesy of Top Echelon Contracting, the recruiter’s back-office solution.

Many of the Top Producers in Top Echelon Network have added contract staffing to their business model and have also taken advantage of the contract placement services provided by Top Echelon Contracting.

For more information about the benefits of contract staffing and the services that Top Echelon Contracting provides, call (888) 627-3678, Ext. 2.

For years, The Cornerstone, the newsletter of Top Echelon contract staffing, was sent to the Preferred Members of Top Echelon Network.  The Cornerstone was eventually discontinued in favor of another newsletter, Contracting Corner, which is now published once a quarter.

However, we still run contracting statistics in select issues of The Pinnacle Newsletter Blog.  These statistics include Non-Split Contract Placements, Split Contract Placements, and Non-Recruited Placements, among others.

Below are the most recent statistics regarding contract placements made by Preferred Member recruiters, courtesy of Top Echelon Contracting, the recruiter’s back-office solution.

Many of the Top Producers in Top Echelon Network have added contract staffing to their business model and have also taken advantage of the contract placement services provided by Top Echelon Contracting.

For more information about the benefits of contract staffing and the services that Top Echelon Contracting provides, call (888) 627-3678, Ext. 2

(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
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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 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.
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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.)

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.
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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.)

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.)

— — —

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