Reliance Staffing

One Third of Resumes Lie: Reference Check, Anyone?

Reliance — Tue, 27 Jul 2010 13:17:28 +0000

by Steve Bruce

Everyone agrees that reference checks are important, but actually doing them is difficult. Employers want to get information about candidates, but when other employers want the same information from them, they don’t want to give it. That’s frustrating, says Employment Screening Resources (ESR).

One-Third of Resumes Contain a Lie

According to industry experts, up to one-third of resumes contain material falsehoods, ESR says. Remember, for employers, the resume is a factual document, but for applicants, it is a marketing tool. ESR is a Novato California-based provider preemployment screening services.

What Can You Achieve with Reference Checks?

Achieve better hiring fits. Often, the best indicator of future performance is past performance, says ESR. And the best way to find out about that is the reference check. A general rule: Information often trumps intuition.
Unexplained gaps. By verifying dates of employment, an employer can make sure that there are no unexplained employment gaps that might signal trouble.

Protect the investment. Employers make a substantial investment when hiring. Bad decisions create untold administrative, financial, and legal difficulties, not to mention substantial cost, wasted time, and delayed productivity.

Honesty and accuracy. Verification also confirms the honesty and accuracy of the resume.

Note, says ESR, that verification means checking factual matters, like start date, title, and salary. Reference checking refers to qualitative matters (job performance, strong points, weak points, and so on).

Policy and Legal Considerations. As we mentioned above, unfortunately, employers want to get reference information, but they don’t like to give it. Employers fear defamation lawsuits if they give any information beyond basics like dates of service and title, says ESR. And if the employee in question has filed any sort of suit or made complaints, there’s the added possibility of retaliation lawsuits.

Some states provide protections for employer references. For example, in California, an employer giving a reference has protection, provided the information is:

·Job related

·Based on credible evidence

·Made without malice

But even with that protection, ESR says, many legal sources still believe that the risk of a defamation claim outweighs any benefit to an employer from giving reference information. Furthermore, they point out, what constitutes “credible evidence” and “job related” can be open to interpretation.

If You Can’t Say Something Nice . . .

One alternative for employers is to provide only positive reference information. However, even that policy can lead to legal difficulty, says ESR.

First of all, some courts have found that employers have a duty to provide full and complete recommendations. In one California case, an employer gave a positive recommendation, leaving out important negative information. The court ruled that the employer providing a recommendation owes a duty to protect employers and third parties and could not misrepresent the qualifications and character of a former employee where there was a substantial risk of physical injury.

A similar problem occurs when employers give recommendations only for employees with good records. Employees who are not given recommendations may sue for defamation on the basis that no recommendation is equivalent to a bad recommendation.

No Such Thing as ‘Off the Record’

There’s no such thing as “off the record” when it comes to references, says ESR. Whatever HR says to a reference checker must be revealed during a deposition. There is no privilege involved.

Reading Between the Lines

Sometimes you’ll get a lot of information when you get “no information,” ESR says. Two examples:

An HR manager asked for a reference says, “Why don’t you ask the applicant to send us a release for his performance appraisals files; they would make interesting reading.”

In another case, a reference checker said to the applicant’s former manager, “Everything says I should hire this lady, but I have a gut feeling that something’s wrong.” The former manager said, “I always think it’s a good idea to go with your gut.”

HR Daily Advisor, June 2010.

Seven Ways to Motivate Employees

Reliance — Fri, 23 Jul 2010 18:26:38 +0000

by Bruce L. Katcher

4 out of 10 employees do not feel their supervisor supports their growth.

The Problem – The challenging economy of the past few years has exacerbated the problem of motivating employees.

For many, rising health care costs have gobbled up most of the meager raises they have received. Advancement opportunities have been severely limited due to the lack of growth of their organizations. And they have become disillusioned with management due to continuous reports about the corruptness of senior management at many leading U.S. corporations. They are feeling over worked, unappreciated, and under compensated.

How to Motivate Employees – Motivating employees today requires getting back to basics. Here are 7 methods.

1. Actively Foster Employee Growth

4 out of 10 employees do not feel their supervisor supports their growth. Employees are more motivated when they know that by staying with the company they will have an opportunity to grow. Yet when business is slow, organizations are very quick to cut training. Our research shows that only half of all employees feel that they are

given the opportunity to learn new skills on their job.

2. Link Pay to Job Performance

Only 3 out of 10 employees feel that their company does a good job of linking their pay to their job performance.

My son just returned home from his freshman year at college. He is working at a retail store for the summer, his first real job. As part of his training, he learned that every time he convinced a customer to sign up for the company’s credit card he would receive $5. He was also told that he would receive another $10 for selling a few selected products. He came home one day and said, “Dad, these incentives REALLY are motivating me. I had learned in my economics class that incentives are one of the 10 Guiding Economic Principles but now I really see it.” He added, “I wake up each morning and think about how can I make more of these sales.”

3. Set Clear Performance Expectations

One of the reasons employees don’t believe that their pay is tied to job performance is because they have never been told exactly what is expected of them. If they don’t know what is expected, they won’t know what they need to do to be viewed as a good performer. Management merely assumes that employees know what is good job performance and what is not.

If job standards, criteria for success, and specific performance levels are not made clear and specific, employees will not be motivated to perform well.

4. Provide Employees with the Opportunity to Fully Use their Skills

One-third of all employees do not feel they are being fully utilized. It is important to employees that they feel as though they are fully using their valued skills and abilities on their job. If they are not, they will quickly lose interest in their work.

To fully utilize the skills of employees, ask them what else they would like to do and provide them with opportunities to use these skills.

5. Enrich Jobs

One-third of employees do not feel they have the decision-making authority they need to do their jobs well. To enrich a job, provide employees with challenge, autonomy, personal growth, and more of a say in how their work is performed.

6. Help Employees Feel Part of a Winning Team

Ever notice how winning teams have a tradition of winning and losing teams have a tradition for losing? Success breeds success. Employees desperately want to be part of a winning team. However, senior management more often communicates failures than successes. Share the good news and thank employees for their contributions. Doing so will help improve employee motivation.

7. Help Employees Feel That Their Work is More than Just a Job

There were three movers in front of a moving van. One was asked, “What are you doing?” He responded, “I’m just putting in my time for this moving company.” He added, “The more hours I work, the more money I make.” The second mover was asked the same question. His response, “I am moving these boxes from the truck to the house.” The third mover responded, “What I am doing is very important. I am helping a young family start a new life for themselves here on the east coast.”

Which mover do you think is more motivated?

It’s easy for employees to lose site of the fact that no matter what their actual work involves, they are performing a more important function for their customers.

Motivating employees today is particularly challenging. To do so, get back to the basics. Link pay to job performance and help employees grow, feel part of a winning team, and see the value of their work.

Conclusion

Bruce Katcher, PhD is President of Discovery Surveys, Inc. His firm conducts customized employee opinion and customer satisfaction surveys. Learn more at www.DiscoverySurveys.com. He can be reached at BKatcher@DiscoverySurveys.com or 888-784-4367.

Boosting Office Morale

Reliance — Fri, 23 Jul 2010 18:19:51 +0000

by Jerri Redas, CSP

Placement Specialist, Reliance Staffing Chesapeake

No matter how tedious work may be, it is more enjoyable and productive when office morale is positive and upbeat. On the other hand, no matter how fun the work can be, it can be dull and gloomy in a hostilce work environment. But changing office morale starts with management. By taking a few simple steps, management can significantly boost office morale.

Giving. Compliments when due, showing concern, providing helpful knowledge or advice, lending service to others, giving comes in many forms and lets employees know they are valued. When employees feel like they are appreciated, they are motivated to give their best performance in return.

Regular meetings. Office meetings are essential. They serve as a key team-building tool and encourage communication. Meetings also serve as a channel for employers to learn about things that they otherwise may not have known about. Employees should be encouraged to voice their opinions and to provide constructive feedback during meetings. With this formula, all employees are empowered team members.

Food! Food always lightens and lifts dull attitudes. Setting aside a day or two during the week where fun snacks are brought to the office for sharing amongst staff is sure to raise moral. Such communal snack breaks can be done mid-day as well when the typical afternoon tiredness kicks in. Birthdays and work anniversaries are a great opportunity to surprisingly provide delicious treats and again to reinforce the importance of an employee.

Décor. Office décor sets tone. Placing motivational or inspiring art work or quotes can definitely boost employee’s frame of mind. If budgeting allows, updating or renovating an office can establish a more productive setting.
All things considered, when employees are appreciated, acknowledged, and trusted with responsibilities, they naturally flourish and strive to be more productive and beneficial to the company in return.

Office moral can make or break the spirit of a company. By taking just a few key steps, management can establish a tone that boosts employee moral and builds a strong business team.

Jerri Redas grew up in Hampton Roads, Virginia. Working with the public in different sectors since age 16, she went on to graduate with honors from ECPI in Office Administration. Jerri has been a Certified Staffing Professional with Reliance since October, 2005. Connecting perfect candidates with great career opportunities is her favorite part about being Placement Specialist.

Telecommuting: A Road Well Traveled

Reliance — Fri, 23 Jul 2010 18:16:38 +0000

By Sherry Steinhart, CSP

Placement Specialist, Reliance Staffing Newport News

Telecommuting, otherwise known as a WFH (work from home) program, has grown immensely over the past thirty years. Today, many employers have developed telecommuting programs for their companies for several different reasons.

One of today’s growing trends is to reduce the carbon footprint. WFH programs not only reduce the number of vehicles on the road, decreasing traffic and gridlock, but also greatly reduce emissions released into the atmosphere. Many companies are jumping onboard the “Going Green” idea. Telecommuting is one way to cut unnecessary fuel and energy usage.

Allowing employees to work from remote locations gives companies the advantage of tapping into large candidate pools. Employees no longer have to live close or even in the same state or country to be considered for positions. Qualified employees who normally could not travel to the office due to childcare, handicaps, distance, etc. are now being considered for positions when a WFH program is offered.

Companies are also adopting telecommuting in order to have personnel coverage in remote locations. Establishing an office may not be cost-effective, but employees working from home as “satellites” in many different locations give greater reach without the overhead cost of physical office space.

Telecommuting has also lowered turnover within companies. Employees are more likely to stay in jobs when long commutes, price of gasoline, and vehicles maintenance costs are not a factor. WFH programs also allow employees greater control over daily schedules. The ability to work around doctors’ appointments and soccer games has decreased the need for employees to call out sick or to go home early.

Telecommuting combines access to top-notch employees and cost-effective representation with productivity, reliability, and green perks. It is a powerful cost-saving and retention tool available to many companies.

Sherry Steinhart has been a Certified Staffing Professional with Reliance Staffing since 2006. With her Customer Service and Business Management background, Sherry makes it a priority to engage every employee and client as an important individual.

Background Checks Under Attack: EEOC Takes Aim at Hiring Practices

Reliance — Thu, 24 Jun 2010 18:46:09 +0000

By Diane J. Geller, Esq.

This summer, the Equal Employment Opportunity Commission (EEOC) signaled that it was planning to revisit its longstanding Guidance (found here) which explains when employers can use arrest and conviction records as a pre-employment screening criteria. The EEOC also said it was contemplating issuing new Guidance on when credit history checks can be used as part of the hiring process. To date, no new Guidance on these topics has been forthcoming from the EEOC.

On September 30, 2009, the EEOC filed a nationwide action lawsuit alleging that a company had unlawfully discriminated against African American, Hispanic and male job applicants by using credit history and criminal background checks as selection criteria. The suit claims that Freeman rejected job applicants based on their credit history and whether they had one or more of various types of criminal charges or convictions which were neither job-related nor justified by business necessity. The EEOC claimed that the rejection and those bases resulted in an unlawful discriminatory impact because of race, national origin, and sex.

The lawsuit EEOC v. Freeman, No. 90cv02573, is pending in the federal district of Maryland. The EEOC’s Complaint alleges that the use of those screening tools deprived a class of black, Hispanic and male job applicants of equal employment opportunities because of their race, national origin, and sex. The EEOC also alleges that the use of these screening criteria is not job related or consistent with business necessity and that other less discriminatory procedures are available for use as selection criteria.

The EEOC’s position in Freeman is consistent with the informal guidance the EEOC issued on December 1, 2005. In its informal discussion letter, the EEOC said that an employer who uses a “blanket” policy of not hiring any applicant who has a history of arrest or convictions violates Title VII of the Civil Rights Act because such a policy “disproportionately excludes members of certain racial and ethnic groups, unless the employer can demonstrate a business need for use of this criteria.”

The EEOC’s recent lawsuit raises important questions for employers who perform pre-employment background checks utilizing these screening tools. Although the EEOC does not contend that this employer intentionally set out to discriminate against minorities and men, it argues that the use of these screening criteria is not required or consistent with business necessity for the type of jobs being filled.

This case is a reminder that all employers need to periodically review their selection criteria and the selection criteria that clients impose on your staffing company. Both your company and the client need to be able to validate the criteria used as consistent with a genuine business need. Further, while it may be permissible to request information regarding conviction records, generally it is not advisable to adopt a blanket rule that excludes all applicants if they have a criminal conviction. Instead, where a criminal conviction might be a disqualifying criteria, employers should consider the nature and gravity of the offense, the time elapsed since the conviction, and the nature of the job sought before acting on the information. While staffing companies may want or are required to verify the applicant’s background prior to placing or sending them on a job interview, there are legal limitations on the information that can be used. Some of the criteria and limitations are as follows:

Employer may not ask about or consider information about arrests or detentions that did not result in convictions. Only convictions and pending cases can be considered.
Employer may not consider crimes that have been sealed or expunged or where the applicant participated in a special pretrial alternative program. Juvenile activity may also be restricted in reporting.
There are limits concerning misdemeanors.

Further within the complex web of regulations that limit employers’ use of background check information, federal and state requirements may contradict each other. A federal law may allow the use of certain information, while a state law bars it altogether.

Oftentimes in reviewing the reports and making the hiring (or referral) decision, the employer is walking a proverbial legal tightrope in reviewing the report and making a hiring decision.

Though it’s not uncommon to hear of felony-free workplace policies, under the Equal Employment Opportunity Commissions (EEOC) guidance on arrest and conviction records, this type of blanket policy is illegal. However, conviction information can be used if certain conditions are met.

If a background report shows the subject was found guilty or convicted of a charge, he or she cannot automatically be eliminated from consideration for employment.

The EEOC does permit employers to use convictions on the basis of business necessity that can be justified if the conduct that led to the conviction is particularly egregious or related to the position in question. Employers can establish business necessity through examination of the following factors:

The nature and gravity of the offense.
The time that has passed since the conviction and/or completion of the sentence.
The nature of the job held or sought.

If examination of these factors reveals the applicant to be unsuitable for employment, the EEOC states that the conviction record can be cause for rejection. This position also has been adopted by numerous federal courts.
When it comes to using non-conviction information in the hiring decision, the legal picture for employers gets a bit murkier.

First, non-convictions are not simply arrests. There are numerous situations where a person can plead guilty but not be convicted of a crime. One example is deferred adjudication (or adjudication withheld), in which a case is dismissed based on the defendants compliance with certain terms set by the judge. Most laws relating to the use of criminal information don’t address how employers should handle this gray area.

To help manage instances where non-conviction/arrest information comes up on a background report, employers should clearly ask on the employment application: “Have you ever pled guilty, no contest or been convicted of a crime?” This question will capture a wide range of conviction and non-conviction criminal scenarios and, if not answered accurately, can provide the employer with the legal means to deny employment.

The majority of laws pertaining to the use of non-conviction information focus on arrest records, and these laws can create more hiring complexities for employers than those relating to conviction information.

Lastly, as part of your policy it is critical to

Obtain the individual’s consent.
Selecting a screening firm.
Limit access to criminal records and mistaken identity.
Obtain reliable information.
Create a record of the background checking process.
Evaluate the information obtained in a nondiscriminatory fashion.
Retain background checking records for the time required by law.

An attorney for over 25 years and admitted to practice in Florida, New York, Tennessee, and Virginia, Diane J. Geller has serviced contingent staffing companies and their vendors for over 20 years. A frequent staffing industry speaker, she provides invaluable information on contract negotiations, employment law, receivables financing, franchise law, litigation, governmental compliance, and general corporate matters. For more information, visit www.gentrylocke.com/geller.

The contents are intended for general information purposes only, and you are urged to consult a lawyer concerning your own situation and any specific legal questions you may have. For further information about the contents, please contact the author at (540) 983-9396. (Copyright 2009, Gentry Locke Rakes & Moore, LLP, and Diane J. Geller, Esq.)

EM Info. June, 2010.

Employee Economics

Reliance — Thu, 24 Jun 2010 18:38:04 +0000

by Alisa Baldwin

One of the many goals of business is to increase competitive value. The goal of increasing profits does not change because of the current economy or other factors. Competition, vendor management, operational costs, environmental costs, globalization, and changes in technology all effect competitive value.

In trying economic times, businesses tend to cut operational costs to include monies spent on supplies, advertising, and by reducing their workforce. A great way to increase value and handle operational costs is through “employee economics.” Let a staffing firm supply your employee economic demand by lowering operating costs, providing for surges in business, empowering employees, and harnessing the power of referrals.

Lower operating costs. Staffing companies supply Employee Economics by saving companies on training, payroll taxes, and lower recruiting costs.

Provide for surges in business. People are a source of competitive advantage when their talents can be rapidly deployed. Instead of idle employees waiting for an order or project to come in, a staffing company can provide temporary employees to cover the busy times.

Empower employees. Want to empower your employees and to free up their time to let their abilities and entrepreneurial talent show? Free your managers and supervisors from the recruiting and hiring process. Staffing firms provide a pre-screened, fully interviewed pool of human resources.

Let the power of referrals work for your business. Most businesses will find that most of their new employees have been referred by current or past employees. A staffing agency uses word-of-mouth, online networking, and the referrals of current staff. When a specialized position comes available, there is always someone who knows someone among the staffing ranks regardless of the job description.

Alisa Baldwin is an administrative assistant in the Newport News office of Reliance Staffing. She has over 20 years of experience in human resources. From recruiting and placement to benefit sponsorship and employment law, her career has included the security, health, and human services industries. Alisa holds an Associate of Arts in Accounting and will soon earn a Bachelors degree in Business and Human Resources. In the fall, she will begin a Masters program in Human Resources. With a Human Resources and Financial Management background and continuing education, Alisa is a crucial element of the Reliance Staffing team.

Staffing Employees: Extraordinary Human Resources

Reliance — Thu, 24 Jun 2010 18:29:47 +0000

By Steven P. Berchem, CSP, Vice President
American Staffing Association

Staffing Models Can Make or Break a Company

The number of people working at a company, their skill sets, their cumulative cost to the company, and their ambition and motivation all combine to create the single most important variable in the success or failure of any enterprise: the staff. A company that can get the right people in the right positions at the right time and at the right price has a tremendous advantage over less astute competitors.

As the world economy evolves and agility becomes absolutely essential for success in the global marketplace, the smartest companies are taking bold approaches to staffing. Increasingly, they are eschewing the traditional hiring model. They are moving away from hiring processes that can take weeks or months to recruit, interview, screen, and negotiate with candidates to fill a single opening. They no longer see the wisdom in filling every position with a permanent employee whose real cost to a company only begins with a salary and extends to benefits, payroll taxes, vacation time, holiday pay,
and a host of other expenses.

This recognition of the need for fundamental changes to key business practices has led thousands of companies to rely more heavily on temporary and contract employees. In
fact, nearly three million people in the U.S. go to work each business day as temporary or contract employees. This includes an ever-increasing number of skilled and highly educated workers, including accountants, attorneys, chief executives, doctors, engineers,
graphic designers, information technology professionals, medical technicians, operating room nurses, pilots, and software developers. Virtually any job can be filled by a qualified staffing employee.

Staffing Employees: Motivated, Satisfied, Educated

While some hiring managers cling to outdated stereotypes of “temp workers” who help out for a few busy days in the mailroom or fill in for a vacationing receptionist, today’s
reality is much different. Many employees with highly sought-after expertise prefer to work through staffing firms-they thrive on the stimulation and challenge of diverse assignments. Others view temporary or contract work as a way to evaluate prospective employers or as a quicker way to get a permanent job.

Staffing employees are motivated people who want to work. In a survey conducted by the American Staffing Association, 77% of staffing employees said they decided to work through staffing firms to find permanent jobs. Eight in 10 worked full time, the same as the traditional work force. Nine out of 10 were satisfied with their jobs (compared with only about 60% of workers in traditional employment arrangements) and would recommend temporary or contract work to a friend or relative.

Staffing employees are better educated than the overall work force: 74% have had at least some college education, compared with only 62% of the traditional work force (in both cases, one in three of those with some college earned at least a bachelor’s degree). Staffing employees who prefer temporary and contract work are more likely to hold a bachelor’s degree and earn higher wages.

Staffing clients have noticed the high caliber of today’s staffing employee. In an American Staffing Association survey of 500 staffing clients, 72% said the quality of
temporary and contract employees provided by staffing firms is equal to or better than their own regular employees. And eight out of 10 said that staffing companies offer a good way to find people who can become permanent employees.

Staffing Employees and Staffing Clients: Making a Permanent Connection

Everyone knows that there’s no such thing as a truly permanent job. But most staffing employees and most staffing clients want something staffing firms have to offer: a bridge to permanent employment. Most staffing employees who want a permanent job get one eventually-43% get hired by the staffing client. Nearly one-quarter of those who got a permanent job say they got it faster because of their temporary or contract work. And,
particularly important for staffing clients engaged in the war for talent, less than half of staffing employees are actively seeking permanent employment elsewhere while working for a staffing firm-the majority are either using their temporary or contract job as their sole means for finding a permanent job, or they simply prefer temporary or contract work. In other words, staffing firms provide the only way to access some of the best talent America has to offer.

Moreover, staffing firms develop talent. Nearly 90% of staffing employees say their temporary or contract work experience made them more employable, mostly by
developing new or improved skills and receiving on-the-job experience; 20% attributed their enhanced skill levels to specific training provided by their staffing firm. A majority
said the work strengthened their resumes, and four in 10 said the experience helped them gain self-confidence and improve their work habits.

Staffing Strategically With Highly Qualified Employees

Every company goes through cycles. A big project or a new client may create an immediate need to staff up. A revenue decline may force a company to reduce its
headcount. Some of these cycles are seasonal. Some are completely unpredictable. This makes it essential for HR professionals and hiring managers to develop work force
strategies that can support their companies’ ever-changing business requirements.

A report from the U.S. Department of Labor supports this notion: “Employers that have flexibility in adjusting labor requirements to meet product and service demands
have a competitive edge over those with less flexible human resources policies.”

For HR professionals, staffing is a perennial challenge. A staffing firm can make it more manageable and efficient. Staffing firms can give companies access to the skilled
people needed to compete and win, without the encumbrances that can slow down recruiting or make it difficult to undo bad hiring decisions.

With the world getting smaller and the global economy getting more competitive, strategic staffing is more important than ever. It is imperative for companies to hire
talented and motivated people and get them in the door fast. The growing legions of increasingly skilled, educated, and talented people who have chosen to work through
staffing firms provide the ideal solution to this human resource challenge.

American Staffing Association, June, 2010.
You also may download a copy of this StaffingSmarts Intelligence Report (PDF 192 KB).

Work Force Flexability: Staffing for a Better Bottom Line

Reliance — Mon, 24 May 2010 14:52:41 +0000

By Steven P. Berchem, CSP, Vice President
American Staffing Association

There’s a reason why the U.S. staffing industry has been growing faster than the overall economy: flexibility. Workers want it. Businesses need it. Staffing firms provide it.

The Fundamental Value Provided by Staffing Firms

HR professionals, and others who make organizational staffing decisions, benefit from the flexibility that staffing firms provide. This flexibility manifests itself in many ways.

For routine needs, staffing firms can deliver workers for daily, seasonal, or cyclical assignments in a timely manner. This approach to staffing is inherently more efficient than the traditional approach-advertising a position, wading through stacks of résumés, running background checks (if necessary), and then having to wait two weeks or more for new hires to start. Not only can staffing firms help HR professionals fill positions with qualified candidates fast, HR professionals don’t have to worry about the cumbersome process of setting up payroll and benefits for new workers, and assignments can be terminated at any time.

In fact, without the services of staffing firms, it would be nearly impossible for many organizations to staff up for short-term projects or find temporary replacements for employees who are sick or on vacation. The red tape alone would make it extremely difficult, and access to a ready pool of workers would be a continual challenge.

Looking at Staffing Strategically

The staffing industry’s unique access to a wide range of workers is one of the essential benefits it offers clients. By working with staffing firms, HR professionals can quickly find individuals with specific skill sets or hard-to-find work experience. Those individuals can be brought on board for a brief period or they can be hired permanently. This flexibility enables HR to serve an organization in a strategic manner. HR can respond quickly to changing business needs without burdening a company with excessive head count or unnecessary legal exposure. This type of staffing agility is used as a competitive advantage by smart companies.

A recent report from the U.S. Department of Labor supports this notion. The report found “employers that have flexibility in adjusting labor requirements to meet product and service demands have a competitive edge over those with less flexible human resources policies.”

Respected researchers agree, saying companies that embrace work force flexibility and engage staffing firms tend to do better economically. “Increased reliance on contingent labor. is associated with superior subsequent performance. [and] no increase in systematic risk,” concluded a study published in the journal Decision Sciences. Economists Nandkumar Nayar of Lehigh University and G. Lee Willinger of the University of Oklahoma compared firms in a carefully constructed sample and found that corporate earnings, gross margins, and stock returns improved after the increased use of temporary or contract workers.

This realization has been emerging for quite some time. In a 1999 survey of HR managers at more than 1,200 firms, more than 90% said “flexibility in staffing issues” was important, and 95% said that flexibility was being achieved by using temporary and contract employees from staffing companies. The survey was conducted by the American Management Association.

More recently, the American Staffing Association polled 500 businesses that used staffing services in 2004. Nine out of 10 said it was important to them that “staffing companies offer flexibility to businesses so that they can keep fully staffed during busy times.” When survey participants were asked specifically why they use staffing firms to obtain temporary and contract workers, they cited three main reasons:

*To fill in for absent employees or to fill a vacancy temporarily

*To provide extra support during busy times or seasons

*To staff special short-term projects

Changing American Work Force

The reality is that America’s work force is changing. It’s not just employers that are looking for flexibility. Many workers are looking for flexibility in their employment arrangements. This observation is backed by empirical evidence-three million Americans work in temporary or contract positions every day.

The composition of these three million people is also changing. In the past, temporary assignments were often routine clerical or warehouse positions that required little expertise. Today, however, many temporary and contract employees are mature, experienced, and well-educated. They are at a point in their careers or their lives when flexibility has become very important.

In a 2006 survey of staffing employees conducted by ASA, two-thirds of workers said flexible work time was an important factor in their decision to become a temporary or contract employee. Another one-quarter of survey participants said it was an extremely important factor. More than half said needing time for family was important, and an additional 20% said it was extremely important.
It is also worth noting that although staffing employees want flexibility, they are willing to put in long hours. In the ASA survey, 79% worked full-time-about the same percentage as in the overall work force.

Finding the Right People for the Right Jobs

In many ways, the growth of the staffing industry reflects the evolving U.S. economy. The demand for specialization is growing in companies large and small. Staffing assignments reflect this, with a marked shift toward occupations that require higher levels of skills and training, according to the results of several surveys conducted by the U.S. Bureau of Labor Statistics. Businesses tap staffing companies for quality talent in nearly every occupational sector, from skilled tradesmen to airplane pilots to banquet waiters to attorneys to radiology technicians.

With the experience of matching millions of people to millions of jobs, staffing companies are expert at filling work assignments at all levels of an organization, from day laborer to chief executive officer. Often it is not easy for employers to recruit for certain professions. Staffing firms help HR professionals meet their business requirements by providing a pipeline into the appropriate talent pools. This includes finding candidates for positions that are not central to a company’s business. A software company, for example, may need an accountant. Or a retailer may need a graphic designer. Staffing firms make it happen.

Increasingly, these matches are made on a temporary-to-hire or temporary-to-permanent basis. This is another important aspect of the flexibility provided by staffing firms. Companies and workers have the opportunity to evaluate each other with no obligation for either party. If both the employer and the worker agree that it is a good fit, the worker can be hired permanently. The traditional hiring process does not provide for such flexibility and can result in poor hiring decisions that are costly and difficult for a company to undo.

A New Reality

Global competition is affecting nearly every industry. Financial markets are prone to enormous swings. Consumer demographics and psychographics are changing continuously. The truth is that it’s harder than ever for companies to forecast their staffing needs. The cost of overstaffing can be diminished profitability and viability for a company. The cost of understaffing can be missed business opportunities that may never present themselves again.

“Use of temporary or contract employees to smooth out labor needs has grown substantially,” said Erica L. Groshen and Simon Potter, economists with the Federal Reserve Bank of New York. “Uncertainty and financial headwinds likely constrain new job creation.” After outlining the considerable obstacles employers must overcome to create new jobs, they argued that structural changes may be occurring in the economy because of management innovations that result in leaner staffing. “Firms increasingly hire temporary help when they are busiest and then cut back when demand falls.”

The result of this new reality is that the job security and career continuity that previous generations experienced no longer exist for many Americans. An army of contract workers has emerged in our country, reflecting fundamental changes not only in the economy, but also in corporate management practices and in our attitudes about employment. Given these factors, it should be no surprise that spending on temporary and contract labor now exceeds $70 billion annually.

Flexibility. Workers want it. Businesses need it. Staffing firms provide it.

American Staffing Association, 2010.

Temporary Help Continues to Lead Private Sector Job Growth in April, Reports BLS

Reliance — Mon, 24 May 2010 14:47:59 +0000

Temporary help firms continued to add jobs in April, according to the most recent employment data released by the U.S. Bureau of Labor Statistics. Temporary help services employment rose by 26,200 additional jobs (2.0%), seasonally adjusted, from March to April.

BLS commissioner Keith Hall, in his statement to Congress, noted that temporary help services led job growth in the professional and business services sector and has added 330,000 new jobs since September. The U.S. staffing industry has created more new private sector jobs than any other.

“We are very encouraged about the strengthening of overall job growth,” says Richard Wahlquist, president and chief executive officer of the American Staffing Association. “But businesses remain cautious about adding too many permanent workers too soon. A growing number are turning to staffing firms for flexible work force solutions as the economy continues to recover. This is good news, because it means more jobs for American workers.”

Nonseasonally adjusted BLS data, which estimate the actual number of jobs in the economy, indicate that temporary help employment rose by 3.6% from March to April. On a year-to-year basis, there were 14.6% more staffing jobs in April 2010 compared with the same month last year. The ASA Staffing Index, which is also not seasonally adjusted and therefore is comparable to the nonadjusted employment figures reported by BLS, showed an increase of almost 4% from March to April and year-to-year job growth of 19%.

The ASA Staffing Index is reported nine days after each workweek, making it a virtual real-time measure of staffing employment trends. ASA research shows that staffing employment is a coincident economic indicator and leading employment indicator, especially when the economy is emerging from a recession. Data for the index are gathered by ASA research partner Inavero Institute for Service Research, a market research firm based in Portland, OR. Inavero has been working with ASA since 2007 to conduct surveys that gather information on trends in the staffing industry.

For more information, visit americanstaffing.net/newsroom. You can also follow ASA on Twitter at

twitter.com/staffingtweets. Interviews with ASA executives are available.

The American Staffing Association promotes legal, ethical, and professional practices for the $61 billion U.S. staffing industry. ASA members account for 85% of U.S. staffing industry sales and operate some 14,000 offices throughout the nation. Two million Americans go to work for U.S. staffing companies every business day.

Founded to promote flexible employment opportunities and ensure the quality of staffing services, ASA has been the voice of the U.S. staffing industry since 1966. Members provide a wide range of employment services and solutions, including temporary and contract staffing, recruiting and permanent placement, outplacement and outsourcing, training, and human resource consulting. ASA and its affiliated chapters promote the interests of the industry through legal and legislative advocacy, public relations, education, and the establishment of high standards of ethical conduct.

Contact
Reem El-Khatib
Public Relations Coordinator
703-253-2047
relkhatib@americanstaffing.net

American Staffing Association, May 7, 2010.

Virginia and Federal Labor Posters – Are you Compliant?

Reliance — Mon, 24 May 2010 14:38:10 +0000

by Nancy Simonelli

State and Federal law require all employers to maintain updated posters regarding various employment laws and information for applicants and employees. Below, you will find some of the details which appear in these informative posters. Ensure your firm is compliant and has posted the most current available.

Virginia Posters

(VOSH) Virginia Occupational Safety and Health Act: the “Job Safety and Health Protection” poster advises an employee of their rights and responsibilities under the OSHA law.

(UC) Virginia Unemployment Compensation Act: the “Notice to Workers” poster advises an employee when they are eligible for unemployment insurance benefits and how to apply for benefits.

(VWC) Virginia Workers’ Compensation: the “Workers’ Compensation Notice” advises employees and employers of their rights and responsibilities under the Workers’ Compensation Law in case of injury or occupational disease.

(EITC) Virginia Earned Income Tax Credit rev. 6/09: mandatory posting effective 7/1/09.

Federal Posters

(USERRA) Uniformed Services Employment and Reemployment Rights Act rev. 11/08: “Your Rights Under USERRA” law protects the job rights of individuals who voluntarily leave employment to undertake military service.
(EPPA) Employee Polygraph Protection Act: the “Polygraph Poster” – prohibits most private employers from using lie detector tests either for pre-employment screening or during the course of employment.

(FMLA) Family Medical Leave Act of 1993 rev. 1/09: advises employees of FMLA eligibility requirements, benefits and protection, employee responsibilities, and employer responsibilities.

(EEO) Equal Opportunity Employment rev. 11/09: “Equal Opportunity is the Law” provides general employment information, including provisions of the Americans with Disabilities Act. Includes addition of Generic Information Nondiscrimination Act Regulation (GINA).

(FLSA) Fair Labor Standards rev. 7/09: “Minimum Wage Notice” – advises employees of the Federal minimum wage, overtime pay and limits child labor.

(OSHA 3165) Job Safety and Health: It’s the Law – advises employees of the protections of the Occupational Safety and Health Act and its amendments. This poster is available Free from OSHA Office of Publications. Employers do not need to replace previous versions of this poster, however, all covered employers are required to display and keep displayed, a poster prepared by the Department of Labor.

There are other required posters for Employees Working on Government Contracts (Service Contracts Act) and Notice to all Employees Working on Federal or Federally Financed Construction Projects (Davis Bacon Act). Visit www.dol.gov for more information.

Don’t let the extensive list above scare you out of acting. All posters are available for purchase with multiple acts and laws on large, single posters.

To purchase your posters, check out the following website suggestions:

www.laborlawcenter.com

www.hrdocs.com

www.officedepot.com

http://www.dol.gov/elaws/

www.stateandfederalposter.com

Nancy Simonelli is the Branch Manager of the Virginia Beach office of Reliance Staffing. She started with Reliance in November, 2002, and rapidly advanced within the company. In addition to assisting clients with staffing needs, she now manages Workers Compensation and Employee Benefits for Reliance. Born and raised in small-town Lee, Massachusetts, Nancy has a BS in Education and a background in Human Resources and Accounting. Nancy has become a valuable resource to clients by staying current on changes affecting the staffing industry.