Diversity Program Inclusion Council Recognizes African American History Month

During the month of February, Staff Management | SMX and the Diversity Program Inclusion Council (DPIC) are paying honor and recognition to African American Heritage Month.

African American Heritage History Month represents the accomplishments of African Americans in the past. While information is available 365 days a year about key African Americans in history, African American Heritage History Month is a time to reflect and gain motivation to achieve our personal goals. During this month we pay our respects to the past and leaders who fought for what was right. It’s also a time to motivate ourselves to overcome obstacles and strive for a better tomorrow.

Roxanne Ramoutar

Why You Should Use a Staffing Company That’s Not Local

Distribution CenterSay you’ve evaluated a variety of staffing firms to handle your facility’s labor needs. You now have a short-list of agencies that you believe can recruit quality candidates, reduce turnover, promote a safe working environment, be responsive and provide reporting and metrics. Most of these agencies have a branch office within 20 miles of your facility; however there can be advantages to choosing a provider who does not necessarily have a local presence.

At Staff Management | SMX, we do not rely on a traditional branch-based staffing model – implementing operations in new labor markets is one of our core competencies. That experience provides us with insights on the complexities of staffing in a wide variety of labor markets across the country.

While all labor markets are unique, every labor market commonly shares these four components:

  • Employers: Employers desire the best available job candidates to work in their facilities. Their ideal scenario involves employing those candidates whose skill sets match the job requirements perfectly.
  • Job Candidates: Each job candidate has varying degrees of skills, aptitude, education, licenses, certifications and career goals. Candidates are typically seeking the best positions their unique skill sets allow them to obtain.
  • Staffing Agencies: Essentially, staffing agencies act as the liaison between employers and job candidates. The assumed goal of a staffing agency is to match the best job candidates to the positions they are best qualified to work. It is how well they are able to do this that separates them from one another. Not all staffing agencies are equally positioned to perform this task for any given client.
  • Recruitment Tactics: This is usually the most inconsistent variable across labor markets. The true responsibility of a staffing agency is to determine the best ways to find candidates for each type of positions for each unique client. These means can vary widely when the type of employer, job candidate, demographics, and other factors are taken into consideration.

A staffing agency’s ability to determine the best means for reaching job candidates given the labor market is paramount to the level of service that employers will receive. A staffing agency that works to satisfy dozens of clients within a given geographic area is challenged to a larger degree with providing each client’s its best available job candidates.

In labor segments such as light industrial, manufacturing and distribution, which are increasingly being viewed by employers as commoditized, staffing agencies can often be overlooked under the assumption that all will provide similar or equal service. However, staffing agencies with a narrow scope and fewer clients in a given area provide a basic but distinct advantage – by specializing, rather than broadening, their reach, these agencies are equipped to quickly and effectively determine the best means for reaching job candidates given the labor market.

As you continue your staffing provider evaluation process, be sure to shortlist vendors who offer fact-based recruitment programs and are uniquely positioned to provide the best-fit job candidates to you the employer, keeping in mind that geographical presence is not as telling as you may think.

Brian Pisor

Staffing Industry Report – February 2012

Staffing Industry AnalystsAlthough the Economic Cycle Research Institute (ECRI) initially reported a negative reading for 2012, even going so far as calling for a recession, it is now looking as though that report may have been a bit premature. According to the Bureau of Labor Statistics (BLS), total nonfarm payroll employment rose by 243,000 jobs last month while the unemployment rate decreased to 8.3%.

The decline in the unemployment rate marks a 0.2% decline in January and new unemployment claims are continuing to go down. New unemployment claims have fallen or at a flat rate in every state this month, which is a very positive sign for overall economic growth. The 243,000 increase in jobs marked 16 months of growth in total employment and the number of job openings available is the highest in three years.

Private-sector employment grew by 257,000, with the largest employment gains in professional and business services, leisure and hospitality, and manufacturing. The professional and business services sector continued to grow, adding 70,000 jobs in January. Manufacturing and construction continued to grow as well, adding 50,000 and 21,000 jobs, respectively. Government employment was little changed over the month.

The Purchasing Manager (PM) Manufacturing Index reported a positive ranking, showing expansion in that sector. In fact, the PM Manufacturing Index is at its best level since 2005-2006. The non-manufacturing PM index also had an extremely good month.

Sarah Katz

E-Verify & ICE Updates for 2012 – What You Need to Know

ICEAs we begin 2012, staffing providers should take a closer look at changes to E-Verify as well as new fines and initiatives from the Immigration and Customs Enforcement (ICE). Fines from ICE for employing illegal workers continue to increase. In the 2010 fiscal year, U.S. immigration officials’ work site probes resulted in a record $36.6 million in judicial fines, forfeitures, and restitution. 2011 numbers have not been published. As we reported earlier this year, ICE has began increasing the number of audits to U.S. employers. Although there has been no formal announcement, there is reason to believe that ICE is conducting a new round of audits and according to the American Staffing Association (ASA), “legal analysts estimate that several hundred employers nationwide will be receiving notices of inspection (NOIs).”

Additionally, E-Verify is becoming increasingly mandatory. When last reviewed, E-Verify was required in nine states for all or most employers. An ASA article explores how in Tennessee, for example, businesses that employ 500 or more people are now required to either use E-Verify to check the citizenship status of newly hired employees or else ask for and keep a file copy of verifying documents. Due to the nature of the staffing industry, companies process more inquiries than a traditional employer would.

While the increased administrative burden of processing the Form I9 through E-Verify may make some employers uneasy, there is good news. The administrative burden can be minimized by setting up web services for E-Verify processing. However, the bad news is that taking on the task of developing on-going web integration with E-verify is not as simple as you may wish.

Tim Prokuski, Seaton IT architect, explains, “Currently E-Verify integration compatibility requires changes on a biannual time-frame. Twice a year the Department of Homeland Security (DHS) publishes an updated integration specification along with a mandatory compliance date. Any participant not in compliance by the stated date can be shut off from E-Verify integration. As each E-Verify update has a new interface and additional functionality, the updates always require modifications to the internal system integration programs. Each version of E-Verify varies and there are generally a significant amount of programming changes and testing required within internal systems to achieve compliance. Additionally, each upgrade requires internal systems to pass a certification process conducted in partnership with DHS. At this point E-Verify is still an evolving program which requires internal systems to evolve along with it.”

As things in our industry are constantly changing, it is important to remain aware of updates to E-Verify and ICE policy to keep your company and your clients compliant with the law. In lieu of setting up a potentially complicated internal E-Verify integration, Staff Management | SMX has experience in acting as our client’s designated agent to implement and administer the E-Verify system. To learn more about our experience in implementing and administrating Department of Homeland Security vetted E-Verify workforce authorization and verification process, please visit www.staffmanagement.com/staffing/E-Verify-Administration.aspx.

Lynn Davisson

Value Roadmap: 8 Ways to Drive Staffing Program ROI

Value RoadmapAs contingent labor continues to grow in importance, companies must look to their staffing programs for ways to drive additional value. With the ever changing economic climate, delivering significant value for your company’s investment in contingent labor is more critical than ever. Our Value Roadmap provides 8 key strategies that can help you re-engineer your staffing program to create new opportunities to drive value and realize a greater return on investment.

  1. Start by standardizing: Establish Standard Operating Procedures (SOPs) for consistent service delivery and policy adherence.
  2. Move to an end-to-end platform supported by technology: Deploy a Managed Service Program with a Vendor Management System for program management, approval process, compliance, supplier management, visibility, and reporting and analytics.
  3. Accelerate towards greater risk mitigation: Apply a comprehensive compliance  program inclusive of: best practices in workforce screening and classification,  co-employment management, unionization education, safety and security management, and compliance auditing.
  4. Advance program value with systems integrations: Build integrations to financial, HR, security, production and other systems to keep data consistent and accurate, policies enforced and processes efficient with end-to-end automation.
  5. Approach creative features: Implement performance based and production based pricing models to drive greater program value, and performance based associate compensation models to drive improved performance and efficiencies.
  6. Drive greater efficiencies: Engineer contingent or company workforce costs out through integration of specific quality and efficiency programs, hours management and outsourcing of traditional responsibilities.
  7. Steer towards new horizons: Expand services to additional spend categories such as 1099, payroll services, Statement of Work (SOW), learning and development and other complex services.
  8. Go global, balancing standardization and localization: Create a global program expansion strategy that allows for regional flexibility, local business case development and program configuration that works culturally and legislatively.

For more information on how to provide value through contingent staffing programs, please download the Value Roadmap.

How do you drive ROI in your staffing programs?

Sarah Katz

Order Fulfillment for Your MSP Program – Basic Blocking and Tackling

Blocking and TacklingPerhaps it’s because of my recent deep immersion into college bowl games and NFL playoffs that the phrase “basic blocking and tackling” has been on my mind. Recently, my beloved Giants exhibited proficient blocking and tackling, ultimately dismantling the high-flying Packers. Football games are won and lost in the trenches, and the winning teams are invariably those who perform the fundamentals with the greater results. (Segue alert!!)

Best-in-class Managed Service Providers (MSP) ensure that their programs adapt to the evolving needs of their clients. To that end, the MSP solution has expanded to include Statement of Work (SOW) engagements, 1099 management, and learning and development applications. And of course, the desire to “go global” is an ever-present consideration among multi-national customers. In the midst of these expansions and added complexities, it is important that one of the key, original objectives for MSP adoption – the acquisition of best talent – is not forgotten. “Basic blocking and tackling” for an MSP program provider will always include the ability to fill orders quickly, and to be responsive to volatile labor demand.

What are some key considerations regarding order fulfillment? Consider:

Communication: The connection between the MSP program’s point of contact and the customer’s users is vital to the successful fulfillment of orders where there is significant fluctuation of demand. Providing access to forecasting information, project deliverables and long-range schedules allows the MSP to communicate effectively to their supplier network. In addition to the practical benefit of allowing the suppliers more time to recruit, this open communication also instills a sense of confidence in the MSP among the suppliers and fosters greater trust among all parties.

Pre-Employment Screening: It is an accepted standard that some degree of drug and background checks will be conducted across all labor categories. However, as customers look to control costs and MSP providers seek to drive supplier adoption, an emerging consideration is to forgo drug and background tests for very short-duration assignments when high-volume orders are required with limited time to fill. Customers must carefully weigh the risks versus rewards of this solution, which encourages supplier candidate submittals by eliminating concerns of drug and background check costs that cannot be recouped, for potential application in select scenarios.

Analytics: A high performing MSP program needs to go “inside the numbers” to understand the root causes of turnover, late fills and open orders. This is often a collaborative process, as user managers can provide details regarding associate performance, work conditions, timing of order submittal, training and on-boarding. As the root causes are exposed, corrective action can be taken to improve fulfillment metrics.

Areas such as call centers, distribution centers and manufacturing facilities which typically are characterized by significant labor fluctuations create an even greater focus on this aspect of the MSP. A best-in-class, enterprise level MSP is not achieved the moment the program goes live. Basic blocking and tackling is not easy – just ask the Packers. But within the context of an MSP, the basics – filling orders on time with strong associates at the best value – cannot be compromised. Additionally, success with this program element may be viewed as a critical first step in the evolution of an MSP, and a precursor to global expansion and SOW engagements.

George Lanzano

Staffing Industry Report – January 2012

Staffing Industry AnalystsThe Economic Cycle Research Institute (ECRI) reports a mildly negative reading for 2012, calling for a moderate recession. However, nearly all other economic publications are calling for a moderate increase. Staffing Industry Analysts (SIA) remained positive in their monthly staffing report webinar.

The unemployment rate for December 2011 continued to trend down at 8.5% as reported by SIA and the Bureau of Labor Statistics (BLS). The unemployment rate has gone down by 0.6% since August 2011. New unemployment claims continute to decrease, a good sign of economic recovery. Nonfarm payroll employment rose by 200,000 jobs in December, up 1.26% from a year prior. In 2011, nonfarm payroll employment has risen by 1.6 million jobs. Additionally, private employment rose by 212,000 jobs, a 1.78% increase versus 2010. In 2011, private employment rose by 1.9 million jobs.

The purchasing manager index is showing moderate expansion in both manufacturing and non-manufacturing sectors. Transportation and warehouse industries rose sharply in December 2011. Additionally, seasonal hiring was strong. Retail trade, manufacturing and health care were also strong sectors in December, adding a good number of jobs. Construction remained steady in December, while government jobs trended down for the close of 2011.

Sarah Katz

U.S. Immigration and Customs Enforcement Beginning New Round of Employer Audits

Immigration and Customs EnforcementAs reported by multiple sources, including the American Staffing Association (ASA), U.S. Immigration and Customs Enforcement (ICE) has began increasing the number of audits to U.S. employers. Although there has been no formal announcement, there is reason to believe that ICE is conducting a new round of audits and according to the ASA, “legal analysts estimate that several hundred employers nationwide will be receiving notices of inspection (NOIs).”

The NOIs will include requests for items such as hiring, payroll and other records to determine compliance with employment eligibility verification laws. An employer that receives an NOI has three days to submit Forms I-9 for inspection.

The Obama administration has long stated that they will make immigration compliance a high priority. This new round of employer audits upholds their pledge to focus on illegal immigration and workforce verification. Instead of focusing on the undocumented workers, these federal investigations now focus on the businesses that employ the illegal immigrants. These ICE audits can lead to fines and criminal charges for companies who are found to be in violation of immigration laws.

These audits serve as a reminder to companies that there is always the possibility for an ICE audit. Companies should take this time to:

  • Review Form I-9 compliance procedures
  • Conduct an internal audit
  • Consider using E-Verify or joining the newly revamped IMAGE program

For more information on ICE, E-Verify and IMAGE, please visit www.ice.gov.

Sarah Katz

Holiday Wishes & A Happy New Year

Holiday Card

Joan Davison

Ringing in the Holiday Season with Big Brothers Big Sisters

Staff Management | SMX volunteers at BBBSMC Wrapping Party

Staff Management | SMX volunteers at the BBBSMC Holiday Wrapping Party included (From L to R): Lauren Williams, Sarah Katz, Ashley Barker, Christine Martin and Kerry Zimmerman

Staff Management | SMX helped to ring in holiday cheer for Big Brothers Big Sisters of Metropolitan Chicago (BBBSMC) earlier this month, sponsoring their annual holiday party Saturday, December 10th and helping to wrap presents to be given out at the event earlier that week. BBBSMC provides one-to-one mentoring relationships between at-risk youth and screened and trained mentors and this event brings together the Big Brothers and Big Sisters to create a memorable event for the Little Brothers and Little Sisters in attendance.

The Big Brothers and Big Sisters gathered at U.S. Cellular Field’s Stadium Club for a day of food, fun, games, and even an appearance from Santa Claus himself! Joan Davison, our President & COO, was joined by Jerry Wimer, Vice President of Global Operations & Staffing Center of Excellence, to help spread holiday cheer to the nearly 480 Little Brothers and Little Sisters and their “Bigs” that attended the party.

Additionally, we were able to participate in the annual gift wrapping party held prior to the holiday party at the BBBSMC headquarters in downtown Chicago. There, 15 Staff Management | SMX employees joined BBBSMC representatives to wrap presents for boys and girls aged 7-9, 8-10 and 11-12. It was a great feeling knowing that the presents we were carefully wrapping would be torn into by some excited Littles in just a few days! For some children, these might be the only presents they get this holiday season and we were happy to be able to do a small part in bringing them some holiday cheer.

Big Brothers Big Sisters of Metropolitan Chicago is a wonderful organization – they are an important part of community service efforts in Chicagoland as well as other cities across the country in which they serve. Everyone at Staff Management | SMX is thrilled to be associated with their efforts. To learn how you can get involved with Big Brothers Big Sisters in your area please visit www.bbbs.org.

Sarah Katz