The sourcing and implementation of a new contingent workforce management program require a great deal of focus and resources. Key steps like configuring technology, defining service level agreements (SLAs) and finalizing reporting requirements are important parts of any sound implementation process. However, there is one key step for long-term success that is often overlooked and under resourced – planning for ongoing program governance.
When researching the topic of program governance for contingent workforce management programs recently, I was surprised at how little information was available. Without well thought-out program governance and management protocols, a contingent workforce management program can fail to realize multi-dimensional benefits and be responsive to emerging needs, expansion, growth and changes. So, it would seem this would be a hot topic amongst staffing buyers and providers. It seems however that governance strategy often takes a back-seat to the day-to-day tactics of program implementation and execution and that program management is often mistaken for program governance.
We have found that delaying, underestimating, or underfunding program governance can put the long-term value of a staffing program at risk. We believe that the governance process should set the foundation for your contingent workforce program and guide the direction over its lifetime. So, program governance needs to be an early priority for your program and should be considered as part of the sourcing process for your new staffing provider. In fact, a proven governance model should be key criteria when selecting a staffing provider.
Whether you are establishing a new staffing program or you have an established program but lack an effective governance model, you will need a business case to justify and gain buy-in for your required internal governance resources and to define what is required from your provider. As part of this process, you must answer three important questions to understand what your governance model will look like:
Where will program governance responsibility reside in your organization? Typically, governance resides either in human resources or procurement, with ongoing, structured involvement from the other departments, including legal, risk management, finance, and the business owners.
How will you work with your staffing provider to govern the program as a partnership? While you and your staffing provider work together to define program goals and expectations, you retain ultimate decision making for the overall strategic direction of the program.
What will your governance structure look like? As the client, you must clearly define your governance role, build the right team with the right responsibility set and scope, and define what your staffing provider’s responsibilities will be. Your governance infrastructure will vary based on size, scope, and complexity of your program, but some essential roles should be in place regardless of program size.
For more on the important topic of program governance, please read our article, The Governance Imperative, in HRO Today’s MSP Executive Guide.
We are happy to announce that Staff Management | SMX has been named a Finalist in the Company of the Year, Executive of the Year and Customer Service Department of the Year categories in the 2012 American Business Awards. Other finalists include Apple, Chipotle Mexican Grill, The Coca-Cola Company, Delta Air Lines, Ford Motor Company, ING DIRECT, NASCAR, Overstock.com and YouSendIt.
We would like to thank the American Business Awards for their continued recognition of our company as well as the accomplishments of our employees, and congratulate our fellow nominees in the Company of the Year, Executive of the Year and Customer Service Department of the Year categories!
Details about The American Business Awards and the list of Finalists in all categories are available at www.stevieawards.com/aba.
The Purchasing Manager’s Manufacturing Index continued its expansion in April and the Purchasing Manager’s Non-Manufacturing Index had another strong month as well. According a recent webinar from Staffing Industry Analysts (SIA), unemployment claims saw a slight uptick in April, ending the steady declining trend, but the overall unemployment rate fell nine base points to 8.10%. The Economic Cycle Research Institute (ECRI) continues to stand by its recession call, although 115,000 new jobs were created in the month of April, a 1.38% increase versus April 2011. Private employment also continued to grow in April, adding 130,000 jobs, a 1.86% increase versus April 2011.
Temporary staffing added 21,000 jobs in April, growing 8.7% year-over-year and rebounding from the slight loss in jobs in March 2011. Direct hire staffing also continues to grow and is up nearly 10% from 2011. In April, employment rose in professional and business services, retail trade, and health care, according to the Bureau of Labor Statistics (BLS). Employment in professional and business services increased by 62,000 in April. Since a low point in September 2009, employment in this industry has grown by 1.5 million jobs. Manufacturing employment continued to trend up (+16,000) in April, with job growth in fabricated metal products (+6,000) and machinery (+5,000). Since its most recent low in January 2010, manufacturing has added 489,000 jobs
Transportation and warehousing lost jobs over the month of April. Employment in other major industries, including mining and logging, construction, wholesale trade, information, financial activities, and government changed little.
It is no secret that social media is being used more and more by both job seekers as well as staffing firms. A 2011 study from Jobvite shows that social recruiting continues rapid growth among U.S. companies with 89% planning to recruit through social media in 2011, up from 83% in 2010. As competition for talented contingent labor grows, social recruiting continues to be the most popular area to increase investment.
While almost all surveyed companies (87%) use LinkedIn for social recruiting (up from 78% 2010), most target talent on at least two networks. More than half (55%) use Facebook and 47% use Twitter. The Jobvite Index found that over the first six months of 2011, 73% of all social hires came from LinkedIn, 20% from Facebook and 7% from Twitter.
At Staff Management | SMX, we entered the world of social media after careful considerations about the best ways to reach our target audience. We use social media to connect with potential job candidates, current associates and employees, current and potential clients, and industry peers. Social media allows us to network and to stay engaged with these key constituents and to enhance our brand.
In addition to engagement, we use Facebook, Twitter and LinkedIn in both a paid and non-paid capacity to generate awareness of job openings and drive applicants to our online recruiting and onboarding portal. We have the ability to get real-time reporting based on unique codes that are associated with different social media outlets, and can track how candidates flow through our application process from the initial click on the link through the interview process and ultimately what percentage of those applicants are hired. These quantitative measurements help us make data-driven decisions about our recruitment and social media strategy.
Although social media can be used to connect with prospective employees and stay engaged with current associates, it’s important not to overlook the positive brand awareness that can be created through social media and content creation. While we have found that Facebook, Twitter and LinkedIn are the best places to post jobs and content directed at the contingent workforce, a blog can be more targeted towards current and potential clients and industry peers and enewsletters are a great way to connect with clients via email marketing. Every company is different, however, and it is important to take a good look at your efforts and determine the appropriate strategy for different outlets.
Top Tips for Staffing Firms Entering Social Media:
Stay Engaged: With social media you can’t set it and forget it. It requires time, attention and engaging content.
You Will Get Negative Comments: While vulgar or inappropriate comments should certainly be removed, use discretion when it comes to deleting negative comments. Negative comments can often be turned around with a helpful, appropriate response. If you solve a problem, it will ultimately create a better situation and a more satisfied associate than if you simply deleted the negative post.
Stay Ahead of the Curve: Anticipating change, such as the frequent page layout redesigns on Facebook, helps you to stay ahead of the curve and your competitors.
Blog: People often quote the saying that online “content is king” – what better way to promote unique content and thought leadership than through a company blog? Additionally, it can help drive traffic to your website and social media profiles. As stated by Join the Revolution, “According to a recent study by HubSpot, companies that have a blog receive 55 percent more website traffic on average than companies without one, yet the American Staﬃng Association recently reported that only 18 percent of its surveyed members are blogging directly on their websites or on platforms that are easy to ﬁnd through search engines.”
How do you use social media in your recruiting and branding strategies?
Did you know that only 48% of staffing companies surveyed use E-Verify? E-Verify is an Internet-based system that allows businesses to determine the eligibility of their employees to work in the United States. The use of E-Verify can help companies avoid costly violations, fines and penalties.
In January 2012, the ICE Mutual Agreement between Government and Employers (IMAGE) reported that two companies, Atrium Companies and Advanced Containment Systems Inc., based in Houston, TX have agreed to each pay $2 million as forfeited funds to the Department of Homeland Security (DHS) for failing to comply with immigration and labor laws and hiring illegal aliens. Both companies received multiple notices from the Social Security Administration (SSA), but failed to take corrective measures, resulting in the continued employment of the undocumented aliens and ending with forfeited funds and a tainted public record. The use of E-Verify could have helped these companies ensure that their employees were eligible to work in the U.S.
With E-Verify participation being a requirement of IMAGE certification, receiving training on E-Verify can be very valuable. The IMAGE Forum and Training Series is a free series of forums being held across the country. This training consists of Form I-9 training, USCIS E-Verify updates, Office of Special Counsel training, and fraudulent document detection training.
Upcoming IMAGE forums include:
April 19, 2012, El Paso, Texas – Wyndham El Paso Airport
May 3, 2012, Los Angeles, Calif. – Sheraton Los Angeles Downtown
May 17, 2012, Houston, Texas – Location TBD
June 7, 2012, Orlando, Fla. – Embassy Suite Orlando Downtown
June 28, 2012, Boston, Mass. – Location TBD
July 12, 2012, Denver, Colo. – Location TBD
July 26, 2012, Philadelphia, Pa. – Location TBD
Aug. 9, 2012, Minneapolis, Minn. – Location TBD
Aug. 23, 2012, Portland, Ore. – Location TBD
Sept. 13, 2012, Indianapolis, Ind. – Location TBD
Sept. 27, 2012, San Antonio, Texas – Location TBD
Date TBD, Washington, D.C. – Location TBD
In addition to protecting your company from fines, citations and violations, IMAGE certification benefits include:
Public recognition of the employer’s IMAGE certification
Avoidance of lawsuits and other legal actions resulting from unauthorized employment
Brand name protection
A stable workforce
No Form I-9 inspection for a minimum of two years
ICE provided training and guidance on proper hiring procedures and fraudulent document awareness
How do you ensure that your company is in compliance with employee eligibility and immigration laws?
We are happy to be debuting our new Staff Management | SMX company video today at the 2012 HRO Today Forum. The HRO Today Forum is a unique opportunity to share thought leadership with industry executives and policy makers as well as tackle today’s workforce challenges. Conference participants will address important topics such as job growth and the competitive workforce, and innovation and the competitive advantage.
I invite you to take a look at the video to learn more about how we build sustainable value for our world-class clients through innovative contingent workforce solutions that provide best talent, drive compliance and yield tangible savings. Be sure to check back with us soon for a recap and insights from the HRO Today Forum.
The Diversity Program Inclusion Council (DPIC) is happy to show recognition to and highlight the growing need for concern and awareness about autism. The Autism Society has been honoring National Autism Awareness Month since the 1970s. The United States recognizes April as a special opportunity to educate the public and ourselves about autism and issues within the autism community.
Autism is a complex developmental disability that typically appears during the first three years of life and affects a person’s ability to communicate and interact with others. Each individual with autism is unique. Many of those on the autism spectrum have exceptional abilities in visual skills, music and academic skills.
I invite you to take a look at this month’s newsletter as we highlight autism awareness.
120,000 new jobs were added in the month of March, a 1.45% percent increase versus March 2011. Private employment also added jobs, with 121,000 positions being added – a 1.93% increase from March 2011. Temporary employment suffered a small set-back in March, losing 7,500 jobs, the worst temporary job report since June according to the Bureau of Labor Statistics (BLS). However, even with this loss,temporary positions have still remained at an 8% increase in temporary jobs year-over-year.
According to Staffing Industry Analysts, the Purchasing Manager’s Manufacturing Index remains in positive territory for another month with new unemployment claims continuing to travel downward to 8.2%. In fact, the Purchasing Indices for both manufacturing and non-manufacturing positions show a strong level of expansion.
Employment rose in the manufacturing, food services and health care sectors, but was down in retail trade and government jobs saw little change. Manufacturing employment rose by 37,000 in March, with gains in motor vehicles and parts (+12,000), machinery (+7,000), fabricated metals (+5,000) and paper manufacturing (+3,000). Employment in professional and business services continued to trend up in March. Employment in the industry has grown by 1.4 million since a recent low point in September 2009, as reported by the BLS.
The benefit had many Chicago area Chefs representing their restaurants in an amazing event that raised awareness and funds to support the CMBWN. As event goers sampled the Chef’s creations there was a silent auction with donations from local venues, followed by a live auction. Alpana Singh, the host of Check, Please!, was the master of ceremonies for the event and presented information about the CMBWN and their mission. It was a great honor to represent Staff Management | SMX at an event that highlighted such an amazing organization to help women in crisis in the Chicago area.
Proceeds from the benefit will go towards The Network’s mission of improving the lives of those impacted by domestic violence through education, public policy and advocacy, and the connection of community members to direct service providers.
To learn more about The Chicago Metropolitan Battered Women’s Network and the Chicago Chefs Spring Into Action benefit, please visit www.batteredwomensnetwork.org.
According to the Bureau of Labor Statistics (BLS), nonfarm payroll employment grew by 227,000 jobs in February. The unemployment rate remained unchanged at 8.3%. The private sector grew by 233,000 jobs with increases focused in the professional and business services, health care and social assistance, leisure and hospitality, manufacturing and mining sectors. Construction, retail and government jobs remained steady in February.
Manufacturing employment grew by 31,000 jobs in February, occurring in durable goods
manufacturing, with job gains in fabricated metal products, transportation equipment, machinery and furniture and related products. Additionally, manufacturing has reported the first 12 month period of gains since 1988.
There has been a sharp increase in temporary help penetration from 2010 to 2012 and buyers are now positively biased towards contingent workers, according to Staffing Industry Analysts‘ monthly staffing industry report. It was also reported by buyers that they are using more contingent workers and the projected median share of contingent workers in 2012 is 15%, up from 10% as reported in 2009-2011.
The energy sector has emerged as an area to watch, with oil and gas extraction employment rising 34% from 2007 to 2012. Energy sector buyers report that they are most inclined to use more temporary labor in the coming months and years.