http://www.recruiter.com/articles/five-secrets-to-buying-staffing-services/

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http://www.businessnewsdaily.com/hiring-overqualified-candidates-1877/

By H. Andrew Matzkin and Tyrone P. Thomas

On-line postings of employees related to the workplace are of obvious interest to employers. However, there are risks to employers who discipline employees for posting statements relating to the conditions of their workplace. An administrative law judge recently held that a New York nonprofit organization unlawfully terminated five employees for Facebook comments regarding their work conditions. As a result, all employers should review their social media policies and analyze the manner in which they conduct investigations of statements published on social networking sites.

The matter before Administrative Law Judge Arthur Amchan of the National Labor Relations Board (“NLRB”) arose from statements of five employees of Hispanics United of Buffalo, an entity providing social services to low-income clients. One of the organization’s employees posted allegations to her Facebook page about the failure of co-workers to adequately serve Hispanic United’s clients. Predictably, this post generated responses from other employees defending their performance and critical of working conditions, including staffing and workload. Hispanic United terminated the employment of five employees who participated in the discussion on the basis that their comments constituted harassment of the employee first mentioned in the posting.

In a ruling that sets new precedent for the NLRB, Judge Amchan found the Facebook discussion to be protected concerted activity under Section 7 of the National Labor Relations Act because it involved communications among employees about their terms and conditions of employment. Specifically, the communications addressed the issues of job performance and staffing levels. Judge Amchan also found the employees had not engaged in conduct which would forfeit the protections of the Act, ordered the reinstatement of the five employees, and awarded back pay to the terminated employees.

Other employers have similarly faced adverse decisions involving statements on social media. A Connecticut employer was unsuccessful last year in defending an allegation of unfair labor practice which involved, among other things, an employee calling their supervisor a “scumbag” and derogatory term for male genitalia. The NLRB found a violation of Section 8(a) as the basis of the employee’s complaint regarding his supervisor was being denied union representation in connection with drafting an incident report. It should be noted that employees can lose protection under the National Labor Relations Act if they engage in outrageously disgraceful conduct during the course of the protected activity, but the NLRB did not find the employee’s conduct to rise to this level.

As all employers are increasingly faced with the issue of managing statements made by employees in public forums and specifically, social networks, the Hispanics United decision is noteworthy. Employers should also be aware that the National Labor Relations Act protects both organized and non-organized employees, and, among other things, protects the rights of all employees (whether or not unionized) to discuss and engage in other concerted activity relating to their working conditions. Indeed, the Hispanics United ruling serves as a notice to all employers that this will be a growing and continuing concern.

Employers should consult with their legal advisor on the content and application of their social media policies for compliance with federal and state labor laws. In addition, employers should exercise care before investigating or disciplining employees for comments published on social networking sites.

* * *

  ford | Washington www.mintz.com

Len Adams, CPC

CEO, Adams Consulting Group, LLC

This is a question that I am asked almost daily by both employer clients and candidates.  I would like to take a few moments to discuss the state of the job market, from an employer’s viewpoint.

As I write this in September of 2011, we have been through one of the worst economic downturns that any of us can remember. Throughout the downturn and in the current market, the demand for Banking professionals has remained strong.  Yes, we had some pockets of time during the last couple of years where there appeared to be less activity in hiring; however, overall, the job market remained relatively fluid. This is due to a number of factors.

First and foremost, demand for staff is driven by several factors. These factors are what creates an opening in any organization:

1. Resignation….. An employee resigns either to move to another company, relocate to another city or leave the industry. While in tough economic times people tend to have less opportunities to leave for, there is still movement

2. Termination..an employee is terminated do to disagreement, insubordination, incompetence or any one of a number of reasons.. This will create a hole in an organization that needs to be filled

3. Retirement… Inevitably, people do retire.. While trends are such that people are working longer, this doesn’t negate the fact that at some point, an employee will retire and leave

4. Death/Illness… While this may sound morbid, it is a fact of life that we are all mortal. As such, we face situations in our organizations where people become ill and need to no longer work or, someone dies.

5. Expansion/Increased Workload/Re Sizing after Layoffs…  In booming economic times, this is the main creator of open positions in an organization

With the exception of number 5, all of the above factors exist in EVERY market condition, whether we are in a recession or economic boom.  The main difference is in the NUMBER of available opportunities and the urgency to fill them.

So, getting back to the question of How is the Job Market, I can honestly say that despite the economic crisis we have been in for the past couple of years, we have seen a constant flow of activity in both of our Full time search activities, as well as our Interim Consulting and Temporary staffing divisions.  In virtually every assignment that we have worked on, we always ask why the position is open.. In 100% of the cases, it was due to one of the above 5 factors.

Looking forward, we are optimistic that this cycle, as all previous cycles, will result in additional job activity, in spite of what the Washington pundits say.

1. Technology (underutilized or unsophisticated)
2. Management
3. Staffing
4. Policies & Procedures
5. Training

When an EA is levied, one of the first things that should be reviewed is WHY? Which of the six items enumerated above were responsible for the problem? It may very well have been one, several or all of them in tandem.

Technology is oftentimes a culprit. Either the institution does not have the proper technology, or, almost as often, has technology, but is not utilizing it to its full capability. One of the main causes of this is either staff has not received proper training with regard to the full capability of the technology or, staff has not kept up with current versions. One the most effective ways to ensure this does not occur is to perform a Technology Utilization Review to determine how what version of software is being used. As part of this review, staff members should be evaluated in terms of their knowledge of all the capabilities available from current technology. Remediation of shortcomings would include upgrade of technology to most current versions, along with additional training to get staff “up to speed” on full utilization. This can be accomplished either via the Technology provider, in house staff (if current on Technology) or outside consultants.

One of the more difficult components that can cause an EA is ineffective management, either at the most senior level or at the senior compliance level. A willingness to turn a blind eye or unwillingness to stand up to senior management at the local or head office level when engaging in practices that are contrary to US regulations will result in serious fines and enforcement actions. One of the most effective ways to solve this issue is to engage a third party to perform Independent Audit of Compliance activities. An independent review can serve to identify weaknesses in controls, transactional activity and management shortcomings. If performed on a timely basis and shortcomings are remediate, it will avoid an EA. If done post EA, it will certainly assist in having it listed in a timely manner.

Staffing, while a stand alone factor, is one of the most critical of all the factors. Often, the reason for an EA can be traced back to improper training, understaffed environment, and improper use of technology or a poor match in the Senior Compliance role.

Every staff member must be closely reviewed to determine if and where a “weak link” occurs. Once that weak link is isolated, then proper remediation from a staffing viewpoint must be addressed. This remediation can include replacing staff members who have been ineffective. This can be determined by completing a Staffing Audit. An audit of this type would include a review of all job descriptions, performance reviews, and interviews with internal staff to identify weaknesses in skills, motivation, etc. This review would also identify optimal staffing levels to ensure that existing staff is not stretched too thin, as well as to ensure that positions are filled with the correct skill sets. If an EA is levied, it is a generally accepted practice to bring in outside staff to perform a Transactional Review, to determine why and how questionable activities may have occurred. This can be accomplished via a look back process, completed by independent third parties.

Another component that can lead to an EA is an outdated Policies & Procedures manual. In many cases, if policies and procedures with regard to compliance have not been kept up to date with current regulations, and, these updates have NOT been conveyed to staff, an institution is running the risk of engaging in activities that will run afoul of the regulators. The most effective method to ensure that this does not occur is to perform a comprehensive review of current policies and procedures as they relate to the most current regulations. This is ideally performed by an independent third party.

Training or lack thereof is another very important issue that must be considered. In many cases, particularly if there has been any staff turnover. Unfortunately, far too many financial institutions fail to perform continuous training. Moreover, when bringing in additional staff, training cycles may have been missed, causing a lack of effective knowledge transfer. The best method to insure that this does not occur is:

1. Provide frequent training, both internally and externally, to ensure that staff is completely up to date with current regulations and procedures.
2. When bringing in new staff members, immediately provide training to make sure that they are in sync with all regulations and internal operating procedure. Provide a mentor to work closely with the new staff member.

In these times of increased regulatory scrutiny, it is imperative for financial institutions to closely monitor not only their activities relating to compliance, but to recognize that the first line of defense against an EA is a well trained, well balanced staff. This should be coupled with tactical use of outside consultants.

by Len Adams, CPC

VARIED SITUATIONS
Whether the position becomes available because of termination, resignation, retirement, or addition to staff, the key reasons for retaining a recruiting firm are:

• Confidentiality. Particularly when expanding your staff or when replacing an employee, you may not want your competitors or other employees to know your plans. So a newspaper ad may be out of the question (a blind ad—with a box number—is possible, but many candidates won’t answer it for fear of applying to their own employer). But you can conduct your search in confidence through a recruiter—since the recruiting firm’s most valuable asset is information, it won’t reveal its clients. All preliminary interviews are completed without identifying the client organizations. Only when there’s sufficient interest in setting up an interview is the client revealed.
• Cost effectiveness. When searching for qualified candidates, there are cost factors that need to be considered. For example, the cost of advertising in a major newspaper or business publication can range from several hundred to several thousand dollars. If an ad generates only a few responses, the money may be wasted. Even with a large response, the time and cost involved in processing responses and interviewing applicants can be overwhelming – and may not reap a qualified candidate. A recruiting firm, on the other hand, saves both time and money simply because it handles the preliminary screening and interviewing. Thus, the client interviews only those candidates who fit its criteria. And if the recruiter is hired on a contingency basis, there’s no financial obligation until the position is filled.
• Ability to tap the market. Some of the best candidates do not read newspaper ads. A recruiting firm can reach those candidates who are not actively seeking new jobs. Further, a recruiting firm may be able to attract candidates from within your industry without compromising your firm’s reputation.
• Ability to attract talent. A recruiting firm that’s active in a particular industry generally has developed relationships with “up and coming” candidates. Such a firm may be able to reach high-caliber individuals who may not be approachable otherwise.

COMMITMENT
Don’t consider using a recruiting firm until you’ve completed an unsuccessful internal search, are convinced that using a recruiter would be your most cost-efficient option, and are ready to cooperate fully with the firm.

TYPES OF RECRUITERS
Employment agencies find jobs for people, while contingency search firms and retained search firms work for the employer. The method of billing is another way of distinguishing the types of firms. With all three types of recruiters, fees are paid by the employer and are based on a percentage of the candidate’s estimated first year’s compensation—generally 1% per $1,000 of salary to a maximum of 30% (for example, at a salary of $30,000, the fee would amount to $9,000). Employment agencies and contingency search firms get their fees when the candidate begins work with the client; fees paid to a retained search firm are delivered on a set schedule (usually one-third when retained, another third after 30 days, and the final payment when the candidate begins work). Retained search firms also bill additionally for expenses. Guarantee periods vary from 30 days to 90 days, with full or partial credits or refunds.

TOOLS OF THE SEARCH
After you’ve selected a particular recruiting firm, it’s important to provide it as much information as possible about your company and the open position. To educate the recruiter about the company, you should furnish the details of your main business line, operating units, asset/capitalization size, and benefits. An annual report and organizational chart, if available, are also helpful.

Supplying information about the available position is imperative. This should include: the exact functional/operational title; education, experience, and expertise requirements; salary range; why the position is open, how long it’s been open, and whether in-house candidates have been considered; background of employee currently holding position; personality factors, including traits needed for job success and the personality of the position’s supervisor (a meeting with the recruiter is advisable); competitors or other companies where a candidate is likely to be found (and companies that shouldn’t be tapped); and your interviewing and hiring procedures. A written position description is generally helpful.

Recruiting firms could also be characterized by specialization. Discipline specialists handle certain fields (e.g., data processing, engineering, human resources) and cross industry lines. They usually deal with positions that are technical or at middle and upper management levels. Industry specialists will handle all types of jobs at all levels within a given industry (e.g., banking, medicine). And generalist firms have no specialty.

SERVICES PROVIDED
When a recruiting firm, whether contingency or retainer, accepts an assignment, it doesn’t just “empty its files” (send numerous candidates or resumes to a client, hoping one will be a match). Rather, the firm begins a comprehensive process which consists of researching, file searching, networking, recruiting, prescreening, preliminary interviewing, in-depth interviewing, reference checking, negotiating, and closing the placement. Note that part of the firm’s role in this process is to participate in salary and benefits negotiations and to assist the client in determining the candidate’s motivation for making a move.

Recruiting firms can be a valuable source of information, too. Most will provide, as a service, up-to-date surveys and information regarding salaries, benefits, and availability of candidates in any particular location or category. Recruiting firms can also help employers troubleshoot turnover problems or difficulties attracting staff.

FINDING A RECRUITER
Recruiting firms range from small, independent operations to large public companies and subsidiaries of international firms. How do you choose? Ask around. Check references on prospective recruiting firms just as you would a prospective candidate. Rely on the recommendations of colleagues and business acquaintances. Recruiter industry associations also tend to be excellent sources of recommendations. Specialist firms often are members of professional or industry associations, which can also be helpful in finding a recruiter. Because recruiting firms strive hard to build their reputations, it’s not too difficult to identify the reputable firms in any given location or specialization. Be sure, however, not to confuse reputation with visibility or public relations image. Evaluate firms on their track records and methods of operation.

To establish a recruiting firm’s ability, require it to provide lists of its current clients and recently completed assignments. Also require it to provide other information to prove its experience in handling the type of position you need filled. What are the firm’s procedures? Who in the firm will handle recruiting, interviewing, and dealing with you? Is the firm able to attract candidates from other areas of the country? How much time will it need to fill the position? Also find out about fees, expenses, and payment schedules.

After you get this information, consider that the recruiting firm you choose will be representing your company to prospective employees. And, you should feel comfortable with the firm. If the chemistry isn’t right, it will be very difficult to work well together.

OTHER CONSIDERATIONS
Large or small firm? A small firm may be able to offer more personalized service and have a smaller “hands-off list” (employers with whom the firm does business and therefore can’t use as recruiting sources). However, a large firm has greater resources available but may have a larger hands-off list, thus limiting the companies from which it may recruit. More important to your choice should be the firm’s reputation, professionalism, and ability to produce viable candidates.

Contingency or retainer? Both types operate using substantially the same methods. The basic difference is that the retainer firm is compensated for a portion of the fee at the beginning of the search. Thus, retainer firms have more of a reporting responsibility to the client.

Specialist or generalist? For a position requiring special knowledge or technical expertise, a specialist firm is the preferred type. For positions of a general nature, a generalist firm will suffice. Bear in mind, however, that if a recruiting firm is worth its salt, it can recruit for any job, given adequate information. Firms will generally turn down assignments they can’t handle.

NEGOTIATING FEES
If the recruiter’s fee seems steep, remember that it isn’t payment for finding just one individual, but payment for the range of professional services rendered in recruiting that individual. A recruiter’s overhead and expenses are comparable to those of any other business.

Provide the recruiter with as complete of information as possible about your business and the position or positions to be filled. This information serves as a road map for the recruiter. Also be sure to provide the recruiter with feedback—both positive and negative. If the firm is on the right track, let it know. If the firm is moving in the wrong direction or if some aspect of the position changes, alert it. And listen to the firm’s advice and evaluate it on its merits.

BE REALISTIC
Your criteria for the job candidate, the salary for the position, and the deadline for filling the opening should be obtainable. For example, asking a recruiter to find a candidate at a salary that’s 30% less than the position and experience level warrant is a tremendous waste of time and effort.

It’s a good idea to establish a relationship with one or several recruiting firms, so they will be ready to assist you at the appropriate time (don’t wait until an emergency staffing situation arises). However, don’t engage 15 recruiting firms to fill one position. Such action will sabotage your search. For example, if a potential candidate is approached by 15 recruiters about one position, that person will probably think there is something wrong with the position or your firm.

On the other hand, granting an “exclusive” to one recruiting firm could facilitate results. Nothing motivates a recruiting firm more than knowing that a client has faith in its ability.

INFORMATION ON RECRUITERS
A variety of national trade associations represent the recruiting industry. In addition, just about every state has a group or association representing recruiters.

by Len Adams, C.P.C.