Christopher S. Rugaber, AP Economics Writer, On Friday August 6, 2010, 11:20 am EDT

WASHINGTON (AP) -- Companies showed a lack of confidence about hiring for a third straight month in July, making it likely the economy will grow more slowly the rest of the year. The unemployment rate was unchanged at 9.5 percent.

Private employers added a net total of only 71,000 jobs in July, far below the 200,000 or more jobs needed each month to reduce the unemployment rate.

The modest gains were even weaker when considering a loss of government jobs at the local, state and federal levels in July that weren't temporary census positions. Factoring those in, the net gains were only 12,000 jobs, according to the Labor Department's July report Friday.

Investors reacted by selling stocks and shifting into more conservative Treasury bonds. The yield on the 10-year Treasury note, which helps set rates on mortgages and other consumer loans, fell to 2.85 percent from 2.91 percent late Thursday. Major stock indexes all fell and the Dow Jones industrial average dropped more than 130 points in morning trading.

The department also sharply revised down its jobs figures for June, saying businesses hired fewer workers than previously estimated. June's private-sector job gains were lowered to 31,000 from 83,000. May's were raised slightly to show 51,000 net new jobs, from 33,000.

"There is still a labor market recovery, but it's a very, very weak one," said Nigel Gault, chief U.S. economist at IHS Global Insight.

The slow pace of hiring will weigh on the recovery, he said, with economic growth in the current quarter likely to come in even lower than the April-to-June quarter's already weak 2.4 percent.

Overall, the economy lost a net total of 131,000 jobs last month, mostly because 143,000 temporary census jobs ended.

The "underemployment" rate was the same as in June, at 16.5 percent. That includes those working part time who would prefer full-time work and unemployed workers who've given up on their job hunts.

All told, there were 14.6 million people looking for work in July. That's roughly double the figure in December 2007, when the recession began.

Even if hiring picks up, it will take years to regain all the jobs lost during the recession. The economy lost 8.4 million jobs in 2008 and 2009. This year, private employers have added only 559,000 new hires.

Friday's report is being closely watched by the Federal Reserve as it considers ways to energize the recovery. The report could persuade the Fed to take new steps to boost the economy and keep interest rates at record lows when it meets next week.

Without more jobs, consumers won't see the gains in income needed to encourage them to spend more and support economic activity. Even those with jobs may not feel confident enough to ramp up their spending.

That's important because many of the trends driving economic growth earlier in the recovery are fading. Companies boosted production in the winter and spring to rebuild inventories that were depleted in the recession. But those efforts won't last much longer. And the impact of the federal government's stimulus package is also declining.

The economy grew at 5 percent in the fourth quarter last year and 3.7 percent in the first three months of 2010. But that slowed to 2.4 percent in the April-June period. That's not fast enough to generate many jobs and reduce the unemployment rate.

Many companies appear to be getting more out of their current employees rather than adding new staff. The average work week increased by one-tenth of an hour to 34.2 hours, the department said. That's up from about 33 hours in the depths of the recession.

Average hourly pay also rose 4 cents to $22.59, up 1.8 percent from a year earlier. That, along with the increase in hours worked, could provide some boost to spending.

The number of temporary jobs fell by 5,600, the first drop after nine months of gains.

Employers usually hire temp workers if they need more output but don't want to hire permanent employees. But "firms aren't even adding temporary workers right now," Gault said.

Manufacturers added 36,000 jobs in July, slightly above its monthly average this year. Those gains were aided by General Motor's decision to keep its plants running last month. Usually it closes them and temporarily lays off employees to retool for the new model year.

Construction firms cut jobs for the third straight month, losing 11,000, while financial firms shed 17,000 workers.

But retailers added 6,700 jobs. And the leisure and hospitality industry hired 6,000 additional staffers.

Corporate net income rose sharply in the second quarter, but businesses aren't yet using the proceeds to ramp up hiring. Companies in the S&P 500 index reported a 46 percent increase in net income for the April-to-June period, compared to a year earlier.

But many employers are uncertain about the direction of the economy. Some are concerned sales will slow once government stimulus and other temporary factors fade. Others fear what will happen if federal income taxes are allowed to rise next year as tax cuts enacted by President George W. Bush expire.

"People have a long worry list they're looking at," said Ethan Harris, chief economist at Bank of America Merrill Lynch.

Some companies are adding permanent workers. The hospital chain HCA Inc. has 8,300 open positions, company spokesman Ed Fishbough said. That includes nurses, physicians and information technology professionals needed to build HCA's ability to handle electronic medical records. HCA employs about 190,000 people.

But layoffs are also continuing. FBR Capital Markets, an investment bank based in Arlington, Va., cut its work force by about 15 percent in early July to about 500 employees, saying it needed to reduce costs.

AP Business Writers Stephen Bernard and Tali Arbel in New York contributed to this report.

Post-Recession Bounce-Back Plan: Recover Your Earning Power

by Sara Eckel, PayScale.com

During the recent economic downturn, many Americans vastly lowered their expectations about earnings. One survey of career-fair attendees, conducted by Next Steps Career Solutions, found that 65 percent of respondents were willing to accept compensation that was up to 30 percent lower than their pay at their previous job. In addition to salary cuts, workers have also reduced their hours or accepted lower-paying jobs than they've previously held.

But now that the economy is beginning to rebound, Laura Browne, a corporate trainer and the author of "Raise Rules for Women: How to Make More Money at Work," says there are new opportunities to bump up pay. "Companies are giving money back to people, but they're being selective about who gets it," she says. Here's how to get on that list:

1. Forget the past
Whether you've suffered a pay cut or a raise freeze, understand that complaining about the hardships you've endured will get you nowhere. Instead, show your managers what you are doing now--and what you'll continue to do in the future. "They want to know, 'Did you make money for the company?' And even more important, what you are doing right now that will continue to make money for the company over the next six months to a year," says Browne.

2. Start the conversation now
Even if the company is still struggling, Brown says it's important to start talking before the good times start rolling in. "By the time you hear that your company is making money, it's going to be too late," she says. Approach your boss at a time you're feeling upbeat--that is, not the day you got a big credit card bill, for instance. Explain that you know times are tough for everyone (not just you) and thank your boss for sticking by you and recognizing your hard work. Once the positive tone set, let him or her know that when things start to pick up again, it's important to you that you are recognized for what you've done--and for what you'll continue to do.

3. Arm your boss with data
Your boss may need to convince upper management that you should get a pay bump. So provide him or her with a results summary--not simply what you did, but the results you got--that can be taken to decision-makers. "You have to help your boss help you," says Browne.

4. Work crazy hours
If you've had to reduce your hours, let your manager know that you can work whenever he or she needs you--Saturdays, holidays, or late at night if you can. "If company revenue and income are on the rise, then they'll need more hours to meet increased demand," says Jeff Cohen, the author of "The Complete Idiot's Guide to Recession-Proof Careers."

5. Make new friends
If you can't get enough hours in your department, get to know the people in other departments and see if there are opportunities to pick up extra hours there. "Tell everyone you know that you're looking for more hours--in a pleasantly persistent way," says Browne.

Four Lessons We Should Have Learned This Year

by Kevin Wheeler - Dec 9, 2009, 5:07 pm ET

Adversity is a great teacher, and the past year will certainly be one of the most adverse and professionally difficult that we will ever experience.

It has been a year of paradoxes and contradictions: unemployment is soaring, but many organizations cannot find the qualified people they need. Rather than restructure work or rethink how work gets done in order to find people, we continue to seek people to work in traditional ways. More people are looking for part-time, temporary, or contract work, yet only a tiny percentage of companies are looking for these type of people. We know that being discourteous to people creates negative branding and is morally questionable especially when so many are unemployed, but we have perhaps never been as discourteous to applicants are we are now. Energy costs have fluctuated wildly and global warming is a topic on every agenda, yet most organizations and people prefer face-to-face relationships rather than asking people to save energy by working from home.

Here are four lessons we should have learned this year.

Lesson #1: Building and maintaining candidate relationships and generating referrals are keys to survival.

Job descriptions should be dead, but I have no doubt that they will live on for a long time. We should all agree that they are not the best, cheapest, or fastest way to attract good people.

In general, you are not going to find the people you need by posting on job boards. The most successful recruiters use social networks, ask employees (and others) for referrals and focus on building talent communities of potential candidates.

Learn from product and service marketing how to do a better job. Watch how IBM or Deloitte advertise and market their professional services. Go for targeted messaging and quality, not volume. Generate candidates from relationships you form using tools such as LinkedIn, Facebook, and Twitter and by asking for referrals. Make it a rule of thumb that if you are generating hundreds of responses to a job posting, you are doing something terribly wrong.

Lesson #2: Use targeted, bold marketing and branding to appeal to the types of candidates you want.

Don’t try to appeal to everyone. Focus your marketing messages and media on the type of candidate you are most in need of. KPMG and other organizations target college-age candidates with videos and other media designed to appeal to that age group and to the personalities of the type of candidates who usually want to work for them.

They don’t spend any time or money on marketing that is generic or that appeals to older potential candidates.

The best marketing is always targeted to a specific audience and discourages, although subtly, those who don’t fit the target. Partly this is done through words and pictures and partly by placing the information where the people you are targeting are most likely to see it.

For example, Mercedes advertises on television at the times and on programs where their research shows that highly successful and well off people watch. They place print advertisements in magazines that these types of people read. They do not advertise on Super Bowl nor do they advertise in Reader’s Digest. Targeted marketing requires research, focus, carefully thought-out graphics, and tested writing.

Wording is also key; what you say makes all the difference. If you say and imply that you are seeking only those with very specific backgrounds and qualifications, you will reduce the numbers who apply and improve quality. Even your recruiting web site needs to be worded in a way that is attractive to those you are most anxious to have apply. Cisco Systems has a web site that is appealing to technical professionals but less so to others.

Lesson #3: Do not just use, but embrace, emerging technology

Social networks, video, YouTube, candidate relationship management products, Web 3.0 websites, and SecondLife are all tools that can potentially enlarge your candidate pools, screen candidates, and build relationships.

Facebook, Twitter, and YouTube are perhaps the most effective recruiting tools in your arsenal. Video has become king in attracting people, and YouTube is the second-most used search engine after Google itself. If your organization has a recruiting page and/or video, it’s a good start.

Once you start attracting potential candidates, there are many tools to help screen them and communicate with them. CRM tools (Avature is a good example) let you track and communicate with groups of candidates. The most current ATS vendors are also offering this capability and even allow you to link to online profiles in LinkedIn and Facebook. This means candidates do not need a resume.

There are countless email programs, newsletter distribution programs, and other free or inexpensive communication aids that recruiters can use to do a better job letting candidates know where they stand. Even automatic bounce-back responses can be more intelligently written and distributed. A follow-up email could follow the bounce-back and automatically provide the candidate with another touch point.

Lesson #4: Accept change as a way of life

We will not be heading back to the more traditional ways of recruiting, and the contradictions and paradoxes I outlined at the beginning of this article will be with us for a long time. Traditional recruiting skills will be liabilities and will generate little profit.

Everything from face-to-face interviews to onboarding new employees will be more automated and will be done using the Internet. Software applications and mobile technology will dominate the recruiting space. Video interviewing and simulations for selection will become normal within five years.

To be a thriving recruiter you need to focus on building a new mindset that is centered on the acceptance of change as a constant and on taking advantage of technology.

Perhaps the greatest lesson of this year is that we are now at the place where we can use this technology to target our marketing, focus on a smaller number of candidates, allow more direct communication between candidates and hiring managers, and spend more time on raising awareness and marketing key positions using the various technical platforms we have available.

The ability to do this will be seen as strength and will generate returning profit for years to come.

Fired is the New Retired - The idiocy of axing older employees.

By Ellis Cose NEWSWEEK
Published Oct 29, 2009
From the magazine issue dated Nov 9, 2009

This may be the worst time in the last 60 years to be old and looking for work. Some 6.8 percent of workers over 55 are unemployed (not as bad as for younger workers, but still a historic high). You have to go back to 1949 to find employment stats nearly (but not quite) as bleak as they are now. The bad news does not stop there. On average, it takes employees over 55 roughly 33 weeks to find new jobs, nearly seven weeks longer than for younger workers, and nearly 13 weeks longer than it took just two years ago. Bad as things are, the Supreme Court has made them even tougher—at least for those who believe they are victims of age discrimination and are inclined to try to prove it.

The court's 5-4 ruling last June came in response to a suit filed by a demoted employee, Jack Gross, under the Age Discrimination in Employment Act (ADEA) of 1967. It was not sufficient, concluded the majority, to show that age was among the reasons for an employee's bad treatment; age had to be the reason. In his dissent, Justice John Paul Stevens called the decision "unnecessary lawmaking." The majority, he said, misread Congress's intentions. Last month, in introducing legislation to nullify that decision, Senate Judiciary Committee chair Patrick Leahy also accused the court of thwarting congressional intent.

At a Judiciary Committee hearing focused on recent Supreme Court workplace decisions, Jack Gross told his story. (The committee also heard from a former Halliburton employee who says she was raped by coworkers in Iraq but was denied the right to sue because she had unwittingly signed a binding arbitration agreement.) Born in 1948 in a small Iowa town, Gross grew up imbued with the value of hard work. As a schoolboy, he labored at numerous jobs despite the constant pain of ulcerative colitis. As an adult, he found work with Farm Bureau Life, an insurance company, and eventually became a vice president. But in his 50s, he was abruptly replaced by a younger woman. The company, he surmised, was systematically trying to weed out older workers. A jury found in his favor but an appeals court vacated the verdict. The case eventually made its way to the Supremes, whose decision "mortified" him.

The AARP was similarly disturbed—especially in light of statistics showing a 29 percent jump in age-discrimination complaints from 2007 to 2008. Dan Kohrman, senior attorney with AARP, concedes that the numbers don't necessarily prove a commensurate rise in age discrimination, but he insists they show something bad is going on. During hard times, he says, many employers resort to "crude practices" that drive older workers away. They may force supervisors to rank employees on subjective criteria—such as mental "flexibility"—that are essentially a license to discriminate. Or they generate paperwork alleging drops in performance that have no clear explanation.

Linda Barrington, an economist with the Conference Board, agrees that older workers are often stereotyped. Obesity," she observed, "is more of a health-care cost than age for those between 30 and 50." And older workers show every bit as much stamina as younger workers when called upon to put in long hours. Yet in all too many cases, employers see age as a much larger liability than it is.

Earlier this year, after another Supreme Court ruling made it harder for women to fight discrimination in pay, Congress passed the Lilly Ledbetter Fair Pay Act to restore rights many legislators assumed they had already protected. Congress ought to do the same for older workers, who should be given every legal weapon they need to fight discrimination. But even if that happens, age discrimination will not simply go away. Very few workers have the resources to bring a case to court. As Joanna Lahey, an economist with the Rand Corporation, has noted, "the majority of people who sue under the ADEA are white, male middle managers or professionals." And even if more people did have the financial resources to sue, many who are discriminated against don't have the smoking gun that will prove their case. They may just know the job or promotion they wanted went to someone else.

The larger problem, as Barrington points out, is how we tend to view people, the stereotypes we impose on workers of a certain age. It would be great if correcting that were as simple as changing a law. Instead, we face the more daunting task of changing ourselves.

Find this article at http://www.newsweek.com/id/220144 © 2009

US staffing market primed for recovery

The US staffing market is set for recovery in 2010, according to Ron Mester, managing director of research and analysis firm Staffing Industry Analysts.

In a live satellite link up to California at APSCo’s member sales conference in London, Mester told delegates that the value of the world’s largest staffing market (on a country-by-country basis) has now fallen to $93bn (£58.5bn), from $126bn in 2008.

But total revenue is predicted to grow to $98bn next year and temporary staffing is forecast to grow in all sectors measured by the research firm, including industrial (15%), finance/accounting (8%), IT (8%), marketing/creative (5%), legal (5%), clinical/scientific (4%), engineering/design (4%), office/clerical (4%) and healthcare (1%).

According to Mester, US recruiters have been more agile in the recession, increasing their value-adds of recruitment process outsourcing, HR outsourcing, managed service provider services, vendor managed services and master supplier services, while there were 8% more staffing companies placing professionals over office staff and industrial staff last year than in 2004.

Mester said: “Over the next 10 years, employment services will be one of the biggest growth industries. Increasingly, there are more people that want to work in flexible arrangements. Management teams are looking for more flexible workforces and there are skill shortages in professional skill sets.”

But elsewhere, Palmer Forecast predicts that US temporary worker demand is set to fall by 13.7% in 2009.

The industry consulting firm’s findings indicated a 22.2% decline in temporary help for Q3 2009, which actually came in at a 24.5 % decline more than predicted due to higher than expected unemployment figures.

According to the Bureau of Labor Statistics, seasonally adjusted temp jobs fell 23.3% year-over-year in September, up from the 24.5% year-over-year decline in August. Temp jobs, seasonally adjusted, fell slightly, 0.1% sequentially from August.

Palmer says this is an encouraging early sign of rebound and provided a 3.1% boost on a non-seasonally adjusted basis. The 2,000 temp job losses were the lowest rate of loss since October 2007.

The unemployment rate increased to 9.8% in September from 9.7% in August, the highest jobless rate since June 1983.

10 Ways to Be Liked in Your Job Interview

by Jonathan Littman and Marc Hershon

No matter your resume and talents, if you mess up a job interview you won't get that position. In today's tough economy you need every possible edge. As authors of the new book, "I Hate People! Kick Loose from the Overbearing and Underhanded Jerks at Work and Get What you Want Out of Your Job," we see it as a simple equation: You want to be liked -- not hated.

Here are 10 simple things to do that will dramatically increase your chances: from wearing the right expression, to knowing what not to say, to never ever breaking a sweat.

1. Don't be a "smiley face."
Excessive smiling in a job interview is seen for what it is -- nervousness and a lack of confidence. A smiley-face person exudes phoniness, which will quickly be picked up by the interviewer. Instead be thoughtful and pleasant. Smile when there's something to smile about. Do a practice run in front of a mirror or friend.

2. Don't be a small-talker.
Your job is to be knowledgeable about the company for which you're interviewing. Random facts about last night's episode of "Dancing with the Stars" or your favorite blog will not get you the job. Never feel you have to fill an interview with small talk. Find ways to talk about serious subjects related to the industry or company. Pockets of silence are better than padding an interview with random babble.

3. Don't sweat.
You can lose a job by wearing an undershirt or simply a little too much clothing. Sweaty palms or beads on your forehead will not impress. You are not applying to be a personal trainer. Sweat will be seen as a sign of weakness and nervousness. Do a practice run with your job interview outfit in front of friends. The job interview is one place you definitely don't want to be hot.

4. Don't be a road block.
Interviewers are seeking candidates eager to take on challenging projects and jobs. Hesitance and a nay-saying mentality will be as visible as a red tie -- and seen as a negative. Practice saying "yes" to questions about your interest in tasks and work that might normally give you pause.

5. Don't be petty.
Asking the location of the lunchroom or meeting room will clue the interviewer into your lack of preparation and initiative. Prepare. Don't ask questions about routine elements or functions of a company: where stuff is, the size of your cube, and company policy on coffee breaks.

6. Don't be a liar.
Studies show that employees lie frequently in the workplace. Lying won't get you a job. In a job interview even a slight exaggeration is lying. Don't. Never stretch your resume or embellish accomplishments. There's a difference between speaking with a measured confidence and engaging in BS. One lie can ruin your entire interview, and the skilled interviewer will spot the lie and show you the door.

7. Don't be a bad comedian.
Humor tends to be very subjective, and while it may be tempting to lead your interview with a joke you've got to be careful about your material. You probably will know nothing about the sensibilities of your interviewer, let alone what makes them laugh. On the other hand, nothing disarms the tension of a job interview like a little laughter, so you can probably score at least a courtesy chuckle mentioning that it's "perfect weather for a job interview"!

8. Don't be high-maintenance.
If you start talking about the ideal office temperature, the perfect chair for your tricky back, and how the water cooler needs to be filled with imported mineral water, chances are you'll be shown a polite smile and the door, regardless of your qualifications. Nobody hiring today is going to be looking for someone who's going to be finicky about their workspace.

9. Don't be a time-waster.
At every job interview, the prospective hire is given the chance to ask questions. Make yours intelligent, to the point, and watch the person across the desk for visual cues whether you've asked enough. Ask too many questions about off-target matters and you'll be thought of as someone destined to waste the company's resources with insignificant and time-wasting matters.

10. Don't be a switchblade.
Normally the switchblade is thought of a backstabber, often taking credit for someone else's work. In an interview setting, the switchblade can't help but "trash talk" his former employer. If you make it seem like your former workplace was hell on Earth, the person interviewing you might be tempted to call them to find out who was the real devil.

Copyright 2009 Jonathan Littman and Marc Hershon, authors of "I Hate People!: Kick Loose from the Overbearing and Underhanded Jerks at Work and Get What You Want Out of Your Job"

Jonathan Littman is the author of "I Hate People!" and numerous works of nonfiction, including "The Fugitive Game," "The Watchman," and "The Beautiful Game." He is a columnist for Yahoo! Sports.

Marc Hershon is the coauthor of "I Hate People!" and a branding expert who helped to create the names for the BlackBerry, Swiffer, and many other influential products.

Celebrating 2-Years of Bringing People Together!

In July 2007 we started Direct Search Alliance to set a new standard in the "Recruiting for Recruiters" segment, which is largely made up of fragmented independent executive recruiters who are former industry professionals working on their own.

Leveraging best-in-class database management and communications technology, as well as the rapid growth of premier business information search engines and businesses-oriented social networking websites, we have built the largest confidential network of Staffing and Human Capital Industry professionals in North America.

How we provide this new standard is centered on making new and sustaining valued relationships with working professionals day after day. We might leverage "information technology" to create a platform from which we work, but what makes our approach truly unique to the industry is in our collective efforts to reach out to top performers directly by phone or with personal correspondence to develop relationships over time with industry talent, both broadly coast-to-coast and deeply within local markets.

We bypass the typical employment sites and find people who aren't looking for a job, but are interested in hearing about new opportunities and welcome a career partner with connections inside the top employers to work for.

In the Staffing & Human Capital Services Industry, we have multidisciplinary depth and breadth across Commercial and Professional Staffing, Place & Search, Outplacement, Human Capital Management Services and Outsourcing segments.

Our organizational mission is to represent, serve and inspire talented individuals in connection with business performance as well as career progression. We believe that it is people who drive business success, and it is our job to bring people together.

Join us in celebrating our anniversary. Cheers to our team: Leslie, Kisa, Craig, Lisa, Carrie, Jen, and Amy! A heartfelt thank you to our clients who have supported our growth with exciting and challenging opportunities, and sincere appreciation to our candidates who have brought us diverse skills and talents, making us proud and more knowledgeable.

With Jobs Scarce, Age Becomes an Issue

by Dana Mattioli
Tuesday, May 19, 2009
provided by The Wall Street Journal

Age discrimination in the workplace has long been a concern for the 55-and-older set. In this downturn, however, younger workers may have as much to fear as their more-mature colleagues.

Employees in their 20s and 30s are finding themselves more at risk of a layoff, according to labor lawyers, as employers look to avoid age-discrimination lawsuits by adopting a "last one in, first one out" policy and turn to tenure as a means of conducting layoffs. In some cases, young, childless professionals say they feel they're being targeted in layoffs, while employees who have families to support are given special consideration.

While no age group is exempt from layoffs, younger workers seem to be shouldering a larger percentage of the burden, according to recent Labor Department figures. The unemployment rate for those between the ages of 25 and 34 was 9.6% in April 2009, up from 4.9% a year earlier. For those ages 55 and older, the unemployment rate was 6.2% in April 2009, compared with 3.3% a year earlier.

Wary of Lawsuits

While younger workers tend to earn the lowest salaries, making them the least-expensive workers to retain, companies are becoming wary of laying off older, better-paid workers. In fact, Gerald Maatman, co-chairman of the class-action litigation practice at Seyfarth Shaw LLP, which represents employers, says he has been fielding more inquiries about laying off younger workers than in years past, especially from companies in states like New Jersey and Michigan that have laws to protect workers as young as 18. Age-discrimination lawsuits brought by older workers can cost more than the salary of the worker who was laid off and can hurt the company's reputation, according to Andria Ryan, partner at Atlanta law firm Fisher & Phillips LLP.

"Younger people, in general are a lot less of a risk [for lawsuits] when you do a reduction in force," says Ms. Ryan. While most states protect employees 40 and older from age discrimination, only a handful of jurisdictions extend this protection to employees as young as 18, she says.

"Companies don't like [layoffs by seniority], but [they're] also the easiest to defend," says Gerald Hathaway, co-chairman of the business-restructuring practice group with employment law firm Littler Mendelson. "If you have a bona fide seniority system it's a defense for any type of discrimination," according to the law, he adds.

Seniority in Education

This is particularly true in the education field, where many colleges and schools are taking measures to protect tenured teachers and professors. David Schauer, superintendent of Kyrene Elementary School District No. 28 in Tempe, Ariz., sent layoff notices to 68 teachers in anticipation of budget cuts. The cuts target only first-year continuing teachers, most of whom are in their 20s, says Mr. Schauer. "My worst fear is that really good people will leave teaching," he says.

Nicole Ryan, a 24-year-old sixth-grade math teacher for Fox Lane Middle School, in Bedford, N.Y., received such a layoff notice. The notice was sent out to teachers and staff based on their seniority. So, despite strong performance reviews, budget cuts mean she may not have a job to return to in the fall. "I knew it was coming because, based on seniority, I was lower on the totem pole," she says. "It didn't make it any easier."

The emotional impact of layoffs can affect a manager's decision when it comes to choosing who gets the ax -- and that can also disproportionately affect younger workers. "It takes a tremendous toll on managers," says Mitchell Marks, a professor of organizational change in the College of Business at San Francisco State University. Mr. Marks says when layoff decisions come to a tie breaker, personal and family situations often come into play.

"I've had plenty of managers sit me down and say 'Joe's spouse just got diagnosed with cancer but Jane's spouse is an M.D.,' " says Mr. Marks of the explanations of how a layoff has been decided. The same decision-making process can occur when choosing who gets laid off between a single 20-something employee or, say, a 50-year-old employee with two kids in college.

Svetlana Gelman, 24, worked in the marketing department of a law firm until December when she was laid off. She feels strongly that her age and the fact that she doesn't have a family to support put her at greater risk before the layoff. Ms. Gelman says she was competing head-to-head with another employee with a child, who was hired a few months after Ms. Gelman and often would use her sacrifices as a parent to tout her dedication to the firm.

"The person was very tactical, she would bring the child in, spoke about him all the time and would say things like 'My child is sick but I'm still here,' " says Ms. Gelman.

And as work became more scarce and layoffs loomed, Ms. Gelman says she was let go while her colleague remained, despite the fact that Ms. Gelman earned less and often worked longer hours because of her co-worker's child-care responsibilities.

Staying Safe

Still, there are ways younger workers can go about safeguarding their jobs. High-maintenance attitudes typical of younger workers also make them more prone to the chopping block in a down economy, says Bruce Tulgan, author of "Not Everyone Gets a Trophy." Twentysomething professionals tend to demand flexibility, responsibility and high pay, he says -- all things that aren't going to be well-received in this environment.

"This is a really great time to come in early, stay late, dot your i's and cross your t's," says Mr. Tulgan. He says young employees should volunteer to do grunt work, take advantage of free certifications their companies offer and be compliant, rather than demanding.

Staying Valuable

Ms. Ryan, the attorney, says now is the time to make yourself as invaluable to a company as possible. She recommends cross-training in another department, learning as much as possible about different areas of the company and expressing a willingness to relocate to less desirable locations (something those with families often can't do).

You might also try to align yourself with someone in senior management. This could be in a mentor relationship or as a volunteer on a big project a manager is working on. Although executives are busier these days, they often view being asked to mentor as a compliment, says Mr. Marks. And if it should come to layoff decisions, "It doesn't hurt to have someone in the executive conference room on your side," he says.

Physician, heal thyself

This saying, that dates back to biblical times, means attend to one's own faults, in preference to pointing out the faults of others. The phrase alludes to the readiness and ability of physicians to heal sickness in others while sometimes not being able or willing to heal themselves. This suggests something of 'the cobbler always wears the worst shoes', i.e. cobblers are too poor and busy to attend to their own footwear. It also suggests that physicians, while often being able to help the sick, cannot always do so and, when sick themselves, are no better placed than anyone else.

A pithy saying, a bit dated for these modern times, but spot on with what ills the Staffing Industry.

What the industry sells to business clients is flexibility and access to talent; responsiveness and quality, as well as specialization and depth in any one industry or discipline. With economic times uncertain, the need for flexibility and talent is more acute, a message Staffing Industry companies are quick to point out to customers who have cut back on spending on staffing and talent searches.

Staffing Industry leaders; however, espouse the benefits of industry services staffing firms bring to the economy, while at the same time have cut back or eliminated the use of "in-house" temporary employees and put a freeze on using outside search firms to find them talent specific to their industry segment. Hmm...what is wrong with this picture?

Another proverb says it best...charity begins at home. You should take care of family and people close to you before you worry about helping others. For customers and the industry analysts to have confidence in the industry as a whole, we must set the example to validate what we sell is truly of value to businesses--even in difficult economic times.

As the premier source of top talent to the Staffing and Human Capital Services Industries, I have the pleasure of working with companies who value talent and trust us to be the specialist practice we are to provide talent for sales, recruiting, client services, management and executive positions. We do, however, come across companies that have shut down the use of the very services that they sell.

In my opinion, this is a factor germane to the success or failure of the industry to recover. Be a part of the solution to our fiscal challenges and use Staffing Industry services, benefit from the flexibility and the access to talent that are central to growth and prosperity.

With talent, we can help.

9 Recession-Proof Careers

Despite the economic downturn, these careers are still growing.
By Cathie Gandel and Hilary SterneAdditional reporting by Neena Samuel and Kathryn M. Tyranski

These industries project promise—and jobs—for the future, according to the Bureau of Labor Statistics and the Occupational Information Network database.

1. Education
Math and science teachers will be in demand as the U.S. struggles to compete with other countries in engineering, technology, and medicine. A growing immigrant population means more English-as-a-second-language classes will be needed.

Postsecondary teachers - Median salary: $56,120 Education: bachelor's degree and often a master's or doctorate

Teacher assistants - Median salary: $21,580 Education: some post-secondary education or vocational training

Educational, vocational, and school counselors - Median salary: $49,450 Education: secondary education, associate's, bachelor's, or master's

2. Energy
Some of the jobs in this field are the result of projects started a year or more ago. But the real boost will come from the new administration's commitment to a more efficient national energy system. "Growth of energy consumption around the world will keep this sector strong," says Laurence Shatkin, coauthor of 150 Best Recession-Proof Jobs.

Power plant operators - Median salary: $56,640 Education: vocational training and several years of on-the-job training

Insulation workers - Median salary: $31,280 Education: secondary education and vocational training

Electrical power-line installers and repairers - Median salary: $52,570 Education: vocational training and several years of on-the-job training

3. Environment
Green is getting the green light in a nationwide push to make homes and office buildings more energy-efficient and to develop alternative energy sources (solar, wind, nuclear) as well as fuel cell technology. "Anything involved with wind power, either the design or related products, will be big," says Laurence Stybel.

Environmental scientists - Median salary: $58,380 Education: master's

Environmental engineers - Median salary: $72,350 Education: bachelor's

Hydrologists - Median salary: $68,140 Education: master's

4. Financial Services
Rising from the ashes of a very bad year, financial services have a bright future. Corporate America's wretched excesses mean more government regulation. Workers who are retiring will need advice on how to make their money last. Small businesses may outsource accounting services. As we get to the middle of the recession, there will be a wave of mergers and acquisitions, Stybel predicts. "People with experience in managing the process-corporate attorneys, investment bankers, and accountants-will be in demand."

Financial advisers - Median salary: $67,660 Education: bachelor's

Accountants and auditors - Median salary: $57,060 Education: bachelor's

Sales agents (securities and commodities) - Median salary: $68,430Education: bachelor's

5. Government
More than half a million federal employees will retire by 2016, leaving open positions at agencies from the CIA to AmeriCorps to NASA. There will also be opportunities at the state and local levels. "In addition to police work and homeland security, government inspects and regulates many industries," says Shatkin. "Workers can sometimes capitalize on their experience in an industry by moving into a regulatory job."

Government property inspectors - Median salary: $48,400 Education: vocational training, associate's or bachelor's

Immigration and customs inspectors - Median salary: $59,930 Education: bachelor's

Urban and regional planners - Median salary: $57,970Education: master's

6. Health Care
Health care pops up at the top of just about every list of hot careers. All of us are getting older and living longer, sometimes with chronic health conditions. What's more, health insurance practices may undergo a radical revision during the Obama administration, which has announced plans to address three central issues: coverage, cost, and quality of care. "Health care is a growing industry," says Bettina Seidman, "and not just for health care professionals. There will also be jobs for secretaries, accountants, and administrators."

Registered nurses - Median salary: $60,010Education: associate's or bachelor's

Dental assistants - Median salary: $31,550Education: secondary education, plus a few months to one year of on-the-job training

Medical records and health information technicians - Median salary: $29,290 Education: associate's

7. International Business
Corporations, consulting firms, nonprofits, and even governments are going after global markets. People with international expertise, foreign-language skills, or a willingness to move abroad will be in demand. "The global economy is only going to grow," says John Challenger. "U.S. involvement will expand, short and long term."

Interpreters and translators - Median salary: $37,490 Education: bachelor's

International management analysts - Median salary: $71,150 Education: bachelor's or master's

Market research analysts - Median salary: $60,300 Education: bachelor's or master's

8. Law Enforcment
International terrorism makes daily headlines, and fear of financial insecurity is matched only by concern for our physical safety. "Crime doesn't go down in a recession," says Shatkin. "It may even increase."

Probation officers - Median salary: $44,510 Education: bachelor's

Court reporters - Median salary: $45,330 Education: postsecondary vocational training

Paralegals - Median salary: $44,990Education: associate's degree in paralegal studies

9. Technology
New uses of technology in services and products like electronic health records mean that this sector will continue to be strong. "We have just begun to use the Internet as an entertainment medium in publishing, music, and film," says Peter Weddle.

Computer systems analysts - Median salary: $73,090 Education: bachelor's

Network systems and data communications analysts - Median salary: $64,600 Education: bachelor's

Computer, ATM, and office machine repairers - Median salary: $37,100 Education: high school or vocational training

And We'll Always Be Looking For..."Think of basic human needs, the things we can't do without," says Shatkin. They provide what he calls "little islands" of employment in this economy. For example, he says, we will always need sewage and water treatment. Challenger says the food industry is a core area: "People have to eat, and the global population is increasing."
In a down economy, people don't buy new cars—they repair their old ones. People turn to their clergy for comfort. Funeral directors will always have jobs. And since pets are very much a part of the family, veterinarians and veterinary technicians will continue to be in demand.

Despite Layoffs and Hiring Freezes, The War for Talent is Not Over

According to a renowned study conducted by McKinsey Co., the most important corporate resource will be talent. It's also the resource in shortest supply, most of all in tough economic times. Are you ready to fight for your fair share?

An underlying fact in the American workplace is the shortage of qualified workers available to fill jobs. The principal business challenge of recruiting, retraining and inspiring talent continues, even in a slumping economy - just like in good times - as employees retire, quit, are terminated, find a new job, enroll in school or move away.

With layoffs the remedy for economic ills, it is often mistakenly thought that hiring is linked to economic growth. Statistically; however, economic growth makes up only about 5% of overall hiring actions in the U.S. Turnover is the overwhelming and primary reason for the majority of a company’s need to hire.

When headcount is monitored closely and managers must “made do” with less people, poorer performers are less tolerated and are “performance managed” out. As such, managers look for top performers from outside the company to ensure their teams are able to perform at high levels in challenging times.

At the same time, in a weak economy, top performers seek out opportunities they perceive as recession-proof causing employers to compete against rival employers.

Under a hiring freeze, overall headcount is targeted to remain at an established number. In these circumstances, when an employee leaves, managers still must make “backfill” hires to cover key positions.

After a period of reactionary cutting and freezing, hiring activity will return to a level of normalcy, business as usual. Then, employers will find that that they are lacking talent in a competitive job market—the market for “employed” top performers.

During times like this, employers will be flooded with candidates from which to choose. A nice change…or not? Hiring managers are well advised to proceed with caution as you contemplate hiring from the pool of available “active” candidates—recently available due to layoffs. Likely, these candidates are “first wavers” who in a robust economy “flew under the radar” and now find themselves “redundant” in an economy that requires top talent to produce results. This doesn’t mean all unemployed or job-seeking candidates are bad or mediocre, but for many, it is indeed the fact.

As the numbers of candidates on the market increases it becomes increasingly difficult to “separate the wheat from the chaffe” and choose the people that are of high quality from a group of mixed quality.

Does it make sense then to continue to employ the services of a search firm to find talent for your organization? Consider that a professional executive search firm is in constant contact with candidates and hiring managers across the segments in which they specialize. This “constant contact” is with “passive” candidates who, when facing economic instability, are more likely to entertain a new opportunity if presented by a known, trusted advisor.

The bottom line…great people are hard to find in even the best “employer's market” circumstances, and only great people are a good investment when resources are dear. An investment in a search fee pays dividends when a new employee not only joins your organization, but contributes with the high level of skill, talent and character commonly found with employed, “passive” candidates who “fly under your radar.”

Direct Search Alliance is exclusively a direct recruiting firm, targeting passive candidates (we do not use ads or postings of any kind; we source top talent directly by researching the market and reaching out to working processionals to develop relationships and share connections). We are the Staffing Industry’s best resource, with multidisciplinary depth and breadth across Commercial and Professional segments, to source a top performer for your organization in 2009.

Season's Greetings

To our Client and Candidate Business Partners and Friends, all of us at Direct Search Alliance extend our sincerest best wishes for a happy Holiday Season.

May the New Year bring optimism, innovation, the coming together of talented people, support from colleagues and leadership, aspiration to overcome difficulties, and the power to make the best of trade and industry in the marketplaces we serve.

Teamwork brings everything together.

2009, a time to hope for peace and think green. A time to step it up in the face of adversity. A time to renew the spirit of service and go to work.

Employment Situation

It's official: the U.S. economy is in a recession. The Business Cycle Dating Committee of the National Bureau of Economic Research announced last week that, after six consecutive years of healthy growth, the U.S. economy peaked in December 2007. "The peak marks the end of the expansion that began in November 2001 and the beginning of a recession," the committee stated.

Employment is one of the primary measures NBER uses in tracking the economy, and it noted that U.S. payrolls peaked last December and have declined every month since.

Historically, temporary and contract employment drops precipitously during recessions. In the last recession, for example, staffing employment began to fall several months before the recession actually began. Over the course of a year and a half, the industry lost 29% of its jobs, according to the quarterly ASA staffing employment and sales survey. In year-to-year comparisons of employment data during that period, there were four consecutive quarters of double-digit rates of decline.

So far in this recession, the pattern has been different. Unlike with previous recessions, staffing employment remained relatively unchanged for 10 months. For example, staffing employment declined only 2.5% from the first quarter through the third quarter of this year, according to the ASA employment and sales survey. And the ASA Staffing Index, which measures changes in temporary and contact employment, had been flat for most of the year, until it started showing sustained weekly declines in late September.

The November employment situation report from the U.S. Bureau of Labor Statistics suggests that precipitous declines in employment may now be upon the staffing industry. How long those sharp declines persist will depend in part on how long the recession lasts.

This recession is already longer than the last one. The 2001 recession lasted eight months. The U.S. economy, according to NBER, is currently in the 12th month of contraction. Until now, there had been 10 recessions since World War II, and they lasted an average of 10 months each. The longest recession in that period, in 1981–82, lasted 16 months. Even if this recession becomes the longest since World War II, it is probably more than half over. Many economists predict that the economy will begin to pull out of this downturn by the middle of next year.

Steve Berchem
Staffing Week December 8, 2008
American Staffing Association

Market Conditions Change - Good Advice Doesn't

SPECIAL REPORT

'Greatest economic challenge'
Obama sets sights on economy - vows to confront global financial crisis
NEW YORK (CNNMoney.com) -- President-elect Barack Obama said Friday that the United States is "facing the greatest economic challenge of our lifetime."

The economy ranked as the top concern among voters. The issue...Jobs.

Layoffs and hiring freezes announced by Companies in the broader economy can ripple throughout the Staffing Industry by causing management to cut back on their costs by "making do" with less staff, and this can make it harder for these companies to maintain market share, fueling the ongoing decline in revenues and profits.

Given the weak labor market, only the most skilled, talented and motivated employees will uncover and leverage opportunities to contribute. The economy may be weak, but it is not without prospects.

Staffing Industry employers might be well served by taking a hard look at the capabilities of their employees and how they are deployed. To preserve a place in the market and prosper for longer term benefit, only the best and brightest should be "on the team," so to speak, in revenue generating assignments.

Tolerating mediocrity is risky. Finding talent is difficult with the unemployment rate increasing. As the numbers of candidates on the market increases it becomes increasingly difficult to “separate the wheat from the chaff” and choose the people that are of high quality from a group of mixed quality.

Does it make sense then to continue to employ the services of a search firm to find talent for your organization? Consider that a professional executive search firm is in constant contact with candidates. This “constant contact” is with “passive” candidates who, when facing economic instability, are more likely to entertain a new opportunity if presented by a known, trusted advisor.

The bottom line, great people are hard to find in even the best “employer's market” circumstances, and only great people are a good investment when resources are dear. An investment in a search fee pays dividends when a new employee not only joins your organization, but contributes with the high level of skill, talent and character commonly found with employed “passive” candidates who “fly under your radar.”

We can help make an investment in finding and hiring talent produce sustaining, material results. Recognizing that in times like these, cost is a factor, we are offering cost-savings options to initiate the search for top talent.

1. Stretch Your Budget with Extended Payment Terms
Have the option to make that critical hire in the near-term and spread payment over time. This "layaway" plan allows you to manage the impact on your budget and begin to realize a return on the investment in talent before making the full investment. Pay in 3-equal payments after the start date: 10-days, 45-days and 90-days.
Extended payment terms do not apply with any other discounts.

2. Take advantage of our Search Sale
Make a hire and receive 25% off the search fee. Even in a challenging economic market, customer-facing, revenue-generating and leadership talent are essential. If you have to make that one great hire, make it at a deep discount.
25% off applies only with standard payment terms of net 10-days.

3. Choose the Best of Both Time & Money
Focus on your core business and let us find you a top performer. Take a 15% discount off the search fee, pay only half the fee 10-days after the start and hold on to the balance for 60-days. Manage your cash and benefit from revenue-producing productivity.

Direct Search Alliance is a Search and Talent Consultancy specializing in the Staffing, Professional Services and Outsourcing Industries. I invite you to visit our website and blog to learn more about our company. Click the links below to download online brochures.

Barack Obama Becomes the 44th U.S. President

The economy ranked as the top concern among voters who cast their ballot for Barack Obama, elected President Tuesday night.

The issue...Jobs.

A total of $100,032,604 was spent to broadcast 52 ads related to the presidential campaign on the issue of jobs from April 3 to Oct. 27, 2008, according to statistics compiled by Campaign Media Analysis Group, which tracks political advertising expenditures.

Layoffs and hiring freezes announced by Companies in the broader economy can ripple throughout the Staffing Industry by causing management to cut back on their costs by "making do" with less staff, and this can make it harder for these companies to maintain market share, fueling the ongoing decline in revenues and profits.

Given the weak labor market, only the most skilled, talented and motivated employees will uncover, discover and leverage opportunities to contribute. The economy may be weak, but it is not without prospects.

Staffing Industry employers might be well served by taking a hard look at the capabilities of their employees and how they are deployed. To preserve a place in the market and prosper for longer term benefit, only the best and brightest should be "on the team," so to speak, in revenue generating assignments. Tolerating mediocrity is risky. Finding talent is difficult with the unemployment rate increasing.

We can help make an investment in finding and hiring talent produce sustaining, material results.

Direct Search Alliance was established by Staffing Industry leaders to provide an alliance between America's best employers and executive, management and professional people already successful in their role and area of specialization.

Our organizational mission is to represent, serve and inspire talented individuals to nurture and propel business performance.

Bringing it Back

Intuitively, you know that something must be done to offset the steep decline in revenues as demand lessens for new or interim staff. You want to do something, but are confounded as to what to do - it seems insurmountable and that any one thing won't be enough to turn circumstances around. Thus far, staring at the computer screen hasn't worked. Talking about how bad is the economy hasn't either, although it makes for a good excuse and makes one feel nervously better.

Confidence comes with action and it is an amalgamation of doing basic "right things" that work together to make business come around.

INTERVIEWS
it seems silly to interview when you have more candidates than jobs, but continue to do so in numbers and dig in a little deeper--where has the candidate interviewed, with whom have they been out on assignment, what employers have contacted them, who do they report to and to whom does their boss report? These are names, names that might be hiring. In times like these when the instance of hiring or needing supplemental staffing is less common, you must increase the number of chances to sell by increasing the number of potential hiring authorities on your prospect list. When you use interviewing as a means to gather market intelligence, you can, at the same time, cross reference the name to the profile of the candidate which can be used to target your marketing efforts on a go forward basis.

Going back to the files and pulling old applications is a target-rich source for names that were passed over when business was too brisk to pay attention to the details.

REFERENCES
Everyone hates to check references - they seem like an annoying obstacle to placing a candidate. But in reality, every professional reference is not only another name, but a person you have a good reason to engage in conversation. Grab up a pile of unchecked references and get busy dialing. Your "connection" ratio will increase multi fold when you are calling about a professional reference. It is an easy transition to turn a call like this to the business of learning about the individual, their organization's needs and prospective opportunities. Go back through old checked references, and voila...more names.

MARKETING CANDIDATES
Once you have a long list of prospective hiring authority names, cross referenced with the kinds of skill classifications that they hire, you can market great candidates on a more macro, but targeted, basis and reach a large number of prospective clients. Do a thorough job writing a profile of the candidate to market and what they can offer an employer, along with a compelling and persuasive overview of your experience and your firm's area of specialization. You will find that if you "hit the bulls eye," you will generate a business opportunity and if you present yourself in the right light, you might generate interest in your services for an alternate opportunity.

The adage - "It is a numbers game" has never been more true. The survivors of this downturn are the individuals and companies who leverage high volumes of data with high levels of activity to touch prospects on a frequency that "makes your own luck" by increasing your chances of being "in the right place and the right time."

Don't Be a "Hater" - Be a Celebrator!

When the economy is robust, the Staffing Industry enjoys growth, piggybacking on the expansion of fast-growing and major industries. When demand is high, opportunity comes knocking, asking work teams only to react. Those that do so effectively enjoy the rewards of increasing revenues and the camaraderie winning teams encourage. The ability to overcome the difficulty factor in finding "good" candidates is the defining "high-level" challenge that separates the top-performers from the average players.

As the economy slows, a new challenge emerges. No knocking. This introduces a new business challenge, how to create "something' from "nothing" - making sales in an increasingly competitive environment. For most teams, this brings about collective confusion, procrastination and fear in the face of declining results. These stresses turn camaraderie to antagonism, resulting in a loser's pessimism. A work team's synchronicity is compromised, begging motivation and direction.

What to do?

Talk to each other. Really, that's what I suggest as a starting point. Ask about the following - What are your career goals? Why did you decide you wanted to work here? What would you like to accomplish while you are here? What are you truly good at? What "out of your comfort zone" work are you willing to do? Are there any suggestions you would make if you had the ability to improve the way you did your particular job? Are there any suggestions you would make if you had the ability to improve the way other staff did their particular job?

Out of this simple process comes volumes of information - most of it useful and relevant. This information enables teams to recommend a transformation in the way they, as individual contributors, and supporters of each other, work collectively in the new economic climate.

Get into Line With What Are the Objectives. Continue the conversation and set specific outcomes aligned with desired results. Generally, this will be centered around developing new business and the who, what, when, what and how to go about it.

Make a Plan. It is not a top-down plan, it is the plan developed from hours of conversations with co-workers. They developed it, put it together. And, with my each team member's strong assistance, encouragement, and support, it can be implemented.

Celebrate the Results. This is the part that brings back "winners" camaraderie. Recognize brave actions, continuing attempts in the face of failures, small achievements, ease with changing daily tasks, new skill with unfamiliar activities, and when a coworker "steps up" to "lift up" the team.

So there you have it - communicate and build alignment, fall in with the objectives and celebrate your achievements. In doing so, you just might find that this encourages good people and business behavior that sustains and uplifts top-performing teams, even in uncertain economic times.

Do the Math - Why Recruiters Are Worth What They Charge

Why are hiring managers so tightfisted when dealing with what is so commonly thought of as the “heartbeat” of their companies ... top-talent?

Companies think very little about paying the often excessive fees charged by their outside accounting and legal firms ... or even to the gaggle of consultants who promise cost-cutting and streamlining miracles in other areas of operations.

Yet, when faced with brain drains, talent deficiencies or the need to replace one employee with a better one, their thoughts too often turn to frugality. This belies and contradicts their stated objectives to "hire the best." Of course recruiting fees can vary from firm to firm but, when they do, you will almost always find that those on the low side are sure to exclude some very key ingredients of the process all of which are vital to providing the indispensable services necessary to satisfy the needs of the employer.

So why are recruiters worth what they charge? Just a few of the often unspoken reasons are:

Expertise
Nobody knows the employment marketplace better than a professional recruiter. . . nobody! In house human resources, no matter how effective (or Internet-savvy), view the marketplace through an imperfect or misrepresentative prism and tunnel vision is a frequent occupational hazard.

Just as physicians are cautioned against treating members of their own families, so too is it folly for an in-house H/R professional to believe that they have an undistorted and unbiased picture of the employment landscape. They are vulnerable to the pressures of internal politics and cultural dimensions which do not hinder the outsider.

Street-smart recruiters already know the neighborhood, including the unlisted addresses so often overlooked by the insiders.

Cast a wider net
A professional fisherman will always have more to show than a weekend angler. Recruiters are in the marketplace day in and day out. They know the unfished coves, reefs and inlets that are unknown to others. The job-hunter bookshelves are filled with lore about the “hidden job market.” The same holds true for professional recruiters who have a detailed roadmap to the hidden talent sources which will never be accessed by newspaper ads, alumni associations, applicant databases, the Internet or any of the other more familiar sources of people.

There are occasional pearls through these sources (and someone inevitably wins the Publisher’s Clearinghouse Sweepstakes too) but you have to shuck an awful lot of smelly oysters to find them. Recruiters only give you oysters proven to contain pearls. Your only job is to determine which pearl is the best. Want to catch what you’re fishing for? Hire a guide!

Cost
There is a misconception among employers that the cost of a hire equals the cost of the ads run or postings on the Internet designed to attract the person hired. Nothing could be further from reality.

Try adding these to the true cost and you’ll see just how cost effective an outside recruiter can be:

Salaries and benefits of the employment/recruiting staffs plus those of the line managers involved in the hiring activity (who are not productive in their normal job pursuits when they’re out recruiting); travel, lodging and entertainment expenses of in-house recruiters; source development costs; overhead expenses including (but not limited to) telephone, office space, postage, PR literature, applicant database maintenance, website costs, reference checking, clerical costs to correspond with the hundreds of unqualified respondents and more.

Unbiased third party input
Contrary to what some believe, recruiters don’t try to put square pegs into round holes. A recruiter’s stock-in-trade is their integrity and their reputation for finding someone better than a company could have found for themselves.

For a mid to senior-level executive, the average recruiter may develop a long list” of a hundred or more possibilities. Each must be called and evaluated against the position specifications as well as the personality “fit” with the company and the people with whom they will ultimately work.

Once this is winnowed down to the “short list” an even more intensive interviewing process begins to narrow the search to a panel of finalists for review by the client...

It is highly unlikely that a professional recruiter will be plowing new ground with your opening.

They deal within spheres of influence far more familiar with your needs than any internal recruiter and, more often than not, view the finalists as people who are competent to solve client problems rather than just fill an open slot in the organizational chart.

Because they want to do business with you again and again, they are looking for (and challenging you to excellence by hiring) the “truly exceptional” rather than the “just satisfactory” so often settled for by in-house hirers.

Confidentiality
Advertising or otherwise publicly proclaiming an opening, aside from its cost and demonstrated ineffectiveness for sensitive senior level openings, often creates anxiety and apprehension among the advertiser’s current employees who wonder why they aren’t being considered or worry about newcomer transition problems. Just as often it alerts competitors to a current weakness or void within the company.

Speed
The recruiting process is always faster through a search professional who is continually tapped into the talent marketplace than one having to start the process from scratch,. For every day that a key opening remains unfilled, a company’s other employees must grudgingly do double duty. And this doesn’t factor in the profit opportunities or competitive advantages lost to a company because a position remains unfilled or is done on a part-time basis by others less qualified.

Post-Hire Downtime - Not only is speed an essential part of the professional recruiter’s process, the ability to locate a person who can immediately “hit the ground running” with a minimum of “ramp-up time” saves time after the hire. All too often, a hire selected through less effective sources offering a smaller talent pool requires several months of expensive training and orientation.

Reality
Professional recruiters often recognize and have a duty to inform clients that they may be mistaken as to the type of person sought, the salary required to attract them or the possibilities that the solution might just lie in areas outside the traditional target industries.., something an internal recruiter is politically disinclined to do. Too many hirers fail to understand that a professional recruiter’s primary function is not necessary to fill a slot but to provide the right candidate to solve a problem.

Negotiation
As a buffer and informed intermediary, the professional recruiter is better able to blend the needs and wants of both parties to arrive at a mutually beneficial arrangement without the polarizing roadblocks which too frequently materialize in face-to-face dealings, especially in this “show me the money” economy.

Prioritizing company resources
It is often amazing to see how much of a company’s revenues are squandered on non-productive perks while penny-pinching on what is every company’s lifeblood. . . talent acquisition. Enlightened executives learned long ago that the fee paid to a recruiter is a shrewd strategic investment, not an extraneous expense.

Do the Math
Here is a good example:If your company has A territory vacant for 2 months and this territory produces 1.2 Million dollars per year, your company has lost $200,000 during the time the position has been vacant

Ex. $1,200,000/12 months = $100,000 per month. If the territory is open for 2-months you have lost $200,000!

So, the investment that you would make to a recruiter for quickly finding top qualified individuals is far, far less compared to allowing the territory to remain open. It becomes even more apparent when you factor in the amount of time, energy and money spent on all the in house efforts.

Content thanks to Porter Group, Inc.

Moving to a Small Company Can Lead to Big Rewards

Leaving behind a brand-name firm is a growing alternative for professionals.
By SARAH E. NEEDLEMAN
The Wall Street Journal
March 3, 2008 9:14 p.m.

With the U.S. economy under duress, a growing number of experienced workers may find themselves moving away from large companies toward smaller professional firms. In recent weeks, several large employers announced plans to trim their work forces while small companies hungry for top-talent are happy to take in corporate exiles.

There is a significant upside for professionals moving from a big pond to a smaller one. Senior managers at small and midsize firms often find opportunities to take on more responsibility, earn greater recognition for successes, gain ample exposure to new practice areas and have a more direct impact on a company's bottom line.
To be sure, small firms seeking to attract big fish still have to prove they're a stable alternative that offers competitive pay, but for some, the tradeoff is worth it.

More Impact
Before joining Internet company LinkedIn Corp. in July, Patrick Crane was one of five marketing vice presidents at Yahoo!. He's now the sole vice president of marketing at LinkedIn, which has roughly 220 workers.

"At Yahoo I shook [CEO Jerry Yang's] hand twice and had maybe less than five conversations with him in four years," he says. "Now I meet with our CEO [at LinkedIn] several times a day."

That close proximity to upper management often leads to quicker action. Mr. Macdonald, the former Bristol-Myers worker, says he has the power to get things done more expeditiously at his new employer, Acorda Therapeutics Inc. in Hawthorne, N.Y. "There's less bureaucracy," he says. "Decisions are made without having to go through a number of layers of approval."

Being able to influence a company's bottom line is what led Scott Ruthfield to join WhitePages.com Inc. in April as vice president of engineering and technology. "Everybody plays a core role, so if you do a good job, you are directly contributing to way the business is going to succeed," says the former Amazon.com Inc. manager.

That can also mean more ready recognition. "Every success you have in a small business is magnified by a hundred," says Dean Medley, senior vice president of recruiting at Medical Methods Inc., a staffing firm in Jacksonville, Fla., with 50 employees. "When you land a new account, it's a huge deal."

Small-company converts also mention the room to gain experience in new practice areas—or to return to the heart of a business—as another plus. "You get divorced from the nuts and bolts of operating a business when you work for large companies," says Mike Barnes, a newly hired logistics executive at Halton Co., a provider of construction equipment in Portland, Ore. Mr.

Barnes says the depth of involvement he has at his new firm has another upside: A level of job satisfaction he says he hasn't felt in a long time. Mr. Barnes also says his peers at Halton are less competitive than his former colleagues at larger firms

"People aren't climbing over each other attempting to reach the next level," he says.

That doesn't mean there aren't drawbacks to going small. For one, blunders are magnified. "When you have a setback, it's extremely painful," says Mr. Medley, who joined Medical Methods in 2004 after being laid off from Bank of America Corp.

Small businesses often have fewer support systems than large firms. "You might not have a legal team looking at everything you do," notes Mr. Rich. "There may not be a [human-resources] department." Office perks like free coffee and catered meetings might also be absent, he adds.

Recruiting Challenges
Bringing in brand-name talent can be a challenge for small companies, though. Some senior-level job hunters eschew such firms because they're typically perceived to offer less stability.

Tighter budgets mean smaller companies sometimes can't afford to pay salaries equal to those of big firms. Case in point: This year, chief financial officers at companies with $500 million or more in sales are projected to earn between $257,500 and $370,500 in average annual base pay, CFOs at firms with up to $50 million in sales are expected to receive between $91,000 and $122,250.

Many small employers provide alluring trade-offs such as shorter workweeks, less travel and work-life balance incentives including telecommuting arrangements and flexible schedules.

Employees who trek long distances to get to work at Rising Medical Solutions Inc.'s offices in Chicago and Milwaukee, for example, are given laptop computers with wireless Internet access, says Jason Beans, chief executive officer of the 115-person management-consulting firm. "They can leave at 4 (p.m.) and do work on the train," he says, adding that he plans to recruit about a dozen senior professionals this year, along with 40 others.

To be sure, some small employers eager to take advantage of the wider big-company labor pool say they're willing to compensate new hires more competitively. "If we want super stars, we have to be able to pay appropriate salaries," says Robyn Marcotte, senior vice president of talent at ePrize LLC, an interactive-promotions company. The Detroit-based 35-person firm wants to add 30 senior-level employees and 20 others by the end of next month, she says.

And, niche firms that compete with brand-names are more likely to offer salaries that are similar to big companies—and, perhaps, other ownership incentives. Tom Ryan, founder and co-chief executive officer or ICR LLC, a small financial-communications consulting firm, says he offers consultants a base salary he calls "competitive, even by Wall Street standards." Consultants also earn a percentage of their billings, "so there's no income cap," he adds. A performance-based pay model is critical for enticing top talent, notes Mr. Ryan. "Historically it's been difficult to get the right people," he explains. "You've had an incredible bull market since the tail end of the Internet bubble and the commissions these people generated have been really good." The Westport, Conn.-based firm, which services more than 200 publicly traded businesses, employs roughly 100 people and plans to add 10 more consultants this year.

Mr. Ryan's plans to bulk up may be a sign of the times for small and midsize professional firms. A recent survey of 500 firms with annual revenue ranging from $100,000 to $25 million (with average revenue between $5 and $9 million) shows that 57% plan to add workers this year, reports The Alternative Board, a small-business advisory board based in Denver.

"This is definitely a great opportunity for us to recruit talent from big companies," says Kaity Benedicto, human-resources director at Travelzoo Inc., an online media company with roughly 150 employees. "We've noticed more individuals are willing to talk to us now than ever." The New York-based firm plans to grow its staff by 40% this year, mainly with senior-level technology hires

How Much Does it Really Cost to Hire - or not to Hire?

In a recent article in 'The Interbiznet Bugler', it is stated that the Saratoga Institute, often seen as the ultimate source of HR thinking, typically describes "cost per hire" as the sum of administrative costs and expenses, and Infomart-USA, a hiring practices auditing company, estimates the national average at about $4,400. They consider the elements of cost per hire to be the following:

• Advertising
• Agency fees
• Employment fairs
• Employment office salary expense
• Employment office facility expense
• Estimate of time spent in training
• Recruiter travel expense
• Internal recruiter expense
• Internal recruiter labor expense
• Referral Bonus
• Recruiting & Training expense
• Uniforms

The means used to calculate the administrative cost per hire is deeply understated. So what is the real cost per hire - or more importantly, per not hiring?

Opportunity Costs

The cost of a hire is the money lost because the hire wasn't made. Well recognized in MBA programs and broadly understood throughout the rest of the organization, the simple concept is "opportunity costs."

At its most basic, the opportunity cost associated with a particular hire is the productive revenue lost because the hire wasn't made. Here's an easy way to get your arms around the real cost per hire in your organization.

1. Take the annual sales of your company (or division) and divide it by the number of employees. This is the annual revenue per employee.
2. Divide that number by 250 to get the daily revenue per employee.
3. Multiply daily revenue per employee by the number of days it takes to hire an employee.
4. If you want, add the dollars spent by the Recruiting Department (it's a minor fraction).

This is the real cost per hire. Generally it's 5 to 10 times the administrative costs.

Using an outside recruiter to fast-track hiring of sales talent is good business as it costs far less than not hiring and is an investment in your organization’s growth. When economic times are challenging, sales-focused employees are the resource best leveraged to protect market share—in a shrinking market, taking share away from your competitors is priority one, superseding cost containment measures. Fielding sales talent is an initial success that lays the groundwork for achieving growth objectives. Tapping into a network of industry sales professionals puts growth-minded managers on the offensive.