Posted on Wed, May 01, 2013
By Debbie Fledderjohann, Top Echelon Contracting President
When you hear about contract-to-direct arrangements, you usually hear about how client companies use them to test drive candidates. These arrangements give companies the chance to see a potential new hire "in action" rather than just depending on the typical interview and hiring process to determine whether they are the right fit. They can evaluate a candidate's skills and work ethic before they make a direct hire commitment.
But a recent Society for Human Resource Management (SHRM) article shows that it's not just employers who are nervous about new employment relationships. Citing a study conducted by Development Dimensions International (DDI), SHRM reported that only 51% of new hires are confident in their decision to take a new job. A big reason for this uncertainty is that companies fail to paint a realistic picture of the job. Companies that provide "realistic job previews" had higher percentages of new hires who felt good about accepting the job offer.
Contract-to-direct arrangements are the ultimate realistic job previews. Candidates can try the job first and get a "behind-the-scenes" look at the company so they can determine if it is a cultural fit for them. And for those considering relocation, it allows them to try the geographic location as well before they sell their house and move their families.
Some may view contract-to-direct arrangements as just another hoop candidates have to jump through to get hired. But in reality, it is an audition for both the candidate AND the company to determine if they meet each other's needs before they make the direct hire commitment. By providing the contract-to-direct option to your clients and candidates, you can help both parties make a decision they can feel good about.
Posted on Thu, Mar 07, 2013
By Debbie Fledderjohann, Top Echelon Contracting President
If you are a recruiter, you are quite familiar with the phrase "cultural fit," but in most cases it's coming from a client who wants to make sure a new hire will fit in with the existing team. But cultural fit is an important requirement for job candidates, too, especially for Millennials.
A recent Recruiter.com article illustrates this through a story about a worker they call "John." At a time when many young college graduates were struggling to find work, a Fortune 500 company John had interned for created a full-time position just for him. He was getting great experience and making decent money. But he was only partially satisfied. Why? In short, because he had no friends at work. As the youngest employee, he had little in common with his co-workers, and even if he did, he never got the chance to discuss it with them because they were frequently traveling and worked through lunches.
It may seem silly to some to leave a good job at an established, successful company because the social experience is less than satisfying, but John did just that. His new employer offered co-workers in his age range and a more "lively atmosphere."
There are a couple of take-aways from this. First, don't underestimate the importance of a cultural fit to the employee. This is especially vital if you are placing Millennials. They want to have fun at work. They want to make a difference. They are not going to be happy sitting chained to a desk from 9-5. They need to be acknowledged and rewarded. And they need to feel a connection with their co-workers. If you place them in an environment that does not fulfill those needs, they likely won't stick around long.
The second take-away is that you have the ability to ensure a cultural fit for BOTH the client and the candidate. You can allow them to try each other out through a contract-to-direct arrangement. This allows the client to evaluate whether the candidate's work ethic and values match that of the company. And it gives the candidate the opportunity to see if this is somewhere they would really enjoy working. Contract-to-direct provides an advantage to recruiters as well. On top of the money you make for each hour the candidate works while on contract, you can earn a nice conversion fee. Who says you can't please everyone?
Posted on Thu, Sep 27, 2012
By Debbie Fledderjohann, Top Echelon Contracting President
How important is workplace flexibility to working adults? It's important enough that 45% would sacrifice a portion of their salary to get it, according to a Staffing Industry Analysts article citing a Moms Corps survey.
They are also willing to give up increasingly large percentages of their salaries to get that flexibility. This year, they said they would be willing to take an 8.6% pay cut. Last year they said they would only be willing to slash their pay by 5.8%.
In addition, the survey found that:
- 67% believe they can "have it all" when it comes to work-life balance.
- 53% said they could get more done if they could occasionally work from home.
- 60% said that the economy has no impact on their desire for workplace flexibility.
This growing need for workplace flexibility is one of the major reasons more workers are choosing to become contractors. Contract staffing can help workers gain flexibility by allowing them to:
- Work hours that are convenient for them. Contract assignments are often project based, so companies may allow flexible daily or weekly work schedules, as long as the work gets done on a timely basis.
- Not be tied to an office. If a candidate has what they need at home, they can often work between their home and office. Smartphones, the Internet, and other technological advances are making this more and more feasible
- Take control of their free time. New employees typically only get one week of vacation, two tops. Even if they are willing to take the time unpaid, they often are not allowed. With contracting, if they want to take an extended vacation or take the summer off to be with their children, they simply don’t take an assignment during that time. Many contractors choose to take assignments in other states to take advantage of the opportunity to travel. They actually look at this as a vacation of sorts in which they can explore new areas, cultures, etc.
Do your candidates need or want more flexibility in their work? If so, you way want to suggest contract staffing as an option. By providing a way for them to achieve work-life balance, you can make yourself the recruiter of choice for top candidates in your niche.
Posted on Thu, Sep 20, 2012
By Debbie Fledderjohann, Top Echelon Contracting President
The myth that workers only become contractors to obtain a direct hire position has been officially debunked by a recent Randstad study.
Over 2,000 employed adults were surveyed for the Randstad Workforce360 Study. The study found that 78% of the temporary/contract workers surveyed felt their experience was positive. In fact, many have chosen contract work over direct hire positions for the following reasons:
- Schedule flexibility (selected by 31% of respondents)
- Better pay (28%)
- More control over career (21%)
Of the temporary/contract workers surveyed, 86% reported that their level of job satisfaction was very good or excellent compared to 73% of permanent/direct hire employees. In addition, 54% of the contractors strongly agreed with the statement "I am paid what I'm worth." Only 42% of direct hires stated the same.
Additionally, the survey found that one-third of contractors occupy high-level positions. This relates to a trend Top Echelon® Contracting has reported on numerous times called executive temping.
One of the biggest reasons recruiters don't offer contract staffing is that they are afraid they won't be able to find candidates. This study shows that candidates' attitudes toward contract staffing have changed dramatically. Contract positions are no longer the jobs they take because a direct position is not available. More and more, candidates are choosing contract positions over traditional employment.
The only way you will know if your candidates would be willing to work as contractors is to ask them. You may be surprised how many would prefer the option to work on contract. And if you run your contractors through TEC's back-office, they'll be happy to know that they will be offered a full menu of benefits, including healthcare insurance offered through Anthem Blue Cross and Blue Shield. This is additional to a weekly paycheck with the option of direct deposit.
Posted on Thu, May 31, 2012
By Debbie Fledderjohann, Top Echelon Contracting President
A happy contractor helps make a happy client. But according to Staffing Industry Analysts' recent survey of contractors, there is one thing that is making them decidedly unhappy: lack of communication.
In particular, the contractors surveyed felt that they did not know what to expect on their contract assignments and were uncertain how long they were going to last. With that in mind, here are four key conversations you may want to have with all of your contractors:
1. Before placing a contract candidate: This conversation has more to do with listening than talking. In addition to skills and experience, find out what their career goals are, why they want to work on contract, and what they are looking for in a contract assignment. By doing this, you will be more likely to place them in the right contract assignment.
2. Before the assignment starts: Be sure to provide the contractor with detailed instructions about the assignment, including when it will start, what the company culture is like, and exactly what will be expected of them, including what paperwork and tasks will need to be completed before they can start. Also, don't assume that they understand how a contract assignment works. Explain who their employer will be (either you as the recruiter or a contract staffing back-office), that they will be paid on a W-2 and what that means, and who they should contact for specific questions.
3. During the assignment: Touching base with contractors periodically during their assignments is a good way to head off small problems before they become big ones. And it shows them that you care, which is one way to ensure a satisfied, loyal contractor. Plus, by talking to an active contractor you have placed with a client, you may hear about other contract positions the client has open and that you may be able to fill!
4. When the assignment is being extended or ending: Contract assignments are always changing. A company may only plan to use a contractor for three months but end up keeping them for a year. Sometimes a contractor is promised temp-to-direct, but is left wondering when they will be converted. The most important thing is to keep the contractor in the loop as much as you can regarding when the assignment will end or when they will go direct. And if you do know an assignment is ending, ask if they are interested in taking more contract assignments. Having another assignment ready to go when their current one ends will go a long way toward keeping your contractors happy . . . and keeping your contract staffing income flowing!
Of course, you don't have to limit yourself to these conversations. The point is that contractors want to hear from you. By making yourself available and communicating important information to them promptly, you will have happy contractors, and as a result, happy clients.
Posted on Tue, May 15, 2012
By Debbie Fledderjohann, Top Echelon Contracting President
An interesting article on the www.ERE.net blog titled "5 Reasons Traditional Employment is in Trouble" raises issues that both employers and recruiters should be concerned about. The gist of the article is that employees have had it with traditional employment and are opting instead to work independently, offering their services for a fee to anyone who needs their skills.
This trend takes recruiters completely out of the loop. Instead of using recruiters to help them find a job, workers are turning to "crowdsourcing" sites, like Amazon's Mechanical Turk, where they can offer their services for bid.
So what's behind this trend? For starters, workers feel unappreciated and disrespected. And as the cost of employer-sponsored benefits soars, workers no longer feel chained to traditional employment as a way to get the insurance they need.
Additionally, the article stated that workers are seeking the following advantages that traditional employment is just not delivering:
- Engagement
- Fulfillment
- Challenge
- Project-based work
- The opportunity to participate in decision-making
- Freedom over their own schedules
The fact is, you can offer all that and so much more by placing them on contract assignments. Contract work is often project-based and time-sensitive, so workers can quickly feel a sense of fulfillment by seeing how their work makes a difference. Workers on contract assignments also often have more control over when and where they perform the work.
Better yet, contract assignments provide many of the perks that come with traditional employment along with the freedom that comes with independent work. If you work with a contract staffing back-office, like Top Echelon Contracting, the contractors will be offered a full menu of benefits, a regular paycheck with the option of direct deposit, Unemployment and Workers' Compensation protection, and more.
Candidates may think they can do better without you. But you can prove them wrong by showing them that there is a better solution to the problems they are facing with traditional employment.
Posted on Thu, Mar 29, 2012
By Debbie Fledderjohann, Top Echelon Contracting President
A recent article by Harvard Business Review focuses on how employers can retain their Generation X talent, but it appears that many workers from this generation may be better suited for contract assignments.
According to the article, 70% of Gen Xers surveyed by the Center for Talent Innovation stated that they prefer to work independently. Consider the following quotes from workers interviewed for the survey:
- "Once I've learned my job, I like to move on."
- "I need something new to keep things fresh."
- "If it's the right thing, I'd jump. I won't stop learning or growing just to have a job."
The article recommends that, in order to retain these employees, employers should invest in mentoring programs and allow employees to rotate through different types of jobs. Another option is for these workers to consider contract assignments. Contracting would allow them to try different companies, projects, industries, and job functions.
Do you have Generation X candidates who have a lot of talent but seem restless and easily bored? If so, you may want to encourage them to consider contract assignments. By placing them in positions that meet their career goals, you could find yourself a quality pool of contract candidates that will come to you again and again for more contract opportunities.
Posted on Thu, Mar 22, 2012
By Debbie Fledderjohann, Top Echelon Contracting President
Do your clients know how to hire for attitude?
According to Mark Murphy, author of Hiring for Attitude, employers' inability to successfully assess candidates' attitudes during the hiring process is the reason why so many fail so quickly. In a recent Forbes interview, he said that of the 200,000 new hires his research company recently tracked, 46% failed within the first 18 months. Attitudinal reasons, such as lack of coachability, low levels of emotional intelligence, motivation, and temperament, accounted for 89% of those bad hires.
Attitude is harder to assess than skills because candidates can easily be tested for skills. But if a candidate doesn't possess all the necessary skills, they may be able to gain them through training. But training can't change a candidate's attitude.
So how can employers find candidates with the right attitudes? Murphy recommends asking better interview questions and getting referrals from their star employees. But the only way to truly know if a candidate's attitude meshes with the company culture is to see them in action. Your clients can do that by initially bringing workers in on a contract-to-direct basis. That way they can assess a candidate's attitude for a certain amount of time before making the risky, and often costly, direct-hire commitment.
There are some things that the traditional job interview just cannot tell an employer. By allowing your clients try-before-they-buy, you can help them reduce their bad hires and become their valued partner as a result.
Posted on Tue, Mar 20, 2012
By Debbie Fledderjohann, Top Echelon Contracting President
Most people in recruitment expect that when the economy recovers from a recession, there will be a spike in the use of contractors. But is contract staffing's current growth just a knee-jerk reaction to the recession, or is it something more?
Well, a recent Washington Post article suggests that it could actually be "a fundamental change in the way Americans work," one that both companies and workers are driving. Companies plan to increase their use of contractors by 26% in the next two years, according to Staffing Industry Analysts.
Meanwhile, more workers are considering themselves "free agents," jumping from project to project. While many may have turned to contracting out of necessity when they couldn't find traditional, full-time jobs, many now prefer it because they feel like they have more control.
The article echoes what we have been hearing from recruiters and what Top Echelon Contracting has been experiencing as a business. Last year, we saw a 22% increase in the number of commercial contractors placed through our back-office. We have written extensively on employers' shift toward contractors and why workers want to be contractors in our quarterly newsletter, Contracting Corner.
Only time will tell, but it certainly does seem that the traditional workforce is changing. If you are only taking direct-hire job orders, you may want to keep an eye on this issue and how it may affect your business.
Posted on Thu, Mar 01, 2012
By Debbie Fledderjohann, Top Echelon Contracting President
These days, you may not have to talk candidates into taking contract assignments because more candidates are actually seeking out contract work. But if you do encounter a candidate who is reluctant to consider contract staffing, you may want to point them to a column titled "Why Temporary Work is Worth It" in Forbes.
According to the column by Kerry Hannon, more than a third of American companies are operating with smaller staffs than before the recession. No surprise there. But what might surprise your candidates is that 36& of companies plan to hire contract/temp workers this year, and a third of those plan to hire before April. For candidates who have been out of work for a long time, this represents a whole new crop of job opportunities . . . if they are willing to think outside the normal direct-hire box.
The column gives candidates plenty of reasons to consider contract staffing:
- Try different careers, industries, and companies.
- If a candidate is unemployed, contract staffing gives them something to do, which builds confidence.
- Contract work may eventually lead to a direct-hire position (temp-to-direct).
- Make good money. Hannon says many companies pay generously for contractors because they can solve a problem quickly without the usual "hand-holding and learning curve."
- Build a professional network.
- Get new references.
- "Keep resume alive." Contract work can fill the gaps in a candidate's resume in between direct-hire jobs.
- Keep skills current.
- Get excited about a project without long-term expectations. Hannon points out that knowing the job is temporary "can be tremendously freeing."
