An article in the New York Times suggests that employers and employees alike might be moving toward a temporary-centric staffing model.

In November 2010, 80% of the 50,000 jobs created in the private sector were temporary positions. For all of 2010, a bit more than 26% of 1.17 million jobs were temporary positions. That’s a lot.

What are we to make of such high numbers of temporary positions? There are, I think, two possibilities:

1.      What we are seeing is a standard trend of a recovering economy. In past recessions, a jump in temporary hiring has always preceded a steady rise in long-term hiring. Overall economic growth for 2010 was 2.9%, according to the Bureau of Economic Analysis – a good number, to be sure.

If growth in the next few years remains steady or improves, it’s just a matter of time, some would say, before employers start creating more full-time positions.

2.      We are witnessing the beginning of a long-term trend toward more temporary employment. (And that’s across the board: blue collar, office, and highly skilled and specialized workers.)

Even before the recession, employers were getting skittish about the high healthcare costs associated with full-time employees.

In addition, work in general was becoming more project-based, demanding fewer full-time project managers and more temporary teams of workers.

Advances in staffing software have also enabled employers to better predict their employment needs, leading them to cut down on expensive full-time hires.

In short, the recession pushed employers to a new staffing model: hire a minimum amount of full-time workers and use staffing agencies and independent contractors as needed to fill out the rest of the workforce.

Which of these is correct? Only time will tell, of course. If we see economic growth surge past 4% in 2011, the competition for qualified workers will force employers to make more full-time offers. If growth hovers between 2.5% and 3.5%, expect temporary employment to account for a large number of new jobs.

My guess is that there’s something else that’s changing in the larger workforce. More people – especially highly skilled people – are opting for a freelance, independent contractor lifestyle.

The growth of information technology and sophisticated telecommunications makes it easier than ever to work from home (or the coffee shop, library, or any place with an Internet connection), which in turn makes it easier, if you have skills that are in demand, to broker yourself out to multiple employers.

If that’s the case, then temporary employment will be on the rise for many years to come.

But my guess is just that – a guess. There simply are no good statistics available on independent contracting. You can be sure, though, that I’ll be keeping my eye on – and commenting on – employment statistics as they come out.

For more up-to-date news on recruiting and staffing software, follow the Human Capital Supply Chain blog and subscribe to our newsletter.

Is Temporary Staffing Permanent Now? is a post from: Human Capital Supply Chains

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Standard economic wisdom says that the real estate industry leads the way out of recession. This time, though, I think the healthcare sector might be taking real estate’s place.

Based on recent numbers, staffing analysts are saying that demand for nurses and other health professionals has increased by almost 50 percent over the previous quarter, accelerating a trend that has been going on all year. A recent report from The Conference Board, an international economic think tank, noted that online healthcare job listings posted the largest gain of any other economic sector in October – over 26,000 more jobs, in fact. The report also states that health care vacancies outnumber job seekers 2 to 1.

This is good news for healthcare professionals, to be sure, but I am always wondering: What does this mean for staffing professionals?

According to Mary Kay Hull, Vice President of Recruitment for American Traveler, a large travel nurse job agency headquartered in Boca Raton, Florida, greater demand and tighter budgets have led more healthcare employers to turn to staffing agencies like American Traveler than ever before. Hull encourages hospitals and other large healthcare institutions to form good relationships with healthcare staffing agencies so that they remain full and competently staffed for the long term.

My question: do healthcare institutions have the staffing software to keep up with the complications of having full-time, part-time, contract, and agency employees all on the same payroll? Do they have staffing software that can help them make long-range staffing plans that minimize turnover and maximize efficiency? If so, does the staffing software have the requisite flexibility to make one-time and longer-term changes as unforeseen events and budget changes arise?

In other words, do human resources professionals at large healthcare institutions have the staffing software they need to meet the employment needs of the institution? If they don’t, they may end up with perpetual problems like over-staffing, under-staffing, and using staffing agencies only to mitigate crises – not to mention financial problems from an inefficient use of human resources.

Visit the eEmpACT staffing resources section for more about staffing software and other tools for improving human capital management.

Healthcare Job Growth Skyrockets is a post from: Human Capital Supply Chains

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Since I looked back at 2010 in a recent post, I’ll look ahead in this one. And I’ll admit, reading U.S. News and World Report’s annual “50 Best Careers” list got me thinking about staffing challenges and staffing solutions in the year ahead.

According to the article, just about any healthcare position – especially those involving direct care, including massage therapists and dental hygienists – is a safe career bet in 2011. Not surprisingly, technology-related positions will continue to be “hot careers” – although some may be surprised to see “meteorologist” and “hydrologist” alongside “biomedical engineer” and a handful of computer-related positions on U.S. News’ list. Business professionals like financial analysts and public relations specialists are expected to be in demand, along with a smattering of other workers (including translators, technical writers, and court reporters).

So what does this mean for the staffing world? At least three things:

1.      Healthcare institutions need to develop strong staffing solutions. If they don’t, they will – as I noted in a recent blog post – face (potentially expensive) pitfalls like overstaffing, understaffing, and relying too much on soon to retire workers. A strong solution includes 1) comprehensive, long-term, metrics-based planning that minimizes workforce duplication and 2) top-notch software that streamlines hiring, firing, and every employment category in between.

2.      Companies should develop good relationships with staffing agencies. If U.S News is right, finding computer-related help won’t always be easy, and these days, we all depend on computers and the internet to do our jobs. A staffing agency that works with technology professionals will be able to find that programmer or network technician in less time than it takes to start and complete a typical search for an employee. Given that a lot of computer tasks are temporary in nature – for example, setting up an internal network or moving a software program to the cloud – using staffing agencies for contract-based technical staffing solutions makes a lot of sense.

3.      Companies should evaluate (or re-evaluate) their staffing needs for 2011. As regular readers of this blog will know, this is one of the big themes, if not the big theme, of my working life. In my experience, companies with a human capital supply chain plan – even one that isn’t well-developed – do better than those who don’t. Developing a workforce plan takes work, but it almost always results in short-term and long-term cost savings as well as happier, more efficient employees.  More to the point: staffing professionals should read the U.S. News article (and other employment forecasts, like the one from Moody’s Analytics) and apply its predictions to their own situations.

I’ll add this: staffing professionals also need to be flexible in 2011. The economy could perform better or worse than expected, and jobs that defy easy labels may suddenly demand to be filled. As I wrote in my book, a long-term staffing solution is essential for the health of any business, but it should never be implemented too rigidly.

Visit the eEmpACT staffing resources section for more about staffing solutions, staffing software, and other tools for improving human capital management.

Staffing Solutions in 2011: Looking Ahead is a post from: Human Capital Supply Chains

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Over 80 million professionals use LinkedIn to exchange employment information, ideas and opportunities.

80 million! That sounds like a great HR database…but only if you know how to easily find what you’re looking for. Searching for individuals and companies is easy enough on LinkedIn, but if you want to be efficient and effective at finding good candidates, there are a few tips and tricks you should know.

1. Create a strong company and career page on LinkedIn. LinkedIn has always had the reputation of the professional or ‘networking network’ and therefore job seekers have used it as another job search engine.

Since you know candidates are searching, make sure your company profile and your job listings are up to date, informative and compelling. Sell your company to prospective employees and watch your pipeline expand with qualified candidates.

2. Use LinkedIn to converse with other HR professionals. You can start with the Hiring and Human Resources Questions page to see what other HR people are talking about, and there are many links to questions and answers about personnel, staffing and recruiting.

Carry on chats – private or public – within any number of groups that are organized around HR issues. Better yet, this can also be a great place to trade information about candidates and job opportunities.

3. Let your LinkedIn network know that you are looking for candidates. These are people you know and trust. When they refer someone to you, they provide a free, low-level screening of a potential employee.

Smart job seekers are also letting their LinkedIn network know when they are looking for work.  This makes it even easier for recruiters to find and screen candidates as they are broadcasting their career needs to everyone who will listen.

Search for candidates via keywords and employers. LinkedIn professionals who are on the ball will have keyword-rich profiles and detailed employment histories so that they will be found by recruiters like you.

Make sure your job postings are also rich with keywords so they are easy for candidates to find.

Additionally, you can use one or more of LinkedIn’s fee-based services:

4. LinkedIn ads target the professionals you are looking for and help you control your recruiting “brand.”

5. Jobs for You ads help distribute job openings to websites and other platforms that are frequented by the type of professional you are looking for.

6. LinkedIn Referral Engine helps you organize an employee referral program and integrate it with the LinkedIn database.

7. LinkedIn Recruitment Insights provides analytic tools to help you understand your target candidates better and measure the effectiveness of your recruitment efforts.

8. LinkedIn Recruiter is a search engine specifically designed to help recruiters wade through those 80 million professionals. It also helps you communicate with fellow HR staff, send InMail messages to potential recruits, and analyze and improve your searches. It’s especially helpful for locating and communicating with hard-to-find, super-niche professionals.

Customer testimonials, webcasts, and demos can help you decide if any of these services are worth the money.

No doubt, LinkedIn will continue to find ways to help job seekers and candidate connect. We’ll keep you posted or feel free to submit how you have used LinkedIn in the hiring process via the comments below.

For more up-to-date news on staffing and recruiting, follow the Human Capital Supply Chain blog and subscribe to our newsletter.

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After attending the HR Thought Leadership conference in Atlantic City in June, I came away with a bunch of insights from attendees and other speakers about the Future of Human Capital Supply Chain Software.  I heard from a number of corporate HR executives that there is a HUGE market globally for the “replacement” of first generation 1.0 Talent Management systems over the next few years. This is being driven by the explosion of Web 2.0 technologies and the dis-satisfaction that many corporate HR users have with their “over-sold” current 1.0 talent management solutions. 

In general, the Top 5 Future Capabilites Include:

1) ”User-Defined” systems that can be easily configured by the user, without the expensive need to redesign old customizations.

2) “Consumer Driven” solutions that are vastly more User Friendly and better reflect the user experience of using Google.

3) “SaaS Cloud Computing” solutions that are rented by the month with much easier termination clauses.

4) “Perpetual Beta” software where “Upgrades” become obsolete, because your software is automatically updated every night with bug fixes and new features.

5) “Interactional” solutions where “batches” become obsolete and “work flow” changes are easy and continual.

In addition to these General statements about the Future of HCSC software, there were a few more specific directions discussed:

1) HCSC Software will become a tightly integrated solution from a single vendor that will combine Enterprise Software + Moblie Apps + Web 2.0 Applications.

2) The “Gamification” of HCSC software will begin as younger user demand more of a PS3 or Wii interface device for their Talent Management systems.

3) Expanded use of “Video Interviews” with the new streaming technologies, bigger bandwith and the launch of the iPhone 4 and the iPad.

4) Much better “Scheduling” capabilities through the use of mobile devices and products such as Timebridge and the new auto appointment matching capabilites of Outlook.

5) Better “Expense” management with products such as Expense Cloud, Better “Reference” checking with Checkster and Better “Interconnections” with products such as Jobvite.

6) A complete “Supply Chain” environment that connects your HRIS + ATS + CRM into a single system from a single vendor.

The point of all these predictions is to give our Blog readers a reason to sit down with their current technology vendors and understand “WHEN” they will be receiving these new features and intergrations.  If your vendor does not have “Feature Road Map”, it may be time to find a new vendor that does!!

Future of HCSC Software is a post from: Human Capital Supply Chains

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For awhile now there have been two camps of thought concerning how to best help Corporations improve the management of their contingent workforce spending.  At first, there were stand alone VMS (Vendor Management Software/Service) companies that applied technology to this business issue,  Over time the large Staffing firms jumped in and through their MSP (Managed Service Provider) offerings and the acquisition of some of the VMS technology companies, they have been able to effectively help their largest corporate clients better manage the flow of contingent spending.  Who is right and who is wrong ???

In a recent article in Workforce magazine, Chris Dwyer (analyst with research firm Aberdeen Group) mentioned that “it now makes good sense to combine a vendor management system (VMS) with a Managered Service Provider (MSP)”.   He continued that “the big attraction of a vendor management system is that they help companies home in on how much they actually pay for temps and all other contingent workers”.   Dwyer also relayed that “VMS users have reduced their time-to-fill rates by 34%, while achieving 37% higher cost savings than non-VMS users”.  The benefits for corporations working more tightly with their Staffing suppliersis becomming more and more aparent to everyone.

Managed service providers, such as Manpower, Adecco and Guidant,  have their own software ( usually through acquisition) for keeping tabs of their client’s contigent labor.  Ed Jackson (CEO at Provade) summed it up very clearly, when he stated that “it was a lot simplier 20 years ago when 90% of the total workforce was permanent, where today it is down to 60% or even lower in some companies”.  Jim Holincheck (analyst withresearch firm Gartner) clarified that “the interest in Vendor Management Systems has been limited to those firms that spend at least $30 million each year on contigent labor”.    As with most new technologies, the largest firms spearhead the initial efforts and then smaller firms follow along.

So where does all of this information lead us ???  From my point of view, the need for a seperate standalone VMS system is quickly fading for a number of reasons.  First, corporations want their current applicant tracking ATS and talent management TMS systems to include most of the VMS functionality as it relates to distributing orders and assigning workers from multiple tiers of staffing suppliers.  On the other side of the coin, staffing firms need some of the VMS capabilities bulit into their own front and back office systems to handle the collection of timecards and creation of invoices for those corporate clients.  Because of this changing direction amongst corporations and staffing firms, we at Bond International Software are currently delivering our Bond Talent corporate solutions and our Adapt/On Demand staffing systems with all of these VMS capabilities built in from the beginning and tightly integrated, just like in an ERP manufacturing environment. 

As Bond and other software firms begin to deploy these integrated Human Capital Supply Chain solutions to corporations and their staffing suppliers, the need for stand alone VMS systems will quickly disappear.  Those VMS firms such as BeeLine will continue to be acquired by staffing firms such as Adecco and other.  What is your company’s strategy for better controlling your Contigent Spending and moving towards a Human Capital Supply Chain environment with your staffing suppliers???  Let me know, Tim Giehll

Staffing MSP Services Kills Need For VMS Firms is a post from: Human Capital Supply Chains

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Last week, while attending the Consulting Summit in Chicago ,hosted by Brian Cuthbert and Joe Kornik of Consulting Magazine, I had the opportunity to talk with some of the world’s leading HR and Supply Chain consulting firms.  I had the chance to speak with Kathryn Hayley (CEO) from Aon, Rajeev Jain of Hewitt, Maryanne Faschan of HP, Carrie Greenbaum of Alix and Susan Kantor of PRTM.  After talking about the revolutionary aspects of Human Capital Supply Chains, all my discussions focused on how Consulting firms should begin to engage with their corporate clients about the benefits of implementing a Human Capital Supply Chain environment.  The discussions were lively and it reinforced for me the true transformational nature of a new idea such as Human Capital Supply Chains.   

We also discussed the importance of HR consulting firms tackling the challenges of transforming “People Responsibilities” within their client organizations and the complexities of Human Capital Supply Chain ”ProcessRe-engineering”.  I also offered the global resources at Bond International Software to help these same consulting firms with the technical software requirements of implementing a HCSC environment.  Over time, Bond will be looking for consulting firm partners to implement Human Capital Supply Chain environments around the world.

HR Consulting Firms Embrace Human Capital Supply Chains is a post from: Human Capital Supply Chains

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In a recent report by research firm Staffing Industry Analysts, it was found that the percentage of companies using Vendor Management Systems ( VMS ) jumped from 34 percent in 2007 to 63 percent in 2009.  Staffing Industry Analysts also predicted the rate would climb to 81 percent in 2011.

This is a very interesting trend for any firm that is trying to better manage it spending on contingent workers.  It also proves the point that the need for corporations and their staffing suppliers to better communicate with each other has never been greater.  For those not familiar with VMS software, it usually sits between a corporation and its staffing suppliers and it automates the “req to check” process with capabilities such as job requisition templates, req approvals, distribution of reqs to staffing partners, assignment letters, time sheets and invoicing.  The software can even help manage independant contractors and outside consultants.

Even though first generation VMS systems are usually stand-alone companies, their functionality and business models will evolve over time.  I feel that current VMS functionality will be split down the middle with requisition activities pushed back into the Talent Management systems that the corporation uses.  The other half of the current VMS functionality will be pushed down into the ERP Systems used by staffing firms.  With today’s easier to use API Interfaces, the corporate and staffing systems will be easily plugged together.  Firms such as Bond International Software and others sell software solutions to both sides of the fence in order to create these new Human Capital Supply Chain environments.

VMS Software for the Masses is a post from: Human Capital Supply Chains

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In a recent Supply Chain research report distributed by TEC at www.technologyevaluation.com , they described the 3 main technologies used by manufacturing and distribution companies to automate their businesses and streamline their processes.  They explain how these decision support systems worked together to guide and protect them through the up-swings and down-turns of the economy.  These 3 “mission critical” systems included ERP (enterprise resource planning), SCM (supply chain management) and APS (advanced planning and scheduling). 

From a Human Capital Supply Chain point of view,corporations also have 3 “mission critical” systems that manage the flow of people talent through an organization.  These 3 systems include TMS (talent management solutions), SSS (strategic staffing suppliers) and WPS (workforce planning solutions). Even though these Manufacturing and Human Capital systems are very different, there are some interesting similarities between them.

 Manufacturing ERP (enterprise resource planning) systems are very similar to HR TMS (talent management solution) systems because they are both responsible for the “inventory” of components or skills within an organization.  If either system identifies a “need” they are responsible for finding that component/skill inside the company or they need to order it from an outside supplier.

Manufacturing SCM (supply chain management) systems serve the same purpose as HR SSS (strategic staffing supplier) systems in that they both manage the flow of purchase orders/personnel requisitions back and forth between corporations and their suppliers.  They also need to handle the common situations of shortages and quality issues.   In addition, they manage the flow of components/workers into and out of the corporation. 

Lastly, manufacturing APS (advanced planning and scheduling) systems and HR WPS (workforce planning solution) systems are both responsible for the real-time re-forecasting of demand for components/workers.  These systems are often integrated directly into the corporation’s sales and financial systems to ensure efficient planning of resource levels and the constant releveling  of Supply with Demand.  These types are systems use advanced mathematical algorithms to smooth out resource fluxuations  over time.

As we have said in our Human Capital Supply Chain book at www.HumanCapitalSupplyChains.com , there are many many lessons and techniques that manufacturing can teach human resources related to their systems, techniques and processes.

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The most important thing in the Olympic Games is not to win but to take part, just as the most important thing in life is not the triumph but the struggle. The essential thing is not to have conquered but to have fought well.
- Olympic Creed

I’ve been a huge Olympics junkie ever since the 1984 Los Angeles Games in my home state of California. I think maybe the Team USA site sums it up perfectly for me when talking about Olympic values and the Games:

Olympic values are inseparable from culture; the movement blends sport with culture to create a standard of competition, solidarity and fair play. It reaches its peak when the world’s athletes come together at the great sports festival, the Olympic Games.

On the Team USA website, there was a poll about which winter sport would scare you the most.

But what would the outcome be if we asked how many businesses have a supply chain management framework? Would the results be equally as frightening? How many organizations have implemented the five supply chain management processes?

The Supply-Chain Council introduced the Supply Chain Operations Reference-model (SCOR) in 1996 to help manufacturing companies measure process improvements across supply chain organizations. The Supply-Chain Council’s fifty or so participating organizations (e.g. AT&T Wireless, Boeing, Coca-Cola, and Unilever) jointly developed the widely adopted SCOR model.

The SCOR model includes five key supply chain management processes: Plan, Source, Make, Deliver and Return. The model focuses on driving several key performance attributes for supply chains, namely: reliability, flexibility, responsiveness, cost, and asset management. The SCOR model has been updated regularly and now supports a wider set of industries (e.g. retail, service providers) and trends (e.g. e-business, environmental sustainability).

Plan.

In the Olympics, planning is epitomized in the sport of Curling. As curlers push out of the hack to throw their stones, communication between the person throwing the stone and the sweepers is instantaneous and constant. But in this sport, you’re always looking ahead two or three throws. In the Women’s Curling match between the USA and Japan, you could see the teams continuously thinking ahead by planning strategically where their stones would be placed on the sheet.

Planning is the strategic portion of supply chain management wherein companies conduct demand and supply for their end product or service. A big piece of Supply Chain Management (SCM) planning is developing a set of metrics to monitor the supply chain so that it is efficient, costs less, and delivers high-quality products and value to customers.

Source.

From millions of pins, to Roots berets for the 2002 Salt Lake City Olympics, to the continuing trendy Polo Ralph Lauren couture for Team USA, Olympic swag is as important to business as the sports and athletes themselves. Any business is wise to choose their suppliers wisely and to manage stock levels, whether it’s physical stock or human capital, at appropriate levels.

Companies choose preferred suppliers to deliver the goods and services that they need to create their end products. Supply chain managers develop a set of pricing, delivery, and payment processes with suppliers, and create metrics for managing supplier performance. Sourcing also includes inventory management, just-in-time receiving, and electronic supplier payment authorization.

Make.

Each sport has a different process for qualifying for a national Olympic Team. Athletes in team sports tend to be chosen by the national coaching squad via their national reputation, national ranking or through results at previous competitions. Some team sports also have an Olympic tryout. Athletes in individual sports compete for a spot on the Olympic Team through qualifying tournaments or their national rankings.

Supply chain managers schedule and manage production, testing, packaging, and delivery preparation. This is the most metric-intensive portion of the supply chain—wherein companies are able to measure quality levels, production output, worker productivity, and production costs.

And if you’re not paying attention to the metrics and your plan, your mistake could be costly to you and your brand. Just ask disqualified Dutch speed skater, Sven Kramer’s coach, Gerard Kemkers.

Deliver.

You really don’t see this part of the Olympics on TV, but unless you’ve been to there in person you know about this. Coordinating the transportation schedules for athletes, media, spectators, and locals can be a logistic nightmare. The public is reminded to “travel smart”. Restaurants and retail outlets also need to balance just the right amount of stock and staff to have on hand so that they don’t have overstock or fall short of end product or service.

Many SCM insiders refer to this part as logistics, wherein companies coordinate the just-in-time receipt of orders from customers, manage a network of warehouses, pick carriers to take products to customers and set up an invoicing system to receive payments.

Return.

We’ve all seen return and exchange policies. In case you haven’t let me show you one from The Olympic Store:

The Olympic Store at www.vancouver2010.com will not accept any returns on orders placed on or after February 9, 2010, with the exception of defective merchandise. Exchanges will be issued on in-stock items only within 30 days of delivery.

Because return is often a problematic part of the supply chain for companies, supply chain planners have to create a responsive and flexible network for receiving back defective and excess products from their customers (i.e. reverse logistics management). Think of this as taking one step back in the supply chain. SCOR’s return process category also includes the customer service and support function.

Customer service and support plays a very important role for the consumer. This is true not only of products, but also of human capital. If a hiring manager experiences poor customer service from HR, they are less apt to work with the recruiter on future hiring projects. By following returns management best practices, businesses can achieve a returns process that addresses both the operational and customer retention issues associated with returns.

In the words of Seth Wescott, Gold Medalist in Men’s Snowboard Cross, “Pressure situations like this kick me into a different level of motivation.”

Are your supply chain management processes golden?

What The Olympics Taught Me About Supply Chain Management is a post from: Human Capital Supply Chains

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