Priority Personnel Blog

You’ve just won a three-month contract with a major new client – congratulations!  Now, you need to figure out how to get the extra work done. 

Should you pay your current employees overtime, or bring in temporary help?  Consider the following sample cost analysis.  It is based on an annual salary of $40,000 ($20.51/hr.), vs. time-and-one-half overtime, for one employee:

Cost Analysis

Although this is just a sample exercise for illustration purposes, it clearly demonstrates the economic rationale for using temporary employees.  When you need additional productive hours on a temporary basis, staffing services can lower costs, reduce burnout and improve the productivity of your direct staff.

Priority Personnel - Central Texas’ Staffing Economics Experts

Need help assessing the cost of a staffing strategy?  Contact Priority Personnel.  Our experts will work with you to determine the most productive and cost-effective way to get your work done.

Cost Analysis Assumptions

* Temporary staffing rates vary by market, but the relationship (ratio) between pay rates remains the same.

** Fringe benefits include:  holiday pay, sick leave, vacation pay, personal days, insurance, F.I.C.A., S.U.I., F.U.T.A., worker’s compensation, etc., based on a national average of 31%.

*** Based on U.S. Chamber of Commerce national average statistic of 12%, which includes firms that pay no benefits.  For small firms with moderate benefits programs, this cost is typically 40-45% of payroll, and for larger firms with extensive benefits programs, the cost can be up to 100% or more of payroll.

An effective mentoring program provides a wide range of business benefits:

• Facilitated onboarding.  Mentoring speeds up the process of bringing on new hires as well as redeploying existing employees into new lines of work.
• Increased employee satisfaction and retention.  Research has shown that employees who participate in mentoring programs have higher job satisfaction and reduced turnover.
• Improved employee productivity.  When employees are mentored, they can get answers to common problems quickly – without wasting time on rediscovering or re-inventing solutions.
• Effective career growth / succession planning.  Mentoring programs help employees reach their full career potential, grooming them to fill key roles as part of an organization’s succession plan.
• Knowledge management and retention.  Mentoring promotes effective knowledge sharing, to reduce the risk of losing critical skills and knowledge when employees leave.

Obviously, mentors can play an important role in ensuring your company’s continued success.  But while identifying a budding protégé may be straightforward, identifying a potential mentor can be more complex.  Whether that person is you, one of your managers, or an outside expert, a mentor should possess the following professional and personal attributes:

1. Senior-level business experience.  To provide guidance, the expert should have several years experience working in senior corporate positions.  At a minimum, the expert should be a professional peer to the protégé.
2. Interpersonal and political “know-how.”  The expert ought to be proficient in handling all sorts of complex interpersonal dynamics within the context of office politics.  To be an effective trainer, the expert must be able to help the protégé navigate the tricky political waters of his organization.
3. Integrity and confidentiality.  Professional development involves discussing high-level, strategic, off-the-record information, as well as sensitive personal issues.  Honesty and discretion are essential when broaching these confidential topics.
4. Organizational and personal insight.  The expert must have an in-depth understanding of the company’s objectives, needs and hierarchy.  Equally, he must also appreciate the protégé’s strengths, weaknesses and goals.  To achieve professional development goals, the trainer must align both the company’s and the protégé’s interests.
5. Flexibility and ingenuity.  When egos, ambitions and agendas collide, sparks fly.  What works for an organization one day may be thrown out the window the next.  An expert trainer must be able to shift gears, develop solutions on the fly, throw out tactics that prove ineffective and come up with new ones – fast.  He must be comfortable dealing with uncertainty to navigate a corporate environment rife with change.

Need a promising protégé?  Looking for your next mentor? Contact us today.  As San Marcos’ leading staffing firm, Priority Personnel can provide the talented individuals your organization needs.

Tips for Successful Salary Negotiations

Congratulations!  You’ve found a superstar with the ideal skills, personality and experience for the position.

But you still have one hurdle to overcome – salary negotiations.  Landing the cream of the crop without blowing your personnel budget can be tricky.  To help, here is a quick list of strategies for negotiating salary with high performers:

1. Have the right mindset.  Negotiation is a process, not a war.  At all costs, avoid the pitfalls of the “us vs. him/her” mentality.  Instead, enter the salary negotiation process open-minded, with the ultimate goal of hiring the best possible candidate for your company.
2. Do your homework.  Rest assured your candidate will have done his.  Before heading into negotiations, prepare yourself by:  reviewing the candidate’s salary history; consulting relevant salary surveys; knowing what your competitors are paying; understanding current market and economic conditions; factoring in cost-of-living differences; and developing a comprehensive compensation package.
3. Use a negotiating point person.  In multiple interview situations, a candidate may ask salary questions of more than one interviewer.  Be prepared.  Prevent potentially catastrophic communication errors by designating a single person to discuss and negotiate salary with a candidate.
4. Never lowball a candidate if there is a good fit.  A top candidate knows what he’s/she’s worth.  If you lowball him/her in an attempt to save a few dollars, he/she will likely be insulted and reject the offer without even countering.
5. Sell the intangibles.  Identify a candidate’s “hot buttons” – intangibles which are just as important to him/her as money.  Leverage these intangibles (e.g. company culture, stability, challenging work, opportunity for advancement, flexible hours, etc.) to sweeten the deal when your pay range is maxed out.
6. Be up-front if you can’t negotiate.  If your initial offer is not negotiable (because of budgetary or other constraints), tell the candidate when making the offer.  If possible, provide an explanation.  The candidate will understand that your base salary offer is firm, and will then move on to negotiating other parts of the compensation package.

Work with Priority Personnel.  Avoid the pitfalls of salary negotiations by using our direct placement services.  We can handle every step of the process from initial screening through salary negotiations, to ensure you land a top performer without breaking the bank.

What’s the single most important variable in the success (or failure) of your business?

Your staff.

Steven Berchem, Certified Staffing Professional and Vice President of the American Staffing Association, posted a great article on the ASA website which addresses the ways today’s businesses are using staffing to gain real competitive advantage. 

Here are a few of the article’s salient points:

• As agility becomes more essential to success, smart companies are rejecting traditional hiring models and taking bold approaches to staffing.  They are moving away from lengthy hiring processes and no longer see the wisdom of filling every position with a permanent employee.
• These changes in key business practices have led companies to use more temporary and contract employees in diverse and highly skilled professions, including: accountants, attorneys, chief executives, doctors, graphic designers, IT professionals and even pilots.
• Today’s staffing employees are motivated, satisfied and educated.  In a survey conducted by the ASA, nine out of 10 staffing employees said they would recommend temporary or contract work to a friend or relative.  And while it may come as a surprise, staffing employees are actually better educated than the overall workforce, with 74% having at least some college education (compared to 62% of the traditional workforce).
• Staffing firms provide the only means of accessing some of America’s best talent.  In fact, the majority of staffing employees either use temporary or contract work as their sole means of finding a “permanent” job, or they simply prefer their current work arrangement over traditional employment.

To read or download the full article, click here.

Maximize the Value of Your Human Resources with Priority Personnel

If you’d like to maximize the value of your staff as a source of competitive advantage for your company, contact Priority Personnel today.  We can show you how to use staffing to become more agile, efficient and profitable.  Together, we can develop a smart staffing plan that will enable your organization to compete – and win.

Beginning June 1, 2010, the U.S. Federal Trade Commission (FTC) will enforce its “red flags” rule on identity theft. It had been delayed by the FTC from earlier announced dates of Aug. 1, 2009, and Nov. 1, 2009. The rule requires creditors and financial institutions to implement a written program to detect, prevent and mitigate identity theft in connection with the opening of a covered account or an existing covered account. (To learn more, see the SHRM Online article Red Flags Rule on Identity Theft Explained.

As part of its guidance on the rule, the FTC has posted frequently asked questions (FAQs) on its web site, some of which explain the application of the rule to employer-provided health and welfare plans. Specifically, the FAQs clarify that the rule applies to health care flexible spending accounts (FSAs) if they feature a debit card or similar option for accessing funds (e.g., checks or wire transfers).

Read more…

Immigration and Customs Enforcement (ICE), the policing division of the United States Citizenship and Immigration Services (USCIS), has announced a 10-day window for employers to correct minor errors found on audited I-9 forms.

ICE is currently on a nationwide sweep to check employer maintenance of the I-9 form, which is used to verify employees’ authorization to work in the United States.

Minor, or technical, errors (also called “paperwork errors”) usually refer to the absence of a home address or birthdate on the form. Such errors are to be corrected in 10 days to avoid any further difficulties, fines or adverse action.

Substantive errors, on the other hand, which are those involving core data such as citizenship status or even the employee’s signature, are subject to significant penalties.

The USCIS form I-9 must be completed for each employee upon starting work and must be maintained for three years or one year after the employee has left his or her job, whichever comes later.

http://www.personnelconcepts.com/compliance-alerts/ice-10-days-to-correct-minor-19-mistakes/

According to a worldwide survey of senior managers, years of staff cutbacks have undermined trust in the workplace.

The Economist Intelligence Unit’s new report, titled “Companies at the Crossroads,” recommends that to restore that trust, companies must put their employees first  – or risk experiencing deep talent erosion and sustained underperformance as the global economy recovers.

Here are some key statistics from the December 2009 report:

• 29% of business executives surveyed said employee engagement is low – and that they expect to lose key people as talent demand grows.
• 41% of respondents cite a shortage of talent in their organization.
• 44% of executives surveyed said they find it increasingly difficult to recruit talented employees.
• 50% of respondents plan to ramp up recruitment in 2010, with only 18% freezing headcounts.

The survey found that while executives understand the need to focus on their talent, greater action is needed to develop sound talent management strategies for the future.  Low trust among mid-level employees, coupled with low graduate recruitment and an ongoing demand for senior executive talent, is creating a “perfect storm” for businesses:  the most talented employees may be headed out the door, with fresh talent not yet recruited.

Bottom line, these trends can have a serious impact on your business as the economy recovers.  Priority Personnel is prepared to help.  We proactively recruit to ensure you always have immediate access to the skilled, talented and reliable individuals you need – especially when that talent becomes hard to find.  Visit our website to find out what we can do for you.

As managers, we intuitively know that giving and getting honest feedback is essential to grow and develop, and to build successful organizations.  So why is it that many of us put off giving feedback to our employees?  Maybe it’s because there are so many ways to mess it up.

Here are some common feedback mistakes:

• Speaking out only when things are wrong.
• Providing generic praise without specifics or an honest underpinning.
• Waiting until performance or behavior is substantially below expectations before acting on it.
• Giving negative feedback in public.
• Criticizing performance without giving suggestions for improvement.
• Not conducting regular performance reviews.

Clearly, giving and receiving constructive feedback is a skill that must be honed.  Developing proficiency in this area is essential to building good relationships with, and motivating peak performance from, your team.

To help get you started, here are four tips for providing feedback the right way:

1. Be proactive. Nip issues in the bud and avoid messy interpersonal tangles that result from neglected communication.  If you meet with employees regularly to give feedback, it conveys, “Your success is important to me, so I want to be accessible to you.”
2. Be specific. Although it’s not easy to provide negative feedback, it’s important to be as clear as possible by giving specific examples that illustrate your point.  Instead of saying, “Your attitude is bad,” say, “When you miss deadlines, then cross your arms and look away when I discuss it with you, it gives me the impression that you don’t care about the quality of your work.  Can you help me understand this behavior better?”
3. Develop a progress plan. Be clear about the specific changes in behavior that you expect in a specific period of time, and follow up as scheduled.
4. Link employees’ performance to organizational goals. Reinforce the value of your employees’ contributions by giving specific examples of how their work and positive behaviors serve the organization and its customers.

Have you ever bought something on impulse?  Ever wonder what attracted you to the item in the first place?

Whatever the reason, something about the way that product was marketed created a strong attraction in you – strong enough to make you act.

In many ways, job postings are a lot like the impulse items we all buy on occasion.  As a manager, you must ensure that the announcements you write compel the candidates you seek to take action – even if they aren’t actively seeking new jobs.

To help you in this arena, use these tips for creating irresistible job postings that are magnets for talent:

1. Tell a story to stir emotions.  Rather than beginning with dry job requirements, focus on the ways your company’s products or services impact customers’ lives, or draw from client testimonials.  Write about the way your business makes people feel, and use this to create a compelling image of your company and the available position.
2. Approach the posting from the job seeker’s perspective.  Top candidates are more interested in what a position offers them personally – high earning potential, intellectual challenge, recognition, etc. – than in your company’s business strategy.  Ensure your job posting addresses these needs by first highlighting the rewards of the position.
3. Emphasize your company’s strengths.  Everyone wants to work for a successful organization.  Put your company’s best foot forward by identifying strengths such as: organizational growth, industry track record, competitive advantages of your products/services, positive corporate culture, financial stability, awards and/or recognition.
4. Convey a sense of optimism.  Potential candidates are quick to form judgments about your company based on the tone of your listing.  Use positive language to turn downsides into opportunities (e.g., a decline in profits signals a need for innovation).
5. Keep it short.  Details are great, but a passive job seeker won’t take the time to read a lengthy listing that drones on and on like Charlie Brown’s teacher.  So as a general rule, limit job postings to two or three pages.
6. Avoid overused buzzwords and transparent euphemisms.  For the savvy job seeker, buzzwords do little to differentiate your company – so use them sparingly (balancing the need for SEO when postings are online).  Likewise, steer clear of inflating job titles (e.g., listing a coffee gopher as a Beverage Production Manager) that will only rob your company of both clout and credibility.
7. Use your in-house writing talent.  A job posting is a marketing piece.  If you’re not a Twain or Grisham by nature, enlist your marketing department’s help.  Provide them with the nuts and bolts of the job (as well as this post) and let them craft a compelling posting for you.

Attracting top talent is both time-consuming and expensive – so why do it on your own?  Call Priority Personnel with your job specifications, and allow us to find the best temporary and direct placement candidates for you.

Most of us today are conditioned to look for the best possible price.  In most cases, this makes good economic sense.  But when it comes to staffing services, the company offering the lowest prices isn’t necessarily going to deliver the best value.

Here are a few good reasons why shopping around for the lowest-priced temporary employees might not be the wisest use of your staffing dollars:

• To offer you the lowest price, a staffing service may be forced to cut back on the quality and amount of service they provide.  They may not be able to afford the same depth of recruiting and screening.  As a result, they may have more difficulty finding the right candidates for your specific needs.
• Because of simple supply and demand, the staffing agencies that offer better wages to their temporary employees will most likely get the more talented, skilled, reliable and experienced applicants.  Any staffing firm can find a “warm body” to fill your position.  But finding a quality employee that truly fits your organization may be too crucial to risk – especially for what may boil down to a few cents per hour.
• Not getting the right person for the job can have very costly ramifications.  For example, a temporary employee who is less than qualified for the position can cause the following unforeseen expenses:
  - additional time (money) up front to adequately orient and train the temporary
  - increased supervision for a less qualified temporary
  - mistakes and reworks – the time, money and materials involved in re-doing the work of a less qualified temporary
  - poor productivity – the amount of work a sub-par employee fails to complete (compared to a qualified individual)

The bottom line is, many things in business aren’t worth risking.  The quality of your human capital is definitely one of them.

Priority Personnel:  the Best Staffing Value for Central Texas Employers
When it comes to the quality of Priority Personnel’s candidates, you get what you pay for – skilled, reliable, hard-working and experienced people who truly fit your needs.  Rest assured, we will always deliver the best value for your staffing dollar.