staffHELPING YOUR STAFFING BUSINESS ng GROW t mesWINTER 2012

Information Technology: HOT NICHE How to capitalize for your staffing firm

LEGAL / Temporary MARKETING / Maximizing LinkedIn FINANCE / Determining fees SERVICE / Better feedback programs letter

DEAR FRIENDS: There is no doubt the staffing industry continues to boom — it is expected to grow an estimated 9 percent this year according to Staffing Industry Analysts.

The professional sector is expected to see the greatest growth, with a projected 10-percent revenue increase this year. Within that sector is information technology, and staffing firms have seen the demand for these professionals skyrocket. In this issue, we explore the reason for the trend and how your firm can take advantage of niche staffing. LARRY HOLSTEIN, We also explore temporary employee benefits as a way to remain PRESIDENT competitive and attract high-quality talent. And we discuss how to build or retool your customer and employee feedback processes to make them better than ever.

As always, we welcome your ideas, suggestions and topics for upcoming issues. TemPay is here to fulfill your needs and help you achieve your staffing firm’s goals. Send your thoughts and input to [email protected].

LARRY HOLSTEIN President, TemPay

contents feature: departments: 3 LEGAL 6 HOT NICHE Benefits for temp employees 4 MARKETING How to capitalize on IT staffing Are you the missing link? 9 FINANCE Get your fee structure righted the best way 10 SERVICE PUBLISHER / Marc Mellman Better client and employee EDITOR / Ann M. Gynn / ASSOCIATE EDITOR / Danielle Toth feedback programs ART DIRECTOR / Amanda Horvath PRODUCTION DESIGNER / Andrea Jager 11 IN BRIEF PROJECT MANAGER / Angela Vannucci Tips and stats for your firm TemPay Staffing Times is a publication produced by Smart Business Content Marketing, 835 Sharon Drive, Suite 200, Westlake, OH 44145, (440) 250-7000. www.smartbusinesscontent.com

2 / WINTER 2012 www.tempay.com legal

BENEFITS TALK More staffing firms offer staff perks

hough staffing firms historically have not provided employee benefits to their temporary workers, that status quo is changing. Typical employee benefits include health care, dental and 401(k) plans. Bruce Friedman, Director of Assurance TServices at SS&G, a national accounting and business consulting firm says staffing firms also should think beyond the typical. Other benefits could include uniforms, tools or paid /. “Depending on your industry, these benefits could be particularly valuable for a temporary employee,” Friedman says. Firms also must evaluate whether they want to offer paid vacation and sick time. Staffing agencies that offer those benefits usually do so for employees with longer placements and structure the to coincide with the employee’s particular client’s offerings, CONS Friedman says. For example, if an employee at Company ABC gives Time to educate. One of the best ways to drum up participation in an its employees three vacation days after three months, the staffing firm employee benefits plan is to educate employees, and most employers would give its temporary placement three vacation days after three some sort of meeting to explain benefits and/or their months with the client. changes to employees. However, with temporary employees who are consistently coming and going or may have irregular shifts, scheduling a benefits meeting can be difficult, Friedman says. As a result, you may “You want your plan to be cost-effective yet have be taking a lot of time to explain benefits to each employee individually. One alternative is to consider a Web-based training solution. decent enough benefit for the employee.” Cost. The big con to an employee benefits plan is cost. Plans can be expensive to implement and sometimes cost more for staffing firms — Bruce Friedman, Director of Assurance Services at SS&G because of the transient nature of their employees. Additional costs can include matches for 401(k) plans and the cost of auditing the plans, Friedman says. Make sure to account for possible administrative Whether your firm already provides benefits or is contemplating costs for the time it takes to file plan-related paperwork, conduct providing them, here are some pros and cons to consider: conversations with providers, etc. “Typically what you see in benefits with temporary employees is PROS the benefits might not be the ‘Cadillac’ version, if you will,” Friedman Beating out competitors. The more benefits a staffing firm is able to says. “You want your plan to be cost-effective yet have decent enough provide, the more attractive it is for applicants to come to them as benefit for the employee.” opposed to a competitor, Friedman says. Whether you already provide benefits or are looking into it, shop Cam Shipley, business development manager at Ebit Information around. Make sure you’re getting the best bang for your buck. Systems, an IT staffing firm in the Louisville, Ky. area, says his firm Take the nature of your industry into consideration when deciding provides benefits, including health care, dental and training, mainly whether to offer benefits. Temporary employees with longer for that competitive reason. His company is rolling out a 401(k) assignments or employees frequently placed are good candidates for program this year. benefits. However, if your firm’s assignments are typically shorter and “It’s a competitive advantage,” he explains. “If you look at our have a lot of talent that comes and goes, providing benefits might not benefit package compared to our competitors, it is a better package. be worth it. We have 6-percent premiums, dental coverage and training. And word “My biggest takeaway would be to understand not only your has gotten around as contractors talk to one another.” business but the business of your competitors,” Friedman says. “Look Attracting higher-quality talent. Quality workers require quality at what makes sense for your business and what will give you an benefits. Although it can be a case by case basis, more educated advantage over other staffing firms in your industry.” or skilled workers typically tend to seek employers that offer a better benefits package, Friedman says. Some temporary workers are the sole providers for their family, while other temporary workers already have benefits through their spouse.

TemPay Staffing Times /3 marketing

ARE YOU THE MISSING LINK?

“If your initial profile says ‘recruiter,’ you need to select language that better describes what you do – language that captures your expertise and your passion – and the impact you had on the business.” Post a current professional photograph; LinkedIn statistics show profiles with photos are viewed seven times more often than those without a headshot. JOIN THE CONVERSATION In the old days linking up meant waking up early to attend a business networking meeting. With LinkedIn, members can log in and join a variety of groups related to their field or industry, expanding their network with multiple relevant contacts at once. “Jump into the groups you find around your specialty,” Drapcho says. “I belong to several group connections within the ceramics industry, and I also belong to several recruiter groups. Within those groups, there are active discussions you can join, and I often add to the discussion on specific issues. It gives me access to people I normally don’t have an opportunity to meet.” As Stephen Karagiozis, regional talent acquisition manager of the Americas at Eaton Corp., says, “two of the common mistakes n 2011, LinkedIn rolled past 135 million members worldwide. we see are not allowing introductions to be made, and not allow- Launched in 2003, the professional contin- ing ‘Inmails’ to be received.” Inmails are LinkedIn emails that allow ues to grow exponentially, adding about two members every any user to reach another user – no introduction or official contact Isecond. According to a study by the network itself, LinkedIn information required. “Why join LinkedIn if you’re not open to users are now connecting with executives from all the Fortune 500 networking,” Kargiozis asks. companies. In today’s environment, recruiters and candidates who have FOLLOW COMPANY PAGES not established themselves on LinkedIn are already chasing the For recruiters, “following” company pages provides crucial crowd. Fortunately, the network’s intuitive framework makes it easy information about their clients and prospective clients. LinkedIn for new users to quickly sign up, create a basic profile, and get down describes company pages as searchable, centralized venues where to the business of growing their professional network. members can stay current on a company’s news, products and Here’s what you need to know to make LinkedIn a power tool in services, business opportunities and job openings. your recruiting and job search toolbox. “It’s easy to search companies, and pull a list of companies you want to follow,” Drapcho says. “For example, if I follow XYZ Corpo- PUMP UP YOUR PROFILE ration, I can see how many connections are present, and how many A stagnant profile only gathers dust. According to Bettina employees from that company are on LinkedIn. I can find out what Seidman, founder of Seidbet Associates, simple, bi-weekly profile they are searching for and what jobs they have available, and updates like adding a new skill set or punching up a vague there’s a convenient link to their website.” headline are effective ways to increase visibility and send out an unobtrusive ping to your network. FIND AND SCREEN CANDIDATES “Be sure to craft a headline statement that truly captures your Recruiters can no longer bank on static job boards for sourcing talent and expertise,” says Joe Drapcho of Quality . candidates. According to LinkedIn, jobs posted on their network “Recruiters are using keyword searches so you’ve got to differentiate are forwarded an average 11 times and viewed 400 times, resulting yourself with a carefully constructed profile and headline. in about 30 applications. LinkedIn’s advanced search function is

4 / WINTER 2012 www.tempay.com a direct way of sourcing both active and passive candidates by WHAT ELSE DID OUR EXPERTS searching on keywords associated with qualified candidates. SAY ABOUT LINKEDIN? Recruiters are becoming savvier when using LinkedIn’s powerful search algorithm to weed out unqualified candidates. “Our sourcing Stephen Karagiozis, Regional Talent Acquisition Manager – leader (at Eaton Corp.) advises our recruiters to put thought into Americas, Eaton Corporation their search strings or parameters, as the most successful searches are a product of analytical thinking, not just extensive Boolean In 2012, Eaton Corporation plans to use LinkedIn as our main external resource to identify top talent. We use LinkedIn as a strings,” Karagiozis says. database to search for passive candidates, and we post our open positions on the site. We also host numerous /group APPLY WITH LINKEDIN sites where people can follow and learn more about our global A new feature called Apply with LinkedIn allows companies to organization. include a quick-apply button within job posts. It lets job applicants As a talent acquisition function in a global organization, LinkedIn viewing the listing to immediately send their LinkedIn information is a tool that is critical to our strategy and success. From university to the company. The candidate then receives a list of professional hiring to executive search, our team uses it on a daily basis and connections from their network that may provide references for relies on it to provide our hiring teams with qualified candidates, landing the position. market intelligence and other value added data. ASK AND ANSWER QUESTIONS Jamie Bailey, Senior Vice President and Managing Director, Global Sales Manager, Revenue Enhancement Solutions, Never before has there been a simple method of lobbing a question Fiserv out to 135 million people. According to LinkedIn, the Answers feature lets users ask questions to their immediate network, or to the I regularly use the company and group pages, especially as they entire network. Those who answer can respond publicly or privately. relate to the banking industry, and specifically to the retail banking “Responding on “Answers” is not only helpful for the LinkedIn industry groups. I use the search and Inmail feature extensively community, it can improve your credibility within your network,” to reconnect with past friends and colleagues. It’s been very Drapcho says. valuable when a current client contact leaves a position and moves to another bank. LinkedIn can automatically advise me of any LinkedIn connections in my network when they update their profiles LOCATE CLASSMATES to indicate new jobs and other profile changes. At the end of 2011, LinkedIn initiated Classmates, an easy way to find old schoolmates or connect with professionals who attended Joe Drapcho, Ceramics Industry Specialist, Quality your alma mater. Executive Search, Inc. “It’s been particularly helpful in reconnecting after years with college classmates who moved into different positions and different I started using LinkedIn simply as a necessary recruiting and geographies that were unknown to me,” says Jamie Bailey, a senior business tool. It’s helped me with my contact list in the specific vice president at Fiserv. industry I recruit in. It helps exponentially because one connection leads to multiple connections. I used LinkedIn to reach out to an engineering candidate who then introduced me, through LinkedIn, to another candidate who I placed. A company needing my services on a recruiting assignment also contacted me through LinkedIn. It’s worked out really well. If you’re not using LinkedIn, you’re missing out on passive candidates that you can approach. Even though they may be passive in terms of looking, you may have a position that would fit them perfectly. LinkedIn creates opportunities to contact these people, and it gives you credibility because you’re connecting through the network. It’s also creating interest and conversations you may not encounter otherwise.

TemPay Staffing Times /5 HOTNiche

HOW TO CAPITALIZE ON IT STAFFING BY DANIELLE TOTH

rowth in the staffing industry continues – WHY NOW? an estimated 9 percent expected for 2012, Emerging technology according to Staffing Industry Analysts. One of the reasons IT professionals are in demand GLong-term growth, though, is expected to is that technology is constantly evolving and every shift more toward the professional sector (a 10 percent company wants to have the newest offerings to both revenue jump this year.) be on par with its peers and beat out its competitors, Information technology and engineering are pro- Shipley says. jected to be the strongest segments in the professional “It used to be that only Fortune 500 companies had sector, according to analysts. access to the latest and greatest technology, but the price “It’s a logical option to have contract labor in IT point has come down now so even start-up businesses departments,” says Cam Shipley, business development can have as good or even better technology than the manager at Ebit Information Systems, an IT staffing firm largest companies out there,” he says. in Louisville, Ky. “When a company’s rolling out an IT One of the most popular technologies seeing wide- project, a contract employee is a good way to supple- spread use is mobile devices for business, Shipley says. ment the workforce on that specific project. Of the world’s 4 billion mobile phones, 1 billion are “And because these temporary employees are em- smartphones and 3 billion are SMS-enabled, according ployed by the staffing firm, we handle the human resourc- to Microsoft Tag. By 2014, mobile Internet use will be es end of the hiring, which means companies can get their greater than desktop computer-based Internet use. work done and don’t need to worry about the additional To take advantage of the flexibility of this trend, many HR cost associated with bringing on a new employee.” businesses allow their employees to hook their phones

6 / WINTER 2012 www.tempay.com CIOs reveal 1Q hiring plans

Twenty percent of CIOs said they plan to expand their IT departments, and 10 percent expect cutbacks, for a net 10-percent projected or tablets up to corporate networks or systems have to be implemented and coop- increase in hiring activity, provide phones or tablets for employee use. eration among departments utilizing these according to the Robert With so much technology to continually newer technologies has to be realized.” Half Technology IT Hiring update and troubleshoot, IT professionals Index and Skills Report. continue to be in demand, Shipley says. Shifting work atmosphere The IT industry favors temporary The report is based on Better economy workers because technology such as cloud telephone interviews with more than 1,400 CIOs from Companies are hiring more help overall computing and remote services enable an companies across the United because business is improving, says IT professional to access and troubleshoot States with 100 or more Pamela Wasley, CEO of Cerius Interim a company’s network or an individual employees. Executive Solutions, an Irvine, Calif.-based employee desktop from anywhere in the staffing firm that places interim executive world, Wasley says. management personnel. “We’ve placed employees who aren’t even As the economy improves, businesses are in the same city as a client we’ve contracted corporate IT professionals. less fearful of investing money in personnel with,” she says. “Companies are more comfort- “The goal should not only be to meet and equipment but are still wary of full-time able with using these types of workers, and the the workers but the employer as well,” he hires, Wasley says. This creates an excellent employees enjoy the flexibility and mobility.” says. “Many employers can become hurt by environment for temporary . Companies also enjoy the flexibility, as this economy via layoffs or downsizing, and “The reason temporary IT employees are they can bring in a worker for a specific what was originally a hiring manager now very interesting to businesses is that most project and then not have to worry about becomes a marketable candidate for the technology implementation does not require obligations after the project right opportunity.” a high-level person on the for a long is complete, she says. Shipley also suggests offering recruiters period,” she explains. “Typically, companies from your firm to work with various com- will have someone come in to help decide GAIN FROM THE TREND panies. While a staffing firm usually doesn’t the right technology for their infrastructure This increased IT hiring provides many get paid for recruiting assistance, companies and then help them implement it. After that, opportunities for IT staffing firms, Shipley most often only use one or two recruiters. companies will use a low-level permanent says. Staffing firms get paid when a temporary employee to maintain the technology.” He advises firms to network and get their employee is hired, making this option at- name out. The more people who know about tractive to companies. While this recruiting More readily accepted your staffing company, the better reputation assistance might cost your firm a little more Another reason the IT industry is so hot you will have and the more companies will time and money, the payoff could be big is because it’s only fairly recently that come to you for their IT staffing needs, he says. because these clients hire your talent. After IT staffing has been seen as a necessary “The best thing you can do is have a they see you consistently offer solid talent component of a modern, corporate good reputation,” he says. “Unfortunately, it who meets their needs, they might even infrastructure, says Mike Barefoot, senior takes a long time to get a good reputation, choose your company over their current IT account executive at Red Zone Resources, a but you can lose it overnight. The main staffing firm. Raleigh, N.C.-based IT staffing firm. thing is the customer is always right. Treat “I often talk to companies who have a More companies recognize that tech- people well because if they choose to start a need for talent but say they already have a nology impacts their bottom line, he says. campaign against you, you’re at their mercy. recruiter they work with,” Shipley explains. For example, paperless systems increase Word travels faster than it used to, especially “Once I explain to them that having another efficiency and reduce redundancy, resulting with the Internet.” recruiter doesn’t cost them anything, they’ll in financial savings for a company. Barefoot agrees, saying networking is the jump on board and we’re in the door.” “Companies are trying to become more most important element to maintain and Barefoot says any staffing firm already seamless and move away from the pen-and- further success. He advises staffing profes- servicing the IT sector should have a deep pad mentality,” Barefoot says. “With that sionals to askew technology and get face database of IT professionals, including both being stated, more money has to be spent, to face at networking events that attract passive and active candidates.

TemPay Staffing Times /7 To develop this database, Barefoot sug- for example, offering IT staffing just because Start-up staffing firms should follow the gests creating a presence on social media it’s hot right now might not be the best idea same rule, Shipley says, meaning a potential sites such as LinkedIn, Twitter, Facebook, for your firm, Shipley says. owner shouldn’t just one day decide to start etc. and seeing who joins your activity or “IT people speak a different language, an IT staffing firm and think the company posts on related topics. You can use social and unless you have someone in your com- will do well because the industry is doing media tools such as SocialBro, which ana- pany who is tech savvy and can speak that well. A new owner should head into an in- lyzes your Twitter account and tells you the language, you’re not going to know both dustry he or she is familiar with to have the best time to tweet your followers, compares what your client wants and what your tem- best chance of success, he says. your company’s information to other com- porary employees want,” he says. “The value Barefoot shares an example of a coworker panies in your industry and tells you about of staffing firms is that we do the recruiting, who attempted entry into IT staffing from what your followers are saying. interviewing, etc. for our clients. You’re not general staffing even though she had no Barefoot also suggests posting jobs on vari- going to know how to write a job descrip- experience in the industry. ous job-related websites, looking for candi- tion, review a resume or even interview a “She would come by several times per dates on job boards and using candidate refer- candidate if you don’t speak their language.” week to ask me what acronyms such as DBA rals to keep your IT staff pipeline constantly Wasley agrees, saying plenty of staffing or UNIX stood for, and I’m sure this naiveté streaming for current and upcoming needs. firms specialize in IT. She recommends was fairly transparent when she went out on “Companies need to be proactive as op- firms stick to the niches in which they are sales calls and the conversation went into posed to reactive,” he says. comfortable and have experience. deeper realms,” he says. “Executives have “If you’re in the finance space and all of a very little time, and when they do take the GET INTO THE NICHE sudden you decide to enter the IT space, you time to meet with you, they want you to All staffing firms should not jump into the shouldn’t expect a lot of business because bring a value-added proposition to them to IT staffing market. If your firm specializes in there are others out there already covering the increase their production value.” light industrial or nursing staffing solutions, niche,” she says. “It’s just not worth your time.” WHAT’S AHEAD Companies seek all types of IT professionals but particular interest exists in expertise in .NET, SQL and Java, Shipley says. “If an IT person is skilled and good at what they do, they can find a position be- Not an IT staffing firm? cause companies need work done,” he says. Executive-level IT professionals also are Still good advice in demand, Wasley says. About 10 percent of the more than 800 executives placed by Even if your staffing firm does not contract IT employees, you can still take Cerius Interim Executive Solutions are IT advantage of this trend and the advice from our experts. Apply these nuggets to professionals, she says. your staffing firm to increase new clients and increase efficiencies: Wasley explains that companies are looking • Network – Mike Barefoot of Red Zone Resources advises firms to search for talent that specializes in multiple technolo- business networking sites such as LinkedIn to find events to attend. Get gies because they have learned to do more involved in area chambers of commerce or other community groups. with less and give their employees multiple • Use mobile technology – Make sure your staffing firm’s website can be responsibilities. A staffing firm can take ad- displayed on mobile devices such as smartphones and tablets. Consider vantage of this need by recruiting talent with creating a specific mobile site or even an app so busy talent can have their diverse backgrounds and multiple specialties. staffing information at their fingertips. Barefoot says demand for temporary IT professionals will continue for at least • Stick to what you’re good at – Don’t jump head first into any industry the next five years and most likely beyond without doing your research. Companies like specialized staffing firms because technology is only evolving. because they know their stuff, says Pamela Wasley of Cerius Interim “Companies aren’t going back to the aba- Executive Solutions. cus or the sun dial,” he says. “Companies are • Implement technology to create efficiencies – Cam Shipley of Ebit constantly trying to stay ahead of the curve Information Systems says focus on what technologies can help create and will need professionals to maintain efficiencies within your company, saving you dollars in the long run. these advancements in technology.”

8 / WINTER 2012 finance

GET YOUR FEE STRUCTURE RIGHTED THE BEST WAY

etting fees isn’t as simple as 1, 2, 3. Determining what to charge involves many facets and must be revisited from time to time to make Ssure the formula is still appropriate. Consider the advice from these experts – whether you’re starting a staffing firm or settled in your business – their insight and tips can help evaluate and tweak your methods for maximum return. RIGHT STRUCTURE Staffing firms use three main fee structures: retainer, contingency and flat fees, says Pamela Wasley, CEO of Cerius Interim Executive Solutions, an Irvine, Calif.-based staffing firm that places interim executive management personnel. Cerius uses a retainer fee structure – it charges an upfront fee that clients pay for “If you’re good at what you do and can provide a client with the firm to start an employee search. Wasley an employee who has the talent and skills necessary for the job explains that retainer fees typically are used for higher-level talent recruiting because the but is also a good fit for the company’s culture, clients will see firm conducts a comprehensive search from you are worth the fee.” a specialized pool of candidates to find the — Pamela Wasley, CEO of Cerius Interim Executive Solutions perfect match for the client and position. Contingency fees allow a staffing firm to receive payment only if it makes a successful Bruce Friedman, director of Assurance Friedman also advises staffing firms to permanent placement. Smaller firms are Services at SS&G, a national accounting be competitive. Talk to other staffing firms more likely to use this method because they and business consulting firm, says a staffing and colleagues in your industry to see what don’t have a ready specialized pool from firm must look at all its direct costs to they’re offering. which to tap and may take longer to find an provide a temporary employee. This includes acceptable candidate, Wasley says. payroll processing and taxes, workers’ RIGHT TIME Retainer and contingency fees vary rates compensation, benefits, background checks, Evaluate your fee structure annually or based on the client and nature of the search. drug testing and advertising for the position. biennially, Wasley says, as the staffing market A flat rate – a staffing firm charges a set Subtract the direct costs from the billed can change quickly. If your fees are higher fee or percentage of base pay – typically is rate to determine the profit from a particular than your competitors make sure the added charged by staffing firms conducting a higher client, Friedman says. If you typically earn value is apparent. For example, if the fees are volume of work rather than high-paying 20 percent profit from a client, consider higher because temporary employees receive searches, Wasley says. accepting 17 to 18 percent if the client advanced training or education, make sure relationship is good and the arrangement your clients know about that added value. RIGHT PRICE could cause the client to give you more It’s just all about communicating that Fees are typically 20 to 25 percent of the business, he says. worth. As Wasley says, “If you’re good at temporary employee’s starting , but vary Likewise, Friedman suggests, research what you do and can provide a client with depending on the client and type of search, into the client’s unemployment or workers’ an employee who has the talent and skills Wasley says. Fees also can be charged per compensation risks. If the client has a lot of necessary for the job but is also a good fit hour or even per day depending on the length claims, you might want to charge as much for the company’s culture, clients will see you and nature of the assignment. as 25 or 30 percent to cover the risks, are worth the fee.”

TemPay Staffing Times /9 service

THANKS FOR ASKING Building better client and employee feedback programs

Every Monday morning, highly skilled and motivated personnel at large, powerful companies around the world begin plotting new ways to seduce your clients and entice your employees. How do you know if your best customers and staff members are satisfied or considering a move? According to SCORE, a nonprofit association and resource partner of the U.S. Administration (SBA) that aids small businesses, for every customer who bothers to lodge a complaint, 26 others remain silent. And on the employee side, a 2011 study by MarketTools Inc., found that nearly 50 percent of employees surveyed have considered leaving their jobs. To find out what your customers and staff HANDLE THE TRUTH Ask the short and simple questions. “Many are thinking, ask them. Properly executed, “The biggest pitfall of starting an employee don’t want to answer essay questions,” ongoing feedback mechanisms provide a feedback process is to solicit the feedback, Mannino says. platform for managers and owners to gain and then do nothing with it. That’s much Powers agrees that you have to know your honest and accurate insights useful for worse than not soliciting feedback,” says Mike audience. “Balance the need for information maintaining and growing healthy customer Mannino, regional HR director – manufacturing with the attention span of the respondent. It and employee relationships. at Lubrizol, a Cleveland company that should be clear and simple, but still developed Here are some ingredients to consider manufactures specialty chemicals. enough to obtain useful information. when building or retooling your staffing firm’s Expectations must be managed. “The best approach for gathering feedback customer and employee feedback processes. As Powers says, “You should set the depends on the size and type of organization. It expectation that the feedback will be could be automated, manual, or a combination BENEFITS OF FEEDBACK reviewed and may cause changes, not will of both, but the keys are to ensure a consistent “Employee feedback programs can validate cause changes. Not all feedback needs to process for all employees, and the respondents an organization’s business direction and result in change. But in those cases, a clear are comfortable focusing on the feedback and ensure the employees are on board. They explanation should be available.” not the method by which it’s gathered.” also help assess the level of engagement of On the client side, Powers warns of an the staff, uncovering if they are interested over-reliance on the results. “Feedback is BUILD BUY-IN and care about what they are doing,” says good, but it should be taken in moderation.” Creating a feedback process is an admirable Mike Powers, executive director of The Todd step, but client and employee buy-in can Organization, a Cleveland company that MAKE IT CLEAR be tricky. To enhance client buy-in, pick designs and administers employee benefits. “Communication regarding the employee up the phone. “I prefer a well-timed, clear, As he explains, employees also may program is absolutely key. Everyone should concise and professional call, explaining the hold the key to areas missing from their know why you are conducting the program, importance of the program. Telling the client employment experience and identifying new what will be gained, how you will get back to how much you value the relationship prior to areas of growth. the employees, and in what form,” Mannino delivering the actual survey will have a positive Client feedback is all about stronger says. “Start at the top; a message for your impact versus sending the survey cold,” relationships and two-way communication. CEO or top manager explaining the what, Powers says. Are you 100 percent sure you’re delivering why and how, is essential.” “To build buy-in from your employees, exactly what your clients need? “A client Establishing trust with the respondents you need to encourage an open and honest feedback program ensures the company’s also garners open and truthful answers, and feedback environment where constructive, perception of the client’s needs truly meets more trust is gained when the company objective feedback is appreciated, but critical, the reality of their needs,” Powers says. commits to follow up on the feedback. subjective comments won’t be tolerated.”

10 / WINTER 2012 www.tempay.com n br ef GREATER CONFIDENCE, GREATER EMPLOYMENT One-fourth of small business owners surveyed say they plan to hire more permanent full-time employees in the next year, a 12-point jump over January 2011. The recent Citibank small business survey revealed 22 percent plan to make seasonal workers full time. In addition, 44 percent planned to work more hours themselves and four in 10 expect to increase employee productivity. This Citibank poll was conducted by phone in January 2012 among a national random sample of 750 small business owners/operators, age 18 and older throughout the United States with revenue greater than $100,000 and no more than 100 employees. “We are very encouraged by the survey findings,” says Raj Seshadri, who leads small business banking at Citibank. “Small businesses are a key driver for the economy. The prospect that small businesses are stabilizing or expanding in 2012 is a positive step in the right direction.”

ONE-FOURTH OF SMALL BUSINESS OWNERS SURVEYED SAY THEY PLAN TO HIRE MORE PERMANENT FULL-TIME EMPLOYEES IN THE NEXT YEAR, A 12-POINT JUMP OVER JANUARY 2011.

MORE COMPANY-SPECIFIC APPS IT staffing firms may soon get a boost in hiring, especially for those professionals who can develop mobile applications. Twenty-seven percent of CIOs polled say their companies offer a mobile app, while WHO’S NEXT? PLAN NOW another 22 percent say they plan to offer one in 2012. Robert Half Technology, a leading provider of information technology professionals It’s never too early for a business to begin on a project and full-time basis, surveyed more than 1,400 CIOs of companies with succession planning, says Scott Malone, 100 or more employees. senior vice president of M&I, a part of BMO As mobile applications become more prevalent, many challenges arise for the IT Financial Group. teams developing them, the CIOs say. They cite collaborating across departments (29 He offers the following advice to help percent) and finding IT professionals with the skills to build them (28 percent) as the business owners get started: two biggest hurdles. • Start now. Realize the full potential of the “It’s important for mobile application developers to have strong software skills, in business by ensuring a smooth transition addition to the ability to write code and test and debug to new owners or leaders. Succession software applications,” says John Reed, executive director planning ideally should begin at least 10 of Robert Half Technology. years before its needed. • Consider all options. Whether an owner chooses to sell, transition to a family member or business partner, or dissolve the business, many complex issues should be evaluated before a decision is made. • Speak with an advisor. Each business is unique, and a succession plan should reflect this and be tailored to the business. A professional advisor can help business owners develop specific solutions and strategies for their businesses.

TemPay Staffing Times /11 keeps your business soaring

PAYROLL FUNDING & ACCOUNTS RECEIVABLE FACTORING

17+ YEARS OF INNOVATIVE FINANCIAL SERVICES UNLIMITED FUNDING

PERSONALIZED CUSTOMER SERVICE 1-866-6TEMPAY tempay.com

TemPay Ad_FINAL.indd 1 2/20/12 5:10 PM