Thursday, December 8, 2011

ABA report on law schools' graduate jobs data reporting

By Karen Sloan, that first appeared in The National Law Journal.

The American Bar Association is changing the way it collects graduate employment information from law schools.  The council of the Section of Legal Education and Admissions to the Bar on Dec. 3 (2011) approved a new annual questionnaire intended to gather more detailed information about where recent law grads find work.  The change came as law students, graduates and three U.S. senators heaped criticism on the ABA and law schools for not providing prospective law students with an accurate picture of graduate employment and salary levels.  "The section is fully committed to clarity and accuracy of law school placement data," said John O'Brien, dean of New England School of Law and chairman of the section. "As a result of these changes, future law students will be better informed about their prospects than ever before."

The updated questionnaire contains several new elements:

• Law schools will report their graduate employment and salary data directly to the ABA, rather than through the National Association of Law Placement.
• Graduate employment information will be made available to the public faster. Instead of being published two years after a particular class graduates, the data will be collected earlier in the year and will be made public approximately one year after graduation.
• Law schools will have to report whether graduates are in jobs funded by the schools, themselves. They will have to stipulate whether graduates are in jobs requiring bar passage; positions for which J.D.s are an advantage; professional positions that do not require a J.D.; non-professional positions; and whether jobs are long-term or short-term.
• Employment and salary information must be reported for each individual graduate rather than in the aggregate, giving the ABA the ability to audit the figures.

The new questionnaire does not include all the changes that transparency advocates have been pushing for. Law School Transparency — a nonprofit organization that seeks to improve consumer data for law students — has called upon the ABA to publish school-specific salary data. That would allow prospective law students to see how much graduates of each school earn.

As with the old questionnaire, job and salary data will not be reported together and school-specific salary data will not be released publicly. Instead, each school will report the three states in which the largest number of its graduates finds jobs.  Prospective students won't be able to see the average salary for graduates who take government jobs. The ABA plans to make salary information available based on job type and state, said ABA consultant for legal education Hulett "Bucky" Askew, but those numbers will be not be broken down by law school.  School-specific salary data may yet be made available to the public under a different proposal being considered by the ABA's Standards Review Committee, which is evaluating all of the ABA's law school accreditation standards, Askew said.

The new questionnaire is an improvement, said Law School Transparency co-founder Kyle McEntee.  But the ABA made a mistake by temporarily eliminating some key questions from the 2011 survey, which went out to law schools this fall, he said.  That questionnaire did not ask schools to report the number of graduates in the class of 2010 in full- and part-time jobs or in jobs that require a J.D., meaning that less information will be available about the class of 2010 than for previous classes.  Members of the questionnaire committee said they needed more time to refine the definitions of those job categories. The updated definitions were incorporated into the new questionnaire.  "There are still questions about [the changes] took so long and why it still falls short of providing the best consumer information," McEntee said.
Contact Karen Sloan at ksloan@alm.com

Thursday, November 17, 2011

Employees now own Mestel's legal staffing empire

by Julie Triedman.  November 01, 2011.

For associates, equity partnership remains the gold ring that motivates many young lawyers to endure a years-long grind. Now, temporary attorneys who have been slogging away at document review in firm basements and off-site annexes are finally getting their chance at that prize, too.

In August, Mestel & Company, one of the largest legal staffing and lateral placement firms in the country, announced that it had been turned over to its employees under an employee stock ownership plan, or ESOP. The impact is potentially far-reaching: Mestel & Company manages a network of more than 50,000 temporary attorneys and legal staff from 22 offices across the country.

Founder and president Lynn Mestel says that any permanent or temporary employee is eligible to be vested in company stock after completing 1,000 hours of work in a calendar year—a benchmark that many of her temps, whom she calls "contractors," regularly surpass. While she won't say how many have already qualified for stock, she says that "thousands" filed W-2 forms with her company's temporary legal staffing unit, Hire Counsel, in 2011 alone, and roughly one in ten were eligible as of August 22, the date the ESOP plan came into effect.

On a recent afternoon, the 58-year-old Mestel, a onetime Benjamin N. Cardozo School of Law graduate, explained how the idea took shape in early 2010. One of her chief concerns was her legacy. "I was thinking about longevity. My goal was never to sell it, to dump it and leave," she says. Mestel founded the recruiting business a quarter-century ago, and the temp business a few years later. The conjoined businesses, which have tripled in size in the past five years, are now a national partner-placement and staffing behemoth.

As she was pondering the fate of her company, Mestel looked at studies that showed that companies with employee stock ownership plans generally perform better over time than non–ESOP companies (with some notable exceptions—Enron Corporation, WorldCom, Inc., and Adelphia Inc. all had ESOPs). Mestel felt that employees would be as inspired as she's been if given a stake in the business. "It's a tremendous motivator for the contractors to continue to deliver their best work," she says. In the end, financial considerations helped crystallize her decision. "My question was simple: Do I want to give 30 percent to the federal government or to my employees?" Under federal law, businesses that are 100 percent employee-owned via an ESOP pay no federal taxes on earnings.

ESOP equity ownership differs from law firm partnership in one major respect: An ESOP is a passive stake in the success of the business. Unlike a partnership, an ESOP doesn't allow employees to participate in management decisions or strategies. It is run much like a 401(k) retirement account, via a trust.

And even if the company remains as profitable as its recent growth suggests, temps will have to wait several years to see profits accumulate in their ESOP accounts. That's because earnings initially go to pay down the bank and the private investors who lent the money to the ESOP trust that bought out the equity of its founder. Mestel says she remains a major investor. How much has she invested? She won't say.

Wednesday, November 9, 2011

Adecco boosts third quarter profit 13 per cent

"GENEVA - The world's biggest temporary staffing group Adecco said Tuesday its third quarter profit rose 13 per cent to 145 million euros (S$252 million) and forecast a strong performance for the rest of the year.

The results, which were in line with analysts' expectations, were built on a four per cent increase in revenues to 5.27 billion euros for the three months ending September.

Adecco said it expected "another strong performance in the fourth quarter and remains absolutely confident it will achieve its target profit margin of above 5.5 per cent in the medium term".

France, Adecco's biggest market, posted a seven per cent growth in revenues to 1.6 billion euros while the United States saw a five per cent rise to 903 million euros, the company said."

from news services...

Tuesday, November 8, 2011

Staffing Industry Deal Landscape

According to Duff & Phelps:

The third quarter of 2011 saw 15 staffing industry M&A transactions close, for a total of 44 staffing transactions so far this year.  Large public companies are choosing their targets more selectively, while privately held buyers are becoming more active.  Healthcare, information technology and commercial staffing (including those providing light industrial and clerical staffing services) experienced heightened demand from buyers.  Notable deals announced recently include:
  • SFN Group, a leading strategic workforce solutions company, acquired by Randstad Holding NV for $14.00 per common share through a cash tender offer.
  • Adecco Group acquired Drake Beam Morin, a New York based outplacement firm with 2010 revenue in excess of $110 million.
  • On Assignment acquired HealthCare Partners, Inc., a privately held locum tenens and physician staffing firm headquartered in Atlanta.
  • Groupe CRIT SA announced the acquisition of a 75% controlling interest in PeopleLink, LLC, a commercial staffing company based in South Bend, Indiana, with revenue in excess of $100 million.

Buyers are looking for companies that are growing their revenue and increasing profitability.  Specifically, companies with higher-than-average gross margins, direct client relationships, minimal customer concentration and management teams who have committed to post-transaction leadership have enjoyed the most attractive valuation proposals.  Ongoing buyer interest, coupled with continued earnings improvement for most staffing companies, may pose favorable conditions for even more staffing transactions to close in the final months of 2011 and during the early part of the New Year..As you prepare to close out the year, the team at financial advisory and investment banking services firm Duff & Phelps would be happy to talk to you more in person about the challenges and opportunities that the staffing industry deal environment might pose to your organization.

Tuesday, October 25, 2011

Robert Half Intl. posts Q3 2011 numbers - up!

Analysts, on average, were expecting profit of 28 cents per share, on revenue of $971.7 million.For the three months ended Sept. 30, Robert Half said net income available to common stockholders rose to $43.6 million, or 31 cents per share, compared with $20.1 million, or 14 cents per share, in the year-ago period.  



MENLO PARK, Calif. (AP) — Staffing firm Robert Half International Inc. on Tuesday said its third-quarter profit more than doubled, as demand for its placement services for both temporary and permanent workers increased.  
The number of outstanding shares was reduced nearly 2 percent in the most recent quarter, which has the effect of increasing per-share results.  
Revenue rose 20 percent to $984.7 million, from $817.3 million last year.  
"All of our divisions performed well, led by our technology staffing division," said Chairman and CEO Harold Messmer.
Revenue in its technology division rose 30 percent to $113.8 million.
Accountemps, its largest division, saw revenue growth of 17 percent, to $366.4 million.
Also seeing big revenue gains were its OfficeTeam unit, up 20 percent to $196.3 million; management resources, up 20 percent to $118.2 million; Robert Half finance and accounting, up 38 percent to $79.1 million, and its Protiviti unit, up 12 percent to $110.9 million.
Expenses rose 18 percent to $391.9 million.
In aftermarket trading, Robert Half shares rose 66 cents, or 2.6 percent, to $25.93. The stock closed regular trading Tuesday down 80 cents, or 3.1 percent, at $25.27.

Thursday, October 13, 2011

a UK law firm is getting into the temp lawyer placement business. Really?

According to wikipedia - Eversheds LLP is an international law firm headquartered in LondonUnited Kingdom.  It is one of the 50 largest law firms in the world.  In 2009/10 it achieved total revenues of £355.2 million, making it the 9th largest UK-based law firm by this financial measurement.  It claims profits per equity partner of £517,000/per.  The firm employs approximately 1,220 lawyers and about 1,745 other staff in 45 offices in major cities across the globe.  

And now - this is the first I've read of a law firm getting into the temp lawyer placement service.  I am trying to come up with an analogy.  Would this by like Ford being in the rent-a-car business.  Ford did once own Hertz.  Let's think of where will this law firm deploy these temp lawyers?  To other law firms?  Not likely.  To themselves, at full mark-up, for as-needed projects?  Perhaps, but they are just moving internal monies around.  Most likely this law firm will try to assign their temp lawyer teams into the law departments of corporations.  Law firm already do that via secondment.   Here is the story:

Eversheds pilots a new “on demand” contract lawyer business.

I read this today in legalweek: http://www.legalweek.com/

By Simon Petersen, October 13, 2011

Eversheds is set to enter the fast-growing contract lawyer market with the pilot of its own ‘on demand’ legal business.   Graham Richardson, who leads the firm’s consultancy business, is heading up the pilot, dubbed ‘Eversheds Agile’, which began last month and has already seen contract lawyers hired out to GE’s Watford arm as well as a global financial services firm in Hong Kong and a financial services company in the UK.

The service will offer Eversheds’ clients a temporary alternative to additional permanent recruitment, as well as helping to manage unforeseen cost pressures and fluctuating workloads.

Eversheds is aiming to sign up 10-15 lawyers to the service during the year-long pilot, predominantly through recruiters and the firm’s alumni network. The firm also has a pool of six full-time lawyers who are sent out to clients on strategic secondments.

The move will draw comparisons with Berwin Leighton Paisner’s Lawyers on Demand business, which was set up in 2008 and now comprises more than 80 lawyers.  Eversheds is also planning to leverage its international network to roll out the service across Europe, Asia, Africa and the Middle East, and the operation will also offer temporary project managers, human resources consultants and company secretaries.

Richardson (not pictured) said: “This is an entirely new offering to the market in that it’s a flexible service with the backing of an international law firm and all the resources that entails. We will review the pilot in a year but every indication is that this is a long-term solution for our clients' counsel staffing needs.”

The service will be run in conjunction with the firm’s consultancy arm, Eversheds Consulting, which was launched in September last year.

Richardson added: “We see it as something that is complementary to our consultancy arm. Flexible lawyers in the field will be able to spot opportunities where our consultancy arm can be of service and as our consultants see a need for more resources then flexible lawyers will be a part of that too.”

Friday, September 9, 2011

September 2011 U.S. Employment Outlook - legal edition

Simply Hired Releases September 2011 U.S. Employment Outlook.

MOUNTAIN VIEW, Calif., Sep 01, 2011 (BUSINESS WIRE) -- SimplyHired.com(R), the world's largest job search engine, today released its September 2011 U.S. Employment Outlook highlighting national and local market outlooks, as well as industry and employer trends.

Nationwide hiring remains steady.  Nationwide job openings increased for the second consecutive month, up 4.5 percent month-over-month and 16.5 percent year-over-year. Openings were previously up 6.5 percent month-over-month and 17.0 percent year-over-year.

"As expected, job openings continue to remain positive and stable this month due to the start of the fall season," said Gautam Godhwani, CEO of SimplyHired.com. "We anticipate modest continued job growth through the end of the year from seasonal hiring."

All major metro areas see positive growth.  All 50 major metros experienced job growth again in August. Twenty-four of 50 metro areas posted growth of more than 5.0 percent, with the most substantial increase in Louisville (14.3 percent). Following an increase last month, New York saw a year-over-year decline of -0.6 percent, the only major metro area to see a decline in job openings in August.

Most industries experience increases in hiring.   Thirteen industries had increases in job openings in August, including agriculture, which was back up 17.9 percent after last month's low of -6.1 percent. Only five industries saw decreases this month, including travel (-2.0 percent), legal (-1.9 percent), military (-1.9 percent), real estate (-1.3 percent) and non-profit (-1.0 percent).

Healthcare companies are hiring, albeit slowly.  Healthcare companies continued to be top hirers this month, comprising 55 of the 125 hiring organizations. Nineteen of those saw minor decreases in month-over-month hiring; however, such decreases are not likely cause for concern, as the healthcare industry is typically stable in hiring.

About SimplyHired.com  With over eight million job listings, Simply Hired ( www.SimplyHired.com ) is the world's largest job search engine -- 25 times the size of the biggest job board. Servicing 16 million monthly users across 24 countries, the company powers jobs on over 10,000 network partner sites, including LinkedIn, CNNMoney, The Washington Post and BusinessWeek. Reaching passive as well as active candidates, the SimplyHired.com network delivers millions of targeted job applicants and boasts one of the lowest cost-per-hire rates in the industry. The company is based in Mountain View, California and is funded by Foundation Capital and IDG Ventures.

SOURCE: Simply Hired

Wednesday, August 3, 2011

Former Spherion to be acquired by Randstad

File this under Been there; done that.
Unclear whether headquarters would remain in Fort Lauderdale.  July 20, 2011|By Marcia Heroux Pounds, Sun Sentinel.
SFN Group, one of the few large companies with headquarters in Fort Lauderdale, on Wednesday agreed to be acquired by global staffing firm Randstad Holding nv, a Netherlands-based public company.  The merger, valued at $770 million, still has to be approved by shareholders, who are being offered $14 a share for their stock.
"They approached us. Our company was not for sale," said Roy Krause, chief executive of SFN Group, a holding company for several staffing businesses. The acquisition by Randstad would enable SFN to compete globally for business, he said.
Krause said the company's declining stock price had nothing to do with the board's decision to accept the offer. Slower growth led to SFN's stock plummeting 20 percent in late April, and it has never fully recovered. The NYSE-traded stock closed at $9.22 a share, up 5 cents on Wednesday, before the proposed deal was disclosed.
Krause said until the acquisition is approved by shareholders, it would be "business as usual," but that some consolidation of its South Florida headquarters staff of 400 was inevitable.
"While it's always unsettling, it should really be looked as an opportunity," Krause said. "We believe, in any people business, that nobody would acquire you unless they wanted the management team."
Krause said he didn't know where the combined companies U.S. headquarters would be located. Chief executive since 2004, Krause, 64, said he plans to stay with the company only through the transition.
In 2010, SFN changed its name from Spherion to SFN Group to better reflect its many staffing businesses that include Technisource, Tatus, Mergis, Todays Office Professionals, SourceRight Solutions and Spherion Staffing Services. The company has about 600 offices in the United States and Canada
Earnings from continuing operations for the first quarter ended March 27 were $2.7 million, or 5 cents a share, compared with a loss of $3.2 million, or 6 cents a share, for the same period in 2010. But some analysts were concerned that SFN's payroll revenue was expected to decline, which the company downplayed as the "end of a project," handling of payroll for a large financial institution.
SFN reported total revenues of $500 million compared with $463 million in the first quarter of last year, an increase of 8.1 percent.
Until 2004, the Fort Lauderdale staffing company was notable for being headed by one of the few women heading a Fortune 500 company; Cinda Hallman of Boca Raton died in 2007.
Randstad, which provides human resources services, said the acquisition would make it the third-largest HR company in North America. The company has 4,200 branches in 43 countries, and employs about 27,500 people.  SFN Group has scheduled a conference call with analysts on Thursday morning. The company is scheduled to disclose its second-quarter earnings on July 27.
The transaction is expected to close in September, Krause said.
By mpounds@tribune.com or 561-243-6650

Friday, July 22, 2011

BigLaw Partner Sues Legal Recruiter, Says She Lied to Get Him to Leap to Patton Boggs

Law Firm Partner Sues a Legal Recruiter, thinking she was an "independant" recruiter, which he allegs she is/was was not.

I read a posted from Jul 18, 2011 by Martha Neil, in the ABA Journal's Law News Now.

It stated, "A partner at Bryan Cave has sued a Dallas legal recruiter, contending that she lied to help persuade him to move from K&L Gates, where he was then a partner, to Patton Boggs.  Diane Caldwell of Caldwell & Associates Inc. represented herself as an independent recruiter, when she wasn't, and told him he would be a practice leader at Patton Boggs, alleges Chris Gilbert in his Dallas County lawsuit (PDF).  Caldwell, who says this is the only time she has been sued by someone she recruited in over 30 years, calls the suit "absurd," reports Texas Lawyer in an article reprinted in New York Lawyer (reg. req.).  She says she encouraged Gilbert to join Patton Boggs, believing it was the best opportunity for him, but never promised he'd be a practice leader. Nor, she tells the legal publication, was she on retainer to represent Patton Boggs exclusively at that time.  The general counsel of Patton Boggs, Charles Talisman, told the legal publication in an email that his firm put its agreement with Gilbert in writing and honored it."

Monday, July 18, 2011

Growth in temp jobs signals progress

I love reading these types of stories.  "More employers turn to temporary staffing to meet needs in unstable economy."

Of The Morning Call.  11:13 p.m. EDT, July 16, 2011.  After losing her job at an athletic goods factory in Alabama in 2008, Donna Mims came to the Lehigh Valley in search of new opportunities. Three years later, she still hasn't found a permanent position.

Mims, 55, of Fountain Hill has been making do with temporary jobs at some local plants, such as Crayola, hoping to eventually get hired full time.  "It's been jobs here at one place for a few weeks and some at another for a few months, and I've been doing this for about a year," Mims said Tuesday outside the ISS staffing agency office in Upper Macungie Township. "It's been good because it allows you to experience a place and see if you would want to work there, but it's a temporary job, and I'm really hoping to get temporary-to-permanent."  Though Mims and thousands of others working short-term jobs are frustrated, labor experts see an uptick in temporary hires as a sign of better times ahead.

Workforce recovery starts with employers offering overtime to their employees, then advances to openings for temporary workers, said Bethlehem economist Kamran Afshar. When employers feel confident enough to make those temporary workers permanent, the workforce grows and the economy strengthens.  "As you have uncertainty, employers will be a lot more inclined to do with temporary help than permanent," Afshar said. "Temporary workers are an exact cost for employers, and in a market of uncertainty, that type of certainty helps."

The practice also saves companies money, Afshar said. Because personnel typically is the biggest expense in a company's budget, tapping temporary over full-time staffers creates a savings because the contract workers generally earn less and the employer isn't burdened to provide benefits, he said.

Companies that hire temp workers also are spared the rigors of recruiting, screening and testing employees, because those chores fall to the temp agencies that provide the workers, said Richard Wahlquist, president and CEO of the American Staffing Association, a trade group that represents temp agencies.

No longer used merely to fill the gap left by the vacationing secretary or the warehouse worker who had surgery, temp workers are sometimes a key part of a business' plan.

"We're seeing that more employers are making temporary workers a part of their overall work strategy," said Becky Sokolowski, regional director of local operations for staffing agency Manpower.

That strategy has given birth to a number of temp agencies in the Lehigh Valley. Those agencies employed workers who filled 9,300 jobs in May, 100 more than in April and 1,700 more than a year ago, according to the state Department of Labor and Industry, which defines the Lehigh Valley as Carbon, Lehigh and Northampton counties and Warren County, N.J.

Temporary jobs accounted for nearly 3 percent of overall employment in the Lehigh Valley in May, up slightly from a year ago, according to the state data.

U.S. staffing agencies created 401,000 jobs in 2010, second only to the 428,000 created in 1994, according to the American Staffing Association. On an average business day in 2010, staffing companies employed 2.6 million workers, about 18 percent more than in 2009.

So far, those numbers haven't triggered an increase in permanent employment. The region's unemployment rate increased to 8.4 percent in May from 8.2 percent in April, showing that employers remain skittish about the economy.

Employers would prefer to be in a position to hire full-time staff, said Thomas J. Hyclak, an economics professor at Lehigh University.

"I think most firms would say that they need to have a skilled workforce with training and with the knowledge to do their job effectively," he said. "Most firms would prefer to have full-time regular employees as the bulk of their workforce."

Locally, Amazon is making the shift from temp workers to permanent positions with benefits at its Breinigsville distribution center. While the center turned to temp agencies to fill Christmas shopping orders, it recently announced plans to add hundreds of employees.

International Battery, an industrial battery maker in Upper Macungie, also is moving in that direction. When the company recently added 16 workers, it filled only six of the positions with temporary staff, said spokesman Vance Grosso. And some workers who had been short-term moved into the permanent ranks based on their performance as temps.

"Several production folks are brought in on that basis as a proving ground," Grosso said. "They come in as temps and are given full-time when they are available."

That's all Allen Eichman, 45, of Upper Macungie is looking for -- a chance to prove himself. The former landscaper stopped at the ISS staffing agency last week, seeking a temp job.

"I just hope to get my foot in the door and that can lead to a permanent position," he said.

Labor experts say that's a good strategy. Temporary work offers an opportunity to sample a job and to learn new skills. And it provides a back door for workers who have been looking for a way in to an established company.

"This gives them a chance to make a first impression and get a job," said Manpower's Sokolowski. "This gives them a chance to get into a business they may not have been able to get in the past."

Temporary work offers no guarantees of being hired, and benefits such as medical and dental fall on the staffing agency. But for the many hopefuls who have been lining up at the ISS staffing agency, which has been charged with helping Amazon fill its ranks, it can be a bridge to security.

Rodney Heintzelman, 40, of Slatington is pinning his hopes on a temp job. After losing a job with a beer distributor in Slatington, he was filling out an application at ISS last week.

"I've been looking for a job that is more suitable for me. I hope something temporary will lead to being hired," he said. "I'm looking for more of a career at this point."

tyrone.richardson@mcall.com
610-820-677
mc-allentown-temp-jobs-0716

Monday, June 27, 2011

Celebrate America's Staffing Stars

Here ia Reminder of one of the great things that my national business association, the American Staffing Association, touts.  It is National Staffing Employee Week, which will take place Sept. 12–18 this year, honors the contributions of the nation's dedicated temporary and contract work force.

To kick off the celebration, ASA will announce the 2012 National Staffing Employee of the Year on the first day of National Staffing Employee Week, Sept. 12.

The National Staffing Employee of the Year is a temporary or contract employee whose story best captures the staffing industry's key messages: jobs, flexibility, bridge, choice, and training.  He or she will be recognized at Staffing World® 2011, Oct. 11–14 in New Orleans; featured on the cover of the January–February issue of Staffing Success; and more.

Debby Johnson, the 2011 Staffing Employee of the Year, is a certified public accountant who chooses a contract career because it provides her with challenging assignments and allows her to keep a flexible schedule.

All ASA members are encouraged to nominate their stellar temporary or contract employees for the 2012 National Staffing Employee of the Year by Aug. 5.

For nomination forms—as well as free National Staffing Employee Week materials such as recognition certificates, envelope stuffers, and public relations materials—visit americanstaffing.net. For more information, contact Melissa Beattie, ASA interim public relations coordinator, at 703-253-2047 or mbeattie@americanstaffing.net.

By Melissa Beattie

Tuesday, June 14, 2011

United States Employment Outlook - report from Manpower

Manpower Employment Outlook Survey United States Q3/2011
More than 18,000 interviews have been conducted with employers within the United States, including all 50 states, the top 100 Metropolitan Statistical Areas (MSAs), the District of Columbia and Puerto Rico, to measure hiring intentions between July and September 2011. The mix of industries within the survey follows the North American Industry Classification System (NAICS) Supersectors and is structured to be representative of the U.S. economy.

All participants were asked, "How do you anticipate total employment at your location to change in the three months to the end of September 2011 as compared to the current quarter?"   Among U.S. employers surveyed, 20 percent expect to add to their workforces, and eight percent expect a decline in their payrolls during Quarter 3 2011. Sixty-nine percent of employers anticipate making no change to staff levels, and the remaining three percent of employers are undecided about their Quarter 3 2011 hiring plans.

When seasonal variations are removed from the data, the Net Employment Outlook is +8%. Survey results suggest that employers expect a relatively stable hiring pace during Quarter 3 2011 compared to Quarter 2 2011. The July – September Outlook for the U.S. shows a slight increase compared to one year ago at this time. U.S. employers have now conveyed a positive Outlook for seven straight quarters.

All four U.S. regions surveyed report a positive Net Employment Outlook. When seasonal variations are removed from the data, employers in the Northeast region report the strongest Outlook at +10%. Quarter-over-quarter, plans to add employees are slightly up among employers in the Northeast and remain essentially the same among employers in the Midwest, South and West. Compared to one year ago at this time, employers in all four regions surveyed project a slight increase in hiring for Quarter 3 2011. The most significant increase year-over-year is in the West region, where there is a four-point increase in the Net Employment Outlook.

Thursday, June 2, 2011

Class of 2010 Graduates Faced Worst Job Market Since Mid-1990s

NALP (f/k/a the National Association for Law Placement) now refers to itself at the Association for Legal Career Professionals, "is a nonprofit educational association established to meet the needs of all participants in the legal employment process (career planning, recruitment and hiring, and professional development of law students and lawyers) for information, coordination and standards. NALP’s membership includes virtually every ABA-approved law school in the US, Canadian law schools and hundreds of legal employers from both the public and private sectors. NALP is dedicated to continuously improving career counseling and planning, recruitment and retention, and the professional development of law students, lawyers, and its members."

Here are some findings from a newly published report from NALP:

Standing at 87.6%, the overall employment rate for new law school graduates is the lowest it has been since 1996, when the rate stood at 87.4%. In addition to a lower overall employment rate than that measured for the classes that immediately preceded it, the Class of 2010 employment data reveal a job market with many underlying structural weaknesses, and the employment profile for this class marks the interruption of employment patterns for new law school graduates that have been undisturbed for decades.

The NALP Employment Report and Salary Survey for the Class of 2010 measures the employment rate of graduates as of February 15, 2011, or nine months after a typical May graduation.  Analyses of these data reveal an employment rate that has fallen more than four percentage points since reaching a 20-year high of 91.9% in 2007 and marks the lowest employment rate since the aftermath of the last significant recession to affect the U.S. legal economy. The Class of 1996 was the last class with an employment rate lower than that for the Class of 2010, and since 1985 there have only been six classes with an overall employment  rate below 87.6%.

All of those occurred in the aftermath of the 1990-1991 recession:  85.9% for 1991, 83.5% for 1992, 83.4% for 1993, 84.7% for 1994, 86.7% for 1995, and 87.4% for 1996. (For information on trends in graduate employment going back to 1985, see www.nalp.org/trends.)

Thursday, May 26, 2011

U.S. Wages Poised to Rise as Temps Get Pricier

Staffing agencies are charging companies more for temporary workers, a possible harbinger of a bump up in salaries for permanent employees later this year.  The bill rate at Calabasas, California-based On Assignment Inc. (ASGN), which places temporary staff primarily in the information technology and health-care fields, climbed 6.3 percent in the quarter ended March 31 from the same time last year, the largest 12-month gain since 2008.  The increase in the amount the company charged was “surprising,” said Tobey Sommer, a staffing analyst at SunTrust Robinson Humphrey Inc. in Nashville, Tennessee.
Agencies like On Assignment are the first to reflect shifts in wages because demand for their services is more immediate, prompting “real time” changes in fees, Sommer said. By contrast, he said, employers calibrate compensation for permanent workers less frequently, causing those adjustments to lag behind.

The temp labor market is a “canary in the coal mine” for broader gains in wages, Sommer said. “Bill-rate increases are starting in areas where demand is the strongest, like the IT sector. The logical next step is for bill rates to improve more broadly and ultimately be reflected in the wage gains of permanent employees.”   On Assignment had “robust” revenue growth in its information technology and engineering business during the first quarter, driven in part by higher contract rates, Chief Executive Officer Peter Dameris said on an April 28 conference call. “Exiting the quarter, demand for our services strengthened in all divisions,” he said.

Fees Climb - Companies specializing in placing health-care workers are also starting to command higher fees. San Diego-based AMN Healthcare Services Inc. (AHS) increased its rates twice as many times in the first four months of the year than it did in the first six months of 2010, Susan Salka, president and chief executive officer, said in a May 5 conference call. Cross Country Healthcare Inc. (CCRN), based in Boca Raton, Florida, expects to increase rates in the second half of the year, CEO Joseph Boshart said in a call the same day.  Robert Half International Inc. (RHI), which specializes in finance and legal work, is also seeing a pickup. The Menlo Park, California-based company increased pricing by 2.4 percent in the first quarter from the prior year, Chief Financial Officer Keith Waddell said on an April 21 conference call.  “We’re seeing higher pay rates in every single division sequentially,” Waddell said. This is one of the precursors of “good things to come in staffing,” he said.

Skilled Temps - Wage growth for temps is likely limited to workers whose skills are in relatively short supply, said Kathryn Kobe, director of price, wage, and productivity analysis at Economic Consulting Services LLC in Washington. Nonetheless, the employment situation has started to improve enough to expect a pickup in overall wage gains by year end, she said.  Recent increases in the Wage Trend Indicator, an index created by Kobe and economist Joel Popkin for the Bureau of National Affairs, a private provider of economic data, indicate pay will climb.  The gauge points to about a 2 percent increase in the Employment Cost Index by the end of the year, which would be the biggest gain since the first quarter of 2009, according to BNA. Through the first quarter, the ECI, a broad measure of compensation, posted a 1.6 percent year-over-year gain, according to Labor Department data.  “We’re seeing enough forward momentum in the economy that we’re expecting to see modest wage and salary gains,” Kobe said.

ADP’s Clients - In another sign wage gains are broadening, funds held by Roseland, New Jersey-based Automatic Data Processing Inc. (ADP) for its clients are rising, according to Rod Bourgeois, an analyst at Sanford C. Bernstein & Co. in New York, who maintains an “outperform” rating on the provider of payroll services to about 550,000 companies.  Average client balances, or the money ADP receives to pay wages to customer employees, increased 12 percent in the quarter ending March 31, Chief Executive Officer Gary Butler said in a May 2 statement. Such funds climbed to a record in April, breaking the previous high reached in March 2008, Butler said on a conference call the same day.  This is “resounding evidence” that salary gains are improving, said Bourgeois. While some of that growth may be attributed to a larger client base or other non-wage reasons, these are not large enough to account for all the gain, he said.  Bourgeois estimated that gains in salaries accounted for about half of the 12 percent increase in ADP’s client funds.

Fed View - Federal Reserve policy makers at their April meeting were less optimistic on the outlook for wage increases as unemployment hovers around 9 percent.  “Wage increases continued to be restrained by the presence of a large margin of slack in the labor market,” central bankers said. “Signs of rising wage pressures were reportedly limited to a few skilled job categories for which workers are in short supply, while, in general, increases in wages have been subdued.”  Even moderate wage gains in some areas of the labor market are an encouraging sign that higher paychecks may be on the way for other temporary and permanent workers, according to Bourgeois.  “High unemployment is an ongoing economic problem, but ADP’s recent results show solid signs of wage gains across a quite diverse set of employers,” Bourgeois said. “Broader pay increases are feasible if economic expansion continues.”

To contact the reporters on this story: Anna-Louise Jackson in New York at ajackson36@bloomberg.net; Anthony Feld in New York at afeld2@bloomberg.net
To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net

Wednesday, May 11, 2011

Kelly Services has 1Q profit, expects 2011 profit

Just read this good news...

TROY, Mich. (AP) -- Temporary worker staffing agency Kelly Services Inc. said Wednesday that it posted a first-quarter profit in contrast to a loss a year ago as the economy continues to improve.  Kelly provides temporary workers to companies in a wide array of industries. CEO Carl Camden said in a statement that the company continues "to see evidence of a solid, sustainable economic recovery." He also said Kelly's revenue growth for the quarter confirms that it is on track for a profitable year. Kelly Services reported net income of $26.1 million last year.

Camden also said that employers will remain cautious about hiring more workers until full confidence in the economy is restored, which favors the temporary staffing industry. "We intend to capitalize on the opportunities presented," he said.  The Troy, Mich., company also said it's heading for a profitable year in 2011, but it gave no specific outlook.  Kelly Services reported net income of $1.1 million, or 3 cents per share, for the quarter ended April 3, compared with a net loss of $2 million, or 6 cents per share, a year ago.

Revenue was up 18.5 percent to $1.34 billion from $1.13 million.  Excluding $4 million in restructuring charges, the company said it earned $5.1 million, or 14 cents per share, for the period.
Analysts polled by FactSet expected adjusted earnings of 14 cents per share on lower revenue of $1.29 billion.  Its shares rose 14 cents to $19.73 in morning trading Wednesday.

Monday, May 9, 2011

TEMPORARY IS THE NEW PERMANENT: ARE YOU READY?

Orig. Posting Date: May 05, 2011.  By: Erik Samdahl, The Institute for Corporate Productivity.

While the effects of the protracted recession on staffing are irrefutable - most organizations have increasingly turned to using temporary workers to meet changing staffing needs - the trend will likely continue long after the post-recession era.  New research on the use and management of contingent workers from the Institute for Corporate Productivity (i4cp) shows that using contingent workers strategically is something few organizations have mastered.

The survey found that higher-performing organizations are much more likely to use contingent workers in operations, tech, and support functions and increasingly, highly skilled functions such as engineering and legal and financial areas and use these workers for much longer durations.  Their lower-performing counterparts are much more likely to use contingent works in managerial functions. Why are these important distinctions?  “Because lower-performing organizations are making a mistake in using contingent workers in managerial functions.

Managers truly understand the culture and are the primary conduits for strategy and culture, so the ramifications are significant,” says John Gibbons, Vice President and General Manager of Research at i4cp.  In fact, nearly one-sixth of low-performing companies use contingent workers in managerial functions—about twice as much as higher performers.  However, it's also possible that some organizations are bringing in temporary managers to provide short-term leadership and drive change in stagnant or ineffective workplaces. But the stakeholders are many and ownership of contingent workers is spread across organizations and centralization of tracking is rare.

Though the realized cost savings in terms of salary, benefits and taxes are undeniable, companies need to consider the long-term cultural and risk management implications of how they use, manage and track contingent workers.  Factors including engagement, productivity, and concerns about misclassification also come into play, and while the short-range benefits may be net-positive, this may not hold true in the long run.  Regardless, i4cp research suggests a new workforce reality: that the use of temporary workers is here to stay, and that they play a key role in the economic recovery.  Even as the economy recovers it's clear that those numbers are continuing to increase—the Bureau of Labor Statistics reported that 2.2 million U.S. workers were employed temporarily in November 2010, up from 1.7 million in September 2009.

As businesses look to become more agile and, of course, more profitable, they need to focus on determining how contingent workers can be efficiently managed and leveraged as strategic assets beyond a cost-savings fix.  The new report by i4cp explores these issues more thoroughly and provides a valuable benchmark to companies looking to assess how they're taking advantage of temporary workers.

About the Author(s):  Erik Samdahl, The Institute for Corporate Productivity (i4cp), is director of marketing for ic4p.

Monday, April 25, 2011

The National Law Journal's 2011 NLJ 250: Largest Law Firms Employ Fewer Lawyers than in 2008

The National Law Journal's 2011 NLJ 250 Shows Largest U.S. Law Firms Now Employ 9,500 Fewer Lawyers Than in 2008.

NEW YORK, NY--(Marketwire - Apr 25, 2011) - ALM's The National Law Journal today published the 2011 NLJ 250, its annual list of the nation's 250 largest law firms, which documented the second consecutive year of headcount declines among the top law firms in the U.S.

[Law Firms on] the NLJ 250 [list] collectively employed 9,567 fewer lawyers in 2010 than it did in 2008, a decline of nearly 8 percent in [direct-hire lawyer] headcount, with the 10 largest firms in the U.S. alone losing more than 1,000 lawyers last year.  This is just the second time in the 34-year history of the NLJ 250 survey that the nation's largest law firms [collectively] have experienced a net reduction in employed lawyers for two consecutive years.

The NLJ 250 appears in the April 25th issue of the newspaper and is also available online now at http://www.nlj.com/

[Lawyer] "Headcount continued to spiral at the biggest firms in 2010, and the impact was even deeper than we had initially expected," said David L. Brown, editor in chief of The National Law Journal. "The NLJ 250 is thousands of lawyers smaller than it was just two years ago."

According to Brown, the Top 10 law firms on the 2011 NLJ 250 are:

1 Baker & McKenzie 3,738
2 DLA Piper 3,348
3 Jones Day 2,502
4 Hogan Lovells 2,363
5 Latham & Watkins 1,931
6 Skadden, Arps, Slate, Meagher & Flom 1,859
7 White & Case 1,814
8 K&L Gates 1,763
9 Greenberg Traurig 1,721
10 Mayer Brown 1,645
1 Baker & McKenzie 3,738
2 DLA Piper 3,348
3 Jones Day 2,502
4 Hogan Lovells 2,363
5 Latham & Watkins 1,931
6 Skadden, Arps, Slate, Meagher & Flom 1,859
7 White & Case 1,814
8 K&L Gates 1,763
9 Greenberg Traurig 1,721
10 Mayer Brown 1,645

Once again, the city with the most NLJ 250 attorneys is New York (21,100), followed by Washington, D.C. (12,700), Chicago (7,200), Los Angeles (5,300) and London (4,700). There are nine new entrants on this year's list, including Hogan Lovells, which was formed in 2010 as a result of the merger of U.S.-based Hogan & Hartson and U.K.-based Lovells. The other eight new entrants are briefly profiled in this week's issue of The National Law Journal.

The issue also includes charts for the fastest-growing firms in 2010 and firms with the biggest headcount declines last year, a variety of in-depth charts analyzing the geographic breakdowns of the NLJ 250, and profiles of two midsized firms that have staked out unique market positions in Akron, Ohio and Riverside, Calif.

About The NLJ 250.  The National Law Journal's 34th annual ranking of the nation's 250 largest law firms are based on the average number of full-time equivalent attorneys for the period Jan. 1 to Dec. 31, 2010. The NLJ sent surveys to about 300 law firms to determine the 250 largest. Lawyer counts do not include contract or temporary attorneys. A firm must have more lawyers based in the United States than in any other single country to be included on the list.

About ALM.  ALM, an integrated media company, is a leading provider of specialized business news, research and information, focused primarily on the legal and commercial real estate sectors. ALM's market-leading brands include The American Lawyer, Corporate Counsel, GlobeSt.com, Insight Conferences, Law.com, Law Journal Press, LegalTech, The National Law Journal and Real Estate Forum. Headquartered in New York City, ALM was formed in 1997. For more information, visit http://www.alm.com/.

ALM, The American Lawyer, Corporate Counsel, GlobeSt.com, Insight Conferences, Law.com, Law Journal Press, Law Technology News, LegalTech, The National Law Journal and Real Estate Forum are trademarks or registered trademarks of ALM Media Properties, LLC.

Thursday, April 21, 2011

The Illinois IDES

I was at a meeting yesterday of a professional associate of which I am a member.  It is the Illinois Search and Staffing Association.  See: http://issaworks.com/  The meeting seminar was titled: Unemployment Insurance Workshop "Meeting Business Needs"   The workshop covered:

"How To" Guide to completing the UI Protest, BIS Form 32: Understanding the unemployment process and all you ever wanted to know about effectively completing BIS Form 32 but didn’t know whom to ask. You will have the opportunity to discuss the BIS Form 32 with a subject matter expert.
Work Opportunity Tax Credit: Learn how to reduce the cost of doing business, while helping those   most in need gain valuable work experience.  These incentives start at $2,400, and could amount to as much as $9,000 in tax credits for one individual hire from the IRS.
Re-Entry Employment Services Program: The RESP is designed to help reduce recidivism in Illinois.
Role Plays of Actual Cases: This is a fun and interactive way to better understand the complicated cases involving unemployment.  This method also helps employers better prepare for unemployment hearings and provides an awareness of the hearing process.
Illinois Skills Match: Ever wish for a simple way to hire the right person for the job?  The Illinois Department of Employment Security has an Internet database designed for both the employers and employees to find jobs/candidates that meet their criteria for employment.  Enhance your ability to find qualified candidates for employment. Let us assist you!
Employ Illinois Veterans: What better decision to make as an employer than to hire a veteran.  These individuals have training, take pride in their work and may also be able to earn you a tax credit for your business.  Learn more at the workshop.
New Employee Bonding Program: Employers can apply for fidelity bonds through IDES.

It was very informative.  But what I found to me most odd, was that the bureaucrats from the IDES now refer to claimants as their "clients."

Tuesday, April 12, 2011

ManpowerGroup's 2010 Annual Report

I own a few shares of Manpower (MAN) stock in order to get their annual report.  I have heard and seen their CEO Jeff Joerres speak twice at national staffing conventions (of the ASA) and he is truly visionary and motivating in the business field within which I work.  Manpower is ranked by Fortune magazine as one of World's Most Admired Companies.  He totally gets staffing and placement and runs a great organization.  Their 2010 annual report, titled Empowering the World of Work, has really nice opening feature on how this next decade and beyond will be the Human Age.  Stating, "It's not about technology.  Or Systems.  Or money.  The talent, ambition and imagination of people will be the key building blocks of growth."

I like that - and I agree.  To be sure, my staffing firm is no Manpower, nor does it wish to be.  It is just a microscopic, granular spec of a version of the same model, and in a narrow niche segment (legal) and geographic (Chicago area) area.  But based on their shear size and breadth - they are standard bearers in the staffing and placement industry.  I applaud them for all that they do to lead by example and for what they do in terms of lobbying for laws (local and Federal) that are enacted to be fair and not harmful to employers in the temporary staffing business.

Tuesday, April 5, 2011

Chicago's Best Places to Work (according to Crain's Chicago Business)

Crain's Chicago Business magazine just released their annial ranking of "Chicago's Best Places to Work."  But I have a beef with their list.  First here is their list:

1.      Centro LLC
2.      Assurance Agency Ltd.
3.      Microsoft
4.      McTigue Financial
5.      Robert W. Baird & Co.
6.      Donlen Corp.
7.      Chubb Corp.
8.      Tasty Catering Inc.
9.      Lake Forest Graduate School of Mgt.
10.   Google
11.   Clifton Gunderson LLP
12.   Hitachi Consulting
13.   Radio Flyer Inc.
14.   Digitas Inc.
15.   LeasePlan USA Inc.
16.   Transwestern Commerical Services LLC
17.   CareerBuilder LLC
18.   Deloitte LLP
19.   Alterian Inc.
20.   Belvedere Trading LLC
My beef is - Microsoft and Google are not really Chicago companies.  They have offices here in town - but Crain's should only rank companies that have their corporate HQ offices in Chicago (and/or our suburbs).