Vice Presidents and HR directors of the one hundred largest corporations were asked to describe their most unusual experience interviewing prospective employees:

• Candidate announced she hadn’t had lunch and proceeded to eat a hamburger and french fries in the interviewers office.
• A job applicant challenged the interviewer to an arm wrestle.
• Interviewee wore a Walkman, explaining that she could listen to the interviewer and the music at the same time.
• Applicant interrupted interview to phone her therapist for advice on how to answer specific interview questions.

Watch this compilation of funny interview scenes from a variety of movies to get a better feel of how frustrating it is to waste your time interviewing horrible candidates.

What a hassle! What hiring manager wants to spend their days interviewing unusual and unqualified candidates? With business now picking up, you will probably be faced with new projects and many vacant positions that need to be filled. How will you hire the perfect employee without spending every waking minute posting job openings, sorting through stacks of resumes, scheduling numerous interviews, checking references and more difficult time-consuming hiring tasks? 

Spend your day concentrating on your business and let a reputable IT Staffing firm, like RSA Corp, handle your professional IT Staffing needs. RSA Corp specializes in staffing hard-to-find, highly skilled business technology professionals locally, nationally and internationally.  Our mission is to be a partner in your success and to help your business grow and prosper. There is no better time than the present to begin considering your need for more quality IT professionals.

“If you think hiring professionals is expensive, try hiring amateurs”

For more information, please email me at dewayne.addison@rsacorp.com or visit the RSA Corp website.

Hiring a new employee is stressful; it’s a gamble, and there is often times a lot of apprehension about making the right decision.  Is this REALLY the right person for your team?  Will you see the ROI on your time and money put into this new hire?  Maybe it feels like the right time to expand your team by adding another skilled person, or maybe you find yourself needing to add a specialized skill set to your department.  Bringing in a skilled contractor can alleviate much of this apprehension and concern because it isn’t quite as risky of a commitment as spending time and valuable resources on a permanent hiring decision.  Here are some of the best reasons to consider adding a contractor to your team.

Number 5:
Need to add an effective person temporarily

Let’s face it…there are times during the course of a project when things can get out of hand.  Milestones and deadlines are fast approaching and you aren’t sure your team is going to meet their goal.  The full-time staff is doing a great job, but an extra set of experienced hands could make the difference between making or breaking a deadline on many mission-critical projects.  Adding one or two contractors with direct experience on similar projects will save time, free up your full-time resources for daily business activities, and allow an expert to ensure successful delivery of the project. Contractors can save the DAY!!

Number 4:
Contractors are cheaper to have on staff than a permanent employee

With the cost of insurance, taxes, workman’s comp, etc…etc…constantly on the rise, the cost of having a full-time employee goes up every year.  Add to that the upfront cost and time invested in training a permanent employee to be sure he/she is up to speed and able to be effective and you can see how much the investment is in the first few months of employment.  What you need to ask yourself is, “would a contractor be just as effective in this role and available to make a difference from day one?”  Often times the answer is a resounding “YES”, and thousands of dollars could be saved every week allowing more budget to improve the department elsewhere.  It takes an experienced Staffing Partner to know the connections in your area with the right skills to really be effective immediately, but this is often times seen as a more cost-effective solution vs. hiring a full-time/permanent employee.

Number 3:
Faster Ramp-up Time

An experienced contractor will be at the top of their game in technology which allows them to be effective immediately.  Instead of weeks/months of training and acclimating to your environment, a contractor will be an effective team player (or leader) from day one and begin to solve mission critical problems; making your life easier.  Many of our hiring managers keep several contractors on-site working with their permanent employees several times a year in order to keep everyone’s skills sharp, expose them to the latest and greatest techniques/technologies, and to augment their staff at peak times of production when necessary.

Number 2:
The skills you need are more common in the Consulting/Contracting market

There are a wide variety of highly-specific and needed skill sets out there in the IT world that are predominately possessed by independent contractors.  IT Departments and Corporations needing these skills for specialized projects often benefit from employing the services of an outside (third party) firm or independent consultant.  Using a third party partner is also desired in many situations due to their inherent unbiased approach.  These skills may also be rare or hard to keep on staff due to the ever-changing nature of things in IT.  ERP professionals, Security audits/assessments, Infrastructure Architects, and systems implementation professionals are a few areas where there is often a much greater talent-pool in the contractor community, and an unbiased third party approach would prove very advantageous.

Number 1:
Contract-to-Hire (try before you buy)

You really do need a full-time/permanent employee, but you don’t have time to go through weeks of interviewing only to not really be 100% sure you have chosen the “right guy” for the job.  The contract-to-hire option allows you to bring someone on without the initial cost of a direct hire employee and provides 3-6 months of “contract time” to let this person really prove they ARE the right person you want as a permanent addition to your team.  It allows you to keep the production up by hiring a contractor and if they don’t prove to be the “right guy” for the job you can end the contract and bring in another contractor to try them out for the permanent position; all without any down-time.  In fact…bringing someone to work as a contractor, with the potential to become a permanent employee, will improve the team’s production and you will feel confident in your decision to hire (or not to hire) this individual when the time is right.

When it comes to hiring new employees, the simple fact is that having a staffing firm locate candidates allows you to focus on other tasks besides hiring. However, working with a generic staffing firm may actually end up costing you more time/money. Such staffing firms are more generalists and try to place candidates in all kinds of industries.  Therefore, they tend to not have a solid understanding of ANY industry, including yours.

Many companies think that all staffing firms are fairly similar. Yes, they all find candidates to fill your open positions. HOWEVER, generic staffing firms typically have no working knowledge of specific vertical markets and are only recommending candidates whose resumes include the same words listed in the job description. Well that’s what you wanted, right? WRONG!

Sports Analogy

Let’s use the Pittsburg Steelers as an example. Let’s say that Head Coach, Mike Tomlin, needed to fill their Strong Safety position.  This is what Tomlin asks a generic staffing firm to find him:

• Position: Strong Safety
• Fast
• Strong
• At least 2 Super Bowl rings

To Tomlin, the youngest head coach in NFL history to coach in and win a Super Bowl, this list of qualifications would be enough to find him a Strong Safety. The generic staffing firm, on the other hand, will not know what is considered “fast” or “strong” as it pertains to the uniqueness of the Strong Safety position. They don’t know what a Strong Safety does for the team so they don’t know that their candidate needs to be really fast and agile to allow him to switch directions when chasing down receivers. The generic firm also wouldn’t know that, while the candidate needs to be strong enough to tackle a receiver once he catches up to him, he does not have to be the strongest player on the team. Therefore, the generic staffing firm submits a candidate who matches the qualifications listed…to the best of their knowledge.

Who do they submit? Ben Roethlisberger (the current quarterback for the Steelers).

“Big Ben” has average speed, is physically strong, and has 2 Super Bowl rings. Yet, at this point, Coach Tomlin switches from a generic staffing firm to a Specialized Staffing Firm. Why? The answer is relatively simple: a professional staffing firm that specializes in his industry, football, would see that “Big Ben” is specially trained to excel in strong accurate throws, defensive awareness, and leadership.  The Specialized Staffing Firm would submit “Big Ben” as a strong quarterback, but would realize he is too big and slow to be a Strong Safety.

Coach Tomlin will be much happier when the Specialized Staffing Firm submits Troy Polamalu (the current strong safety for the Steelers). Polamalu not only meets the written qualifications, but his incredible speed and sharp eyes helps him make interceptions which is a qualification that is simply understood when you are familiar with the sport.

This deep understanding of the industry allows Specialized Staffing Firms, like RSA Corp, to introduce companies to better qualified candidates in a shorter period of time. If you need to fill an important professional position within your company, beware of handing it off to a generic staffing firm as they might…. “drop the ball”!

Good luck to the Pittsburgh Steelers as they play the New York Jets this Sunday in their drive towards a 7th  Super Bowl Championship!

On the first day of Christmas,
My IT Partner gave to me
Business Support for IT.

On the second day of Christmas,
My IT Partner gave to me
Two security features (email and web)
And business support for IT.

On the third day of Christmas,
My IT Partner gave to me
Three Staffing options (contract, direct hire, contract-to-hire)
Two security features (email and web)
And business support for IT.

On the fourth day of Christmas,
My IT Partner gave to me
Four DR solutions
Three Staffing options (contract, direct hire, contract-to-hire)
Two security features (email and web)
And business support for IT.

On the fifth day of Christmas,

My IT Partner gave to me
Five custom apps
Four DR solutions
Three Staffing options (contract, direct hire, contract-to-hire)
Two security features (email and web)
And business support for IT.

On the sixth day of Christmas,
My IT Partner gave to me
Six SharePoint projects
Five custom apps
Four DR solutions
Three Staffing options (contract, direct hire, contract-to-hire)
Two security features (email and web)
And business support for IT.

On the seventh day of Christmas,
My IT Partner gave to me
Seven days a week of monitoring
Six SharePoint projects
Five custom apps
Four DR solutions
Three Staffing options (contract, direct hire, contract-to-hire)
Two security features (email and web)
And business support for IT.

On the eighth day of Christmas,
My IT Partner gave to me
Eight onsite visits
Seven days a week of monitoring
Six SharePoint projects
Five custom apps
Four DR solutions
Three Staffing options (contract, direct hire, contract-to-hire)
Two security features (email and web)
And business support for IT.

On the ninth day of Christmas,
My IT Partner gave to me
Nine tech employees
Eight onsite visits
Seven days a week of monitoring
Six SharePoint projects
Five custom apps
Four DR solutions
Three Staffing options (contract, direct hire, contract-to-hire)
Two security features (email and web)
And business support for IT.

On the tenth day of Christmas,
My IT Partner gave to me
Ten system integrations
Nine tech employees
Eight onsite visits
Seven days a week of monitoring
Six SharePoint projects
Five custom apps
Four DR solutions
Three Staffing options (contract, direct hire, contract-to-hire)
Two security features (email and web)
And business support for IT.

On the eleventh day of Christmas,
My IT Partner gave to me
Eleven blogs of info
Ten system integrations
Nine tech employees
Eight onsite visits
Seven days a week of monitoring
Six SharePoint projects
Five custom apps
Four DR solutions
Three Staffing options (contract, direct hire, contract-to-hire)
Two security features (email and web)
And business support for IT.

On the twelfth day of Christmas,
My IT Partner gave to me
Twelve IT services
Eleven blogs of info
Ten system integrations
Nine tech employees
Eight onsite visits
Seven days a week of monitoring
Six SharePoint projects
Five custom apps
Four DR solutions
Three Staffing options (contract, direct hire, contract-to-hire)
Two security features (email and web)
And business support for IT!

Happy Holidays from your IT Partner, RSACorp!

RSA Corp, a member/owner of NPA Worldwide, is proud to announce therecent implementation of an International Contract Staffing model utilizing trusted NPA Worldwide affiliates in foreign countries.  The model offers a seamless, single point of contact for one of  RSA Corp’s  multinational chemical manufacturing  client.  After many years as a preferred partner, RSA Corp was tasked by the client to enhance the relationship on a global scale.

RSA receives the order for personnel and then engages the trusted member/owner partners of NPA Worldwide to do the search locally in the foreign location.  The NPA Worldwide member/owners are independent, locally owned and operated, successful staffing firms who possess intimate knowledge of the cultures, hiring practices, compensation requirements and common processes in their local market.  The member/owners have a mature database of local IT talent unmatched by international providers who depend upon branches and branch managers who may not be from the regions.

The local member/owner provides payroll services in local currencies, thereby alleviating the difficulties in currency exchange.  The local member/owner pays the consultant in accordance  with local country guidelines, and  then invoices RSA Corp who in turn consolidates all billing to the domestic client.  In so doing, the client experiences a reduction in administrative costs and avoids the hassles of currency exchange differences.

“We are very excited about the implementation of RSA Corp’s international model,” says the client’s IT&S International Director, “because the single point of contact for a search, and for invoicing and payments reduces our costs and streamlines our hiring of international consultants.  RSA Corp has been a trusted staffing partner for over seven years and this expanded capability will prove to be a valuable addition to their service for our company.”

For more than fifty years, NPA, The Worldwide Recruiting Network has been connecting independent global recruiting firms to facilitate split placements. NPA Worldwide is the oldest recruiting network of its kind, with an international membership of recruiting firms located throughout Europe, Asia, Australia, Africa and the Americas.  The code of ethics and the best practices of partnership shared by member/owners provide a trust basis that is unparalleled in the staffing industry.

There are many ways to find a new job.  Today we have all kinds of new technologically advanced tools to help us in our search for a new career home or consulting gig.  Online job boards, niche networking groups, LinkedIn, Facebook, and various blog sites can often prove to be very useful tools in marketing your skills and resume.  These are all great tools to utilize when searching for a job, but there is something very powerful about the relationship of a professional recruiter and their hiring managers.  Working with a specialized recruiter can give you a strong competitive edge over the competition; especially a recruiter with a strong relationship with a hiring manager that they have worked with for several years.

Hiring managers that have worked with a reliable recruiting/staffing partner for many years will often put a lot of trust that recruiter’s professional opinion.  They trust the proven fact that the well-known recruiter will only provide them with the right person for the job, for their team, and someone that really will add value to their overall hiring goals.  When your resume comes from a trusted partner (specialized recruiter) it can be much more attractive to many hiring managers when compared to random strangers sending in their resumes through an online web portal in a generic fashion.

When working with a recruiter, you need to understand that certain things are necessary to really have an open, productive relationship.  Basically, it all boils down to a simple phrase… “Help me…help you.”  Many times you must speak much more openly with a recruiter than you will with the hiring manager.  The recruiters job is to assist you in ensuring you put your best foot forward, assist you in how to talk with the hiring manager, ensure that you are properly prepared for what to expect in the interview, prepared for the type of people you will work with, and any good recruiter will be able to honestly let you know if he thinks you will fit into the environment technically and personally.  Here are 5 key things that you must be direct/honest with your recruiter about in order to allow him to help you properly.

1. What are your career goals?
Recruiters will know if a particular company offers career advancement, the expected timeline for growth potential, and how to best express your goals to the hiring manager in the interview.

2. Are you really ready to leave your current job and start a new one?
Sometimes people would like to interview to see if they can really get that “deal of a lifetime” offer they can’t refuse, and other times people really do need to find a new position that better fits with their career goals.  Your motivation for looking at a new position are very important and the multitude of factors related to your ability to start a new job are equally important.  Some things to keep in mind and talk with your recruiter about include: Do you have a vacation planned soon? Do you receive an annual bonus? How much vacation time to you have now? Can you start a new position in 2 weeks? How will you handle a counter-offer from your current employer?  These are all things that you need to discuss with your recruiter to work through how they will be handled when a new job is offered.

3. What salary/compensation package are you prepared to accept?
This information is just as critical as what you are currently making for many reasons.  Many times, the recruiter will be negotiating on your behalf with the hiring manager/company.   If you tell me you MUST have a $120,000 base salary to accept the position then that is what I will do for you.  I will negotiate your compensation to the level you tell me you must have.  But if in reality you WOULD have accepted $100,000 as a base salary, but I didn’t know that…you could miss out on your dream job simply because you weren’t honest with your Recruiter.  We will work as a team on the best way to present your salary needs to the hiring manager if it comes up during your interview to ensure we are able to meet your goals.  This goes for your current compensation level as well.  This information will be critical at offer stage with the company and will provide your recruiter with the vital information to negotiate as best as he can on your behalf.  It benefits you and the recruiter to get you the best compensation package possible, so be sure you are open and honest about what you need, want, and will accept.

4. Will you consider working outside of the city or relocating to a new state?
When you tell your recruiter you must find a local position, only that is what they will do…focus only on telling you about local opportunities.  Really think this through though because if there is a chance you would consider moving back to your home-state, or really have always thought about trying a different city, it would benefit you to tell your recruiter this.  There could be a job opportunity with a company willing to offer a relocation package to move you there.  If your recruiter doesn’t know it would interest you…why would they tell you about it?

5. Do you have other interviews going on and how far into the process are you?
This is very important for many reasons.  If you have had three interviews with XYZ Company and are expecting an offer by the end of the week, you really need to tell your recruiter this.  The main reason is so that they can tell their hiring manager if you are “the one” they want to hire they better make it happen FAST or they will lose you to the competing company.  This could be the difference between a hiring manager emailing a document to HR to get signed (taking a couple days) or walking it down there personally and getting it done THAT day.

Obviously these are things that you will only want to share with a trusted recruiter that you feel confident has your career interests as his first priority.  Being open and honest with your recruiter really can make or break the deal for you…and in the end, you are the one that is the most important player here as it is your career on the line.  If you help us, help you…the experience can really enhance your career search and ultimately provide a smooth career transition to your new position.

• Bad Idea – Hiring just ANY recruiter to quickly fill your IT openings
  

Scenario 2

Scenario 3

Scenario 4

Scenario 6

• Good Idea – Keeping the manual that helped you install your software
• Bad Idea – Keeping tech guy Emanuel who helped you install your software

Scenario 7

• Good Idea – Choosing RSA Corp for all your Managed IT Services and IT Staffing needs

• Bad Idea – Choosing anyone else!!!!

Are you the right candidate for the job…and if you are…does your resume clearly show that?

What makes a person stand out on paper as having all the right skills and look like they have all that it takes to be “the one”?  Starting your job search with a great resume can definitely make or break your chances of being invited for an interview.  Without the interview, there’s no chance of getting the job offer, so it all really starts with the resume you are using to represent your skills and background.

There are several key things to remember when organizing and preparing a new resume that will increase your rate of success. These key things have changed over the years.

The days of a 1 page resume are over.  Too much technology and too many multi-functional job titles make it nearly impossible for a technology professional to keep his/her resume to 1 page.  Trying to do so will ultimately hurt your chances when looking for a job.  At the same time though, the long 10+ page resumes that tell your whole life story have also started being tossed in the trash without a second glance.  I’ve actually had a hiring manager tell me if I send him a resume over 4 pages long that he is going to delete it and move on to the next person.  There is definitely a fine line between a good resume and a great one.

Let’s go over the outline of a standard professional resume by today’s standards:

1. Name and contact info – this should include your full legal name, 2 contact phone numbers, and your email address.  If a hiring manager can’t get a hold of you when they need to talk with you, they will just move on to the next person.

2. Summary – Brief (1 to 2 paragraphs) intro that offers an overview of your professional experience and skills. Don’t include every single thing you have EVER done in this summary.  Try to focus this section on your most recent technical skills you’ve achieved in the last couple years as they relate to the job you are seeking.

3. Skills – This section is (in my opinion) optional.  If you clearly and properly explain your skills, as they relate to each job title, in your “Experience Details” section as I recommend below, then you really don’t need this extra skills list. Some people like to have it and I don’t really think it matters either way, so I’ll leave that decision up to you.  Just be aware that you NEVER want to include skills anywhere in your resume that you can’t actually discuss in a professional interview setting.

4. Experience Details – This is where you need to list your truly detailed experience chronologically by company beginning with your most recent position.  It is important to include the dates of employment, company name, and your actual job title.  If you prefer to keep your current employer confidential, it is typically acceptable to list the industry you work in and disclose your current employer later in the process.

Write a detailed description of your experience under each company.  You must include what technology you worked with and in what way you worked with it specifically.  I can’t stress this enough.  So many people list their skills in a “Skills Summary” section and then never mention them again in their detailed experience section under the company where they worked with these skills.  You will greatly improve your chances of an interview if the hiring manager or recruiter can clearly see where you used your technical skills and to what depth you used them.  Expect to have 8-10 bullet points under each company, or each job title if you have been with a company many years and grew through the ranks in that company to higher level positions.

Do not lie, exaggerate, or make up things on your resume.  Expect an interviewing manager to ask you about all the skills you have and projects you detailed on your resume.  If you can’t speak to the experience/skills you listed then you should reconsider having that skill listed in your resume at all.  Providing 8-10 bullet points per job title should be sufficient to accurately describe your job function and skills/technology used.

5. Education – This is pretty self explanatory.  College you attended, degree you earned, and any specialized industry relevant certifications you have obtained.  If you do not have a college degree it is still recommended to list any college you have attended and what you were pursuing.  It is recommended that you list any social/academic organizations under your Education section such as: fraternities, sororities, clubs, sports, etc…  These things may not be a direct link to your technical skills, but they could influence a hiring decision if the manager happens to be a member of the same organization.

6. References – This section is also optional but my suggestion is you either provide references on your resume or don’t list the section at all.  It is pointless to write “upon request” under a References section.  Any manager will assume you can provide references, so either list them on the resume or leave this section off all together.

Some people have few sections that are not necessary or not properly utilized.  I would leave out any section related to Personal Hobbies or Lifestyle Choices.  It is not useful to know you like horseback riding at sunset, or enjoy hiking in the Himalayas.  It is not appropriate to list things about your personal life on your resume including marital status, kids, dogs, birds, religion, ethnicity, etc…  I have seen ALL these things listed on resumes before (seriously…not kidding), and it baffles me every time.

This can hopefully serve as a guideline to what a resume should/should not be.  It doesn’t take a resume writing service to develop a professional resume, and it shouldn’t take a literary scholar to properly write down your core skills/experience.  Just take the time to think through what you want your resume to say about you, follow these guidelines, and you will be able to develop a concise professional resume that will position you for success in your search for a new career home.

Starting a new job is going to be something that many IT professionals are going to be doing over the next two years.  Either you have been laid off and are going to finally land that new job, or you are going to be changing jobs to get a raise that has been delayed during this terribly bad recession.  Some of you are just tired of working harder due to the diminished work force in your current environment.

So, when you start that new job, how do you guarantee that you make a great impression on management?  It doesn’t matter whether you are the hardware roll out technician at the receiving center or the CEO, someone is going to be watching your activities in that first three months.  The perceptions of your management are going to be set in those first three months on the job.

Here are seven activities that will guarantee that you will make a great first impression.

1. Ask for documentation or job task descriptions prior to your start day. Asking for something to review so that you can hit the ground running on day 1 will make a very positive statement about your willingness to get involved quickly in the company and the job.

2. Arrive at least 30 minutes early on the first day and every day after that for a minimum of three months. If you are on a time clock, don’t punch in early, but start working early.  Be at your desk, or at your workstation preparing for the day or beginning the unfinished tasks from the day before.  When the time to clock in arrives, do so, but not before.  Showing a willingness to do a little more than you are paid for says volumes about you and your commitment to the company.  When it is time to clock out for the day, do so.  Any tasks that can be completed with fifteen to thirty minutes more work, do it after you have clocked out.  If you are not punching a clock, do these same things anyway, and the extra time and effort will be noticed.

3. Never, ever, be underemployed. When you finish a task, go ask for another one.  Don’t waste even 15 minutes with nothing to do.

4. Forget social media sites during business hours. Facebook and LinkedIn and MySpace and YouTube should be reserved for lunch time and home.  If you choose to follow one of the sites at lunch time, do it away from the office and on your own smart phone or PDA.  Forget game playing, even if you regularly work at home and feel that you are giving more than your 8 hours to the job because you work afterhours.

5. Never spend time at your desk on your cell phone unless you are working on company business. If the cell phone is part of your job, make sure it is only used for that during business hours.  If there is the possibility of an emergency call coming in during a day, be sure to tell your management about it as soon as you know of the possibility, and inform your peers also.

6. Take advantage of at least one training opportunity in the first three months that will enhance the skills necessary to do your job better. Make sure that you do the training on your own time, even if the company will allow you the time during regular hours.

7. And finally, take responsibility for all of your actions, and never place the blame on a peer or a customer. Always say, “I recognize the problem and I will do everything in my power to make sure that I learn from this instance.”  There are times when you might be falsely charged with an error or problem.  Defensiveness is not the path for you.  Remember, you are in that important “first impression” period.

Following these guidelines in the first three months will solidify your reputation as a hard worker and a committed employee.  First impressions last a long time, and these actions will guarantee a great one for you on that new job.

As we all start to raise our head from the mud of the depression, opportunity to topgrade our organizations will present itself.  The stress of the past two years has many talented folks ready to change and get a fresh start at a new company.  And, like other times in history after big downturns, many talented folks have found themselves unemployed or underemployed by no fault of their own.

Jeff Schwartz offers great insight into these opportunities in his post to Knowledge@Wharton in the last few days. http://knowledge.wharton.upenn.edu/article.cfm?articleid=2557

Excerpts follow, or you can read the full posting at the link above.

Although many business leaders are not convinced

that the worst of the global economic crisis is over, there is no better time than the present  for top executives to ramp up their recruiting of top talent, launch new in-house programs  for training future leaders, and map out a formal succession plan covering the CEO or other top officials. These are among the key findings of a massive, year-long study of approximately 1,800 global executives by professional services giant Deloitte titled, “Managing Talent in a Turbulent Economy: Where Are You on the Recovery Curve?”,  which seeks to answer some of the questions about how leadership training and development fits into economic recovery efforts.

The project, which surveyed senior executives from a cross-section of large companies around the globe, found that the firms that posted stronger performances and were more optimistic about the future were those that refused to put retaining top employees — or even hiring some of their rivals’ future stars — on the back burner.

Over time, these industry leaders began to display a measure of confidence that the world economy was turning around, although slowly. In December 2009 — when the final part of the study was released — the surveys found that 35% of executives thought the worst of the economic crisis had passed. It was the highest figure since the meltdown occurred. Despite a growing sense of optimism, however, a majority of managers continued to maintain that their top priority was managing costs and making cutbacks.

In fact, the number of executives who cited “reducing employee headcount” as their highest talent priority jumped up in the final tally. At 31%, it still ranked as a higher priority than “training and development” (29%) or “retention” (27%).

Perhaps most importantly, executives at firms that placed a greater emphasis on leadership, with ongoing programs in place and clearly identifiable procedures, also reported higher morale and greater confidence in management from the rank-and-file. Nearly 60% of the respondents that described their leadership development programs as “world-class” reported increasing employee morale, while 53% reported greater trust and confidence in corporate training.

Investments in people and leadership were missing in companies who never changed tactics and were members of that 31% concerned with reducing headcount.  Talent that survived has lost a lot of confidence in their organizations.  Now is the time to strike to find new blood and ideas for your company.

Have you called your favorite recruiting firm yet to begin tapping that vein of great talent?

That phone is going to ring any moment now and the voice at the other end of the line is going to hold my future in his or her hands. What can I say or do to make sure that I get the option to take the next step in my search for the perfect job?

We all have faced the challenge of the telephone interview. Some are one on one, some have a team of people sitting around a conference call listening for the knocking of my knees or the stutter in my voice. It is sheer torment, and I know that there must be a way to prepare myself for this challenge.

How about this? I call it 20 Questions. I put myself into the role of “interviewer “, rather than “interviewee” and write down 20 questions that I might ask if I were interviewing me for this job. After writing those questions down, I then go back and write the answers to those 20 questions.

Two things happen. I have the time, with no pressure, to organize my thoughts and get the answers down in a complete manner, that I want to share with my interviewer or interviewers. And secondly, and most importantly, I get the opportunity to walk away from the list for a while and allow the dynamic of, “wow, I wish I had said that” to occur. In having time for that familiar dynamic, I can then get the list out and add that thought to my answer.

Experience tells me that over 60% of these questions will be asked during the interview. After all, I know what the job entails and I know the skills necessary to win such a position. In knowing that, I know what I would want to know about a prospective candidate. The key is writing these down.

And you know what? Because I did something proactive to prepare, I can take the call in a much more relaxed and confident manner. I sound better, I respond better, and I am going to win this interview.

What other techniques do you use to prepare for a telephone interview?

We are in another state of transition where we are hopefully looking in our rearview mirrors (for now) at the recession of 2008.  Everything is cyclical, and in staffing nothing rings more true.  So, how does a staffing company move forward in providing excellent service and benefit to prospects and clients?  There is more than one answer and always two sides to a coin……..

Businesses are regrouping and retooling internally to best position themselves in the economic upswing.  All companies have clients for their product and utilize many ways to market and sell, but people are a key cog in the wheel.  For example, you have a sales force to push your services but you had to cut back on the number of your team by half last year due to the recession.  You need to get back to meeting the numbers required for your company to be profitable.  Thus, a problem (I like to call it a challenge) arises.

How do you meet these numbers with half the resources? Quite simply, the old adage of “you have to spend money to make money” should be on your radar.  You invest in people and people will bring revenue to your company’s bottom line.  Going in the woods to fight a bear with a wooden pencil is not a recipe for success.  Invest in your sales force and get that revenue stream rolling while landing new clients and satisfying existing ones.

“But I don’t have the budget for additional headcount.”

Your organization began a 2 year implementation of a global ERP system that cost several million dollars.  The project budgeted for X amount of consultants but had to be reduced in headcount, and the timeline to completion has been pushed back 12-18 months.  Along I come, from a staffing company, with the ability to get you the talent and expertise to get your ERP project back on time.  You tell me that you cannot afford to replace the 3 consultants that you scaled back on last year.  Hmmm…..the problem (remember, I like to call it a challenge) is not that you don’t have budget for additional headcount. It’s that the VALUE of the ERP project is not being considered.  Taking an additional 12-18 months to complete will probably cost a lot more than the additional headcount.  If I provide you with the right candidates, and you see that they will bring immediate value to getting the project back on track, THAT is something that can be measured.

Not every situation is the same.  My job is to find new opportunities.  I define opportunity as a situation to be a measurable resource.  If I help a client fill their jobs, that is success.  If I market a candidate to a company, open job/project or not, and the client can utilize this person within their organization, that is success.  Remember, everything is cyclical…….just like life, enjoy the ride!

In today’s business world, where overhead and costs must be controlled in order to remain competitive, Human Resources professionals find themselves constantly short on the resources required to fulfill the broad range of tasks in their job descriptions.

Benefits administration, employment processes, training, college campus recruiting, job analysis and classification, compensation support and analysis, company policies and procedures development, operational analysis, employee assistance and welfare, employee relations and labor relations, EEO and affirmative action policies and procedures are a few of the tasks incumbent in the Human Resources Professionals’ day.

Oh, did I forget one? Recruiting experienced talent to drive profits and performance of the company should be high on the list, but how does one prioritize when the list is long and the hours are short?

The pressures from within, to be an effective recruiter or recruiting organization, are crushing. Operational and strategic managers and officers  must have good, talented folks in order to satisfy   the needs of the business.

HR Pros must make a decision. “Do I concentrate on recruiting and let the other tasks fall where they may, or do I find a way to make my recruiting time efficient? I know how to go to Monster or Dice or Career Builder or LinkedIn or Facebook and find a lot of folks who might fill my needs! But is that the best use of my limited hours? What if I only had to consider the best three candidates from all of those sources? Would that free up more time to take care of the other important tasks in front of me?”

Choosing a Pro Contingent Fee Recruiter provides a partner who spends 100% of his time recruiting for you. That is his only job. He is one who provides those three truly qualified candidates, makes the recruiting process the most efficient that it can be. And I do mean a Pro. Recruiters who fill your inbox with resumes clipped from the job boards are not what the HR Pro needs. Embracing the recruiter as a partner will provide expert consultation on market conditions, salary requirements, and best hiring practices that will guarantee that the company hires the best candidate for the job. All of this for a fee that is not due until the talent is on board and happily working. What a deal! And what efficiency! The partnership cannot be beat.

Episode # 17- George Black, CEO at RSA Corp, explains the steps to take when searching for a new job, tips to ace an interview, and how to ensure success at a new company.

Episode #12 – George Black, CEO at RSA Corp, explains what hiring the right “athlete” means and how they can benefit your company more than just another skilled player.

If you are highly qualified for specific jobs, a recruiter can help you find the best opportunity. For them to do this, however, both you and your recruiter must really trust each other. Working with a recruiter is a two-way street, and if you feel your recruiter is not being up front with you, it might be time to find a new one.

Understanding the benefits of each staffing model  can make the difference between boosting operational efficiencies and driving competitive advantage OR stalling necessary growth and improvement. Let’s compare typical models to determine which is best for which industry and how each model affects immediate technology needs, turnover, cost and employee lifestyle.

The current economic situation, layoffs and downsizing in 2008/2009 has created a huge surplus of job seekers. For companies with positions to fill and technology projects to complete, sifting through candidates can be a daunting process.

Both contract and permanent staffing models play a role in a down economy. Learn more about them in this complimentary mini eBook: IT Hiring Outlook 2010: Contract Staffing vs. Permanent Hire.

Read comments from hiring managers who are using different types of employees to control budgets and improve efficiencies.

Organizations are beginning to hire to accomplish the value-add projects necessary to get ready for recovery. With major cost-cutting in the past, now is the time to rebuild. Focus on projects that promise to bring real value, restore cuts that need to be restored and eliminate projects that failed to add value.

The hiring outlook for 2010 is cautiously optimistic. Budget cuts and layoffs have been the norm for the past two years. The IT industry and businesses of all sizes have been reeling from the impact. In 2009, unemployment rose substantially across all sectors of the economy, with the unemployment rate easing only in the fourth quarter.

“As one IT executive explained: We have been flat for the last two years with little capital expenditure, and we have to make it up this next year as our infrastructure is falling to pieces. We cut too much, too long.” (Computer Economics quarterly report)

We understand that everyone is shorthanded. Everyone has cut deeply. Everyone must begin to catch up with the technological advances that bring revenue and value to the organization. The gold rush for talent will begin and accelerate at a rate like we haven’t seen since the late 90s.

Some organizations are growing, even in this environment, and can no longer afford to restrain hiring. At the 75th percentile, companies plan to increase IT staff by 5% in the coming year. As one executive put it: “Our firm is continuing to grow despite recent economic problems, which has stretched resources; we are now having to hire.”

Is it now time for technology executives and managers to start hiring?

I believe it is, and the ones who start now will get the opportunity to mine for great talent. Once everyone starts hiring, the price for great talent will escalate, and the golden talent in the mine will quickly become depleted.

Cautious yet determined managers will begin to at least mine for talent now, utilizing the proven contractor method as a way of identifying good talent that can be then enticed to become regular members of the team. Contract-to-hire models will again be used to “try before buying.”

How are you preparing for the Gold Rush?

What is the hardest thing we do in business…want to hazard a guess?

Hiring someone to do a critical task for us is one of the hardest things we do, yet we face this challenge over and over again. We all hate it. It always happens at the worst time. Whether it’s because business is growing or because we lost an employee, we find ourselves faced with the daunting task of kissing a lot of frogs to find a charming prince.

Why is it the hardest thing we do? Why do we hate it? What is the risk to each of us?

A hire reflects on us directly. It says so much about us. It effects our every waking moment because the person we hire is expected to do the tasks that need doing. If we hire the wrong person, our life is turned upside down. In many cases, we end up doing the work that the wrong hire was supposed to do. If we fire the person as quickly as we find them, we must fill the gap and kiss a few more frogs.

Is there a solution to this?

Engage, interview, get to know and give open access to a recruiter or two. Find someone who knows your industry, knows the technologies you use and how the components fit together. Until proven otherwise, expect that person to be totally trustworthy.

Good recruiters are professionals and have spent many years honing their skills in finding the best talent. They can spot red flags quicker than you. They make your interview process efficient. But most importantly, they help you hire that chosen prince or princess when you find them. Why risk failure in the hiring process when you can greatly increase the chances of success by working with an effective recruiter?

Why you should love us. Recruiters tell all…

• ”Business managers should love working with recruiters because we make their job easier. Only qualified candidates are suggested, which saves hiring managers tons of valuable time reviewing hundreds of worthless resumes.” ~Kevin Hughes, Senior Technical Recruiter

• ”Recruiters are the external eyes and ears of talent on the streets. A good recruiter recognizes that there are two sales involved, candidate to hiring manager and hiring manager to candidate. Thinking in this manner incorporates more of the WHY a company has a need for an employee and WHY a certain professional would be a good hire.” DeWayne Addison, Business Development Manager – Staffing

• ”The best hiring managers view recruiters as their agent, working in the best interest of the company. Hiring managers are not trained as HR professionals. They are hired to accomplish a task in a timely, cost-effective manner. Their “real job” doesn’t leave them much time to effectively source, qualify, interview, negotiate and present an offer.” ~Mike Brahn, Business Development Manager – Staffing

• ”Recruiters have the ability to find information about a candidate that isn’t typically disclosed in an interview, as well as details that may influence their decision to accept an offer. This leads to good selling features that could close a candidate – shorter commute, better benefits, bonus potential, details of other offers.” ~Jeremy Tyler, Business Development Manager – Staffing

• ”From the candidate perspective, there’s a true competitive advantage gained from working with good recruiters. Recruiting firms generally provide direct access to hiring managers versus applying online or through job sites. Good recruiters also provide resume formatting, interviewing tips and coordination, salary and benefit negotiations.” ~Kevin Hughes, Senior Technical Recruiter

• ”Candidates should love working with recruiters, because we are their counsel. If they’re looking, we can get them in touch with the companies that need their skills, guide them on what to say, prepare them for a successful interview. We are their buffer zone when getting an offer. We can also help make the transition into a new company much easier by educating them on culture, what’s acceptable and what will help them advance.” ~Jani Clemons, Vice President

What are your experiences with recruiters? The good, bad and the ugly.

Some companies rely heavily on contractors to staff projects and even entire departments within IT. Others exclusively prefer full-time employees. Understanding the total cost of an employee is crucial in the decision-making process. However, the ultimate decision should be based on your company or department’s business strategy. Learn more about this at Part 1 of this series: To Hire Contract or Full Time: 8 Questions to Help You Decide.

Businesses often underestimate the total cost of a full-time employee. It’s true that hourly rates are usually higher for contractors and consultants than full-time employees, but we must consider all hard and soft costs.  Some are not so apparent.

Hard costs

Hourly rate – This one is easy. For this example, let’s use $75,000 per year as a pay rate, which equates to slightly more than $36 per hour for 2,080 hours per year.  One key difference with contractors is you only pay for productive hours.  Full-time employees are paid during non-productive hours, such as vacation, holidays and sick time.

Statutory costs – Social Security and Medicare cost employers 7.65% of a base salary plus federal and state unemployment insurance. For a $75,000 employee, this equates to more than $3 per productive hour worked.

Employee benefits – Full-family benefits such as health care costs, which rise each year, and 401k matching can equate to $8 per productive hour worked.

Training costs – The actual amount per employee depends on the type of job and varies from company to company. It is estimated that the cost per hour worked ranges from $0.50 to $2.50. Using contractors or consultants allows you to avoid paying for training courses, conferences, subscriptions and certifications.

Training time – Contractors and consultants are paid for hours worked. Companies pay only for the value created and not when a contractor is focused on non-productive tasks.  Five days of training per year equates to nearly $2,000 in lost productivity for an employee making $75,000. As such, use of a contractor abates approximately $1 per hour of training expense.

Vacation time – Like training, vacation cost is abated by using contractors. Depending on your time-off policy, you can avoid two to three weeks of cost. Two weeks of vacation equates to $4,000 per year for an employee making $75,000 or approximately $2 per productive hour. In addition, paid breaks can amount to an additional two to four hours per week.

Paid holidays – Most companies offer approximately ten days of paid holiday time, equating to $4,000 per year or $2 per hour.

Sick time – Depending on your policy, you may avoid the cost of between 5 and 10 sick and/or personal days. This equates to $2,000 to $4,000 per year or $1 to $2 dollars per productive hour worked.

Bad hire costs - Bad hires are expensive.  Studies indicate that the cost of a bad hire is two and a half to three times the employee’s salary.  This cost is avoided with contractors, who can be terminated with little headache if things don’t work out.  If one in thirty hires is a bad one, then we should increase the hourly rate by 10% per productive hour work.

Hiring costs – Hiring is an expensive process. Significant management time is invested in gathering resumes, screening resumes, making calls to candidates, testing, scheduling interviews, conducting interviews, evaluating and choosing a candidate, negotiating the offer, and repeating the process if the candidate does not accept. These costs can be reduced by using contractors. This management and human resources time can be focused in areas of greater value to the business. For the purposes of this example, I’ve included no allocation for hiring costs.

Separation costs – The unfortunate situation where you choose to terminate an employee creates costs for the company.  If the employee is laid off, severance costs are avoided. If the termination is performance-based, all of the time invested by HR and management on counseling, deliberations and termination are avoided. While incurring these costs are not certain, by using contractors you avoid this risk.  For the purposes of this example, I’ve included no allocation for separation costs.

For a $75,000 resource, hard costs equate to approximately $22 per productive hour worked or nearly $40,000 per year!

Soft Costs

Soft costs are more difficult to quantify.  The opportunity cost of time spent managing employees from a human resources perspective is the most often overlooked and underestimated employee cost. Contractors and consultants do not require a career path, training plans, performance appraisals or counseling sessions. It is estimated that up to 15% of a manager’s time is spent in these areas.

By using contractors and consultants, management time can be focused in areas of greater potential value to the business. One industry benchmark shows that day-to-day management and other soft costs equate to an additional 25% of an employee’s total cost.

Of note, decision makers correctly consider management costs as fixed…they are not avoided when using contractors instead of full-time employees.  Unfortunately that misses the point.  I’m specifically calling out the opportunity cost of management time, which can be focused in higher ROI areas.

Totaling it up

The total cost of an employee making $75,000 per year is approximately double – nearly $150,000 per year.

While using a contractor is definitely not appropriate for every situation, it’s not as expensive as it sometimes seems.  As such, our recommendation is to base your decision to use full-time or contract resources on business strategy, not hourly pay rates.

When deciding whether to use a technology contractor or hire a full-time IT employee, businesses must consider a wide range of factors. The choice must be rooted in the company or department’s business strategy, followed by consideration of cost.

Ask Yourself These 8 Questions…

• Is the function strategic to the business or tactical in nature?

If the function is tactical – tasks are repetitive and support operational business processes or support functions – then the function could be a candidate for using contract resources.  Another idea, if the function could be outsourced entirely, then a contractor may be an alternative.  Using contractors is a form of outsourcing … contracting out the skills while maintaining management responsibility.

• Is it important to retain the functional knowledge long-term, or is the position process-oriented?

Let’s focus on knowledge, using application developers as an example.  In an enterprise IT environment, using contractors for application development might make sense. Once the project is completed, you need application maintenance skills, not development.

For an independent software vendor (ISV),  development never ceases and retaining knowledge of product architecture, road map and underlying code is critical.  For ISV’s, using full-time employees to retain knowledge and intellectual property is pretty important.

• Are the skills scarce, difficult to attract and difficult to maintain? Or, are they commodity skills that are widely available?

It’s common for businesses to use contract employees for commodity skills, especially when those skills can be obtained for the same or less as permanent employees.  For scarce skills, your business strategy may dictate that you need to keep these skills in-house, else they be taken by your competitors.

Another consideration, people with rare skills typically are aware of this and consequently may not be attracted to contract work.  The exception to this generalization are “hired-gun” skills for projects.  See the bullet, below.

• Is it a position that merits the management and human resources attention and investment of a career path within the organization?

This is quite common.  Many organizations don’t provide a career path for every function.  Worried about losing talent?  Don’t.  Just because a person starts as a contractor, doesn’t mean no opportunity exists to convert the person to full-time.

Consider yourself fortunate when you find an extremely talented contractor who you’d like to bring on board.  You were able to ascertain the individual’s talent and culture fit with low risk and even lower hiring costs.  Contract-to-Hire approaches allow companies to try-before-they-buy. Partnering with staffing provider can prevent expensive bad hires and mitigate risks associated with misclassifying contractors as permanent employees.

• Are the skills required short-term, such as for a project that has a defined beginning and end, or long-term?
– Are the required short-term skills the same as the long-term skills?
– Will person who would be attracted to the short-term assignment (application development) be content with the long-term requirements (application maintenance)?

It is not uncommon that the skills for short-term objectives are different than those for the long-term.  Consider contract employees for the former and permanent employees for the latter.  Or, a different model is to use your full-time resources to implement the short-term project while backfilling their maintenance duties with contractors.  This is more challenging to execute because your existing team may not have the skills necessary, which increases the risk of project failure and cost overruns.  However, if you can pull it off you will end up with the best of both worlds.

• Is using contractors culturally compatible with the business or department?

This is important.  Business leaders and managers should take a moment to reflect on this.  Shifting to a contractor-based staffing model for certain functions should be carefully considered.  How will you maintain your company or department’s culture?  How will you ensure that you do not create a second-class employment category?  How will you communicate these business decisions to your employees?

No issue is insurmountable.  However, we recommend a thoughtful approach that prevents issues.

Again, the decision on whether and where to use contractors should be primarily based on the business strategy for your business or department.  Answer these questions first, then move to the analysis of whether the benefits outweigh any difference in cost, which may not be what you think.

Later this week I’ll answer that question here on PartnerIT.com.

Thanks for reading!

Last week CIO.com reported that “IT Jobs May Get Left Behind in Recovery.” To sum it up, author Patrick Thibodeau deduced that companies will be less likely to hire permanent employees and more likely to hire contractors or use outsourcing providers to meet increased demand for IT workers and functions.

The evidence? Increased revenue and earnings from outsourcing providers such as Cognizant and ACS.  Further support arrived in Forrester Research’s report citing that outsourcing is the only IT spending category that will finish “in the black” in 2009.  The good news is Forrester’s prediction of an strong recovery next year with overall 7.7% growth, and led by IT consulting services expected to increase by 11.4%. [Author's note: This is according to CIO.com.  I was unable validate this.  If you find other citations, please comment below with the link.]

Also quoted is Peter Bendor-Samuel, CEO of Everest Group, an outsourcing research group, who believes that IT service providers will benefit from companies that are hesitant to hire or rehire and are otherwise inclined to rely on outsourcing companies.  The implication is that more dollars will end up offshore.

Our take? Here at RSA Corp, we’ve experienced every recession since 1980, and history shows that contract labor and outsourcing will rebound first.  The predicted contract labor cycle is consistent with economic cycles in the past.  Comparing recession to recession, only the amplitude and period have varied.

Other factors indicating IT services and outsourcing firm growth…

• Advances in technology and connectivity make outsourced IT services, such as outsourced level 1 support, more affordable and effective now than in the past.
• Outsourced IT support has become more widely accepted and available, with established service levels and delivery models.  There is far less risk in moving forward with an managed IT support service.

Does that mean that jobs will shift offshore, diluting the recovery?

Of that, I’m less certain.  Strong arguments exist that offshore outsourcing providers will greatly benefit.  However, many highly competitive, domestic managed IT support providers will benefit as well.

Does that mean that U.S. IT workers will suffer?

Not necessarily.  We’re seeing reduced labor supply of domestic IT workers.  The current recession makes this less apparent, as today there is abundant supply of unemployed IT workers.  We expect this excess supply to be absorbed quickly as the United States emerges from recession.  Consequently, domestic IT managed service vendors will use economies of scale and new technologies to deliver shared services across many clients.

Domestic companies and organizations will be more productive overall, generating more with less … which is a very good thing.

Do you want a perfect performer or a perfect interviewer?

Professionals that change jobs frequently are the best at interviewing. They have more practice. Those who are constantly on the job market have honed their interview skills, which tend to cover up their skill set deficiencies or personality defects.

Ask yourself this question…when times get tough in an economy or on a project and people have to be cut, whom do managers choose to be the first or second to go? The top performers? Those who can get the job done? I think not.

How do you ferret out the good performers from underperformers who find themselves frequently on the market? What skills must an interviewer have to uncover the gems that exist under the surface of discomfort with the interview process?

Other than having a good recruiter doing the initial screening so you’re only looking at potential “princes,” a good interviewer must find a way to get the interviewee to relax and open up. An open and warm style of questioning is probably the best and easiest way to put a candidate at ease.

• Relax the environment by beginning with some light chatter, showing some concern for the comfort of the individual and then opening with conversation about the area a person seems to call home.

• Many interviewees are counseled, and rightly so, to always go to an interview in a suit. For the men, asking the candidate to relax and remove their coat is a good softener. For the woman, if she has a jacket that can be removed, this too might relax the atmosphere.

• Most candidates will not accept drink during the interview for fear of needing a bio break, so don’t be put off when they turn down the offer. However, should the candidate accept the water or coffee, make sure that the opportunity to take a break after an hour is presented.

Brusque, stern or challenging styles and argumentative responses to answers will most certainly cause the uncomfortable interviewer to further withdraw, preventing the manager from really knowing the skills and personality of the candidate.

I must admit that I am guilty of a little oversimplification and generalization in this opinion, as there are always special circumstances or special people who do find themselves changing jobs more frequently than others. Some of them are grand performers, and a manager would do well to snag them. It is usually easy to get the information from these people because they have developed good skills at interviewing.

However, many great performers are poor interviewees. They find discomfort in the interview process. I think this is especially true amongst the ranks of the technical professions such as IT or engineering. Developing the skill to help those top performers come out of their cover and expose their knowledge is a challenge to all hiring managers.

Have you developed any opinion on this topic? What techniques do you use to find the charming prince amongst so many frogs?

Some companies might attempt to cut employee costs by using long-term independent contractors without considering the potential ramifications related to the misclassification of an employee. Misclassification has serious implications and penalties from the IRS and will ultimately cost your bottom line. Consider payrolling your contractors through a third-party payroll service to eliminate these risks and ensure compliance.

The IRS can reclassify professionals claimed as, or claiming to be, independent contractors as W-2 employees. This reclassification can result in the imposition of fines, penalties and back taxes for which the employer is generally liable, and could cost a company large amounts of money.

Former contract employees are usually the ones who trigger an IRS review. When it is time for a contractor to pay taxes and they can’t pay, it sends up a red flag. Other triggers include a contractor filing for unemployment when unemployment insurance was not paid.

More than a few firms have come under the scrutiny of the IRS in recent times following this risky practice. The most notable was Microsoft in 1997, which got hit for back benefits as well.

A more recent case involves Blackwater USA in 2006. This private security firm engaged workers in Iraq as independent contractors rather than employees. Its policies have created a situation for which Blackwater might ultimately pay millions of dollars in employment taxes, as well as penalties from the IRS.

Texas does not have a payroll tax. Companies should expect that local government will be more aggressive as the pressure for revenues increases in the current market. Companies might try to avoid paying unemployment insurance taxes and workers’ compensation premiums by illegally classifying employees as independent contractors. In 2008, New York found $19 million in unreported wages and $3 million in underpayments to workers.

Here is a high level overview of the misclassification risk and information from the IRS on employee vs. contractor.

There is no magic formula…the IRS would make a judgment based on what your business does and three factors that indicate “degree of control and independence.”

• Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
• Financial: Are the business aspects of the worker’s job controlled by the payer? (how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
• Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

Payroll services are an easy and affordable way to mitigate these risks and reduce administrative costs. The payroll company takes on the tax and legal liabilities while funding and administering payroll.

Hiring decisions are fraught with risks and can impact the decision maker’s world in major ways.  Each hire brings costly and time-consuming tasks of orientation, training and indoctrination.  The reason for a hire is most certainly to perform a set of productive tasks, and if the hire is unable to perform, then those tasks become the responsibility of the hiring manager. A bad hire can interrupt smooth-running operations and cost your business in more ways than one.

According to The Right Management Group, the world’s largest career transition, outsourcing and organizational consulting firm, “Lower employee morale and decreased productivity are the biggest consequences of bad hiring and promotion decisions.”

Poor hires can cost a company its customers, profits and good people.

Engaging with a staffing partner can reduce the risks associated with hiring, especially a partner with industry-specific expertise. Thorough inspection of a candidate’s technical skills, background, references and personality traits greatly increases the chances of making a more successful hiring decision. Hiring managers paying a fee for recruiting services should demand this value from their staffing partner.

It costs an average of two and a half times an individual’s salary to replace an employee who doesn’t work out, including recruitment, training, severance costs and lost productivity. More than 4 out of 10 organizations (42%) say it costs at least three times an employee’s salary.

When engaging a staffing partner, hiring managers should expect the firm to have a proven process for recruiting, prescreening and researching potential candidates. It should have a model for completely understanding the positions you need, not only technical skills but company culture and personality fit.

The firm’s recruiting team should be capable of identifying passive candidates who are gainfully employed and happy in their work, but who will consider a better opportunity. They should engender trust in their staffing process and share that with the hiring manager.  Most importantly, they should be able to assure that the manager will be able to hire the chosen candidate when the time comes.

The prospects of hiring the right person the first time are greatly increased by leveraging the expertise of a staffing partner.

Eliminate the risk of a bad hire by making sure your staffing partner has:

1. Procedures for completely understanding the technical skills and personality fit of each position

2. Proven processes for communicating, sourcing, screening, presenting and following up with candidates and hiring managers

3. An experienced recruiting team with industry-specific experience, as well as passive AND active recruiting strategies

4. Flexible hiring options for contract and permanent placement, including a contract-to-hire approach

No matter what the ads say, using a print shop’s resume service is not the fastest path to the next best job. With resume fraud running rampant, employers are becoming more savvy about the most frequent fraudulent claims on resumes. Most companies perform background and substance abuse checks, and sometimes credit checks.

Going to a resume service has a major downside. All of the resumes look the same, and anyone who frequently reviews resumes can spot the formats immediately. Being recognized as using one of those services says something negative about you, your creativity and your writing skills.

So, how do you prepare a winning resume?

Tip # 1

A resume should be no more than one to two pages. Unless you’re applying for a professorship at a noted university, avoid a lengthy resume that puts the reviewer to sleep or takes too much time to wade through. Remember, we live in the age of sound bites. State the facts and only the facts.

Tip # 2

A resume should answer only one question. “Do I want to know more about this person?” Remember, when a manager is plowing through an insurmountable stack of resumes, the first task is to eliminate as many as possible to get to the ones that need to be reviewed more thoroughly. Don’t be one that gets shifted into the “no” stack, which will be much larger than the “yes” stack.

Tip # 3:

State the tasks required and the outcomes delivered in each position. Don’t waste superlatives in a resume. Those are for the in-person interview. Here are some sample resume statements that simply state the facts:

“Responsible for the design, development, testing and implementation of a web-based .NET customer service application for the accounting product. The project was completed and implemented on time and under budget.”

“Developed a new formula for acid-based treatment of industrial metals. Utilized a new technique to bind amino acids to environmentally friendly compounds.”

“Created a complete workflow process for accounts payable processing utilizing the Microsoft Dynamics ERP system.”

Tip # 4

Provide complete details on tenure showing start-month and year and end-month and year. For a break in service, explain the break in a short phrase that eliminates the immediate concern and allows for further discussion and clarification during the face-to-face interview.

June 2007 – Present
Galaxy Management Consulting, NY, NY.
Sr. Consulting Analyst

September 2006 – June 2007
Involved in settling family estate after death of father

March 2000 – September 2006
Accenture
Sr. Security Analyst

Note, the period from September 2006 to June 2007 is a long enough break to give someone pause for concern and cause the resume to be put in the “no” stack. If the break was for a job search, indicate so. In bad times, it is not unheard of for senior folks to spend up to six months searching for a position. Show the truth, which is better than letting the reviewer decide that you were in a rehab unit due to a drug problem. Think that is ludicrous? Spend a little time in the staffing business and you’ll learn how crazy some reviewers can be.

Tip # 5

Never stretch the job tenure or stretch the truth. Doing so will always catch up with you sooner or later.

Tip # 6

If you are going to list certifications or licenses, always indicate whether they are current or in force. If not, that is OK, as long as you declare the fact.

Tip # 7

This is perhaps the most important of all. Someone in your life is good at writing and knows how to properly use the English language. Get that person to review and edit your resume. Typos, misspellings, poor grammar and poor phrasing is the kiss of death in a resume. These will get it put in the “no” stack as fast as you can say, “I want a job.”

Contact your former English teacher, your pastor/priest or the next door neighbor who teaches at a community college. Get someone to help clean up your writing, even if you feel competent in your skills. No matter how many times you read your own product, you will miss things that another will see. You only get one chance when a manager is reviewing your resume.

What are your ideas on writing winning resumes?

Despite those that spend high dollars on personality tests and a battery of aptitude tests, most hires still come down to a gut feeling. Chip McCreary, president of Austin-McGregor International, promotes a “lucky seven” set of questions to gather insight into the personality of the person he is interviewing.

Interviewers should develop similar benchmark questions with a set of expected responses to assist in determining the personality quotient (PQ) of a candidate. Combining the PQ and the old gut feeling should give you a good idea of whether the candidate will fit with your corporate culture.

McCreary’s “Lucky Seven”

1. If there is a better candidate for this position than you, what qualities does the person possess that make them better?

Like the old beauty pageant stumper “If you were a tree, what kind would you be?” this question intends to check bandwidth, not generate a specific answer. Few people have the mental quickness to deal with this question. In fact, most candidates are thrown off by it. The issue is how deeply the candidate believes he or she is the right person for the job. When all is said and done, candidates affirm that, Superman or Wonder Woman aside, they believe they are the best person for the position.

2. What is your current compensation? (pause for response) May I see your W-2 or 1099 form?

This is two-part question designed to test a candidate’s honesty. If the candidate back-peddles after part two of the question, it’s a fairly safe bet that they lied on part one. For executive level candidates, the W-2 question might turn them off, so ask them to describe their bonus plan in detail. If that runs smoothly off their lips, then you can pretty much assume the answer to the first question was honest. If they can’t do anything else, most execs can calculate their bonus and explain it quickly.

3. What is it people don’t like about you?

Again, there is no specific right or wrong answer to this question. It’s simply designed to determine how well candidates handle being put on the spot. However, you can usually eliminate those candidates who claim to be universally well liked and not because nice people finish last. It’s not a question of toughness, but honesty. Good executives and managers are honest about their assessment of people, and sooner or later, they have to be frank about someone’s shortcomings. If that gets you disliked, so be it.

4. What books have you read lately that you enjoyed?

The right answer to this question will depend on the corporate culture of your company. If a candidate loved “Anna Karenina,” that’s not going to fly with a company who’s running a testosterone-charged boy’s club. It could be perfect, however, for a company that’s selling passion and romance – whether they make automobiles or movies. Be cautious of those that are reading Robert Fulghum’s “All I Ever Needed to Know I Learned in Kindergarten,” a good executive’s thirst for ideas should go deeper than books of this nature.

5. What types of causes or community service are you involved in?

Answers to this question tell a candidate’s political philosophy and social agenda. This evaluation should be based on your corporate culture, not on any liberal, conservative or other bias. In addition, you must evaluate the degree to which the candidate is involved in outside causes. If a candidate is on half a dozen boards or committees, he or she has no time for a career. Though they may be physically at the job, some professionals have their heart in a cause rather than their work. You can admire them, but you don’t want to hire them.

6. Do you have any hobbies or pets?

The real issue here is pets. The part about hobbies is a smoke screen. Dog lovers are generally loyal, have a group or pack mentality and can be trained. Cat fanciers are aloof, resist direction but have a great knack for survival. There is no right or wrong answer to this question because some positions require cats and some require dogs.

7. What mistakes have you made?

If candidates don’t admit to mistakes, they either aren’t being honest or they have stopped learning. Good forms of failure exist. For example, if a candidate initiates a project, lines up the research, has all the right analysis in place and then sees the idea backfire, they now know they are not infallible. They don’t have to learn that lesson at your company’s expense.

What other interview questions have you found successful in determing personality and culture fit?

It’s interesting that candidates most receptive to interviewing tips are usually those that have no trouble receiving job offers. Recruiters…have you heard this before?

“I really don’t need any interviewing tips. I’ve had plenty of interviews, and I know all there is to know.”

Candidates that make comments like this are most likely not going to get a job offer.

The Smart Candidate

Smart candidates are intelligent enough to realize that interviewing tips — whether old or new — will simply improve interview performance. Interviewing is a job, a sales job. I remind candidates that looking for a job is a full-time effort, and the more adept at it they become, the easier it will be.

What an interview is…and is not

When I represent a candidate scheduled for a client interview, one of the first things I say is, “There’s only one reason to go to an interview…to get an offer. Until then, you don’t even own the right to decide whether or not you want to work there.”

Essentially, an interview is a sales presentation to sell oneself. Don’t ask about how many vacation days you’re allowed. The answer is zero at that point. You haven’t gotten the job yet.

Also, most interviews for full-time positions are 85% – 90% personality. The rest is technical skills. You can train a likeable employee. However, if a candidate doesn’t fit in with the rest of the group, no amount of training will change that.

Although there are many important interviewing tips, one ranks highest on the list. It’s usually the start of any interview and also sets the precedence.

The client asks: “So, tell me a little bit about yourself.”

The candidate thinks: “Great! I can really sell myself with this question.”

The candidate proceeds to go on and on (and on) about their personal achievements and technical background. Just one problem: the hiring manager is only interested in hearing a small percentage of that. Therefore, the candidate’s job is to discover what portion of their background in which the manager is interested. The way to do that is to ASK QUESTIONS!

I advise candidates to prepare and memorize a 15 to 30-second summary of their entire background (including education, etc.). Then begin asking questions about the job and continue to ask questions. For example…

Candidate asks: “Manager, what will be my initial duties on this job?”

Manager answers: “Well, Candidate, you’ll be responsible for X, Y and Z.”

Candidate responds: “That’s great, Mr. Manager! Because when I worked at ABC Company, I was responsible for X, Y and Z (and cite the example).”

Candidate is relaying information that applies to this company’s environment. Useful information in which the manager will be interested and help him determine whether or not this candidate is technically competent (without having to ask).

I tell candidates to continue asking job-related questions and plugging in their background with related job experience. Of course, it’s also important to respond in a positive manner, whether they have experience with a particular technology or not. For example…“That’s interesting, Mr. Manager. How does your company utilize (insert specific piece of technology)?”

There are numerous questions to consider when preparing for an interview …

• Appearance
• 5 and 10-Year Goals
• Strengths and Weaknesses
• Why Should I Hire You?
• Why Do You Want to Work Here
• Salary Expectations

But I make it a point to rehearse the “So, tell me about yourself?” question first. It’s amazing how many candidates admit that they never know how to respond to that one.

During these down times, companies are looking within to find cost-cutting measures to survive the rollercoaster of economic recession.  Many will experience such a negative impact on their business that rebound may be too difficult.  Staying lean across the board – through reduction in people, technology, bonuses, etc. – is what every company seems to be doing.

But…what about your business? How lean is too lean? Organizations in a crisis tend to slash and cut with a short-term mentality.  Wouldn’t you rather thrive, than merely survive?

“It is well documented that brands that increase during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times.”

Harvard Business Review

People

The downside to reducing staff is the inevitable pause of projects due to lack of resources. Consider using contractors to finish projects and keep goals on track. Many times, contract resource costs can be applied to project and/or expense budgets.

Technology

Fiscal downtime is no reason to cut back on technology or hold projects in queue, waiting for the upswing. Improving efficiencies and streamlining operations is a crucial component to staying lean, and preparing for long-term success. Investing in technology (or remediating underperforming technology) supports this goal.

Bonuses

Employee reward programs are often the first to go during economic downtime. Remember, employees must work together during these times to achieve business goals. Pulling extra weight deserves recognition and appreciation. Consider small tokens of reward for employees that go above and beyond. Sometimes just knowing you’re appreciated is enough to satisfy until bonus programs resume.

Unsettling times and discomfort about the national economy and the future of business are upon us. Future-focused businesses are instilling plans to improve key operations with technology systems that contribute to competitive advantage. When executing technology projects, people are the key ingredient to completing projects successfully, on time and on budget.

When it comes to people, how do you keep your resources maximized while dealing with hiring freezes and budget cuts?? Answer: Contract consultants!

People
When implementing process improvements and technology systems, people also have to be considered. Projects require people with certain skill sets to be successful. Demand for systems and business professionals reached a peak in early 2008, which makes finding the right resources more difficult. Many projects still lack the necessary resources to be completed as originally targeted.

Hiring Freezes
To ensure business continuity, some corporate executives are forced to halt hiring and stop increasing employee head count. Enter the dreaded hiring freeze. No more head count can be added. What to do?

In past down cycles, successful projects and businesses resorted to the proven strategy of hiring contract consultants to finish strategic work. Technology projects demand completion in order to initiate return on investment (ROI) and prepare the corporation for the next expansion cycle.

Contract Consultants
Contract consultants are just-in-time staff resources that expertly contribute to the rapid completion of projects. More importantly, contractors will not be a long-term burden on the corporation as the business cycle deteriorates and revenues slow in reaction to economic slumps.

As companies respond to market slowdowns and revenue shortfalls, many full-time professionals find themselves on the market. Contract opportunities provide those professionals with the opportunity to support their families and continue to grow professionally. Many out-of-work professionals will take contract opportunities.

Projects halted during periods of peak demand for professionals will benefit from contract consultant staffing. One benefit is the rapid completion and successful implementation of projects that were slipping due to lack of resources.

Executives who understand the benefits of the contract consultant strategy will reap rewards for aggressively completing projects, resulting in more efficient business processes.

Contract consultants provide multiple benefits, including…

•Upgraded internal skill sets and productive attitudes, resulting in more efficient operations due to the highly specialized nature of contract consultants
•Trimmed benefits and employee costs. This will improve cash positions. Strong cash positions during recessionary periods help companies survive until the cycle once again turns positive
•Replacement of marginal performers with highly skilled experts

I would be interested in either supporting views or opposing opinions on this subject. After 28 years in this business, I have formed some strong opinions based upon the five previous business cycles.

However, I am always interested in learning the opinions and views of others. What are your thoughts on hiring contract consultants vs. full-time employees?

The future is now. The talent shortage facing the energy industry is no longer a thing of the future, it has arrived. Dubbed The Great Crew Change and The Perfect Storm, the oil and gas industry’s scramble to find qualified and interested candidates to replace outgoing baby boomers is in full swing. Some upstream companies have taken on the challenge of grooming the next generation of company leaders, while others have pipelines so desolate Texas tumbleweeds could roll right through.

With the first of the 76 million baby boomers reaching age 62 this year, working Americans ages 40 and up are expected to make up more than 50 percent of the workforce by 2010. Couple that with the fact that 50 percent of energy industry workers are eligible for retirement within the next five years and college engineering graduates have decreased 79 percent, and you have a recipe for crisis.

These alarming statistics greatly affect “oil patch” cities like Houston and Oklahoma City, where the local economy is symbiotically connected to the energy industry. Many upstream companies, from exploration and production to oil-field services, have been blessed with devoted and life-long employees, who have weathered many economic cycles. They are replete with institutional knowledge and experience that can’t be transferred in a short period of time.

In recent years, National Oilwell Varco (NOV) realized its entire executive team was made up of baby boomers and began taking steps to proactively prepare for the impending talent crisis. Pete Miller, CEO, initiated the NextGen program, an innovative recruitment and training initiative to groom high-potential graduates for future leadership positions. NextGen recruits college graduates from top schools to interview with NOV. Hiring managers seek engineering, liberal arts or business graduates with international experience, language skills and strong extracurricular profiles.

The hired candidates enter a one-year rotation, which allows them to work within four different business units throughout the year. This diversity provides them well-rounded training in NOV operations and gives them an opportunity to find their best-fit position. Rotation includes stringent performance plans and quarterly evaluations. After the year, NextGen-ers compete for a spot in their desired business unit.

The program is costly and challenging, but seeing as though the entire organization was at risk, it is a smart decision. After laying off many in the 1980s and hiring very few employees in the 1990s, NOV maintained a stable, committed workforce. However, this workforce that carried NOV through the past two decades became the reason it may not survive the next ones.

What Miller discovered has not yet been addressed by many oil and gas companies, which is more than 50 percent of the industry’s executives are age 55 and up, and something needs to be done to prepare for their retirement. Without a plan in place, how are these companies going to replace those highly technical positions to grow and prosper? Finding innovative methods to recruit and retain top technology talent is the only answer.

Oilfield services giant, Schlumberger, said, “The answer to the great crew change would be partly answered by technology but also by creative corporate practices that attract and retain talented new workers and optimize the potential of the workers already part of the company.”

Common Solutions Include:

• Escalating salaries of highly technical, high-demand positions – Watch out. Salary spikes can spiral and eventually make all projects economically unfeasible.
• Relocating expatriates and/or U.S. talent – This solution is viable, but poses challenges also. These professionals can lack company loyalty and are fair game to be recruited by other oil and gas companies seeking similar skills. They most-assuredly flock to the highest bidder.
• Partnering with a recruiting firm that specializes in highly technical professionals – Outsourcing recruiting to a expert with industry specialization allows HR more time and energy to focus on managing those “creative corporate practices” to train and retain young employees.

One thing is certain. Energy companies must find a solution to repopulating their companies to preserve the United States’ position as a world leader in energy and technology. What plans do you have in place to prepare for this crisis? What ideas are working for you?