Headline News

ASA Explains Proposed Employer Rules Under Affordable Care Act

As reported in the Feb. 10 issue of Staffing Today, the U.S. Department of Labor has issued answers to frequently asked questions outlining the guidance expected to be issued by the U.S. Internal Revenue Service and the U.S. Department of the Treasury for defining who is a “full-time employee” for purposes of an employer’s obligation to offer health coverage or pay penalties under the Affordable Care Act.

The FAQs also address a proposal to provide a “safe harbor” that would allow employers to determine whether the health plans offered are “affordable,” as well as the automatic-enrollment requirements applicable to employers with more than 200 employees. ASA members can read an analysis of the FAQs that the association’s legal staff prepared to determine the likely effect of the guidance on staffing firms.

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Headline News
No Big Pickup in Job Growth in 2012, Forecasters Say

Legal Watch
Who Owns Your Twitter Followers or LinkedIn Connections?
Proposal to Ban Unemployment Discrimination Heats Up
DOL’s ‘Updated’ FMLA Forms List New 2015 Expiration Date

Trends and Research
Digital Help for Law Firms: E-Docs Lead to Hiring
Will Manufacturing Hiring Demand Turn Around in 2012?
Analysis: U.S. Factory Jobs Rebound Seen Destined to Fizzle
Freelancers Multiply as Economy Struggles

ASA for You
ASAPro Webinars This Week—Social Media, Employee Safety, Legal Updates

Headline News

No Big Pickup in Job Growth in 2012, Forecasters Say
Los Angeles Times (02/27/12) Don Lee

Forecasters at the National Association for Business Economics expect job growth to average 170,000 a month in 2012, up from the 127,000 that the group’s panel projected for 2012 in November. The new forecast, to be released today, predicts moderate growth ahead for jobs and the economy, despite the 203,000 net new jobs added in December and 243,000 in January. The economists surveyed foresee U.S. gross domestic product, the broadest measure of economic activity, expanding 2.3% this year after growing at a sluggish 1.7% rate in 2011.

One reason job growth is not likely to sustain the pace of the last two months is that the recent hiring spurt is seen as having been inflated by unseasonably warm weather, says Richard DeKaser, deputy chief economist at the Parthenon Group and an analyst for the association’s survey. Productivity also is expected to pick up from very low levels in the fourth quarter, he adds, meaning employers will be able to satisfy more of the demand for goods and services by increasing output from existing employees and machines.

Legal Watch

Who Owns Your Twitter Followers or LinkedIn Connections?
JDSupra (02/22/2012) Travis Crabtree

Companies should make contractually clear who owns the social media followings developed by their employees. If ownership is not covered in a contract, then employees and companies should be logical about how they create and use the account. People tweeting as individuals, for example, should not put their company’s brand in their Twitter name. And companies that are paying people to bring in followers or connections should make them use a branded handle. Until more court cases crop up, the answer of who owns the account will be very fact specific; the most important facts will be whether the followers are there because of the brand or because of the individual.

Proposal to Ban Unemployment Discrimination Heats Up
JDSupra (02/24/2012)

In Connecticut, two bills are under consideration to prevent employers from discriminating against the unemployed when making hiring decisions. Section 8 of Senate Bill 1 and Senate Bill 79 would govern almost every employer in the state. They would amend Conn. Gen. Stat. Sec. 46a-60(a)(6) so that employers could not discriminate against the unemployed in job ads and would add Conn. Gen. Stat. Sec. 46a-60(a)(12) to make refusing to offer someone a job or refusing to refer someone for employment solely because they are unemployed a discriminatory practice.

DOL’s ‘Updated’ FMLA Forms List New 2015 Expiration Date
Lexology (02/20/12) Kerry W. Langan

Updated Family and Medical Leave Act model notices and medical certification forms have been released by the U.S. Department of Labor with an expiration date of Feb. 28, 2015. The previous notices and forms expired at the end of last year. The following forms have been updated: Certification of Health Care Provider for Employee’s Serious Health Condition (WH-380-E), Certification of Health Care Provider for Family Member’s Serious Health Condition (WH-380-F), Notice of Eligibility and Rights & Responsibilities (WH-381), Designation Notice (WH-382), Certification of Qualifying Exigency For Military Family Leave (WH-384), and Certification for Serious Injury or Illness of Covered Servicemember—for Military Family Leave (WH-385).

The forms do not reflect changes in the FMLA since it was amended in November 2008 or 2010 amendments regarding military family leave; only the forms’ expiration date was modified. However, since DOL published proposed changes to the FMLA on Feb. 15, experts say the model forms could undergo significant changes before the new expiration date.

Trends and Research

Digital Help for Law Firms: E-Docs Lead to Hiring
TechFlash (02/24/12) Brad Broberg

The demand for litigation support personnel—an emerging field where the law and technology overlap—has prompted increased hiring in the legal field. Litigation support hiring among recruiting firm Robert Half Legal clients increased “well in excess of double digits” in terms of percentage growth between 2010 and 2011, says Diane Domeyer of Robert Half Legal, where Domeyer oversees West Coast operations.

A national survey released by the litigation support staffing firm the Cowen Group found that 57% of law firms nationally anticipate hiring litigation support staff in 2012 with an average growth rate of 13.7%. While firms are not eliminating outside suppliers, the growing demand for litigation support makes it cost-effective for firms to bring more work in-house, creating additional billable hours while saving clients money by eliminating the middleman. The biggest driver in the litigation support boom is the proliferation of digital documents and communication. “Technology is playing a larger and larger role (in litigation) and a lot of firms are trying to beef that up,” says Shelly Langley, owner of Langley Recruiting, a Seattle legal staffing firm. “I’m seeing more paralegals being hired with database and e-discovery experience.”

Will Manufacturing Hiring Demand Turn Around in 2012?
Wanted Analytics (02/24/12) Abby Lombardi

After several unsteady years, hiring among manufacturers began improving in 2011, but declined drastically during the last several months of the year. However, in January 2012, there were 52,000 job ads posted online, an uptick from December. The most demanded field by manufacturers during January was engineering, accounting for more than 9,600 of the jobs advertised in the manufacturing sector. Industrial engineer was the single most advertised occupation in January, with more than 4,200 job openings, with mechanical engineers and electrical engineers also highly in demand.

Analysis: U.S. Factory Jobs Rebound Seen Destined to Fizzle
Chicago Tribune (02/26/12) Jason Lange

U.S. manufacturers are hiring at the fastest rate in more than 10 years, but technological advances could put an end to that trend in the coming years. In 2011, factories added 237,000 jobs, and that rate is likely to continue this year. Over the long term, however, factory job creation will likely stagnate as technology advances, and manufacturers’ role in the labor market is expected to decline. According to a U.S. Department of Labor report published Feb. 1, factory employment will fall to 11.5 million employees by 2020, down from 11.9 million in January 2012.

Freelancers Multiply as Economy Struggles
Southgate News Herald (Michigan) (02/24/12)

As the economy continues to struggle, freelancers are in great demand as companies trim payrolls and turn to part-time and contract workers. According to data from Kelly Services, approximately 44% of the active work force in 2011 were freelancers, a 70% increase since 2008. By 2020, more than 50% of the private work force will comprise freelancers, independent contractors, and solo entrepreneurs, according to MBO Partners.

Fabio Rosati, the chief executive officer of Elance, says there has been a “structural change in traditional employment” as companies increasingly adopt online and contingent work as a key business strategy. The jobs in greatest demand include software development, mobile technology, graphic design, content writing, Internet marketing, and specialists in WordPress, Facebook, and Twitter.

ASA for You

Don’t miss this week’s ASAPro Webinars on hot topics that can help your staffing firm.

Tomorrow is the ASAPro Webinar “Social Media—Get Beyond the Hype and Find Out the True Business Value.” You’ll learn how staffing and recruiting firms are leveraging social networks in their sales and recruiting efforts.

Wednesday, Feb. 29, it’s “Safety Best Practices: Successful Incentive Programs.” This is the second in a series of ASAPro Webinars that examine the components of safety best practices. This Webinar is sponsored by People 2.0.

Thursday, March 1, attend the ASAPro Webinar “Ask the ASA Experts—Current Legal and Legislative Updates.” ASA legal experts will discuss current industry legal and legislative issues.

All Webinars take place from 3 to 4 p.m. Eastern time. They’re free for ASA members ($295 for nonmembers) and qualify for continuing education hours toward ASA certification renewal. Register online at americanstaffing.net.

Staffing Employment Up 4.2% From a Year Ago

Staffing employment is up 4.2% from February 2011 to February 2012, according to the ASA Staffing Index. The index for February is 87, up one point from the 86 reported for January. Typically, staffing employment peaks between mid-November and mid-December, after which it dramatically declines for several weeks before turning upward in mid-January. Since the beginning of 2012, staffing employment has grown 15.8%, according to the index.
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Headline News

CIBER Reports Fourth Quarter 2011 Results
CIBER News Release (02/23/12)

CIBER Inc. today reported results for the fourth quarter of 2011. The company anticipates completing the sale of its federal division in the first quarter of 2012 and therefore the federal division’s results are not included in results from continuing operations. CIBER reported revenue of $238.9 million from continuing operations for the fourth quarter 2011, a 5% decrease from the same period in 2010. Net income was reported at $2.2 million for the quarter, compared with a net loss of $1.6 million for the fourth quarter of 2010. The North American division, 43% of consolidated revenue, saw revenue of $101.8 million, a decline of 12% compared with 2010′s fourth quarter.

Initial Jobless Claims in U.S. Held Last Week at Four-Year Low of 351,000
Bloomberg (02/23/12) Alex Kowalski

Jobless claims in the U.S. were unchanged last week at a seasonally adjusted 351,000, the U.S. Department of Labor reported today, more evidence the labor market is improving. The median projection in a Bloomberg News survey called for 355,000 claims, marking the fourth straight week that the figures have been better than forecast. The number of people on unemployment benefit rolls dropped to the lowest level since August 2008.

The four-week average of claims, meanwhile, fell by 7,000 to 359,000, the lowest level since March 2008. The drop in jobless claims indicates companies may be growing more optimistic about the outlook for the economy, and could set the stage for bigger gains in hiring.

7 Really Important Charts From Obama’s Economic Report
Daily Finance (02/22/2012) Morgan Housel

The economic report released last week by the Obama administration includes dozens of tables and charts, highlighting data on multiple facets of the economy—including one on the declining labor participation rate for young workers. The chart indicates that the percentage of working-age people with a job has been falling since the late 1990s and has accelerated over the past few years. Fewer young adults are in the labor force, but more are enrolled in college. Another chart in the report shows that people with a college degree have seen increases in their income, while those without a degree have seen their income decline.

ManpowerGroup’s Jeff Joerres on the Skills Gap
Forbes (02/22/12) Rich Karlgaard

Jeff Joerres, chief executive of ManpowerGroup, says companies no longer hire workers in anticipation of increased demand, as they can see instant changes in their supply chains and hire only when they see demand. He believes a skills mismatch will make it difficult to get the U.S. unemployment rate under 6%, noting that since 2006, there has been evidence that companies have evolved their specific needs at a faster pace than people evolved their specific skills.

Joerres says the skills gap has grown since the recession because companies grow through productivity and efficiency, not through raw demand. “Every job has to be productive and efficient,” he says. “Companies are therefore highly selective in adding jobs. They know exactly what they need and when they need it.” He adds that it might be more beneficial for students to attend a trade school than a four-year college.

Legal Watch

Commissioned Recruiters Found Exempt From California Overtime Rules
American Staffing Association (02/23/12) Richard J. Simmons

Both California and federal laws contain overtime pay exemptions for commissioned employees who qualify under the “inside sales” or “commission employees” exemption. On Jan. 24, a California Court of Appeal examined the California state law exemption in Muldrow v. Surrex Solutions Corp. The trial court determined that overtime wages were not owed under California law to a class of recruiters because they were subject to the commissioned employee exemption in California Wage Order 7.

Pursuant to the exemption, employers are not required to pay overtime wages to an employee “whose earnings exceed one and one-half times the minimum wage if more than half of that employee’s compensation represents commissions.” The court of appeal agreed that the recruiters were exempt. An analysis of the ruling was drafted for ASA members by outside counsel Richard J. Simmons, Esq., of Sheppard, Mullin, Richter & Hampton LLP.

Labor Union Files Federal Lawsuit Over Indiana’s ‘Right to Work’ Law
Indianapolis Star (02/23/12) Mary Beth Schneider

The International Union of Operating Engineers Local 150 has brought a lawsuit over Indiana’s “right to work” law, arguing it violates both the U.S. and Indiana constitutions. Under right to work, businesses are prohibited from negotiating a contract that requires nonmembers to pay fees for representation. Gov. Mitch Daniels, who signed the right to work legislation Feb. 1, says the law is needed to foster job creation and to prevent workers from being required to support a union financially. Opponents say the law will result in a decline in wages and will not attract high-paying jobs. The lawsuit says the law violates the contracts clause in Article 1 of the U.S. Constitution because it hinders contractual relationships and violates equal protection clauses by treating employees differently.

Legal Alert: Ninth Circuit Invalidates Contractual Choice of Law Provision
JDSupra (02/22/2012)

A class action lawsuit filed against the transportation company Affinity Logistics in California by one of its drivers accuses the company of violating state law and the federal Fair Labor Standards Act by failing to pay overtime, among other things. However, the company requires its drivers to sign written agreements classifying them as independent contractors and including a choice of law provision indicating that Georgia law will govern any disputes.

The Ninth Circuit refused to enforce the choice of law provision, determining that applying Georgia law would contravene an important public policy of California as it undermines California’s employee protection laws. The court also said California has a greater interest in the outcome of the case than Georgia, as the agreement was forged in California, the driver worked and lived in California, and the deliveries under the contract were in California. The only connection to Georgia was that it is the state where Affinity is incorporated.

As a result of the case, California employers should ensure that any agreement classifying workers as independent contractors meets the state’s multifactor test that distinguishes between independent contractors and employees.

Got Independent Contractors? (Are You Sure?)
Mondaq (02/17/12) Bryan Lazarski

A common issue facing many employers is the misclassification of employees as independent contractors. A dangerous but pervasive myth is that a company can simply agree with a worker that he or she shall be treated as an independent contractor. The truth is, whether a worker qualifies as an independent contractor or an employee is determined by the realities of the relationship between the parties, which cannot be overcome by agreement or contract.

Federal and state enforcement agencies apply a multifactor analysis to analyze classifications. Ultimately, though, the main distinction boils down to whether the employer has the right to control only the result of the work or if it also controls the manner and means of how the work will be done. If it is the latter, the worker is probably an employee.

There are several things to consider when reclassifying a worker to employee status, including the possibility of owing back taxes, having liability for unpaid overtime, and being subject to other fines and penalties. If done correctly, though, a voluntary reclassification can significantly reduce or eliminate a firm’s risk of a much costlier lawsuit.

U.S. Supreme Court Leaves Intact Decision Refusing to Extend the Fair Labor Standards Act’s Anti-Retaliation Provision to Prospective Employees
JDSupra (02/22/2012) Michael S. Arnold

The U.S. Supreme Court has decided not to take up the issue of whether the Fair Labor Standards Act’s antiretaliation component is applicable to prospective workers, leaving intact a Fourth Circuit Court of Appeals decision barring FLSA antiretaliation claims by prospective employees. According to the Fourth Circuit, the antiretaliation component applies only to current and former employees. In the case the Fourth Circuit considered, Dellinger v. SAIC, the court concluded that because the FLSA only allows “employees” to sue their “employers” for retaliation, an employer cannot retaliate against an individual it never hired. Had the case been brought under Title VII of the Civil Rights Act of 1964, however, the results very well may have been different, because Title VII prohibits retaliation against job applicants.

Trends and Research

HIMSS: Staffing Shortages Replace Money Concerns as Main Health IT Barrier
Cardiovascular Business (02/22/12) Mary Tierney

Staffing shortages have overtaken concerns about lack of adequate financial support as the top barrier to implementing information technology, according to the latest Healthcare Information and Management Systems Society leadership survey. The results include the input of 302 health care IT professionals who represent more than 600 U.S. hospitals.

The top IT staffing need listed in the survey is clinical application support—followed by network and architecture support, clinical informatics, system integration, IT security, clinical transformation, database administration, PC and server support, process and workflow, and system design and implementation. Approximately 61% of the health IT leaders surveyed expect to increase their staff in 2012

Construction Hiring Starting to Gain Momentum
Bloomberg (02/22/12)

Construction hiring is on an upswing as people invest in home renovations amid indications that the housing market is improving. Another hiring driver comes from “pent-up demand” by people who can’t afford to move, says Ellen Zentner, a senior economist at Nomura Securities International. The number of people working in residential remodeling climbed 5.8% in December to 250,700, according to preliminary data from the U.S. Bureau of Labor Statistics. Still, the number of residential remodelers lags behind the September 2006 peak by more than 76,000, according to data from the U.S. Department of Labor.

Small Business Hiring: Things Are Finally Looking Up
Business Insider (02/22/12)

About 22% of small-business owners expect to hire more workers this year, according to a recent Gallup–Wells Fargo poll, while just 8% plan to decrease the number of jobs in their firms. The survey shows that hiring plans have returned to levels not seen since January 2008, at the beginning of the recession. Around 26% of small-business owners are seeking full-time workers, while 36% want to hire part-time employees. Another 36% favor temporary or contract workers. Last year, only 13% of those polled increased their work force, while 22% reduced the number of jobs.

A recent Citibank small-business survey also indicates increased confidence among small firms. More than 25% of respondents plan to boost the number of permanent full-time workers this year, up 12% from January 2011, and 22% will hire full-time seasonal workers.

New Poll Shows Majority of Family Firms Optimistic in Hiring, Retaining Employees in 2012
MarketWatch (02/22/12)

A recent survey of 300 family owned firm executives by Family Enterprise USA indicates that over the next 12 months, 54% plan to hire more workers and just 8% plan to decrease their work force. Only 34% have reduced their work force in response to the recession, even though more than half of the executives polled said their revenue had declined or remained flat. Over the past couple of years, 33% of family owned firms that have been in business for 60 to 100 years were able to expand their work force despite the economic downturn. However, 44% of respondents said uncertainty in regards to the tax code and government regulation is an obstacle to job growth.

ASA for You

This afternoon from 3 to 4 p.m. Eastern time, attend the ASAPro Webinar “Best Practices for Drug and Alcohol Testing—What You Need to Know,” presented by Frederick T. Smith, Esq., partner in the Atlanta office of Seyfarth Shaw LLP.

During this ASAPro Webinar, you will learn the steps to follow when implementing drug testing, common signs and symptoms of illegal drug use, and much more.

ASAPro Webinars are free for ASA members ($295 for nonmembers) and qualify for continuing education hours toward ASA certification renewal. Register online at americanstaffing.net.
Recently, ASA announced that Jim Collins will be the featured keynote speaker at Staffing World 2012, Oct 9–11 in Las Vegas.

Planning to attend? Get the special ASA group rate of $249 for a single or double at the all-suite Venetian Resort Hotel Casino—the location of this year’s ASA annual convention. Make reservations by calling 877-283-6423 and asking for the ASA Staffing World 2012 convention group rate. Group rates apply for reservations made by Sept. 17, subject to room availability. After Sept. 17, reservations will be accepted at the hotel’s prevailing rate.

Updates on additional keynotes and other top-tier content will be coming soon. For more information, visit staffingworld.org.

Headline News

CTG Fourth Quarter Net Income Increased 24% on 16% Revenue Growth
CTG News Release (02/21/12)

CTG announced its financial results for the 2011 fourth quarter and full year ended Dec. 31, 2011. The information technology staffing company reported revenue of $100.9 million for the quarter, a 16% increase from the same period in 2010, while net income stood at $3.3 million, 24% higher than a year earlier. For the entire year of 2011, CTG reported revenue of $396.2 million, a 20% gain over 2010.

New larger health care solutions projects, higher demand for external information technology resources, and the operating leverage from higher revenue were the primary contributors to CTG’s significant growth in revenue and earnings in the 2011 fourth quarter and full year. In 2011, CTG’s staffing business grew 13% to $248.0 million, or 63% of total revenue.

Surge in Temp Workers Reflects Fundamental Change in American Workplace
Washington Post (02/18/12) Ylan Q. Mui

U.S. government data indicate that more than 25% of those who obtained employment since the end of the recession are holding temporary positions, which experts say indicates that businesses and employees no longer expect the relationship to last for life. Carl Camden, chief executive of the staffing firm Kelly Services, says the number of workers who consider themselves “free agents,” who move from project to project and could work for several companies simultaneously, climbed from 19% in 2006 to 44% in 2011.

The American Staffing Association says temporary workers are staying in their posts longer, 13.8 weeks on average. Typically, about half of those workers end up in permanent jobs.

As Job Market Mends, Dropouts Fall Behind
Wall Street Journal (02/21/12) Clare Ansberry

Although employment prospects for people with four-year college degrees are improving, high-school dropouts are falling further behind. Approximately 1.8 million more college graduates have found work since January 2010, but about 128,000 high-school dropouts lost work during the same time, according to the U.S. Bureau of Labor Statistics. Fewer than 40% of people over age 25 without a high-school diploma are employed, and things are likely to get worse for this population as jobs require sharper skills and more education. In 2020, nearly six million high-school dropouts will likely be unable to find work, according to a study by the McKinsey Global Institute. Meanwhile, there will be a shortage of about 1.5 million college-educated workers.

Legal Watch

OFCCP Proposes Changes to Contractor Regulations on Hiring Individuals With Disabilities
Seyfarth Shaw (02/21/12)

U.S. Department of Labor’s Office of Federal Contract Compliance Programs proposed revisions to the regulations addressing affirmative action for individuals with disabilities. The proposed regulations follow the ADA Amendments Act of 2008, which broadened the definition of a disability under the Americans With Disabilities Act of 1990. This will greatly increase the number of individuals who are covered by OFCCP’s mandate.

Some Business Owners Say ICE Audits on Illegal Hiring Are ‘Money Grab’ With Paperwork Fines
Associated Press (02/20/12)

An analysis of about 800 audits completed by U.S. Immigration and Customs Enforcement since October 2010 by the Houston Chronicle found that the agency imposed $1.8 million in fines. Around 50% of the 117 companies were penalized for errors in employment verification paperwork, not for hiring illegal immigrants. These paperwork errors account for about 33% of fines.

Small businesses complain that the audits are a “money grab,” but ICE says the bookkeeping fines are part of a strategy to ensure compliance with the law and deter companies from hiring illegal workers. According to ICE, many businesses do not complete I-9 Forms or retain copies of Social Security cards and other documents, making it hard to prove whether illegal immigrants were hired.

EEOC to Receive a $14 Million Dollar Increase in Enforcement Budget
Lexology (02/14/12) Christina Stoneburner

President Obama has proposed an increase in the U.S. Equal Employment Opportunity Commission’s 2013 fiscal year budget. The increase in funding is going to be important for employers because the EEOC has announced that its priority will be to continue to litigate systemic cases, which have of late been focused on failure-to-hire cases.

Employers are obligated under federal regulations to maintain applications and any records relating to the application for employment, such as résumé and interview notes, for at least one year after the record is created. Employers should make sure that they have formal record retention policies governing the maintenance and destruction of all records related to personnel decisions.

Trends and Research

Job Interviewing, to the Extreme
Los Angeles Times (02/19/12) Tiffany Hsu

With high unemployment translating into more résumés and applications for companies to sift through, many are taking a more creative approach to the interview process. For instance, the Minneapolis advertising agency Campbell Mithun has candidates apply by sending 13 Twitter messages, and the Austin, TX-based digital night-life guide SceneTap conducts joint interview in bars to make sure candidates can work as part of a team. Others ask questions to which there is no right answer, says Rosemary Haefner, vice president of human resources for ASA corporate partner CareerBuilder. “They want to know how creative job seekers are, how they respond under pressure, whether they’re more right-brain or left-brain,” she says.

These offbeat interviews also allow candidates to display unique talents and give companies a chance to assess their weaknesses. “Companies are being more innovative not just in finding people who fit the work but also those who fit the culture,” says Charles Purdy, career analyst for ASA corporate partner Monster. “As the workplace changes because of society norms and technology, the classic job interview is going to change as well.”

U.S. Manufacturing Sees Shortage of Skilled Factory Workers
Washington Post (02/20/12) Peter Whoriskey

Factories say they have plenty of jobs to offer U.S. workers, but skilled workers are in short supply. Many laid-off factory workers are able to operate old-fashioned presses and lathes, but don’t have the skills to operate newer factory equipment. Compounding the problem is a demographic shift. Many baby boomers are nearing retirement, and many younger workers have avoided the industrial sector due to its volatility and the view that U.S. manufacturing is a “dying industry.” As many as 600,000 manufacturing jobs are going unfilled, according to a recent survey by Deloitte for the Manufacturing Institute.

ASA for You

This could be a critical election for the staffing industry, with the President, all of the U.S. House of Representatives, and 33 senators up for re-election. Find out what it could mean for the future of your company. During the 2012 ASA Staffing Law Conference—April 17–18 in Washington, DC—hear Charlie Cook, the pre-eminent authority on U.S. elections and political trends, give his predictions on the political outlook on the year ahead.

At the fourth annual conference devoted to legal and regulatory issues facing staffing firms, you also will have the opportunity to meet with your congressional representatives and their staffs on Capitol Hill to let them know how your business, and the staffing industry, help the economy and the country.

Register today and learn more about how you can make an impact this year.
This Thursday, Feb. 23, from 3 to 4 p.m. Eastern time, is the ASAPro Webinar “Best Practices for Drug and Alcohol Testing—What You Need to Know,” presented by Frederick T. Smith, Esq., partner in the Atlanta office of Seyfarth Shaw LLP.

During this ASAPro Webinar, you will learn the steps to follow when implementing drug testing, common signs and symptoms of illegal drug use, and much more.

ASAPro Webinars are free for ASA members ($295 for nonmembers) and qualify for continuing education hours toward ASA certification renewal. Register online at americanstaffing.net.

Headline News
Randstad: Strong Growth in North America, Gradual Slowdown in Europe
U.S. Weekly Jobless Claims Drop 13,000 to 348,000

Legal Watch
Lawmakers Finalize Payroll-Tax Agreement
From the Experts: Hiring Practices Can Be an Antitrust Violation?
Age Discrimination Suits Jump, But Wins Are Elusive
EEOC Extends Employer Recordkeeping Requirements to GINA
Agency Makes New Push to Help Pregnant Workers

Trends and Research
Job Ads for Recruiters Bounce Back in January
Agencies Struggle to Hire Cyber Professionals

ASA for You
What Makes a National Staffing Employee of the Year?
Highlight Your Commitment to Ethical Practices

Headline News

Randstad: Strong Growth in North America, Gradual Slowdown in Europe
Randstad News Release (02/16/12)

Randstad Holding NV has reported a loss for the fourth quarter as it wrote down the value of recent acquisitions. The company says the U.S. job market is improving, but Europe is worsening. The company made a net loss of €16.5 million ($21.5 million), largely due to €180 million in charges and writedowns on the value of acquisitions it has made in the past five years. Sales increased 13% to €4.38 billion.

“The patterns in our markets are clearly diverging from previous recoveries,” says Ben Noteboom, chief executive officer of Randstad. “The North American market is getting more robust, while the European markets are gradually slowing down.” He adds that the company “will continue to develop our specialty and professionals businesses and accelerate growth in permanent placements. We believe we are well positioned to grasp the opportunities in 2012.”

U.S. Weekly Jobless Claims Drop 13,000 to 348,000
MarketWatch (02/16/12) Jeffrey Bartash

Claims for jobless benefits expectedly dropped last week to the lowest level in four years, showing the U.S. job market is on the mend. Weekly jobless claims in the U.S. fell by 13,000 to a seasonally adjusted 348,000 in the week ended Feb. 11, the U.S. Department of Labor reported Thursday. Economists surveyed by MarketWatch estimated claims would total 368,000. The four-week average of claims fell by a smaller 1,750 to 365,250, keeping it near a four-year low.

Legal Watch

Lawmakers Finalize Payroll-Tax Agreement
Wall Street Journal (02/16/12) Naftali Bendavid; Siobhan Hughes

Congressional negotiators working on a deal to extend jobless benefits and a payroll-tax cut say they have finalized an agreement, paving the way for a vote before the policies expire at the end of the month. House Ways and Means Chairman Dave Camp (R-MI) and Senate Finance Chairman Max Baucus (D-MT), the two top lawmakers on the panel tasked with finding agreement, announced the deal just before 1 a.m., indicating that Congress will send a bill to President Barack Obama’s desk by week’s end.

From the Experts: Hiring Practices Can Be an Antitrust Violation?
Corporate Counsel (02/15/12) David Stanoch; Carolyn Budzinski

Lawsuits filed by the U.S. Department of Justice in 2010 against high-tech companies and a related private class action lawsuit filed in 2011 highlight that antitrust laws apply not only to products and services but also to employers’ hiring practices. Noncompete agreements between employers and employees have not been deemed anticompetitive, but the DOJ investigations take issue with agreements between competing employers that hinder competition and restrict employees’ access to better job opportunities.

A lawsuit filed by DOJ against Adobe, Apple, Google, Intel, Intuit, and Pixar challenged agreements that prevent them from contacting employees of another company unless the employee applied for a job opening. A separate lawsuit filed against Lucasfilm Ltd. centered on an agreement with Pixar that ensured the current employer would be notified of job offers to employees by the other firm and prevented either firm from counteroffering above the initial offer.

Experts say these lawsuits highlight the need for companies to consider how antitrust laws affect hiring practices. They should consider whether their employment practices involve agreements with competitors; whether their practices limit current or former employees’ mobility or salary, among other things; and the positions of their board members and officers outside the company.

Age Discrimination Suits Jump, But Wins Are Elusive
NPR Morning Edition (02/16/12) Yuki Noguchi

People 55 or older generally take three months longer to find a new job than does the average person looking for a job, and given the tight job market, age discrimination complaints are increasing—but becoming more difficult to win. Gross v. FBL Financial Services Inc. has a lot to do with that, employment law experts say. That case went all the way to the U.S. Supreme Court; the majority ruled that a plaintiff must prove, with a preponderance of evidence, that age was the reason for discrimination. Essentially, Gross v. FBL increased the burden of proof for age discrimination suits. Since the ruling, hundreds of other cases have been thrown out.

Meanwhile, the U.S. Equal Employment Opportunity Commission says age discrimination is a growing problem. According to Stuart Ishimaru, an EEOC commissioner, “The number of formal complaints that come in to us understate the nature of the problem.” Ishimaru says hiring has been “a real conundrum for us. And frankly in this economy, where people are looking for jobs, they don’t have time to worry about a discrimination suit. They’re not going to be thinking about this.”

EEOC Extends Employer Recordkeeping Requirements to GINA
Mondaq (02/15/12) Stephanie Aranyos

The U.S. Equal Employment Opportunity Commission recently published its final rule extending the recordkeeping requirements imposed under Title VII of the Civil Rights Act and the Americans with Disabilities Act to employers covered by Title II of the Genetic Information Nondiscrimination Act. This rule will take effect on April 3, 2012.

Title II of GINA prohibits the use of genetic information in making employment decisions, restricts acquisition of genetic information by covered employers and entities, and strictly limits the disclosure of genetic information. GINA covers employers with 15 or more employees, employment firms, and federal sector employers.

The EEOC’s final rule imposes the same record retention requirements mandated under Title VII and the ADA to GINA. Employers must retain all employment and personnel records for one year from the date created or the date the personnel action was taken, whichever is later. All records relating to a charge filed under GINA must be maintained until final disposition of the charge.

Agency Makes New Push to Help Pregnant Workers
Wall Street Journal (02/16/12) Melanie Trottman

The U.S. Equal Employment Opportunity Commission is working to improve workplace-discrimination protections for pregnant women and people caring for relatives, following complaints by employees who say they have been fired or treated poorly due to their status. The EEOC plans to give companies new guidance to make clear that the 1978 Pregnancy Discrimination Act prevents companies from firing, refusing to hire, or otherwise discriminating against a worker because she is pregnant. Meanwhile, the Americans With Disabilities Act contains provisions that could require companies to offer more accommodations to pregnant women.

Another option the agency could take is a tougher litigation strategy against employers, says EEOC general counsel P. David Lopez. The EEOC has filed 268 lawsuits alleging pregnancy discrimination over the past decade; 216 suits have been resolved, and plaintiffs have been awarded more than $42 million.

Trends and Research

Job Ads for Recruiters Bounce Back in January
Wanted Analytics (02/15/12) Abby Lombardi

Wanted Analytics says job ads for staffing professionals jumped 26% in January from the same month last year. Experts believe an increase in demand for recruiters could indicate that companies are planning to hire more workers. Of these job ads, 55% were placed by direct employers and 45% by staffing firms. The most ads for recruiting positions were placed by Amazon.com, Insight Global Inc., PDS Technical Services, Microsoft, and Capital One. The metropolitan areas with the highest volume of ads for recruiter jobs are New York, Washington, DC, Chicago, Boston, Dallas, Los Angeles, San Francisco, Seattle, Atlanta, and Houston.

Wanted Analytics says recruiter positions will be moderately hard to fill. The average duration of a job ad is five weeks nationally, with Seattle recording an average of six weeks. The easiest places to find recruiters are Davenport, IA; Fort Wayne, IN; Springfield, MO; York, PA; and Omaha, NE, which also are areas where recruiters will find it difficult to obtain employment.

Agencies Struggle to Hire Cyber Professionals
NextGov.com (02/15/12) Brittany Ballenstedt

According to a survey of 545 federal cybersecurity professionals by (ISC)2, 97% are currently employed, 62% received a salary increase last year, and 48% anticipate a pay raise this year. The survey indicates that 60% of federal cybersecurity pros changed jobs in 2011, and 43% cited pursuit of advancement opportunities as the reason.

However, 83% of federal hiring managers said it is “extremely difficult” to identify and hire qualified candidates, with 42% indicating that the process took one to three months and 33% saying it took six or more months. Of these hiring managers, 68% are seeking candidates with certification and accreditation, 55% want those with operations security skills, and 53% want candidates with experience in telecommunications and network security. In terms of recruitment, the U.S. Cyber Corps program, efforts on college campuses, and job fairs were not viewed as very effective. However, 50% of hiring managers said referrals from colleagues were effective, while 33% cited online Web sites and 10% networking.

ASA for You

In the current issue of Staffing Success magazine, meet interactive Web designer Chris Hoover—the 2012 National Staffing Employee of the Year. He discusses how his two years of impressive work as a contract employee with ASA member the BOSS Group provided the bridge he needed to land his full-time job as JCPenney’s senior interactive Web designer. Hoover joins a prestigious list of temporary and contract employees who have earned recognition as National Staffing Employee of the Year.

Have you worked with a similarly stellar temporary or contract employee in the past year? The National Staffing Employee of the Year is an honoree whose story best captures the staffing industry’s key messages—jobs, flexibility, bridge, choice, and training.

Start planning who your staffing firm will nominate to be the 2013 National Staffing Employee of the Year. In addition to being featured in an upcoming Staffing Success cover story, the honoree will receive deluxe travel accommodations to Staffing World^® 2012 in Las Vegas, a travel gift certificate, and recognition during National Staffing Employee Week, Sept. 10–16 this year. All nominations must be received by Aug. 1.

To learn more about the National Staffing Employee of the Year program, as well as National Staffing Employee Week, visit americanstaffing.net. The National Staffing Employee of the Year program is sponsored by ASA corporate partner First Staff Benefits.
Create effective proposals with help from ASA—member firms have access to free marketing tools to help you grow your business. Enhance your proposals by incorporating information about the ASA Code of Ethics and Good Practices. ASA membership tells clients that you adhere to a code of ethics and are committed to legal and professional practices—research shows that staffing clients associate ASA membership with a higher level of professionalism. Download a fact sheet about the ASA Code of Ethics and Good Practices to include with your proposals.

The ASA marketing tool kit is available at americanstaffing.net.

Headline News
On Assignment Reports Fourth Quarter and Full Year 2011 Results
Insperity Announces Fourth Quarter and Full Year Results
BBSI Reports Fourth Quarter and Full Year 2011 Financial Results
Obama Seeks Consolidation of Jobs Programs in Labor Agency Cuts

Legal Watch
House Republican Leaders Pivot on Payroll-Tax Cut
U.S. Department of Labor Issues New Rules for Guest Workers

Trends and Research
Hiring Gains Are on the Horizon
LinkedIn Blows Other Social Networks Out of the Water for Recruiting

ASA for You
Upcoming ASAPro Webinars—Drug and Alcohol Testing, and the Value of Social Media
ASA CEO to Speak on Staffing Trends, Opportunities, and Challenges

Headline News

On Assignment Reports Fourth Quarter and Full Year 2011 Results
On Assignment News Release (02/14/12)

On Assignment Inc. today reported results for the quarter and the year ended Dec. 31, 2011. Revenues for the fourth quarter of 2011 were $161.8 million, up 34% year-over-year. Revenues for the full year 2011 were $597.3 million, up 36% year-over-year.

Net income for the fourth quarter of 2011 was $7.5 million, compared with $2.8 million for the fourth quarter of 2010. Peter Dameris, president and chief executive officer of On Assignment, said, “We believe we are well positioned to take advantage of what we believe will be historic secular and cyclical growth for the staffing industry over the next three to five years.”

Insperity Announces Fourth Quarter and Full Year Results
Insperity Inc. News Release (02/14/12)

Insperity Inc. today reported results for the fourth quarter and year ended Dec. 31, 2011. For the fourth quarter, the company reported net income of $10.8 million, a 39.2% increase over the $7.8 million earned in the 2010 period. For the year ended Dec. 31, 2011, the company reported net income of $30.5 million, a 35.8% increase over the $22.4 million earned in 2010.

Revenues for the fourth quarter of 2011 increased 13.7% over the 2010 period due to a 9.7% increase in the average number of work site employees paid per month and a 3.6% increase in revenues per work site employee per month. Revenues in 2011 were $2.0 billion, a 14.9% increase over 2010.

BBSI Reports Fourth Quarter and Full Year 2011 Financial Results
Barrett Business Services News Release (02/13/12)

Barrett Business Services Inc. reported financial results for the fourth quarter and full year ended Dec. 31, 2011. Net revenues for the fourth quarter of 2011 increased 15% to $84.7 million, compared with $73.6 million in the fourth quarter of 2010. Total gross revenues in the fourth quarter of 2011 increased 23% to $423.6 million, compared with $344.2 million in the same quarter of 2010. The increase was primarily attributable to the continued net increase in the company’s professional employer organization client count and to a small increase in same-store sales growth.

Net loss for the fourth quarter was $93,000, compared with net income of $3.1 million in the year-ago quarter, due to an increase to the company’s workers’ compensation reserve of approximately $8.5 million in the fourth quarter of 2011. Net revenues for the full year of 2011 increased 15% to $314.9 million, compared with $273.1 million in 2010. Net income in 2011 was $14.3 million, compared with net income of $7.4 million in 2010.

Obama Seeks Consolidation of Jobs Programs in Labor Agency Cuts
Bloomberg (02/13/12) Holly Rosenkrantz

President Barack Obama has proposed a consolidation of job-creation programs as part of his 2013 U.S. Department of Labor budget, which would see a 4% reduction. The savings reflect elimination of overlapping job-training programs and consolidation of regional offices.

The budget increases funding for agencies that protect worker wages, benefits, health, and safety, and invests in detecting employer misclassification of workers as independent contractors. The budget provides a $6 million increase for the Wage and Hour Division of DOL for intensified enforcement of the Fair Labor Standards Act and the Family and Medical Leave Act.

Legal Watch

House Republican Leaders Pivot on Payroll-Tax Cut
Wall Street Journal (02/14/12) Naftali Bendavid

House Republicans have agreed to extend the current payroll tax reduction for the rest of the year without spending cuts to offset the cost, a major breakthrough in the effort to reach bipartisan agreement on the issue. The revised stance was welcomed by Democrats, and one Democratic leadership aide says a final deal is now likely within 48 hours on a broader set of issues. “There are other important issues that remain, but this concession by the Republicans resolves the big enchilada in these discussions,” the aide says.

Republican leaders say they will advance legislation on the payroll tax alone as a “backup plan.” They add that the proposal still will have to be approved by their rank-and-file members, many of whom have adamantly opposed programs that would worsen the federal budget deficit.

U.S. Department of Labor Issues New Rules for Guest Workers
New York Times (02/11/12) Julia Preston

The U.S. Department of Labor on Feb. 10 announced changes to its H-2B temporary worker program, which lets overseas workers into the U.S. when qualified Americans are unavailable. Under the new rules, DOL will create a nationwide electronic registry where employers must post all jobs they are seeking to fill with H-2B workers. Also, the recruitment period of Americans is expanded, requiring employers to hire any qualified local worker who applies up to three weeks before the start of an H-2B contract. Employers that use the program regularly say the new rules, which will take effect April 23, will make the process too slow and cumbersome for their seasonal businesses and will ultimately lead to the loss of American jobs.

Trends and Research

Hiring Gains Are on the Horizon
ACA International (02/14/12)

A new report from the Society for Human Resource Management indicates that more companies plan to hire workers this month than lay them off, though the percentage expecting to add jobs is down 12.3% from last year. On a year-over-year basis, hiring will decrease by a net of 12.3 points in the service sector and a net of 2.5 points in the manufacturing sector. However, the SHRM Leading Indicators of National Employment Report shows that 26.3% of service-sector companies expect to hire workers this month, while only 5.4% are planning layoffs. Meanwhile, 49.1% of manufacturing companies plan to hire workers, and only 8.9% anticipate layoffs.

The recruiting-difficulty index for both sectors rose in January, with 12.2% of human resource managers in the manufacturing sector and 6.8% in the service sector indicating difficulty in recruiting for key positions. The number of firms reporting gains in new-hire compensation was up 1.8 points year-over-year in the manufacturing sector and 5.6 points in the service sector.

LinkedIn Blows Other Social Networks Out of the Water for Recruiting
WebProNews (02/13/12) Chris Crum

Employers use LinkedIn more than other social networks for recruiting purposes, according to a new report from Bullhorn Reach. “For job applications, LinkedIn is driving almost nine times more applications than Facebook and three times more than Twitter,” according to a spokesperson for Bullhorn Reach. The “Social Recruiting Activity Report” shows that the average recruiter adds 18.5 LinkedIn connections, 3.3 Twitter followers, and 1.4 Facebook friends every week. However, Twitter followers are nearly three times more likely than LinkedIn connections to submit applications.

The report also reveals that 48% of recruiters use only LinkedIn, 19% use only LinkedIn and Twitter, 10% use only LinkedIn and Facebook, 1% use only Facebook, 1% use only Twitter, and 1% use only Facebook and Twitter, but 21% use all three social networks. Additionally, 28% of recruiters have 1,000 or more LinkedIn connections, 75% have 100 or fewer Twitter followers, and 21% have 50 or fewer Facebook friends.

ASA for You

Have you registered for the educational programs ASA is offering in February? ASA members have free access to ASAPro Webinars and most courses on ASAPro—the ASA online professional development center.

Register today for

• Feb. 23: “Best Practices for Drug and Alcohol Testing—What You Need to Know“
  
• Feb. 28: “Social Media—Get Beyond the Hype and Find Out the True Business Value“

All ASAPro Webinars are free for ASA members ($295 for nonmembers) and qualify for continuing education hours toward ASA certification renewal. Register online at americanstaffing.net.
The Georgia Staffing Association, an ASA-affiliated chapter, will host a luncheon this Thursday, Feb. 16. Join ASA president and chief executive officer Richard Wahlquist as he discusses talent advocacy and the staffing and recruiting industry’s short-term and long-term future.

Finding top talent; matching top talent with needs and opportunities; and ensuring that top talent are nurtured, challenged, and on identifiable growth trajectories have become pressing strategic priorities for businesses in the U.S. and around the world. Wahlquist will discuss ways that you can best leverage new opportunities on behalf of your firm, your clients, and your candidates and employees.

For details and to register visit gsa.camp8.org. This meeting qualifies for continuing education hours toward ASA certification renewal.

Headline News
TrueBlue Reports 2011 Fourth Quarter Results
Job-Market Bellwether Strengthens
Quinn: Ban Hiring Discrimination Against Jobless
Demand Exceeds Supply for Some Health IT Jobs

Legal Watch
Administration Signals Flexibility in Defining “Full-Time” Employee for Purposes of Health Care Coverage
Contract Workers Get Help From Government
Missouri Employers’ Tax Rate Rises to Cover Unemployment Comp Loan

Trends and Research
Government Gridlock Killing Jobs? Not So, Yoh Work Force Planning Survey Shows
85% of Insurers Outsource Some Element of Information Technology

ASA for You
Don’t Wait for the Mail—Read Staffing Success Magazine Now
Staffing World^® 2012 Welcomes Ground-Breaking Business Researcher and Best-Selling Author Jim Collins
Get a Model Contract for Technical, IT, and Scientific Staffing

Headline News

TrueBlue Reports 2011 Fourth Quarter Results
TrueBlue News Release (02/08/11)

TrueBlue Inc. has reported revenue for the fourth quarter of 2011 of $350 million, an increase of 12% compared to revenue of $312 million for the fourth quarter of 2010. Net income for the fourth quarter of 2011 was $7.6 million, compared to net income of $4.0 million for the fourth quarter of 2010.

In a conference call with investors, TrueBlue chief executive officer Steve Cooper said, “Revenues continue to show strong growth, and gross margins also look strong here in the beginning of 2012.”

For the first quarter of 2012, TrueBlue estimates revenue in the range of $300 to $310 million.

Job-Market Bellwether Strengthens
Wall Street Journal (02/10/12) Conor Dougherty

New claims for unemployment insurance declined 15,000 to 358,000 last week, the government reported Feb. 9, and the four-week moving average, at 366,250, reached its lowest level since April 2008. Economists welcomed the news, but some expressed caution that the job market could still stumble.

The recent warm weather likely contributed to more job creation in January and is also playing a part in declining jobless claims, because warm weather spurs building projects and other activities. In fact, a number of states said their jobless claims indicated fewer layoffs in construction. Furthermore, the volatility caused by hiring around the holidays seems to be subsiding.

Quinn: Ban Hiring Discrimination Against Jobless
Wall Street Journal Online (02/09/12) Samantha Gross

In a State of the City speech on Feb. 9, New York City Council speaker Christine Quinn said the council is considering a measure that would make it illegal for city employers to not hire applicants because they are unemployed, which she considers to be discrimination. Similar bills are being considered by state and federal lawmakers. Another proposal announced by Quinn would assist small businesses in hiring in neighborhoods with high unemployment rates using federal tax credits.

Demand Exceeds Supply for Some Health IT Jobs
Healthcare IT News (02/09/12) Bernie Monegain

A recent brief from eHealth Initiative concludes more health information technology job opportunities are available than qualified people to fill them. “Given the prevailing air of economic uncertainty in the U.S. and the unprecedented level of support for health information technology from the federal government, growth in health information systems may represent an untapped market for both job creation and market savings,” the brief states.

The issue brief notes there are large numbers of new job opportunities available at organizations focused on exchanging health care data. A large number of health information exchange initiatives are facing a shortage of staff with IT experience, with more than 25% of respondents reporting that they are short on staff with IT experience. Clinical software implementation and support (which includes jobs such as project managers, analysts, application coordinators, report writers, trainers, informatics staff, and technical writers) are identified as the skill sets most in demand.

Legal Watch

Administration Signals Flexibility in Defining “Full-Time” Employee for Purposes of Health Care Coverage
American Staffing Association (02/10/12) Ed Lenz

ASA and its business allies in the Employers for Flexibility in Health Care coalition have been working to mitigate the effect of the Affordable Care Act on employers with large numbers of part-time, temporary, and seasonal employees. ASA has been urging the Obama administration to issue regulations requiring employees to work up to a full year before they can be considered full-time for purposes of an employer’s obligation under the act to offer health insurance coverage to employees or pay penalties.

Yesterday, the Obama administration took a significant step in a positive direction for the staffing industry. In questions and answers issued by the U.S. Department of Labor, the administration outlined the proposed guidance expected to be issued by the U.S. Internal Revenue Service and the U.S. Treasury Department for defining who is a “full-time employee.” The proposed rules are complex and may be challenging to administer, and several technical questions remain as to how they will work in practice. But they appear to give employers substantial flexibility and reasonable discretion in determining who must be offered health coverage.

ASA will be analyzing the FAQs in detail and will provide thorough analysis to its members in the coming days. The coalition will submit comments to the administration as appropriate.

Contract Workers Get Help From Government
Orange County Register (California) (02/09/12) Mary Ann Milbourn

The U.S. Department of Labor and California are cooperating and are pursuing companies that misclassify contract workers who should be treated as employees, the DOL and state officials announced Feb. 9. The issue is one of fairness, they said—not only for workers who are being underpaid but also for companies that already comply with the law and therefore are at a financial disadvantage.

“The misclassification of employees as something else, such as independent contractors, presents a serious problem, as these employees often are denied access to critical benefits and protections—such as family and medical leave, overtime compensation, minimum wage pay, and unemployment insurance—to which they are entitled,” said a DOL statement. “In addition, misclassification can create economic pressure for law-abiding business owners, who often struggle to compete with those who are skirting the law.”

Missouri Employers’ Tax Rate Rises to Cover Unemployment Comp Loan
Kansas City Star (02/09/12) Diane Stafford

Missouri made no principal payments during the last two years on a federal loan used to pay jobless benefits to unemployed workers, which means the state’s employers are now paying a higher Federal Unemployment Tax Act rate. The state was due to repay the loan by the target date of Nov. 11, 2011, but it carries an outstanding balance of $773 million. The state’s effective tax rate for taxable wages earned in the latter half of 2011 was 0.9%, but it has risen to 1.2% this year and stands to increase to 1.5% next year and 1.8% in 2014.

Trends and Research

Government Gridlock Killing Jobs? Not So, Yoh Work Force Planning Survey Shows
Yoh News Release (02/07/12)

A workforce planning survey of executives at 100 Global 1000 companies shows that political gridlock and indecision have relatively little effect on employment decisions compared to economic uncertainty. The survey—commissioned by Yoh, a provider of talent and outsourcing services, and conducted by Amplitude Research—found only 9% of respondents said that political uncertainty will discourage them from adding personnel in 2012. On the other hand, 61% reported that economic uncertainty represents the greatest obstacle to increased hiring in the new year.

The survey also uncovered a number of troubling realities that actually do dampen employment. Many of these factors revolve around the uncertainty of a company’s own hiring practices and could serve to delay a rebound in hiring as the economy heals and opportunities present themselves. The survey asked respondents how long it would take their organizations to recruit and train employees if the economy rebounded to prerecession levels. Approximately 62% reported that it would take three to nine months to find and train enough qualified employees to meet prerecession demand from clients. A surprising 24% of organizations indicated that they only re-evaluate staffing levels as needs arise, and 7% admitted having no plan at all.

85% of Insurers Outsource Some Element of Information Technology
Claims Journal (02/09/12) Denise Johnson

A new report by research and advisory firm Novarica, based on a survey of more than 100 U.S. insurer chief information officers, finds that 85% are currently outsourcing at least some elements of information technology, and between 25% and 35% are planning to increase their level of outsourcing in 2012.

Among the key findings of the report, large insurers outsource more than 25% of their IT work, while small and mid-size companies typically outsource only 15% of their IT work. More than a quarter of large insurers are planning to increase their reliance on outsourcing in variable staffing, legacy application maintenance, and data center/infrastructure.

ASA for You

ASA members can now access the latest issue of Staffing Success magazine as a digital edition. The print version of the January–February issue lands in mailboxes next week.

This issue features Chris Hoover, the 2012 National Staffing Employee of the Year, and tells the story of how a staffing firm helped him land his dream job as an interactive Web designer. Other features in this issue offer advice on getting ahead of the health care IT boom and insights on a new breed of self-motivated employees.
Excitement is quickly building for Staffing World 2012, Oct. 9–11 in Las Vegas, where world-renowned business researcher and author Jim Collins will deliver a keynote presentation.

Ten years after releasing the global best-seller Good to Great, Collins returns with another ground-breaking work, this time to examine why some companies thrive in uncertainty, even in chaos, and others do not. Collins will present the latest research from his new book Great by Choice and share valuable insights and strategies with the crowd of executives that will convene at the annual ASA convention and expo.

An engaging and highly sought-after speaker, Collins draws record crowds at the few speaking engagements he accepts each year. See Collins address leadership strategies and employee motivation in this short video.

Staffing World is the can’t-miss event for staffing executives. Register today at staffingworld.org. Save up to $400 per person when you register by May 19.


In your technical, information technology, or scientific staffing business, do you feel pressured to accept clients’ contracts? Are your clients asking to be indemnified against various types of liability? To help ASA members and their attorneys deal with these and other issues, ASA has developed suggested contract language that spells out the staffing firm’s and the client’s responsibilities.

Six templates are available for various types of technical, IT, and scientific staffing:

• Supplying technical services on a time and materials basis on the service company’s premises
  
• Supplying technical services on a time and materials basis on the client’s premises
  
• Supplying technical temporary personnel
  
• Outsourcing
  
• Supplying independent contractors
  
• General employment

The materials are available to ASA members at americanstaffing.net. The model contracts for technical, IT, and scientific staffing provide suggested language but are not intended as legal advice.

Headline News
Kforce Reports Fourth Quarter and Full Year 2011 Results
Job Openings on the Rise in First Month of 2012, SimplyHired.com Reports
Team Health Holdings Inc. Announces Fourth Quarter and Fiscal 2011 Financial Results
Oil and Gas Boom Lifts U.S. Economy
More Job Openings, But Job Hunters Don’t Have Skills Needed
Consumer Reports Investigates ‘Junk’ U.S. Health Plans
Little Room for New Workers

Legal Watch
Lawmakers Move to Ban Discrimination Against Unemployed Individuals in Hiring
IRS Eases Fears About Voluntary Classification Settlement Program
Court Allows Employer’s Interference With Prospective Economic Advantage Claims to Survive in Lawsuit Claiming Employee’s Theft of Twitter Account
E-Verify Ordinance Passes in Springfield, MO

Trends and Research
2012 Salary Guide From Robert Half
After Increased Web Threats, Cyber Security Hiring Grows Slowly

ASA for You
ASAPro Webinar—Learn Best Practices for Drug and Alcohol Testing
Hot Off the Presses: Reduced Price on New 2012 “Why Staffing?” Brochure
Get a Model Contract for Professional Staffing

Headline News

Kforce Reports Fourth Quarter and Full Year 2011 Results
Kforce News Release (02/07/12)

Kforce Inc., a provider of professional staffing services and solutions, on Feb. 7 announced results for its fourth quarter of 2011. Revenue for the quarter ended Dec. 31, 2011, was $285.6 million compared with $289.0 million for the quarter ended Sept. 30, 2011, a decrease of 1.2%, and compared with $258.5 million for the quarter ended Dec. 31, 2010, an increase of 10.5%. For the quarter ended Dec. 31, 2011, Kforce reported net income of $7.1 million, versus $8.4 million for the quarter ended Sept. 30, 2011.

Kforce reported total revenue for the year ended Dec. 31, 2011, of $1.1 billion as compared with $990.8 million for 2010, an increase of 12.1%. Net income was $27.2 million, versus net income of $20.6 million for 2010.

In a conference call with investors, Kforce chairman and chief executive officer David L. Dunkel said, “Looking back on 2011, we believe that the staffing industry’s performance has been significantly different than in previous economic cycles. We continue to benefit from our clients’ desire for a flexible work force during the slow economic recovery.”

Job Openings on the Rise in First Month of 2012, SimplyHired.com Reports
SimplyHired.com (02/07/12)

SimplyHired.com has released its February 2012 Employment Outlook highlighting national and local markets, as well as industry and employer trends. Nationwide, job openings increased slightly in the first month of 2012, up 1.5% month-over-month and 9.2% year-over-year. “The job market has stabilized a lot compared to a few years ago,” says Gautam Godhwani, chief executive officer of SimplyHired.com. “This month’s immediate increase in job openings following the holidays indicates that 2012 should be a great year for hiring.” Fifteen of 18 industries experienced job growth in January. Industries with significant month-over-month growth include nonprofit (27.9%), hospitality (17.0%), and legal (12.6%).

Team Health Holdings Inc. Announces Fourth Quarter and Fiscal 2011 Financial Results
Team Health News Release (02/07/12)

Team Health Holdings Inc., a supplier of outsourced health care professional staffing and administrative services to hospitals and other health care providers in the U.S., on Feb. 7 announced results for its fourth quarter and full fiscal year 2011. Net revenue less provision for uncollectibles increased 17.4% to $462.0 million from $393.4 million in the fourth quarter of 2010. Acquisitions contributed 7.8%, new contracts, net of terminations contributed 6.1%, and same contract revenue contributed 3.5% of the increase in quarter-over-quarter growth in net revenue less provision. Reported net earnings were $13.3 million in the fourth quarter of 2011, compared with a net loss of $36.0 million in the same period of 2010.

Revenue less provision in the year ended Dec. 31, 2011, increased 14.9% to $1.75 billion from $1.52 billion in fiscal 2010. Same contract revenue contributed 4.0%, acquisitions contributed 5.1%, and new contracts, net of terminations contributed 5.9% of the increase in year-over-year growth in net revenue less provision. Reported net earnings were $65.5 million, compared to $6.8 million in 2010.

Oil and Gas Boom Lifts U.S. Economy
Wall Street Journal (02/08/12) Russell Gold

The U.S. economy is enjoying the fruits of a new energy boom, adding about 158,500 new oil and gas jobs over the past five years, and even more jobs in companies supplying the energy industry and in the broader service industry. The use of new drilling techniques to tap oil and gas in shale rocks far underground has been a major factor in the boom. While lower prices already have slowed new drilling for natural gas, energy companies have shifted their spending to shale wells that will provide oil. Even if gas prices stay low, overall employment is expected to continue rising, says John Larson, an economist with IHS Consulting.

President Barack Obama recently cited an industry study finding that development of shale gas will create more than 100,000 jobs by the end of the decade. For every new job working in the oil and gas sector, another four are supported by the energy supply chain and by workers spending more money on goods and services, says Timothy Considine, an independent economist who has worked on estimating job creation in the natural resources sector.

More Job Openings, But Job Hunters Don’t Have Skills Needed
USA Today (02/08/12) Tim Mullaney

The U.S. Department of Labor recently reported a gain in job openings to 3.4 million at the end of December and a decrease in the unemployment rate to 8.3%. However, experts say the recovery is not as robust or broadly based as previous recoveries, citing figures that 1.1 million workers have stopped looking for employment and the number of people unemployed for more than six months has dropped only to 43% from 44% a year ago. Troy Davig, senior U.S. economist at Barclays Capital, says job opportunities are expanding for workers with particular skills.

There are fewer job openings in construction, manufacturing, and government as these sectors are hiring more slowly than others. In the professional and business services sector, Davig says there is a mismatch between workers seeking employment and the jobs available, as employers are seeking 3.6 workers for every 100 they have now but the number of workers hired fell to 787,000 in December from 845,000 in November. Over 33% of entrepreneurs polled by the National Federation of Independent Business in January said they have not found candidates with the right skills.

Consumer Reports Investigates ‘Junk’ U.S. Health Plans
ABCNews.com (02/07/12) Mikaela Conley

Consumer Reports is warning against “mini-med” health care plans that offer limited benefits. “Mini-meds appeal to large employers in industries such as retail, food service, and temporary staffing,” says Nancy Metcalf, senior program editor at Consumer Reports.

Robert Zirkelbach of America’s Health Insurance Plans, the national trade association representing the health insurance industry, says, “For many seasonal, part-time, and temporary workers, these types of plans are their only source of affordable health care coverage.”

Little Room for New Workers
Wall Street Journal (02/08/12) Ben Casselman

Although the U.S. job market is showing signs of improvement, the churning process has slowed, with a new report showing a drop in the number of workers who quit their jobs in December to fewer than two million from a prerecession level of about three million per month. Churn usually is indicative of a strong economy, with workers leaving their jobs to accept another with higher pay and more responsibilities and allowing a new worker to take their place, but experts say people do not want to take a chance on a new job in the current economy. When employees do quit, companies are worried about the risks of hiring new workers and look first to fill the open positions with existing personnel. This means that new graduates, unemployed workers, and employees from other companies have fewer opportunities for employment, and the economy is less efficient when workers do not move to new jobs that are a better fit.

In the short term, University of Chicago economist Steven Davis says reduced churn will put a damper on the efforts of unemployed workers to find jobs, but the long-term consequences are unknown. However, experts say an improving economy means companies and workers will increase their appetites for risk.

Legal Watch

Lawmakers Move to Ban Discrimination Against Unemployed Individuals in Hiring
American Staffing Association (02/08/12) Anne Duffy

Federal and state lawmakers continue to pursue legislation that would declare as unlawful discrimination the use of job advertisements stating that only “currently employed” candidates are eligible to apply for a position. The U.S. Equal Employment Opportunity Commission has held that such practice could violate EEO laws by having a discriminatory disparate impact on protected classes of unemployed individuals.

The Fair Employment Opportunity Act, introduced in August 2011, would make it unlawful for an employment firm to refuse to consider or refer an individual for employment based on the individual’s status as unemployed or to classify individuals in any manner that may limit their access to information about jobs because of their status as unemployed. The bill would also prohibit publishing an advertisement or announcement for any job vacancy that includes any provision indicating that an individual’s status as unemployed disqualifies the individual for a job.

New Jersey is so far the only state to prohibit employers from discriminating against unemployed individuals, but similar bills have been introduced in several states and more are expected to introduce such legislation throughout the year.

IRS Eases Fears About Voluntary Classification Settlement Program
HRMorning.com (02/08/12) Christian Schappel

The U.S. Internal Revenue Service has set out to reassure employers about its Voluntary Classification Settlement Program—the IRS initiative introduced last fall and designed to help businesses clear up their tax problems associated with employee misclassification. Under the VCSP, employers that have misclassified employees as independent contractors can reclassify those workers. However, employers have expressed concerns about whether participation in the VCSP would lead the IRS to share information about a company’s classification practices with the U.S. Department of Labor and state labor agencies. The IRS has now released a statement asserting that it will not share information about VCSP applicants with DOL or state agencies.

Businesses also worried that an employer’s participation in the VCSP would essentially amount to admitting that it misclassified workers. However, the IRS indicates that signing the VCSP closing agreement is not an admission of any liability or wrongdoing for prior years.

Court Allows Employer’s Interference With Prospective Economic Advantage Claims to Survive in Lawsuit Claiming Employee’s Theft of Twitter Account
Seyfarth Shaw (02/07/12)

A California federal district court on Feb. 6 denied a former employee’s motion to dismiss his former employer’s claims for tortious interference with prospective economic advantage and negligent interference with prospective economic advantage in a closely watched lawsuit concerning the interplay between social media, trade secrets, and employee mobility.

E-Verify Ordinance Passes in Springfield, MO
Springfield News-Leader (Missouri) (02/08/12) Valerie Mosley

A controversial ordinance mandating the use of the federal E-Verify program in Springfield, MO, has passed, according to unofficial results from the Feb. 7 vote. The ordinance requires all employers in Springfield to use the federal government’s electronic employment eligibility verification program to check the work authorization of prospective hires—and, critics argue, existing employees. It adds penalties for those that do not and for anyone caught employing someone prohibited from working for any reason.

Trends and Research

2012 Salary Guide From Robert Half
Robert Half International (02/07/12)

The 2012 Salary Guide from Robert Half provides average starting salary ranges for a comprehensive range of accounting, finance, and financial services positions, as well as an overview of hiring and management trends. The Salary Guide says “companies positioning themselves for growth are hiring accounting and financing professionals. Employers are refilling positions cut during the recession, adding new ones, and making replacement hires to address attrition and turnover.”

After Increased Web Threats, Cyber Security Hiring Grows Slowly
Wanted Analytics (02/07/12) Abby Lombardi

Demand for workers with cyber security skills rose 12% in 2011 from the previous year, as the number of Web site hackings and other cyber threats increased. Although hiring was slow in the fourth quarter, experts say demand has grown slowly and steadily in recent years. Most job ads in the cyber security field are tech related, with cyber security analysts, cyber security engineers, software engineers, systems engineers, and network engineers among the most commonly advertised job titles.

In the fourth quarter, the industries with the most job ads included computer systems design services; research and development in the physical, engineering, and life sciences, except biotechnology; and engineering services. Despite security breaches, the retail and banking industries were not in the top 30 industries in terms of job ads. Wanted Analytics’ Hiring Scale says cyber security jobs are moderately difficult to recruit, and it could become more difficult if demand for cyber security skills rises this year. In Charleston, SC, for instance, Wanted Analytics says there are just 400 potential candidates, and online job postings are displayed for an average of seven weeks in this area, compared with six weeks nationally.

ASA for You

Coming up Thursday, Feb. 23, from 3 to 4 p.m. Eastern time is the ASAPro Webinar “Best Practices for Drug and Alcohol Testing—What You Need to Know,” presented by Frederick T. Smith, Esq., partner in the Atlanta office of Seyfarth Shaw LLP.

During this ASAPro Webinar, you will learn the steps to follow when implementing drug testing, common signs and symptoms of illegal drug use, and much more.

ASAPro Webinars are free for ASA members ($295 for nonmembers) and qualify for continuing education hours toward ASA certification renewal. Register online at americanstaffing.net.
Are you looking for an easy-to-understand brochure that effectively explains key staffing industry messages? The attractive, newly updated “Why Staffing?” brochure complements your efforts when communicating with potential clients and candidates.

The new brochure includes data to help you explain key staffing industry messages.

• Flexibility, training, and choice add up to very high job satisfaction for staffing employees.
  
• Staffing firms provide qualified employees who fill a broad range of assignments.
  
• Staffing firms fuel the economy with millions of workers who get the job done right, right now.
  

ASA members can order the “Why Staffing?” brochure—it’s only $39 per 100. Read how you can improve your firm’s marketing efforts at americanstaffing.net.
Do you feel pressured to accept clients’ contracts? Are your clients asking to be indemnified against various types of liability? To help ASA members and their attorneys deal with these and other issues, ASA has developed suggested contract language that spells out the staffing firm’s and the client’s responsibilities.

The model contract for professional staffing can be offered in lieu of the client’s standard contract form. It is based on the principle that each party is responsible for the risks associated with its own business, and that each party has a duty to indemnify the other only for those risks.

The model contract for professional staffing is available to ASA members at americanstaffing.net. The document provides suggested language but is not intended as legal advice.
ASA Staffing Today is published by the American Staffing Association, with news abstracts copyrighted in 2012 by Information, Inc., Bethesda, MD, and all other content copyrighted in 2012 by ASA. No part of this publication may be reproduced without permission.

Headline News
Recovery Redraws Labor Landscape
Latinos, Hit Hard by Job Losses, Are Making Strong Comeback
Factory Orders Jump 1.1% as Businesses Invest in Heavy Machinery

Legal Watch
Payroll-Tax Cut Backup Plan Prepared in Case Negotiations Fail
NLRB Report: Employers’ Social Media Policies Must Be Narrow, Must Not Restrict Right to Engage in Protected Activities
DHS Outlines Plans to Reform Visa Processes to Keep Highly Skilled Immigrant Workers

Trends and Research
Out of Time: Majority of Large Customers Use Term Limits
Self-Employed Key to Economic Recovery; Help Them
Workers Focusing On Personal Debt
IT Staffing Is Specialty for St. Louis-Area Temporary Firms

ASA for You
Learn About Locum Tenens Trends—ASAPro Webinar Tomorrow
ASA Quarterly Employment and Sales Survey Deadline Extended
Get a Model Contract for Staffing Agreements

Headline News

Recovery Redraws Labor Landscape
Wall Street Journal (02/04/12) Ben Casselman

The jobs report released Feb. 3 reveals that nearly every industry added workers in January, with restaurants, health care, manufacturing, and professional and business services registering the biggest hiring gains. Since mid-2011, around 164,000 health care jobs, 167,000 leisure and hospitality jobs, and 94,000 manufacturing jobs have been added. Over the same period, 109,000 temporary workers were hired. However, the construction and manufacturing industry have yet to recover all of the jobs lost during the recession, and the public sector continues to shed jobs.

Low-wage sectors account for most of the recent increases in hiring, such as nursing aids and technicians in the health care industry and secretaries and temporary workers in the business services industry. Expert say the economic downturn was devastating for low-skilled workers, and the recent gains are making up for jobs lost during the recession. Some economists are concerned that the economy is leaning more toward low-skill, low-wage jobs due to the shift from manufacturing to services.

Latinos, Hit Hard by Job Losses, Are Making Strong Comeback
Los Angeles Times (02/06/12) Don Lee

As the economic rebound picks up a bit of steam, Latinos are scoring bigger job gains than most other demographic groups and proving to be a bright spot in the fledgling recovery. Figures from the U.S. Labor Department show that while Latinos make up only 15% of the country’s work force, they have racked up half the employment gains posted since the economy began adding jobs in early 2010.

The latest Latino jobless rate of 10.5% remains higher than the overall rate of 8.3% for the nation and 7.4% for whites. The construction industry remains weak, but other sectors in which Latinos have a relatively large share of jobs—such as mining support services, hotels, food services, health care, and manufacturing—are seeing more robust job growth. Latinos also appear to be more willing to take low-wage, temporary jobs, and to be more mobile, willing to move from one county to another to get a job.

Factory Orders Jump 1.1% as Businesses Invest in Heavy Machinery
New York Times (02/04/12)

Orders to factories increased in December, supported by a rebound in business investment in capital goods. In addition, service companies grew at the fastest pace in 11 months in January as companies started hiring to keep up with rising demand. Factory orders rose 1.1% in December after gaining 2.2% in November, the U.S. Commerce Department reported. For the year, total orders were up 12.1% after a gain of 12.9% in 2010. Orders for so-called core capital goods increased 3.1% to a record high.

Separately, the Institute for Supply Management said on Friday that its index of nonmanufacturing activity jumped to 56.8% in January from 53% in December. The survey’s employment index soared to its highest level since February 2006. Any reading above 50 indicates expansion.

Legal Watch

Payroll-Tax Cut Backup Plan Prepared in Case Negotiations Fail
Bloomberg (02/03/12) James Rowley

Senate Democrats are devising a backup plan to extend a payroll tax cut and emergency unemployment benefits that are scheduled to expire in coming weeks if discussions with the Republican-controlled House of Representatives do not culminate in a deal. The House-Senate negotiators “understand there is a backup plan” being drafted by Senate Democratic leaders, says Senate Majority Leader Harry Reid (D-NV). “If we have to put it forward, we will.” If Congress does not make a decision by Feb. 29, the payroll tax for employees will increase by two percentage points.

NLRB Report: Employers’ Social Media Policies Must Be Narrow, Must Not Restrict Right to Engage in Protected Activities
Lexology (01/30/12) Jillian Collins

The U.S. National Labor Relations Board has released a new report providing guidance on the rules employers are allowed to place on employees when discussing work on social media. The NLRB says that “employer policies should not be so sweeping that they prohibit the kinds of activity protected by federal labor law, such as the discussion of wages or working conditions among employees.” However, “an employee’s comments on social media are generally not protected if they are mere gripes not made in relation to group activities among employees.”

The key takeaway for companies is that the NLRB takes the position that broad policies that substantially limit social media communications may violate Section 7 of the National Labor Relations Act, which protects an employee’s right to engage in concerted activities for the purpose of mutual aid and protection. Employers, especially nonunion firms that handle labor issues less frequently, should be mindful of the requirements of Section 7 of the NLRA when crafting social media policies. Employees must be allowed to discuss with each other the terms and conditions of their employment, regardless of the social media platform.

DHS Outlines Plans to Reform Visa Processes to Keep Highly Skilled Immigrant Workers
Government Security News (02/01/12) Mark Rockwell

The U.S. Department of Homeland Security is working to change some administrative practices to make the visa process easier for highly skilled immigrants who want to come to or remain in the U.S. for work purposes. DHS says the changes are in support of President Obama’s efforts to meet the country’s national security and economic needs. Obama supports legislative measures that will attract and retain highly skilled immigrants, including creating a “Startup Visa,” shoring up the H-1B program, and “stapling” green cards to the diplomas of some foreign-born graduates in science, technology, engineering, and math.

Trends and Research

Out of Time: Majority of Large Customers Use Term Limits
Staffing Industry Review (02/01/12) Craig Johnson

The number of staffing clients saying they let temporary workers go because of assignment time limits in 2011—66%—was up from 55% that said they had assignment limits in 2009, according to a survey of staffing buyers by Staffing Industry Analysts. A majority of buyers cited “legal/co-employment risk” concerns as a reason for assignment limits, with “union agreements” and “historical decision of previous managers” also often cited. The survey polled 236 staffing buyers from large firms that employ more than 1,000 people.

The specter of the lawsuit Vizcaino v. Microsoft also lingers. In that case, from more than a decade ago, independent contractors sued Microsoft after a U.S. Internal Revenue Service audit ruled they were common law employees. The workers sued the company for unpaid benefits, and Microsoft ended up settling the “retro-benefits” case for $97 million.

Self-Employed Key to Economic Recovery; Help Them
San Francisco Chronicle (02/02/12) Carl Camden

Carl Camden, chief executive officer of Kelly Services Inc. and a member of the Business Roundtable, says a new approach is needed to create work in the U.S. economy, “one that acknowledges the sea change in what employment means. The time is ripe to overhaul rules, regulations, obstacles and policies that hinder individuals from working on a contract basis and that block businesses from hiring the talent they need.” Camden notes the size of what he calls the self-employed “free agent” work force now encompasses about 44% of the overall work force, or nearly 80 million people, according to Kelly’s research.

Camden cites the difficulties a self-employed entrepreneur faces, including uncertain U.S. Internal Revenue Service definitions, buying health insurance, and saving for retirement. He calls on government to streamline regulations covering free agents, and expand programs that help new entrants to the labor market understand the alternatives to conventional employment.

Workers Focusing On Personal Debt
Investor’s Business Daily (02/04/12)

A survey by finance, accounting, and staffing firm Accounting Principals finds that U.S. workers are concerned about their personal short-term finances rather than long-term investments in 2012. Paying down personal debt, such as credit cards and other outstanding bills, is a top priority for 43% of respondents, according to the survey. Only 27% of workers plan to put money away in an emergency savings fund, while 23% plan to contribute to their company’s 401(k) plan.

IT Staffing Is Specialty for St. Louis-Area Temporary Firms
St. Louis Business Journal (02/03/12) Nicholas Ledden

Half of the firms cited on the list of the St. Louis area’s largest temporary staffing firm have an information technology staffing focus. The 15 firms on this year’s list sent out close to 35,000 W-2s combined and kept anywhere from a dozen to more than 12,000 temporary or contract employees available for placement last year. The top five St. Louis-area staffing firms for 2011 were Rose International, Aerotek Inc., Byrne Software Technologies Inc., Adecco Group, and Technology Partners Inc. The list does not measure total employment numbers but aims to gauge a firm’s size.

ASA for You

Tomorrow, Feb. 7, from 3 to 4 p.m. Eastern time, attend the ASAPro Webinar “Have Stethoscope, Will Travel—The Growing Use of Locum Tenens,” presented by Kurt Mosley of AMN Healthcare. He’ll offer practical guidelines about the use of locum tenens physicians.

ASAPro Webinars are free for ASA members ($295 for nonmembers) and qualify for continuing education hours toward ASA certification renewal. Register online at americanstaffing.net.
The deadline for the ASA quarterly survey on temporary and contract staffing, which collects data on sales, payroll, and employment, has been extended to Feb. 13.

The Web-based survey takes only about 15 minutes to complete. Participants receive a free exclusive report on the results, which includes payroll data available nowhere else. ASA research partner Inavero, a market research firm, administers the survey to ensure confidentiality of participant data.

Register today to take the survey or download a sample questionnaire. For more information, contact Alexandra Karaer, ASA director of research, at 703-253-2048 or akaraer@americanstaffing.net.
Do you feel pressured to accept clients’ contracts? Are your clients asking to be indemnified against various types of liability? To help ASA members and their attorneys deal with these and other issues, ASA has developed suggested contract language that spells out the staffing firm’s and the client’s responsibilities.

The model contract for general staffing can be offered in lieu of the client’s standard contract form. It is based on the principle that each party is responsible for the risks associated with its own business, and that each party has a duty to indemnify the other only for those risks.

Sample formats for rate schedules, employee confidentiality agreements, and more are also available at americanstaffing.net. The model contract for general staffing provides suggested language but is not intended as legal advice.
ASA Staffing Today is published by the American Staffing Association, with news abstracts copyrighted in 2012 by Information, Inc., Bethesda, MD, and all other content copyrighted in 2012 by ASA. No part of this publication may be reproduced without permission.

Jim Collins to Keynote Staffing World^® 2012

Staffing World 2012, Oct. 9–11 in Las Vegas, is the can’t-miss event of the year for staffing and recruiting executives. The featured keynote speaker is business consultant and author Jim Collins—and registration is now open. Register online today.

The ASA annual convention and expo is the largest, most comprehensive event tailored specifically for the staffing industry. Nowhere else but Staffing World can staffing executives tap the top-notch professional development, top-level networking opportunities, and top-drawer products and services they need to take their firms—and the staffing industry—to the next level.

Visit staffingworld.org for details. Save up to $400 per person when you register by May 18. Jim Collins’ keynote is sponsored by ASA corporate partner World Wide Specialty Programs Inc.

Headline News
Kelly Services Reports 4th Quarter and Full Year 2011 Results
Jobless Claims in U.S. Fell Last Week
World’s Factories Pick Up the Pace
Poised for Growth, but Not Hiring
Construction Showing Growth
American Franchise Spotlight: Express Employment Professionals

Legal Watch
Staffing Industry Scores Big Win Before Texas Supreme Court
Hiring Contractors Without Getting Into Trouble

Trends and Research
Industry Employment and Output Projections to 2020
Research Roundup: The ‘Flip Side’ of Open Innovation, Productivity Losses From Bad Weather, and Assessing the Risks of Outsourcing
Inbound Marketing Trends in the Staffing Industry: Case Study

ASA for You
Spot Top Talent—ASAPro Webinar Today
Show Your Commitment to Principles, Integrity, and Fair Dealings

Headline News

Kelly Services Reports 4th Quarter and Full Year 2011 Results
Kelly Services News Release (02/02/12)

Kelly Services Inc. announced results for the fourth quarter and full year 2011. Carl Camden, president and chief executive officer, said revenue for the fourth quarter of 2011 totaled $1.4 billion, a 5% increase compared to the corresponding quarter in 2010. Revenue for the full year totaled $5.6 billion, a 12% increase compared to the prior year. Net earnings for the fourth quarter of 2011 totaled $24.1 million, 65% higher than the $14.6 million reported for the fourth quarter of 2010.

In a conference call with investors, Camden stated, “We enter 2012 with cautious optimism. Thus far, positive economic trends are continuing, and that will lead to greater demand for our services.”

Jobless Claims in U.S. Fell Last Week
Bloomberg (02/02/12) Bob Willis

U.S. jobless claims dropped by 12,000 to a seasonally adjusted 367,000 in the week ended Jan. 28, the U.S. Department of Labor said Thursday. The median forecast of 46 economists in a Bloomberg News survey projected 371,000. The four-week average of claims fell by 2,000 to 375,750. Companies are slowing the pace of firing as the U.S. economy picks up, a necessary step toward bigger gains in employment.

World’s Factories Pick Up the Pace
Wall Street Journal (02/02/12) Conor Dougherty

The U.S. manufacturing sector grew in January, and indicators point to additional growth in the coming months. The Institute for Supply Management’s index of overall activity climbed by one point to 54.1 in January from the prior month, roughly corresponding to economists’ forecasts. However, several economists believe it will be difficult for U.S. manufacturers to continue expanding at their current pace, due to an overall slowdown in the global economy.

Poised for Growth, but Not Hiring
Wall Street Journal Online (02/01/12) Emily Maltby

Small businesses with fewer than 50 employees added around 95,000 jobs in January, down from 136,000 in December and 111,000 in November, according to the new report from Automatic Data Processing Inc. While small-business owners are more optimistic about conditions at their firms, that optimism has not been translating into a hiring surge.

Over the past year, 22% of the 450 business owners polled added to their payrolls, and 30% expect to do so this year. Moreover, the number of small businesses posting revenue gains, expressing confidence about the future, and obtaining financing has increased since the previous survey in July. However, Todd McCracken, president of the National Small Business Association, notes the improving conditions have not prompted small businesses to increase hiring because they want to be in a better cash position before doing so. He says hiring employees is “a long-term decision,” and small businesses will remain cautious until they feel more confident about the broader economy.

Construction Showing Growth
New York Times (02/02/12)

Construction spending rose 1.5% in December, marking the fifth consecutive monthly gain, reported the U.S. Commerce Department. Builders spent on homes and other projects at a seasonally adjusted annual rate of $816.4 billion, the highest level in 20 months. For 2011, outlays on building projects totaled just $787.4 billion, down 2% from 2010 and roughly half the level that economists deem as healthy.

American Franchise Spotlight: Express Employment Professionals
Fox Business (02/01/12) Cindy Vanegas

The high unemployment rate has not put the brakes on staffing firms, as evidenced by the success of Oklahoma City-based Express Employment Professionals. To date, the company reports it has helped five million people find work through its 560 franchises. Robert Funk, chief executive of Express, says in an effort to become the nation’s No. 1 flexible staffing firm, the company plans to increase revenue from $2.1 billion to $3.4 billion and open as many as 70 locations annually in such places as Vermont, San Antonio, San Francisco, Boston, and Orlando over the next few years.

Legal Watch

Staffing Industry Scores Big Win Before Texas Supreme Court
American Staffing Association (02/02/12) Stephen Dwyer

The Texas Supreme Court issued an important ruling on Jan. 27 preserving workers’ compensation protection for staffing firm clients in Texas. The American Staffing Association and the Texas Association of Staffing, an ASA-affiliated chapter, filed an amicus brief in the case.

At issue was whether a client’s workers’ compensation policy protected the client from a wrongful death lawsuit after a temporary employee assigned by a staffing firm was killed on assignment in a grain silo. The Supreme Court held that, under Texas law, an employer’s workers’ compensation policy cannot cover some employees but not others. Because the client had secured a policy covering its employees, and because it was uncontested that the employee was jointly employed by the client and the staffing firm, the court found that the temporary employee was covered and thus dismissed the lawsuit.

Hiring Contractors Without Getting Into Trouble
New York Times (02/02/12) Katherine Reynolds Lewis

The government has been cracking down on companies that treat workers as contractors for wage, tax, and benefit purposes but as employees when it comes to their work duties. An audit conducted by either the U.S. Internal Revenue Service or the U.S. Department of Labor can overwhelm a small business—even if the issues raised turn out to be unfounded.

Kevin McCoy, partner with Kruchko & Fries, a labor and employment law firm based in McLean, VA, notes employers most often slip up when they try to fill a part-time or short-term need with an independent contractor, thinking that because the position is less than full time or of limited duration, it can be filled by a nonemployee. However, if an employer tells someone when, where, and how to work, that is not considered a contractor relationship.

Along with knowing the law, companies hiring contractors need to hire carefully. Kathleen Benson, president of Herndon, VA-based research firm ORI, says contractors are a quick and cost-effective way to bring in high-level talent with specialized expertise for data-intensive projects. ”One of the benefits of an independent contractor is that you can really zero in on very specific needs and skill sets,” says Benson, who uses temporary staffing firms like Flexforce Professionals in addition to ORI’s network. During the screening process, ORI checks references and conducts background checks. To ensure legal compliance, contractors must show proof of insurance and a record of self-employment tax payments. They must also maintain a dedicated work space, since many work from home.

Trends and Research

Industry Employment and Output Projections to 2020
Monthly Labor Review (01/12) Richard Henderson

The U.S. Bureau of Labor Statistics has released its latest projections, including an employment annual growth rate of 1.3% for the 2010-2020 period. The employment services industry (which is mostly temporary help services) is projected to add 631,300 jobs during this period—an annual rate of increase of 2.1%—and reach 3.3 million by 2020, placing this industry among those with the largest projected employment growth.

The employment services industry also is projected to enjoy a real output growth rate of 3.8% annually, increasing by $71.6 billion, to reach $229.3 billion by 2020—compared to a 2.9% real output growth rate for the overall economy. The demand for information technology, health care, and temporary help services is driving growth in this industry, according to the BLS.

Research Roundup: The ‘Flip Side’ of Open Innovation, Productivity Losses From Bad Weather, and Assessing the Risks of Outsourcing
Knowledge@Wharton (02/01/12)

In a recent paper published in Organizational Dynamics, Wharton professor Peter Cappelli says corporate managers often do not sufficiently consider risks when hiring temporary or contract workers, generally focusing on operational costs instead. A January 2012 survey by ASA and ASA corporate partner CareerBuilder predicts an increase in U.S. companies hiring temporary or contract workers to 36% this year from 34% in 2011.

Cappelli says managers should take a systemic approach to risk management when making decisions about outsourcing, and rather than focus on reducing costs, they should concentrate on reliability and responsiveness.

Inbound Marketing Trends in the Staffing Industry: Case Study
PRNewswire (02/01/12)

Inbound marketing company Grass Roots Marketing has announced the results of a case study, “Inbound Marketing for Staffing Agencies.” The study examines the Web site grade and social media platform activity of about 250 staffing firms; 233 were identified as American Staffing Association member firms, and 25 were identified as the biggest staffing firms in the U.S.

The upshot of the research was that typical staffing firms can boost their sales by allocating more resources to inbound marketing tools, and smaller firms can be just as effective as the top 25 firms. According to the survey, six of the eight most effective marketing tactics were Internet-related. These included a company Web site, e-mail blasts, social media, search engine optimization, e-mail newsletters, and search engine advertisements.

ASA for You

Today from 3 to 4 p.m. Eastern time, attend the ASAPro Webinar “Recruit Career Activists—The Top Talent Hidden in Every Generation,” presented by human resource consultant Peter Weddle. Get a preview of his book The Career Activist Republic and learn how to identify top talent in all generations.

ASAPro Webinars are free for ASA members ($295 for nonmembers) and qualify for continuing education hours toward ASA certification renewal. Register online at americanstaffing.net.
ASA is committed to helping member companies create an environment where employees can thrive and clients can be assured of your commitment to principles, integrity, and fair dealings. As a condition of membership in ASA, each member pledges its support of, and adherence to, the principles and practices set forth in the ASA Code of Ethics and Good Practices.

In an ASA survey, clients said that the association’s code of ethics is the most important reason to work with an ASA member. The code helps companies support a positive image of the staffing industry and foster good relations with employees. To download the ASA Code of Ethics and Good Practices, visit americanstaffing.net.