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Wednesday, January 3, 2018

Why Salaries Are On The Rise

Why Salaries on Are On the Rise

It should be no surprise that salaries are on the rise in 2017. After nearly a decade of little to no salary appreciation, compensation is on the upswing for several reasons.
The GDP has been on a rapid rise ever since the Presidential Election. Whereas the Nation suffered nearly a decade of anemic growth never exceeding 2.6%, keeping in mind that historically the US economy has expanded 3% or more, on average. The GDP was at 3.3% for Q3 of 2017 and is about to hit 4% with the latest prediction at 3.98%.
With growth and expansions comes jobs and that is clear in the yearlong drop in unemployment. Nationally unemployment stands at 4.1%, the lowest since 1973, and South Florida being at 17-year low of 3.3% and a 3.6% for Florida overall. This is most important because 2.5% of the workforce that are job seekers are considered unemployable. That said, for South Florida that leaves only .8% of the unemployed for employers to choose from if those employers rely on solely hiring unemployed workers.
Proof of rising employment is demonstrated by the US Economy having gained 228,000 jobs in November of 2017. Newly created Manufacturing jobs are at a pace of 1,000 new jobs per day currently. Construction added 24,000 jobs in November and construction has been at a peak high for a consistent period now.
To add to this, Business Investment is picking up, and with financial conditions worldwide appearing to be good, plus the low volatility of the growing stock market, (the DOW currently at 24,800) only increases the confidence and optimism of business owners to grow and hire as they anticipate increased demand for products and services in their businesses. Additionally, the tax plan is a going to reduce the corporate tax rate from 35% to 21% a 14% reduction – 14%!! This alone has experts predicting the DOW will easily climb above 25,000 now that is has been enacted into law.
Therefore, with a growing GDP, Stock Market record highs, and Corporate Tax reductions in the future all contributing to Business Owner optimism, the supply of employable candidates among the unemployed is not meeting demand for open positions.
When supply doesn’t meet demand we know the price for supply goes up. This is no different for the employment market where there are very few unemployed workers for businesses to hire. So, if businesses expect to grow and meet the demand of their customers, those businesses will look to hire qualified candidates from their competitors. To do this they must offer some sort of incentive(s) for such candidates to inspire them to leave their current employment.
Incentives can take many forms, as in expanded duties, promotion in title, greater responsibilities, but certainly the one incentive that gets the most attention and has the best chance of luring a worker away from their current employer is MONEY. So, incentivized offers can include a raise in salary, the clear potential for a better bonus and in the current market conditions, even “sign on” bonuses.
Given all the variables discussed above, it’s undeniable we are in the market of salary increases and have been for most of this year. Any employer wishing to lure a worker away from a company that most likely has provided good employment and a decent wage will have to “up the ante” if they expect to hire that person.

Friday, July 7, 2017

Why a Counter Offer is a Bad Idea.....For Everyone

Why it’s detrimental to both offer and accept a counteroffer

Disclaimer: There is no agenda to this blog post whatsoever.  This is simply an expert opinion from a firm that has been operating in the recruiting industry for 20 years.

To understand why a counter offer is a bad idea, it’s necessary to separate the client and the candidate sides of the perspective.

Let’s address the obvious statement right out of the box. When a candidate comes to present their resignation notice to a hiring manager, there’s a reason for it.  This should resonate because for whatever the reason, that particular candidate no longer feels that the employer is the right fit for them anymore. The first inclination may be to be so scared of losing an employee whose work you rely upon that you throw the kitchen sink at them to get them to stay. Money does talk, however, you may have just blown your budget for the position with a counteroffer. Once the initial feeling of relief that the employee is staying passes by, resentment that they tried to leave will set in.  That, combined with the fact that you are now way over budget on that role, will set in motion the need to replace that same employee with someone less expensive.
Therefore, you’ve compounded the problem by not letting go of an employee who originally wanted to be elsewhere, spent too much money to keep them, and now have to spend more time and money to find a new employee.

Stick to your gut!  9 times out 10, within 3 months of accepting a counter offer, we receive a call from that same candidate informing us that they have been let go.  It starts with the age old saying, if it seems too good to be true, it probably is.
       There’s a reason you started your job search in the first place, and provided you have received what you sought after from a new employer, you only have your word as your reputation in the marketplace.  Once you go back on that and accept a counter offer, it’s impossible to regain that trust with everyone involved, including your current employer. They now understand you were looking to leave and will never trust you again, whether they admit or not.  Money is a short term fix, not a long one.  Why accept a promotion now, only offered when pressed against the wall that you thought was deserved already?
      The emotional tie is a real human trait, but don’t let an employer pray on that. It’s not the right or ethical thing to do, and anyone who does is simply holding you back. If you start a job search, have your parameters clear and outlined, communicate those to anyone involved, and follow through on doing what you say you’re going to do.

Wednesday, June 7, 2017

Current State of the Employment Market

Job creation in the professional and business services surged in May according to Moody’s Analytics. The growth in that area is three times the rate of the underlying labor force. Layoffs declined in May by 12%. We have seen demand increase substantially since the end of the presidential election.

Currently, the unemployment rate, which is at record low of 3.8% in South Florida, could reach an unprecedented 3.4%.(National unemployment is at 4.4% and is predicated to fall to 4%.) Note, that 2.5% of the labor market is virtually unemployable. That leaves 1.2% of the whole labor market in Broward as unemployed. We have never experienced such a low inventory of “employable” candidates. While most (70%) of the candidates MSi does place are employed, such low unemployment numbers will significantly impact our cost and our timely effectiveness in doing business.  Especially, in our temp and temp-to-perm divisions because unemployed candidates are typically the ones who fill those roles.

The good news for MSi is the demand is up for our services – the challenge is we are making twice, nearly three times the outbound recruiting calls just to get same number of candidates per assignment. Typically, we have to find 5-qualified candidates per assignment to insure a complete search and placement. We know this because we track all outbound calls to the number of recruits we generate to the amount of interviews with clients that generates to final number of placed candidates.

The purpose of the message is to let you know in case you were wondering why it might seem like it takes longer for us to find qualified candidates. We won’t compromise quality over quantity so whereas you might be experiencing less candidates and more spread out searches you won’t see a drop in the quality.

Higher demand and record low unemployment will cause MSi to focus on recruiting employed and most likely job/career satisfied candidates who will have to be” incentivized” to make a career move. Incentives can include offers of higher salary, larger bonus potential, sign-on bonuses, job titles and, combinations thereof. So, we tell you this mainly because if you want the top talent the market has to offer you are not going to find it in the ranks of the unemployed. We counsel so that you can plan accordingly in your recruitment efforts.

We look forward to continued dialogue and servicing your potential talent needs.

Monday, May 18, 2015

MSi attends Mid-Year Alliance Luncheon - Enterprise FL CEO Bill Johnson speaks

Everything's coming up job in Broward County.

In a Kaufman Rossin survey of 200 local businesses, 60 percent said they plan to increase staff this year. Seventy-six percent said their businesses are healthier this year than last, according to the survey released Thursday at the Greater Fort Lauderdale Alliance's mid-year meeting in Fort Lauderdale.

"Our new job announcements, in addition to the strong employment increases we saw in 2014, are confirmation that our economy is one of the strongest in the nation," said Bob Swindell, president and chief executive of the alliance. The alliance said that during its first two quarters, ending in March, the economic development agency helped Broward attract more than $29 million in capital investment for company relocations and expansions. The county added 390 jobs and retained 406.

Still, there's more to be done, said Bill Johnson, Florida Commerce secretary and Enterprise Florida CEO. He urged alliance members to lobby their state legislators for a marketing budget for Enterprise Florida, the public-private partnership that works to attract new business.

"I need your support," he said. "The economy is back, but this is not the time to sit back. We can do better."

"New York will spend $140 million to market their state as a business destination," Johnson said. Florida also is going head to head for jobs with Texas and California.Johnson, who began his new job in March, has committed to creating 1 million jobs over the next four years. He said Florida has to compete for business and the state legislature has earmarked "zero dollars" for Enterprise Florida's marketing budget.

He said he will focus on bringing in high-wage jobs and on rural and low-income areas that need jobs.

South Florida has done well in its recovery from the recession, Johnson said, but there's additional potential in attracting new businesses, such as port-related companies.

In 2014, Broward was second only to the fast-growing market of Dallas and tied for No. 2 with San Francisco, favored as a business location for its proximity to Silicon Valley.

Saturday, May 16, 2015

Swipe Right to Recruit Your Next Candidate

SwipeJust as we share files through the virtual pipelines, we want (and need) recruitment software to be easy and efficient. Following wider trends in the consumerization of technology, members of the HR field now demand quick and simple platforms. Attention spans are shrinking, and recruiters, candidates, and HR professionals are not immune. As a result, many would rather adopt “plug and play” tactics instead of using arduous platforms that take weeks to integrate and understand.
Such plug-and-play tactics are especially useful when working with limited resources — which many hiring authorities are doing. (Consider that recruiters only spend an average of six seconds on each resume they look at.)
So, how can we make recruiting technology even simpler than it is?
New Lover or New Job?
Digital recruiting has adopted processes similar to popular dating apps like Tinder — e.g., swipe right for a new employee! This recruiting tactic may seem silly now, but given how many people use Tinder these days (50 million a month, according to some estimates), it’s likely that we’ll have no problem getting used to recruiting software with dating-app-inspired interfaces.
CoupleThis recruitment adaptation caters to the shortening human attention span. Because we are more likely to engage with visual content than text-heavy content, visual and physical “swiping” actions are easily processed in our brains. In fact, the brain processes visual information 60,000 times faster than simple text content.
Consumerization Welcomes All Devices
Don’t worry, the desktop isn’t (completely) outdated — yet. The consumerization of the increasingly digital recruiting process currently welcomes all devices with open arms, thanks to the cloud.
In January of 2014, mobile app usage accounted for more Internet traffic than PCs did for the first time in American history. With this increase in mobile usage, app-based recruiting technologies become ideal because recruiters can take them virtually anywhere.
Will My Candidates Follow
Ninety-four percent of recruiters believe LinkedIn is the best network to vet candidates. Let’s say a recruiter finally decides to recruit socially rather than through recruiting software. Will their candidates follow the trend? Does social recruiting and app-based recruitment actually work?
FollowNot to fret: 89 percent of recruiters have already hired at least one candidate via LinkedIn, so it looks like the answer is “yes.”
Your candidates already use the Web for research purposes.Roughly 10,200,000 applicants have found their current positions via LinkedIn within the past few years. If you have a robust and renowned employer brand on social media, candidates will find you. In fact, they’re already searching for you:
  • 76 percent of them want to find out what makes your company an attractive place to work;
  • 60 percent want to learn about your mission, values, and vision;
  • and 55 percent are just looking for some basic company information!
We are in the era of mobile apps and easy-to-use, accessible information. The recruiting department has finally begun to adapt to technologies that can make time management and candidate sourcing much, much easier. Through these apps and social media trends, you can recruit candidates in less time, for less money, and in more innovative ways.
Don’t worry: your candidates are already waiting for you to swipe right and make the perfect match!
NOELLE MURPHY  |  May 13, 2015