Employers know that verifying a job applicant’s educational credentials is an important part of any background check.  Usually that confirmation consists of a letter or phone call to the educational institution requesting the applicant’s dates of attendance and any degrees or certificates awarded.  That isn’t enough in the current diploma market! 

The economic climate and lack of enough qualified applicants for certain occupations has resulted in a rash of diploma mills in this country and abroad. In addition, the popularity of distance learning programs has made it easier to provide phony educational credentials.  In the last year, the number of such institutions was up 48%, according to an article on the Society for Human Resource Management website.  Many of these institutions offer educational degrees and certificates to foreign workers eager to enter the US market.   As of this month, the report states that 1008 such institutions have been identified in the United States. 

In addition to the fake documents, the employer may also have difficulty in verifying that an educational diploma abroad is equivalent to one issued in the US.  Hiring employees who don’t have legitimate credentials, or who don’t have equivalent training from abroad, exposes employers to significant risk.  There should be as much of an emphasis on checking educational backgrounds as in checking any other factors in the process.

Many HR professionals are unaware of the magnitude of the $1 billion international diploma mill industry, and are not validating the issuing institution.  Suggestions by one background check service suggestion that U.S. schools can be validated through the U.S. Department of Education or the Council on Higher Education Accreditation.  Verifying the legitimacy of foreign institutions requires more effort, but any professional background check should be able to provide information.  (wikipedia has a fairly thorough list, though they caution that it is by no means the last word).

Tags: hiring process, hiring talent, industry news, recruiters

Recruiting firms and companies themselves are noticing that talent poaching, especially in the technology industry, is becoming a big issue this year and will be in the future.  Talent poaching means one company snags a competitor’s talent with the lure of hirer salaries or other perks.  Bloomberg Businessweek reported recently that poaching in tech companies is an epidemic.  Firms use email or LinkedIn to contact passive candidates.   Bottom line is this can affect YOUR company’s future plans significantly.

First let’s look at why.  The economy is reportedly recovering, and sections of the technology industry are part of that recovery.  Computer hardware and software, as well as renewable energy businesses are planning for growth.  Meanwhile, the pool of qualified talent in science, engineering and math skills is not going to be able to meet our predicted demands.  Companies also need experienced leadership to take them to the next level.  Logically hiring managers will look at the existing workforce to try to fill those gaps. 

An even bigger issue is that most organizations aren’t prepared to address this threat.  How can you prevent your top talent from leaving for what they perceive as greener pastures?  The first step is to take a good look at which of your employees might be a target for poaching.  Then look at what your company can do to avert the threat. 

In the current economic climate, giving folks a raise isn’t always an option, but money isn’t always the answer.  As long as the compensation is competitive in the industry, there are other things that might encourage loyalty to the current employer. 
It sounds like a broken record, but flexible work hours is one of the things employees really appreciate.  One candidate I know is wanting to make a change, but the thought of losing 4 weeks vacation a  year and flexible work hours holds him back. 

Another possibility is to assign your star performers to exciting and stimulating projects.  A challenging, interesting assignment can be as satisfying as a raise for some. 

There is always to option of asking employees to sign noncompete agreements or other legally binding contracts, but that’s not always a morale builder, and has to be carefully crafted.  High tech companies with a lot of research going on may be an instance where this is important. 

In the end, your successful and talented staff are an asset to protect as you plan for your own growth and success.  Include them in any strategic planning as you go!

Tags: change management, employee morale, Hiring Trends, industry news, recruiting

An article in the Society for Human Resource Management Legal Issues section gives a bleak picture of UI costs across the country. Speaker Douglas Holmes, President of UWC spoke before a session of the SHRM employment law conference last week.  He provided some interesting facts. 
State unemployment taxes increased as a percent of wages about 34% from 2009 to 2010, and are expected to go up even more in the next year.  Also, thirty-two states have outstanding federal loans (from the FUTA fund) to the tune of $43.6 billion.  Interest on those loans is approximately 4% for 2011. Interest amounts cannot be paid from state UI taxes, according to federal law, so states will have to have special assessments or increase the FUTA rates to meet these costs.  Spending on unemployment is at an all time high, as we have seen in the news.
How can companies affect their UI costs?  Management, both in their policies and in their employee hiring, reviewing and firing, can have a major effect.  The SHRM article had some ideas on what Human Resources can do to help mitigate these costs.  Some are pretty obvious: review and verify tax rate notices, make sure that your employee and contractor classifications are correct, and make sure that you have accurately reported wages.
Also, HR should work to protect the company’s experience rating.  Filing claims accurately and timely is important.  Spending time appealing incorrect determinations will help the company down the line, and make sure a company HR representative attends these hearings. 
Finally, review and improve hiring procedures and performance management appraisals.  Careful and accurate documentation in these processes can reduce UI claims.  Any employment actions or disciplinary procedures should be reviewed for accuracy and thoroughness.
Training for managers and supervisors on a regular basis is important.  Working with state unemployment agencies to help identify training or internships for unemployed workers can help serve some of your needs while reducing unemployment claims.  Most of all, stay on top of this issue!  It is only going to get more costly in the near future.

Tags: employee benefits, For Employers, industry news, performance management

According to the National Association of Colleges and Employers (NACE), the Class of 2011, whose prospects were already better than those of the Class of 2010, will experience an even more positive hiring environment.  Polls conducted with NACE member employers indicate a positive hiring index for January of 2011, with the February index showing an even higher response. 
The scale used to scores responses ranges from 0-200, with 100 meaning no change.  The January survey index was 120.9.  In February the index jumped to 126.3.  In addition, the percentage of employers that reported plans to hire more graduates has grown – to 53.3% based on a 39% response rate for the employer group.   
On another note, a Society for Human Resource Management (SHRM) survey of employers in January of this year indicates that starting salaries may be slightly higher than last year.  Their Leading Indicators of National Employment index also indicated that both manufacturing and service businesses expect to add employees.  They also indicate that they expect recruiting to be more difficult than last year.
Finally, at the other end of the scale, it seems that some industries such as health care are concerned about replacing C-level people as the baby boomers start to retire.  An AMA survey of 117 senior health care executives revealed that fewer than 7% of health care organizations are prepared to deal with a sudden loss of key leaders.  Considering the huge changes coming down the pike for this industry, and considering also the predicted shortage of health care providers, the impact on business and individuals of this shortage could be major!
More surveys:  global outplacement and executive coaching firm Challenger, Gray & Christmas, Inc., June 9, 2010  found that turnover among top executives in the United States jumped 23.7 percent in May 2010, as 125 CEOs announced their departures,.  Challenger found that in this group also, succession planning was lacking.
So – this could be a big opportunity for those middle management folks that were squeezed out in the last layoff to get their tools sharpened for the future!  Someone has to fill these positions.  Why not you?

Tags: candidates, For Employers, hiring talent, industry news, recruiting

First let me state that I’m not a lawyer, just a law-abiding citizen.  I do pay attention when folks mention problems in the HR world and it seems complying with IRS rules for contractors is very important, and receives a lot of attention. So I’ve hunted around to get input from various groups on what to watch out for.  Here goes.
First, the guiding principles of a contractor vs. employee:
The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. The earnings of a person who is working as an independent contractor are subject to Self-Employment Tax.
You are not an independent contractor if you perform services that can be controlled by an employer (what will be done and how it will be done). This applies even if you are given freedom of action. What matters is that the employer has the legal right to control the details of how the services are performed.
From another source, findlaw.com, I find a 20- factor checklist to determine whether you are an independent contractor.  Lawyers can always give more detail. I’ve highlighted most of the list. Here is the quicksummary of when you’re NOT independent.
1. You receive specific instructions on how to do the work from the employer.
2. Training to perform the task in a specific manner, by an experienced employee.
3. Integration of the “contractor’s” services into the business operations.
4. Services must be rendered personally.
5. If the hiring supervisor is responsible for hiring and paying assistants but not contractors, the inference might be made that it’s an employment situation.
6. Continuing relationship – contracts should have a clear ending
7. Set hours of work.
8. Full time required.
9. Doing work on employer’s premises required.
10. Order or sequence of how to do task is set.
11. Regular oral or written reports – implies control.
12. Payment by hour, week or month rather than by task performed or contract term.
13. Payment of business or travel expenses.
14. Furnishing tools or materials
15. If worker has significant investment in the workspace not reimbursed by employer it indicates independence.
16. Working for only one entity implies control and thus employment.
Isn’t life interesting?

Tags: candidates, For Employers, Independent contractor, industry news, recruiters