Monday, November 2, 2009
I'm Going To Jail!
http://tinyurl.com/yz4pwd7
All in good fun, of course, and for a good cause!
Monday, September 28, 2009
What Candidates Should Expect From IT Staffing Firms - Part II
Though I used to be a Project Manager, scope management was never a strength! However, I promise I will answer the "what you should expect" question at the end of this multi-post topic. Similarly, there are dozens of questions one might ask when choosing to deal with one firm vs. another. I will provide the "laundry list" in another post; the questions I have here are those I feel are most important.
Now, more than ever, a large number of folks are finding themselves working as part of the contingent work force, and are in unfamiliar territory. There are things that a traditional staff employee takes for granted when working as an full time employee (FTE) that don't always hold true when working for a staffing firm.
I polled my network of folks and consulted a few other sources and came up with a number of things. I will attempt to group related comments together:
ABOUT YOU:
Time to do some self assessment. Is it tough for you to walk into unfamiliar situations, or do you like the challenge of a new situation? Do you work best in a structured work environment in cubes, or are you happier in an open office environment in an old building somewhere downtown?
Think about yourself and your aptitudes to help structure your selection criteria:
What am I looking for in my next opportunity? How well does the staffing firm and this particular engagement align with what I want out of this experience?
Think about your goals for your next move. Are you just trying to get back working and generate income? Are you looking to get a foot in the door at the end client so you can hire on full time? Or, are you looking to extend and grow your career as a consultant?
In a soft economy like this one many folks are just looking to generate income, and are less concerned about career growth. Still, think about it and ask the relevant questions:
- "What is your policy for converting to FTE with the client?"
- "How can you help me grow my skills by working with your firm?"
I found when I was consulting that I could learn something from every engagement. Even the most difficult environment, or the most mundane engagement also came with the opportunity to learn how to deal with a difficult manager, or how to effect change in an environment that was not receptive. At the very least, I found ways to lend value to the client organization regardless of the constraints and difficulties I faced.
I suggest you think about this as you move into consulting and staffing positions.
ABOUT THE FIRM:
There are hundreds of firms out there with all sorts of different opportunities. Go to Monster.com or DICE.com, and most of the positions will be from staffing firms. You will likely see multiple firms advertising the same position. Which one do you choose to work with?
Does the firm specialize in my area of expertise, or do they provide more general staffing? Regardless, how many engagements do they currently have doing what it is I do?
There are pros and con's associated with boutique or niche firms, and general IT staffing companies. A niche firm certainly is more familiar with individual market spaces and clients, and may be better equipped to get you into that perfect assignment. On the flip side, chances are a general IT staffing firm will have a broader reach and larger client base, and be able to reach areas that a niche firm can't.
The key is to ascertain how well the firm understands what you have to offer a potential client. The better the recruiter and sales person understands what you do, the more effectively they can look at opportunities and needs in the market place. Ask:
- "Can you describe the type of engagements you have today that are similar to what I am looking for?"
- "Can you connect me with one of your consultants who is doing this type of thing today?"
What is the firm's reputation in the market place with both clients and with consultants?
This is a key question. In central Ohio, there are probably at least one hundred IT staffing and consulting firms. Some are widely known, large national companies. Some are small firms that focus on a couple of clients or in a specific niche or industry. Most are reputable; some have questionable practices.
Regardless, ask people for recommendations and ideas on firms that are good to work with. If you are approached by a firm, do a little homework before committing to work with them. How can you check out the reputation of a particular firm?
- Leverage social networking tools such as LinkedIn and others to find people who have worked with a firm. LinkedIn is a great place to search. Find the sales people and recruiters for the firm, and see what others have to say about them. Find consultants that work for the firm and reach out to them via LinkedIn.
- Check with former colleagues or managers that have engaged the firm from the customer side to get direct insight.
- Ask the recruiter and sales people you talk to "How long have you been with the firm?". Look on LinkedIn or other social networking sites to look at the tenure of the internal staff of the firm. A firm with high turnover in their sales and / or recruiting staff is a warning sign. Even in today's world of "Vendor Management Systems", the success of a staffing or consulting company is still based in large part on the ability to build and maintain relationships with candidates and clients. A firm with high turnover, particularly in their sales staff, can not maintain relationships with customers.
Every firm claims to be professional, high end, and "just like the big firms". Some are, some are not. Some firms simply match candidates with clients, and handle payrolling and invoicing, but provide little additional support to clients or consultants.
How do I get paid and what are the benefits like?
Some firms offer salary and benefits; some only pay hourly with no benefits. The different types of arrangements include:
- W2 Salaried: You are a salaried employee, and get paid a fixed amount every time period (ex: $6,250 / month). The consulting / staffing firm takes care of payroll tax withholding, FICA, etc. There may or may not be compensation for hours in excess of the standard hours that are billed to the client.
- W2 Hourly: You get paid a set amount for every hour you bill the client (ex: $38.50 / hour). The consulting / staffing firm takes care of taxes and other withholding.
- Independent Contractor (IC): Sometimes referred to as a "1099 contractor". You are paid a set amount for every hour you bill the client. You are treated as an independent business entity by the consulting / staffing firm, and are responsible for all of your own tax reporting, and generally are required have general liability and other types of business insurance.
There are pro's and con's to each these, too much to go into here. For "rules of thumb":
- If you need health benefits, W2 Salary is generally your best bet. However, some firms offer health benefits with W2 Hourly. Ask.
- If the assignment duration is relatively short (<>
- If your goal is to be a long term, professional consultant, known as an expert or highly skilled in a specific market space, then take the time to get set up as an IC.
Regarding benefits, most reputable firms offer some form of health, dental, 401k, and other benefits to W2 salaried employees, and a few offer benefits to W2 hourly employees. However, some firms do not offer health insurance and other benefits at all! Be sure to ask!
IC's are not eligible for benefits such as health and 401k as they are independent business entities by definition. If you are looking at working as an IC through another firm or by marketing yourself direct to a client, then I strongly advise researching the subject and consulting a professional accountant / lawyer accustomed to dealing with IC's.
WHAT ABOUT THE ENGAGEMENT?More about things to think about in my next post. This one is getting a bit lengthy!
Wednesday, September 16, 2009
Quick Update and Thoughts
What is happening here? Why are we seeing a rise in IT staffing positions when the media reports a very slow recovery? If a recovery is underway, why aren't companies hiring FTE?
My thoughts on this are that the cost of contingent labor has dropped to the point where the hourly loaded cost of full time employees and IT contractors is very comparable. Most large clients with formal procurement processes and Vendor Management groups have imposed rate reductions on their staffing supplers. Similarly the supply of skilled IT staff on the market has increased due to slowness in the economy. Conversely, few clients have been able to force a similar reduction in cost on their FTE's.
This has resulted in a very comparable hourly cost between contractors and FTE's. The advantage of contractors is that they can be hired and released quickly without worrying about costs for severance and such. This continues a trend that started some time ago where companies maintain a minimum level of staff to preserve core business knowledge and then use contractors for projects and initiatives that arise. Sort of like a general contractor outsourcing the carpentry work to another company on a building project.
The other oberservation is that I have never seen so much senior talent on the market. Clients seem to be focused on the 5 to 10 year technical professional that can be told what to do and left alone to do it. The demand for management talent in particular as waned. It is as if companies are leaving the technical staff alone to do the work in a self managed manner, and even when a "lead" position comes up, it usually entails the person also being a direct contributor.
This may be short sighted as individual contributors are notorious for shortcutting process and practices such as project management, requirements definition, etc. It is somewhat of a cycle: I expect we will see a rise in demand for Project Managers within the next year or so to fix the initiatives that have gone out of control.
Tuesday, June 23, 2009
What Candidates Should Expect From IT Staffing Firms - Part 1
In today's market, many folks are finding themselves working for IT staffing / consulting companies for the first time in their careers. Unfortunately, many are also getting surprised by what they find.
For example:
- The compensation discussed during the interview is not the compensation presented at time of offer.
- The consultant is not paid in a timely manner or at all.
- The consultant is not eligible for health insurance and other benefits that were previously discussed.
- The position is actually a subcontracted position.
- Travel and other expenses are not reimbursed.
- When the consultant comes off assignment, their employment with the consulting company ends.
- They are offered an independent contractor (1099) position rather than a W2 employee position.
I had coffee this morning with an individual who worked in the IT consulting industry in the 1990's, and recently relo'd back to central Ohio after working as a staff employee for a leading firm in the IT sector. She was quite surprised - actually, shocked - with practices today compared to ten years ago. For those of us who have been in the industry for awhile, perhaps we have been desensitized to the amount of change that has occurred. For candidates who are just getting acquainted with the industry, it can be an unpleasant experience should they fall prey to an disreputable firm.
If you have questions or observations on working with IT staffing and consulting firms, I would like to hear from you as I am preparing a series of blog posts on this topic. My goal is to coach and advise folks on how to mitigate their risk and align with the higher caliber firms like mine. Please respond via comments on this post or email at Rich.Grunenwald@gmail.com.
I appreciate your thoughts.
Wednesday, May 20, 2009
A Breath of Fresh Air
The agenda included three separate forums for the students. One forum was the "IdeaPitch" where budding entrepreneurs pitched their ideas for new products and services. This forum was the most heavily attended as it tapped on the energy and creativity of students. Another was the "IT Industry" forum where panelists from various firms discussed the industry with students.
The third forum was the "Industry Forum" which concentrated on discussion about how to market one's self and what companies look at when hiring a recent graduate. I was a panelist for this forum, and must say, I really enjoyed it. I learned as much from the students as they learned from the panel, and it provided an excellent perspective for me as I, uh, " continue" in my career and work with folks that are significantly younger than me.
What impressed me the most was the number of people that were really looking at entrepreneurship as a career path. The creativity, energy, and passion displayed was a breath of fresh air.
How can industry take advantage of this?
Tuesday, May 12, 2009
Simple Job Hunting Tip
A nifty tool I use is a web site http://www.indeed.com/. "Indeed" does a scan of job boards and provides a singular portal to view jobs that meet your search criteria.
Essentially, you can search multiple job boards, both external (Monster, DICE, etc.) and internal (corporate, staffing companies, etc.) to find jobs that meet your search criteria (location, salary, type, etc.). You can also save your search and have it run automatically as a search agent.
A weak point of Indeed is that the search criteria is fairly basic. It does not do a particularly good job of categorizing jobs as to search for a specific job by title. Searching is done via a simple keyword search. Indeed is really a "broad net" when it comes to sweeping up jobs posted elsewhere. But, it saves time from going to multiple company web sites, and leads to positions you might not have thought about.
Thursday, April 30, 2009
Job Hunting Tips...
There are countless books, web sites, and blogs on this topic, so there is really no reason to go in depth here. However, I have developed a standard email with a few tips that I send to people, and thought I might share them here.
Some of this is local to central Ohio, but can be applied to other geographies.
RESUME'
- Make sure your resume' is top quality and targets the position you for which you are applying. Your resume is the marketing collateral for "You, Inc.", and reflects an image of what you are all about.
- PLEASE ensure your resume' is without errors, typo's, and formatting issues! It never ceases to amaze me how many people looking for six figure jobs have resumes that look like they were written by a fifth grader.
- I highly recommend going to the library or book store and getting a book about resume' writing. There are many styles and formats, and unless you spend your days looking at resumes, it's difficult to know what a good resume' needs to look like.
- If you are struggling developing your resume', consider enlisting professional help. There are services that range from basic resume' writing to all out career counseling, and pricing varies accordingly. Locally, I recommend Worthington Career Services, http://www.worthingtonresumes.com/
NETWORKING
If you have read this far, you are probably not sitting around evaluating competing job offers. Get out there and talk to people.
- http://www.meetup.com/ Go to Meetup.com and search on “ColumbusTechLife” and sign up for it. You will get emails about things going on. There is also a group on LinkedIn for ColumbusTechLife. As I mentioned, these are a great way to get intro’d to tech people around town that you might not normally be aware of.
- http://codemgmt.blogspot.com/ There are a ton of IT related groups on this site. Some may be relevant, some not so much.
- http://www.sciotoridgejng.com/ This is a great group run by Janice Worthington who writes for Business First of Columbus, and who has been featured on TV news. My company has done some job fairs with them and they are good. There are multiple meetings each month with speakers and other events.
- http://www.linkedin.com/ If you are not yet on LinkedIn, then join. It is a great tool for finding professional contacts. From a sales perspective, I use it to search companies for people I used to work with, so then I can call them to get reacquainted and if it makes sense to introduce my company to them. You can do the same thing from a job search perspective. Find and call folks you know from your past (work, schools, etc.) to see if there are opportunities or if they know of something going on.
- http://www.facebook.com/ LinkedIn has purposely targeted the professional market. On the other hand, Facebook is truly a socially oriented networking tool. If you haven't already, set up an account, get your profile out there, and get connected to folks you know.
- Traditional Networking: Clubs, churches, and other social organizations have traditionally been a great source for networking and finding out about jobs, and still are. Leverage them.
ACTIVITY
Your job now is to get a job. Be the best employee that "You, Inc." has ever had, and work your buns off. Everyone's style is a bit different, but every day you should be able to point back at a list of completed activities. For example:
- Made 40 calls to former co-workers
- Applied for 4 jobs online
- Set up coffee meeting with former college room mate.
- Tailored my resume for a different type of position
- Met with a temp agency / staffing firm in my geography
- Went to a networking event at church
- Researched how to market myself as independent consultant
- Identified three alternatives to jobs in my current field
...or whatever. The point is that you need to be BUSY, show results of your activities, and apply discipline and rigor to your search, and be in control of your search.
SUMMARY
As I mentioned at the beginning, most of this can be found elsewhere, and much of it seems to be common sense when you think about it a bit. However, most of us aren't used to looking for a job, and a few pointers on what to do can go a long way in making our search more productive, even in a slow economy.