A commonly accepted definition of Statement of Work (SOW) frequently reads as follows: "a formal document that captures and defines the work activities, deliverables, and timeline a vendor will execute against in performance of specified work for a customer." (Thank you, Wikipedia.)
It is hard to argue with the accuracy of the statement, as it adequately represents a literal meaning of "statement of work" as a noun. Increasingly, however, SOW is becoming more of an adjective, sending anyone who makes their living maintaining, sourcing, or providing talent to deliver on an SOW in fits and starts.
SOW, as an adjective describing workforce, defines the segment of the talent pool responsible for delivery of specific work products, but that isn't a full time non-exempt employee, temporary staffer, or contracted consultant.
While the SOW has always been used for the business to circumvent head count restrictions, only recently has this category of labor been scrutinized so strenuously for proper treatment. Why? For two simple reasons. An intersection of the two, really.
Becoming one of Fortune's 100 Best Companies to Work For
Last week, Fortune released its 100 Best Companies to Work For list. The rankings are the result of one of the most extensive employee surveys in corporate America. This year, more than 81,000 employees from 353 companies participated.
So how was Fortune able to narrow down the list? What do these 100 companies have in common? Well, for one, they're all at least seven years old and have a minimum of 1,000 U.S. employees. (They have to, to be eligible.)
But those characteristics aren't what secured these companies a spot on the list. Industry isn't a shared trait either. The list contains retailers, financial services organizations, oil and gas producers, hotel chains, hospitals, etc.
So how was Fortune able to narrow down the list? What do these 100 companies have in common? Well, for one, they're all at least seven years old and have a minimum of 1,000 U.S. employees. (They have to, to be eligible.)
But those characteristics aren't what secured these companies a spot on the list. Industry isn't a shared trait either. The list contains retailers, financial services organizations, oil and gas producers, hotel chains, hospitals, etc.
In case you missed it: Feb. 19
Time for our bi-weekly look at the economy and jobs market. Here's what's been going on in February.
Fortune released its list of the Top 100 Companies to Work For. Topping the list are SAS, Edward Jones, Wegmans Food Markets, Google, and NuggetMarket.
In addition, U.S. Senator Orrin Hatch (R-Utah) unveiled the Hire Now Tax Cut Act of 2010 in hopes of spurring job creation. The legislation would allow any private-sector employer that hires a worker who had been unemployed for at least 60 days to not have to pay the employer's share (6.2 percent) of the Social Security payroll tax on that employee for the remainder of 2010.
Other headlines:
Reuters: Jobless, price data fan concerns on economy. The Labor Department reported a surge in the number of workers filing new applications for unemployment insurance last week. This is continued evidence that the labor market is recovering more slowly than the economy as a whole. In total, the economy has lost 8.4 million jobs since December 2007.
Computerworld: IT hiring jumps in January. The TechServe Alliance reported that U.S. IT employment added 12,900 jobs in January, a 0.3 percent increase over December and one of the best increases since late 2008. The TechServe Alliance calls the monthly gain encouraging, after a debilitating year for the tech job market. (According to analysis by the IEEE-USA, the number of working computer professionals dropped by 198,000 in 2009. The number of employed software engineers also fell nearly 2 percent last year.)
Fortune released its list of the Top 100 Companies to Work For. Topping the list are SAS, Edward Jones, Wegmans Food Markets, Google, and NuggetMarket.
In addition, U.S. Senator Orrin Hatch (R-Utah) unveiled the Hire Now Tax Cut Act of 2010 in hopes of spurring job creation. The legislation would allow any private-sector employer that hires a worker who had been unemployed for at least 60 days to not have to pay the employer's share (6.2 percent) of the Social Security payroll tax on that employee for the remainder of 2010.
Other headlines:
Reuters: Jobless, price data fan concerns on economy. The Labor Department reported a surge in the number of workers filing new applications for unemployment insurance last week. This is continued evidence that the labor market is recovering more slowly than the economy as a whole. In total, the economy has lost 8.4 million jobs since December 2007.
Computerworld: IT hiring jumps in January. The TechServe Alliance reported that U.S. IT employment added 12,900 jobs in January, a 0.3 percent increase over December and one of the best increases since late 2008. The TechServe Alliance calls the monthly gain encouraging, after a debilitating year for the tech job market. (According to analysis by the IEEE-USA, the number of working computer professionals dropped by 198,000 in 2009. The number of employed software engineers also fell nearly 2 percent last year.)
2010 healthcare employment trends
Earlier this week, I wrote about how we'd be starting a new series that would explore industry- and region-specific employment trends. We're going to kick off this series with a discussion of employment trends we can expect to witness in the health and life sciences industries in 2010 and beyond.
Earlier this week, I had the opportunity to speak with Yoh's Pete Ferguson, President, Health & Life Sciences, and Mike Gamble, Director, Strategic Sales Health & Life Sciences, about what they're seeing in terms of staffing in the healthcare, scientific, and clinical sectors of the life science industry; the skill sets that are in greatest demand; and the economic and social events that are having the biggest impact on the workforce. Here's what they had to say:
Earlier this week, I had the opportunity to speak with Yoh's Pete Ferguson, President, Health & Life Sciences, and Mike Gamble, Director, Strategic Sales Health & Life Sciences, about what they're seeing in terms of staffing in the healthcare, scientific, and clinical sectors of the life science industry; the skill sets that are in greatest demand; and the economic and social events that are having the biggest impact on the workforce. Here's what they had to say:
Workforce planning by industry and region
Implicit in many of our discussions is the hiring manager. It's easy to keep conversations and discussions of comprehensive workforce planning at a macro-level. However, this approach introduces the risk of not adequately considering the needs of very specific areas of talent.
What we've found in discussions with our clients at Yoh is that these very real needs, and the disconnect between those who have these needs and those who strategically plan a workforce, can frequently lead to some of the very operational issues we seek to avoid.
What we've found in discussions with our clients at Yoh is that these very real needs, and the disconnect between those who have these needs and those who strategically plan a workforce, can frequently lead to some of the very operational issues we seek to avoid.
The future of online recruiting: relevancy and immediacy
Monster.com announced this week that it is buying HotJobs.com from Yahoo. I don't know about you, but this news really got me thinking about the future of recruiting. And I guess you'd have to throw in the future of Monster's Super Bowl commercials too (a beaver playing the fiddle ... really?).
While on the surface this deal to buy HotJobs seems to signal that Monster.com believes the economy will get better, and more importantly, that jobs will return, it most definitely indicates they believe talent will continue to be a crucial factor for companies to remain competitive in the future.
However, one aspect that I find particularly interesting, even beyond the future of job boards, is the overall future of recruiting in the online space. Here's why: For me, the online world of job boards and resumes has always come down to two things, relevancy and immediacy.
While on the surface this deal to buy HotJobs seems to signal that Monster.com believes the economy will get better, and more importantly, that jobs will return, it most definitely indicates they believe talent will continue to be a crucial factor for companies to remain competitive in the future.
However, one aspect that I find particularly interesting, even beyond the future of job boards, is the overall future of recruiting in the online space. Here's why: For me, the online world of job boards and resumes has always come down to two things, relevancy and immediacy.
Another ripple in the pond: Staffing agencies flounder
Last week, Staffing Industry Analysts reported that Austria's largest staffing agency was having liquidity problems (meaning, Oh no! We might not be able to pay our contractors or suppliers!). Sound familiar? That's because it follows closely on the heels of a UK managed services firm who had their funding unexpectedly pulled by their bank after the first of year. Happy New Year, indeed.
I point this out because I believe it's further evidence of what has been, and will continue to be, an issue for buyers of staffing and managed services for the next few years. Your suppliers are not the same companies they were two years ago.
Let me give you a quick example of one particularly vulnerable area that I predict will start to surface in mid-to-large, vendor-neutral procurement programs. The issue will actually be two-fold.
On one hand, the MSP and/or the VMS might be facing funding and support issues. On the other hand, the suppliers might not be in a good position to deliver. Not to focus solely on vendor neutral, but I believe that in this economy, this is one area where the margins and model are already being tested. (More on this in future posts.)
I point this out because I believe it's further evidence of what has been, and will continue to be, an issue for buyers of staffing and managed services for the next few years. Your suppliers are not the same companies they were two years ago.
Let me give you a quick example of one particularly vulnerable area that I predict will start to surface in mid-to-large, vendor-neutral procurement programs. The issue will actually be two-fold.
On one hand, the MSP and/or the VMS might be facing funding and support issues. On the other hand, the suppliers might not be in a good position to deliver. Not to focus solely on vendor neutral, but I believe that in this economy, this is one area where the margins and model are already being tested. (More on this in future posts.)
The Seamless Workforce on Twitter
Looking for another way to get the latest Seamless Workforce blog posts and news? If so, you're in luck! You can now follow us on Twitter at @SeamlessWkfce. We'll be tweeting all new blog posts as they go live, as well as other interesting industry news and posts we find.
A few of our bloggers are also tweeting individually, so be sure to follow them as well:
Joel Capperella: @JoelCapperella
Mike Zambon: @MichaelZambon
See you in the Twitterverse!
A few of our bloggers are also tweeting individually, so be sure to follow them as well:
Joel Capperella: @JoelCapperella
Mike Zambon: @MichaelZambon
See you in the Twitterverse!
The Virtual Edge: Disaster recovery and business continuity (Part 2 of 5)
In the first installment of The Virtual Edge, Geoffrey Dubiski opened the discussion by reviewing sick time/absenteeism as a first option to having employees work remotely or from home. In this installment, he's going to review the reasons why you should have a virtual or remote operational plan as part of a business continuity and recovery plan. ~ Mike Zambon
Super Bowl 2010 predictions and observations
Last week, I put together a few thoughts, predictions and observations about Super Bowl XLIV, but unfortunately, I didn't get around to posting it. I considered scrapping it altogether, seeing as though the game happened yesterday, but I thought this one was too clever (and my predictions too accurate) to let it go to waste. Sorry for the tardiness, but if you're looking for a smile to make your Monday morning a little more bearable, please read on.
So, you say, this is probably going to be about what the Super Bowl can teach us about managing talent, right? Well you'd be wrong there, too. There are probably some great football analogies, but I'll leave them to someone else. Instead, how about a few predictions and observations that have nothing to do with the actual game, plus a few fun facts you can share with friends and family?
Prediction #1: More really bad commercials. Alright, this is not really a Nostradamus-type prediction. The Super Bowl seems to be one of the last places where ad agencies can really let it all hang out. And it seems they miss more often than they hit. (I've already seen the casual day at the office commercial. Believe me, it's your worst nightmare.) Which I guess is why we watch.
I know this: If the teams are around the 50-yard line, I might get up and grab a beer. But if I hear the start of a beer commercial, or maybe one of the E-Trade baby commercials, I'm staying put. And don't get me started on GoDaddy.com. It's unbelievable to me that for domain name registrations that cost $6.99 a pop, they have millions (about $3 million to be exact) to spend on soft-core commercials. (BTW: If you want one of those catchy .info domain names, you can get one for about a buck now.)
Bottom line: If you're going to spend a few million, anything with a monkey is probably a bad idea. Unless, of course, you happen to sell monkey chow. Oh, and apparently sex does sell.
So, you say, this is probably going to be about what the Super Bowl can teach us about managing talent, right? Well you'd be wrong there, too. There are probably some great football analogies, but I'll leave them to someone else. Instead, how about a few predictions and observations that have nothing to do with the actual game, plus a few fun facts you can share with friends and family?
Prediction #1: More really bad commercials. Alright, this is not really a Nostradamus-type prediction. The Super Bowl seems to be one of the last places where ad agencies can really let it all hang out. And it seems they miss more often than they hit. (I've already seen the casual day at the office commercial. Believe me, it's your worst nightmare.) Which I guess is why we watch.
I know this: If the teams are around the 50-yard line, I might get up and grab a beer. But if I hear the start of a beer commercial, or maybe one of the E-Trade baby commercials, I'm staying put. And don't get me started on GoDaddy.com. It's unbelievable to me that for domain name registrations that cost $6.99 a pop, they have millions (about $3 million to be exact) to spend on soft-core commercials. (BTW: If you want one of those catchy .info domain names, you can get one for about a buck now.)
Bottom line: If you're going to spend a few million, anything with a monkey is probably a bad idea. Unless, of course, you happen to sell monkey chow. Oh, and apparently sex does sell.
In case you missed it: Feb. 5
The big news today, of course, comes via the Bureau of Labor Statistics' (BLS) monthly report on unemployment. In January, the unemployment rate fell to 9.7 percent, a five-month low, down from 10 percent in December. The number of unemployed persons also decreased to 14.8 million.
However, the population of discouraged workers continues to rise, hitting 1.1 million in January. The BLS defines discouraged workers as "persons not currently looking for work because they believe no jobs are available for them." This number is up from 734,000 the same time last year. Employers cut 20,000 jobs in January, yet temporary employment rose by 52,000.
Some other headlines:
SHRM: More Employers Will Hire in February 2010. According to the Society of Human Resource Management's LINE® Report, a monthly survey of HR managers in more than 1,000 companies nationwide, February 2010 hiring will rise, compared to the same time last year. In particular, HR managers expect an uptick in hiring in the manufacturing and service sectors this month.
The Wall Street Journal: Budget Boosts Labor Funds To Combat Workplace Fraud. President Obama's proposed budget for fiscal 2011 includes $14 billion to fund Labor Department divisions pertaining to workforce development and safety, $1.7 billion for worker protection programs, and $25 million to hire enforcement officials to target independent contractor misclassification.
Also, for additional talent management resources and discussions, check out this list of the top 25 blogs in the talent management space, as ranked by Fistful of Talent.
However, the population of discouraged workers continues to rise, hitting 1.1 million in January. The BLS defines discouraged workers as "persons not currently looking for work because they believe no jobs are available for them." This number is up from 734,000 the same time last year. Employers cut 20,000 jobs in January, yet temporary employment rose by 52,000.
Some other headlines:
SHRM: More Employers Will Hire in February 2010. According to the Society of Human Resource Management's LINE® Report, a monthly survey of HR managers in more than 1,000 companies nationwide, February 2010 hiring will rise, compared to the same time last year. In particular, HR managers expect an uptick in hiring in the manufacturing and service sectors this month.
The Wall Street Journal: Budget Boosts Labor Funds To Combat Workplace Fraud. President Obama's proposed budget for fiscal 2011 includes $14 billion to fund Labor Department divisions pertaining to workforce development and safety, $1.7 billion for worker protection programs, and $25 million to hire enforcement officials to target independent contractor misclassification.
Also, for additional talent management resources and discussions, check out this list of the top 25 blogs in the talent management space, as ranked by Fistful of Talent.
Obama budget targets misclassification of independent contractors
Much has been written over the past several days regarding the President's budget for fiscal 2011. Pundits from both the left and right have plenty to say about it. Much of the bandying between political positions has been over the size of the budget.
However, not many have picked up on the $25M that is being directed toward a "Misclassification Initiative." The initiative targets misclassification with 100 additional enforcement personnel and competitive grants to boost states' incentives and capacity to address the problem of independent contractor misclassification.
However, not many have picked up on the $25M that is being directed toward a "Misclassification Initiative." The initiative targets misclassification with 100 additional enforcement personnel and competitive grants to boost states' incentives and capacity to address the problem of independent contractor misclassification.
It is a significant issue, and unfortunately, one that we here at The Seamless Workforce believe will inhibit growth of the temporary employment sector -- perhaps the only segment of the workforce that has shown promise, with over 160K new employees in the workforce since July 2009.
As with most government initiatives, the intentions are well-founded. A statement released this week by the U.S. Department of Labor explains, "When employees are misclassified as 'independent contractors,' they are deprived of benefits and protections to which they are legally titled." For example, independent contractors do not receive overtime and are ineligible to receive unemployment benefits.
Of course this is true, and there is legislation on the books in every state that makes the criteria for what is acceptable use of independent contractors clear. Additionally, revenue-strapped states have been litigating against such laws since the economy nearly crumbled in September 2008.
As with most government initiatives, the intentions are well-founded. A statement released this week by the U.S. Department of Labor explains, "When employees are misclassified as 'independent contractors,' they are deprived of benefits and protections to which they are legally titled." For example, independent contractors do not receive overtime and are ineligible to receive unemployment benefits.
Of course this is true, and there is legislation on the books in every state that makes the criteria for what is acceptable use of independent contractors clear. Additionally, revenue-strapped states have been litigating against such laws since the economy nearly crumbled in September 2008.
Increasing the manpower and the fiscal incentive of the states to continue to seek out such litigious opportunities likely will NOT uncover abuses of independent contractor employment law that would otherwise not have been found. But it may very well have a chilling effect on a firm's willingness to leverage such employees.
Businesses tend to err on the side of mitigating risk in employment and tax law. Therefore, many will think twice about using a temporary staff or independent contractor if they feel it can be even remotely considered a violation.
Leaving the unemployed with less opportunities than they have today.
Businesses tend to err on the side of mitigating risk in employment and tax law. Therefore, many will think twice about using a temporary staff or independent contractor if they feel it can be even remotely considered a violation.
Leaving the unemployed with less opportunities than they have today.
Employment brand and today's seminal printing press moment
John Sviokla posted a great article on Harvard Business Review this morning regarding the management of brands in the advent of the new media. There are plenty of pieces like it, but this one struck me for its simplicity, and the three easy recommendations for brand maintenance in a world in which the future key demographic is always connected, always informed, and heavily opinionated.
Two things struck me in Sviokla's piece. First, the title, "Continuous Brand Management for Generation 10:45." I had never heard the term "generation 10:45" before, and find it fairly interesting. Second was this line: " ... as business leaders we must all accept the new reality and understand what it means for managing our brands."
This cannot be understated. I believe I have written before about new media being a printing press moment, the likes of which we haven't seen since the dawn of radio or ... um ... maybe the printing press?
It is a seismic shift in the manner in which information is distributed and consumed. It may be difficult for those who find themselves on the tail end of the key 18-49 demographic to understand the impact, but our children will know no other world than one with a demand for credible information in real-time, anytime, anywhere, about anything.
Their relationship with not only the data itself, but the manner in which it is accessed, will drive markets, change politics (more than it already has), expand faith, extend relationships, and impart culture.
Two things struck me in Sviokla's piece. First, the title, "Continuous Brand Management for Generation 10:45." I had never heard the term "generation 10:45" before, and find it fairly interesting. Second was this line: " ... as business leaders we must all accept the new reality and understand what it means for managing our brands."
This cannot be understated. I believe I have written before about new media being a printing press moment, the likes of which we haven't seen since the dawn of radio or ... um ... maybe the printing press?
It is a seismic shift in the manner in which information is distributed and consumed. It may be difficult for those who find themselves on the tail end of the key 18-49 demographic to understand the impact, but our children will know no other world than one with a demand for credible information in real-time, anytime, anywhere, about anything.
Their relationship with not only the data itself, but the manner in which it is accessed, will drive markets, change politics (more than it already has), expand faith, extend relationships, and impart culture.
Independent contractors: a definition
We've written a lot about independent contractors and more specifically, about the need for companies to look into their use of independent contractors. While there appears to be more focus on this than in the past, there is still some confusion around the definition of independent contractor and how their status is properly determined.
First, here's a definition in my own words:
Independent contractors (ICs) are individuals or small companies paid as a vendor by your company to perform work on or off-site, with minimal or no supervision from you or your managers. They are usually engaged to complete a defined task, series of tasks, or provide specific subject matter expertise. An independent contractor is not an employee, does not receive a paycheck or benefits, and is responsible for their own tax payments, insurance, and whether or not their business makes any money. They are sometimes referred to as "1099" workers, a reference to the IRS form used to report payments earned and paid to an IC.
First, here's a definition in my own words:
Independent contractors (ICs) are individuals or small companies paid as a vendor by your company to perform work on or off-site, with minimal or no supervision from you or your managers. They are usually engaged to complete a defined task, series of tasks, or provide specific subject matter expertise. An independent contractor is not an employee, does not receive a paycheck or benefits, and is responsible for their own tax payments, insurance, and whether or not their business makes any money. They are sometimes referred to as "1099" workers, a reference to the IRS form used to report payments earned and paid to an IC.
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