Check out these exciting Human Resources job opportunities:
HR Director – 2-J Supply
HR Recruiter (Contract) – DMAX, Ltd.
Details regarding employment opportunities can be found on the MVHRA website.
THANK YOU TO OUR JANUARY SPONSOR!
THIS MONTH'S ARTICLES
Congratulations on the Recognition of Steve Black!
Congratulations to Steve Black for being recognized for his volunteer leadership from the Ohio SHRM State Council! Steve’s efforts to connect the HR community through the “HR Communities” initiative were key in being chosen for this impressive award. His strong leadership and positive impact on the MVHRA helped keep MVHRA strong through this challenging year and we all thank Steve for his service!
Contract-to-Hire or Direct Hire? The Most Important Factor
Submitted by: Aaron Davis, founder and CEO of Recless Tech
The Terms for Each
When you use an outside firm to hire skills that are hard to find, like Software Development and Database Administration, you’ll have to decide on the placement terms you use. It’s common for agencies to offer both Contract-to-Hire and Direct Hire services.
Here’s a breakdown of common terms:
Talent is hired by the staffing firm to work for you
You pay for each hour worked
You can hire them directly after 6 months
Guarantee period of a week or less
You can end the contract at any time
Talent is hired directly by you
You pay a fee of 20% of the new-hire salary
Guarantee period of a month or more
How to Decide
A risk/cost analysis is the common approach. Use the example of a Software Developer with a salary of $100K plus an overhead cost of 30%. You’ll pay a $20K fee for a Direct Hire, making the total first year cost of their work $150K.
The local bill rate for the same person in a Contract-to-Hire might be around $100/hr. So you’ll pay $100K for the first six months before converting the contractor to an FTE. Salary and overhead for the second half of the year will bring the total cost of their work to $165K.
When the job qualifications are known, and they fit a single person long term, a Direct Hire is smart. So why spend the extra $15K? You may have heard employers citing the “try before you buy” philosophy. But a sound vetting process and a well-administered probationary period are better mitigations for bad hires. The best use for the Contract-to-Hire model is when the long term job requirements are unknown. If they are likely to change a lot, committing to the person doing the work is just not appropriate.
The Big Variable
Before you opt to grab those savings or pay a little extra to mitigate the unknown, there’s one more question to answer. Who will want the job? To answer this question, it helps to see behind the curtain.
When you use a placement firm, whether for a Direct Hire or a Contract-to-Hire, you’re often enlisting them to solicit dozens or hundreds of prospects on your behalf. They comb their database of past candidates, LinkedIn, or resume boards searching for profiles with the right keywords. They send InMails, emails, voicemails and texts trying to entice in-demand people to take interest in your job. Automation helps get the word out. The response rate is low! (Recless Tech exclusively uses a peer-to-peer referral model with zero recruiter solicitations for this reason).
People who are in high demand, like Systems Architects and Cloud Engineers, get recruiter solicitations every week. With a recent update on an online profile, they get multiple per day. Filtering is important. If they are employed full time and like it that way, the most common way to sift the barrage of messages is to cut out contract offers. You’re just not going to appeal to them with a six month commitment. Independent contractors who prefer more control over the work they take on often filter FTE offers.
They are very different pools of people. Targeting the appropriate prospects with fitting placement terms is critical. Yes, there’s some overlap, but definitely don’t go the Contract-to-Hire route if you’re fairly confident of the long-term requirements. You’ll miss your best candidate!
Aaron Davis is the founder and CEO of Recless Tech, an external referral platform that uses a peer-to-peer sourcing model to provide staffing services for technology positions. He has previously served as the COO for a software services firm, the Talent Acquisition Director for a large health plan, and an account executive for a large tech staffing firm. He is a Senior Professional in Human Resources, a Certified Scrum Master and holds an MBA from Wright State University.
Instructor-led Online Human Resources Professional Certification Study Course (HRPCSC) at Wright State University
Interested in prepping for the PHR, SPHR, SHRM-CP or SHRM? Wright State can help. The Human Resources Professional Certification Study Course will prepare you to gain credentials to advance your career. Classes begin Saturday, February 6, 2021 and run for 10 consecutive weeks. Due to COVID-19, the sessions will be taught through instructor-led interactive online sessions.
You can register through this site and are encouraged to do so early. The deadline for HRPCSC registration is January 6, 2021.
Mock Interview - Volunteers Needed
The College Relations Committee is seeing volunteers to participate in Mock Interview with Wright State University HR students. The dates and times of the mock interviews are:
February 15th – 5:30-8:00 p.m.
February 22nd – 2:30-5:00 p.m.
There will be 4 students in each group and we are looking for a total of 10 volunteers. The interview questions will be provided to you prior to the sessions. If you are interested in assisting, please contact Beth Mitrousis at email@example.com by January 20th. We really appreciate your assistance.
Happy New Year!
Resume Review – Volunteers Needed
The College Relations Committee is looking for 13 volunteers to review resumes for the HR students from Wright State University. The resumes will be distributed the week of January 18th and each volunteer will be given 3 resumes to review and will be asked to respond back to the HR students within 2 weeks with feedback. This is a great way to assist our future HR employees. Please contact Beth Mitrousis at firstname.lastname@example.org or she can be reached at 937-494-2823 if you are able to assist. As always, we are very appreciative of your support.
See Your Article In Our Newsletter!
MVHRA members, do you have something to submit to the MVHRA Newsletter? Please send it to Amy Mitchell, Newsletter Committee Chair, via email at email@example.com.
UPCOMING MEETINGS AND EVENTS
January 12, 2021
Webinar: HR Horror Stories
Speaker: Jeff Kortes
Time: 12: 00 PM - 1:00 PM
Location: Virtual Event (Via Zoom)
Jeff has more than 25 years experience in human resources. He has worked at companies that specialize in manufacturing, construction, and software development. During his career he has worked to recruit, retain and develop employees, at companies including ConAgra Foods, SPX, Midas International and American Crystal Sugar.
Jeff is the founder of Human Asset Management LLC, which helps organizations to recruit, engage, develop and retain talent. He is a member of the National Speakers Association (NSA) and a frequent speaker on the topic of loyalty, employee retention, recruitment and culture building. He is an avid high school wrestling fan, CrossFit participant and US Army veteran. Jeff is the author of Give Your Employees C.R.A.P...and 7 Other Secrets to Employee Retention and HR Horror Stories…True Tales from the Trenches. For more information visit http://www.jeffkortes.com and follow Jeff on Twitter @jeffkortes
Credits: This program is being submitted for approval of recertification credits by the HR Certification Institute (HRCI) and for SHRM Professional Development Credit (PDC).