DePaul Industries Blog

Hire Temporary Staff Now to Increase Inventory for the Holidays

September 16, 2014

Increasing Inventory for Holiday SeasonThe first signs of fall are upon us: kids are back in school, leaves are starting to change and temperatures are cooling. The holidays may feel far away but will be here before we know it, and for consumer goods companies that means now is the time to ramp up production to ensure inventory volume for the holiday season.

So in warehouses around the country, companies that sell foods and beverages, clothing, electronics and other consumer goods are ramping up production. Not only are they producing increased quantities of their year-round products, but adding special holiday retail items like gift baskets, gift sets and products in holiday-themed packaging….

The American CDL Driver Shortage: What You Need to Know

August 26, 2014
Truck Driver Shortage

Photo courtesy Flickr user Randy Heinitz

The American trucking industry is facing a serious shortage of commercial driver’s license (CDL) drivers that doesn’t look to abate anytime soon. Despite the national unemployment rate being over 6%, the industry struggles to find enough qualified drivers, as anyone who has ever recruited or hired drivers will tell you.

This trend has far-reaching implications, considering the trucking industry’s integral role in the U.S. economy. Nearly 70% of all the freight tonnage moved in the U.S. goes on trucks, according to the American Trucking Associations (ATA). Moving more than 9 billion tons of freight annually requires more than 3 million truck drivers, according to the ATA.

THE PROBLEM
The ATA estimates that there is a current shortage of about 35,000 CDL drivers, and that shortage will increase on average by 100,000 a year. Ninety percent of U.S. carriers say they cannot find enough drivers who meet the Department of Transportation criteria, and turnover (the rate at which drivers leave the industry and are replaced by new drivers) is high at 92%, putting it above 90% for the second consecutive year.

This shortage has a number of causes, including:

»  Federal regulations and changes to the hours of service.
These changes reduce the number of hours drivers can drive and increase required breaks, meaning drivers are driving longer without extra pay, and trucking companies have to hire more drivers and use more trucks.

»  Falling driver wages.
Average annual driver pay was roughly $40,000 in 2013, down 6% from 10 years prior when adjusted for inflation.

»  Older drivers retiring and fewer young people coming into the industry.
The average age of professional drivers is 55 years old, according to the Bureau of Labor Statistics, while many companies are seeking physically fit drivers willing to work incredibly long hours.

» High demands of the job, including extended time away from home.
Many drivers leave the trucking industry to stay at home and have more time with their families, even though they may earn less in another industry. Young people entering the profession find that being a driver is more challenging than it first appears, leading many new drivers to quit within three months of being an over the road (OTR) driver. These same young people may seek out a local driving position, only to find that they do not possess the experience required of most companies seeking a driver.

THE SOLUTION
Companies seeking help staffing driver positions need to be aware of this national shortage of qualified, professional truck drivers. Many companies want drivers who have stable work history, but job hopping in the trucking industry is at an all-time high, due to many of the challenges listed above.

The immediate solution is not an easy one, but there are a number of ways those within and without the industry can help. These include:

»  Offering higher rates of pay.
A recent article in Logistics Management cited increasing pay as “potentially the most direct way to boost recruiting efforts.”

»  Changing expectations of the “perfect driver” and showing flexibility in hiring.
This could include being willing to train seemingly less experienced drivers, and accepting the right driver for the job. That right driver may be older and might have had ten jobs in six years and a speeding ticket, but may be a better fit than the driver who is younger and has had three trucking jobs in two years.

»  Flexibility on the part of drivers seeking positions. 
Local drivers need to understand that they not only need to have experience, but that having a so-called “local” job may mean they are away from home a few nights a week, and will most often work long shifts 6 days a week. In addition to driving, they are also expected to provide customer service and ably manage any complaints or issues.

»  Spreading the word about the gravity of the driver shortage.
More attention has been focused on the shortage of late, helping to raise awareness on the part of drivers and employers and hopefully attract new talent to the field.

Addressing and overcoming the driver shortage will not necessarily be easy, but with employers and drivers understanding the challenges and working together, compromises and adjustments can be made to continue to keep America’s trucking industry thriving.

Staffing CDL Drivers
 

Temporary Staffing an Effective Bridge to Permanent Employment

August 7, 2014

A new report from the American Staffing Association (ASA) provides further evidence that temporary staffing is an effective bridge to permanent employment.

About half of respondents to the 2014 Staffing Employee Survey indicated that gaining permanent employment was their primary reason for seeking temporary work. Of those respondents, 99% gained permanent employment. As the ASA puts it:

“When Americans want permanent jobs,
temporary and contract assignments provide the bridge
they need to secure the employment they want.”

A few other highlights from the survey, which was completed by nearly 12,000 current and former temporary or contract employees who had worked for a staffing company at some time since Jan. 1, 2013, include:

» Nine out of 10 respondents were satisfied with their staffing company.
» 76% of staffing employees work full time.
» 22% of respondents cited flexibility as the reason they decided to choose temporary employment.
» Temporary assignments help candidates gain job skills – nearly 90% of respondents said staffing employment made them more employable.

Some employers still hold the misconception that staffing is only for temporary assignments, but results like these show that employers are increasingly using the “try before you buy” model to test out employees on a temporary basis before committing to hiring them permanently. And employees benefit, as well, as they have an opportunity to learn necessary job skills and determine if the job is the best fit for them in the long-term.

FURTHER READING:
“Try Before You Buy” – The Celebration of Permanent Hirings
Types of Staffing: Agencies Offer More than Temporary Placements
Top 5 Misconceptions About Temporary Staffing (From the Employer Side)

ASA 2014 Staffing Employment Survey

Graphic courtesy of the ASA 2014 Staffing Employment Survey

Staffing Glossary: 8 Terms You Need to Know

July 28, 2014

Staffing MeetingIf you’re new to using staffing services, you’re probably unfamiliar with staffing industry lingo. Read on for explanations of some terms you’ll likely come across in the staffing world, and that you’ll probably see on our blog and website.

ALTERNATIVE STAFFING. Alternative staffing organizations like DePaul Industries provide commercial temporary staffing services to help people with barriers to employment (such as a disability or experience of homelessness) to get jobs.

CONVERSION FEE. A customer pays a conversion fee to a staffing company when they want to hire a temporary employee permanently. That’s not the case at DePaul, however – after one of our associates has been at your location for 520 hours, you pay no conversion fee!

DIRECT HIRE. A direct hire, or permanent placement, means the staffing company manages recruiting and screening a candidate who you will hire on a permanent basis.

JOB ORDER. The job order is a formal instruction that you’d like to hire for a certain position or positions. The job order contains details like necessary skills and pay rate, and contains all of the information recruiter all of the information they need to identify top candidates.

MARKUP. The markup is the percentage of the temporary employee’s pay rate that the staffing agency charges for its services. When you add the pay rate plus the markup, you get the bill rate, the total amount you will be charged for an employee.

ONBOARDING. A solid onboarding plan helps new employees get up to speed as quickly as possible. Even though temporary employees may only work at your facility for a short time, they need training as to expectations, safety procedures and to whom to direct questions.

PRE-EMPLOYMENT SCREENING. All staffing companies complete screening before hiring a temporary employee, which may include a drug screen, a background check and skills testing, depending on the staffing company’s and employer’s policies.

TEMP-TO-HIRE. Temp-to-hire gives an employer a trial period with an employee as a temp, before they decide to hire them permanently. It’s also known as “try before you buy.”

Complying With the USDOL 7% Disability Hiring Rule: Resource Roundup

July 16, 2014

7 percent utilization goal - people with disabilitiesIt’s been more than three months since the United States Department of Labor’s Final Rule to Section 503 of the Rehabilitation Act of 1973 took effect, requiring government contractors to take steps to ensure that 7% of their employees are individuals with disabilities. The regulations, overseen by the Office of Federal Contract Compliance Programs (OFCCP), also include an invitation to self-identify as having a disability and extensive reporting requirements.

The impact of this rule is significant – the USDOL estimates that nearly 20% of the US workforce is employed by a federal contractor – but the rule hasn’t been widely covered in the media. With many contractors still unsure of whether they are complying with the 7% rule, we’ve compiled some resources to help you get up to speed.

How to Be In Compliance With the New 7% Disability Quota
Our blog post from September 2013 outlines six of the regulations’ major points, including data collection and incorporation of the EO clause, and the benefits of hiring a staffing firm to manage the new requirements.

USDOL’s Frequently Asked Questions
These comprehensive FAQs cover questions from why the final rule is needed to effective dates to who to contact with questions. The OFCCP added some additional questions in late June (marked as new), including whether a portal on a company’s intranet that asks employees to self-identify meets the self-identification clause.

USDOL’s resource list and searchable directory
One of the biggest challenges some contractors are facing is knowing how (and where) to recruit and hire people with disabilities. The DOL’s resource list features nonprofits and governmental and other organizations that can provide information and assistance; a searchable directory of these organizations (including DePaul Industries) is also available. In addition, Think Beyond the Label offers great resources on the business case for employing people with disabilities, and on hiring and recruiting.

The Wall Street Journal’s look at how government contractors are reacting
The week before the updates to Section 503 took effect, the Wall Street Journal emphasized the self-identification clause, and how to make employees feel comfortable “disclosing health-related information to their bosses” by self-identifying.

Human Resource Executive: “We’re seeing a lot of employers unaware of the March 24 deadline”
Just before the effective date, HRE took a look at how many government contractors weren’t familiar with the new regulations. It explored the lack of awareness among contractors, in part due to little information being available.

Contact DePaul Industries - Department of Labor 7 Percent Rule

 

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