ARTICLES, BLOGS & VIDEOS

The latest news, trends and information to help you with your recruiting efforts.

Posted June 03, 2016 by

How new OT laws affect compensation for recent grads, employers

New OT laws - compensation

Photo by StockUnlimited.com

Note: This is the third article in a series of articles focusing on the new overtime laws. Read the first two articles in this series – how the new overtime laws will affect interns and recent grads and how the new overtime laws will affect employers.

The DOL’s increase to the FLSA’s minimum compensation limits is a game changer for many companies, says Joe Kager, Managing Consultant and founder of the POE Group, a Tampa, Florida-based management consulting firm that advises companies on becoming great places to work by developing reward systems that attract, motivate, and retain employees.

Employers who have assigned an exempt status for jobs with compensation above the current minimum ($23,660), but below the new minimum of $47,475, will need to consider a variety of factors before the December 1, 2016, implementation date.

Effect on food service and hospitality management jobs

This will affect many lower level food service and hospitality management positions classified as exempt under the FLSA, says Kager. If the positions are to remain exempt, employers will need to raise compensation to the new minimum. This alternative may be appropriate for jobs that will be required to work substantial overtime. If a compensation increase to the new minimum is not feasible, employers will reclassify the positions as non-exempt and be required to pay overtime for hours worked over 40 in a week.

Deciding the appropriate action will entail a comparison of the two alternatives based on historic hours worked. This could have an additional effect on employees.

“There may be psychological issues to consider if employees have their positions changed from exempt to non-exempt, requiring good communication about the change,” says Kager. “This could be considered by some employees as a demotion.”

How employers will classify recent college grads

Kager says the Poe Group has advised clients to classify new college graduates as non-exempt, assuming they will not initially exercise discretion and independent judgement required in the administrative exemption test. Most college graduates hired into professional positions under the FLSA exemption, whose compensation is generally above the $47,475 minimum, says Kager.

Dan Walter, President and CEO of Performensation, a management consulting firm that engages with leaders to create human capital strategy, compensation, and reward programs that drive firm performance, says he expects employers are going to be reactive to these new regulations.

Walter discussed the short and long-term impact of how the new overtime laws will affect recent college grads and employers.

Short-term impact of new overtime laws

“It is likely that there will be little, if any, change in the amount of jobs available for college students and recent grads in the near term,” says Walter.

Therefore, the short-term impact on companies, regardless of size, is that they will be required to do one or more of these things:

  • Raise pay: If they can afford to do so, employers will increase wages to people above the threshold in order to maintain exemption status.
  • Manage hours: Many companies won’t be able to effectively manage the time. The past trend is that nonexempt workers feel like they aren’t worth as much from the professional recognition standpoint. They may choose to leave their current position and be reclassified as non-exempt to a different company with the hope of feeling more valued.
  • Hire more: Some savvy companies will hire more nonexempt workers so fewer people will work overtime. This will likely occur in larger companies, who are disciplined and more experienced in forecasting and financial modeling. These companies will spend the time and money to make sure that the changes take place and are administered effectively.

“Companies will find that in some groups it will be more cost effective to hire additional staff instead of paying for the overtime,” says Walter. “College recruiting will likely fill these newly created jobs.”

Long-term impact of new overtime laws

The combined impact of the economy and regulation will cause downward pressure on the creation of new entry level jobs due to companies redesigning roles, technology automation of non-exempt duties, and potential offshoring where possible.

“This will occur despite the demographic shift in the workplace,” says Walter. “The retirement of the Baby Boomer generation will likely lead to a downward shift in consumer goods demand with a moderate uptick in services.

The long-term impact of the new overtime laws will focus around these changes, says Walter:

  • Redesign jobs: There will be a move to redesign jobs to meet the 40 hours per week and reassign certain duties of those jobs onto someone else that is exempt.
  • Automation: Companies will be pushed more to the automation of certain duties to offset overtime costs. There will be an increase in companies using technology to automate lower-waged jobs.
  • Increase in offshoring: The effects will continue to add additional pressure to offshoring where possible. Moving jobs out of the United States will cut company costs.

Walter provided analysis. “Now that the nonexempt employee population has increased significantly, it will be more critical that companies manage overtime expense and therefore the hours worked by these employees will need to be closely monitored. The employees with pay that is not near the threshold will have their hours restricted more. Conversely, those employees that are near the threshold will likely receive a pay increase to meet the new threshold and therefore their work hours will likely remain unchanged.”

Effects on management trainees

Walter uses a manager trainee as a simple example of this: If the manager trainee is near the threshold, he will find that the employer will increase their pay to meet the exemption. Therefore, employees that fall into this type of category will work the same amount of hours as in the past. However, for those manager trainees significantly below the threshold, they will find their hours reduced to manage the amount of overtime work.

New overtime laws and small businesses

The new law on overtime – anyone earning under $47,476 will be eligible for overtime – sounds great on paper, because it translates into a substantial raise for those working long hours, and that’s always a plus for the employee, says Vicky Oliver, a multi-best-selling author of five books, including 301 Smart Answers to Tough Interview Questions (Sourcebooks 2005), named in the top 10 list of “Best Books for HR Interview Prep,” and 301 Smart Answers to Tough Business Etiquette Questions.

But if the new law becomes cost-prohibitive for small businesses, look for some unanticipated side effects, such as businesses possibly “demoting” full-time staff positions to that of a part-time or freelance role in an effort to avoid the overtime rule.

“Small businesses are responsible for the majority of new jobs,” says Oliver, a sought-after speaker and seminar presenter. “As always, it will be interesting to see how this particular rule shakes out. Some employers may find that reducing hours to side-step paying overtime will require creating new part-time or full-time positions.”

For more career tips, check out our blog and follow us on LinkedIn, Twitter, Facebook, and don’t forget to subscribe to our YouTube channel.

Posted November 05, 2015 by

Understanding the College Mindset

Rosanna Bell of NAM Youth Marketing

Rosanna Bell of NAM Youth Marketing

In this College Recruiter Webinar, senior liaison and content marketing specialist Rosanna Bell of NAM Youth Marketing discusses strategies and tactics used by leading employers and consumer marketers to reach today’s college and university students and recent graduates.

Today’s young adults are digital natives. Yet marketing to these potential employees and customers requires a well thought out marketing strategy which integrates on- and off-line media. In addition, the on-line media needs to reach them not just through their desktop or laptop computers because they’re constantly on the go and value convenience. It is for those reasons that they love technology and why they use their smartphones dozens or even hundreds of times a day. (more…)

Posted September 02, 2015 by

5 Reasons Colleges and Universities & Companies Aren’t Converting Prospective Students and Customers

There’s no doubt marketing is an art. But conversion? That’s a science. And science is built on equations.

Formstack tries deciphering the equations that power the science behind our industry. They’ve spent some time trying to identify the perfect A/B testing formula. And their next mission is to solve the great conversion equation.

After running the numbers, reviewing the research – and discarding a few options that played with the sum of coffee and mass quantities of carbohydrates – they came up with what they think is a winning conversion equation:

Bold CTAs + Social Autofill Features – Ungated Content = Conversions.
With this equation in play, marketers can move the needle and create meaningful, value-based conversions for their brand. (more…)

Posted July 18, 2015 by

Email Marketing is Still the Most Effective Way to Reach Qualified Leads

Email still trumps social media for customer acquisition—nearly 40 times more effective than Facebook and Twitter combined, according to McKinsey & Co. Meanwhile, Forrester Research states that for every dollar spent on email marketing, the average return is over $44. The return is measurable but email is also the most abused medium by marketers.

In this webinar, Andrea McEwen Henderson, hosts Nicolette Jackson-Pownall, National Account Managers for College Recruiter. Discuss the relevance of email marketing and how effective it is in reaching qualified candidates.

(more…)

Posted July 14, 2015 by

How Technology is Driving the Future of College Recruiting – Part 2

The Arkansas Association of Colleges and Employers Conference was held on June 11-12, 2015 at the Holiday Inn & Convention Center in Springdale, Arkansas. The theme of the conference was: How people, technology, and economics are driving the future of recruiting. The AACE Conference annually attracts over 100 decision-makers from colleges, universities and employers, representing the entire state of Arkansas, as well as government and private organizations. AACE is the only statewide professional association that provides businesses and career services professionals the opportunity to engage, connect and collaborate in order to place or find the talent they need quickly and economically. Their mission is to provide resources for the career planning and employment of Arkansas’ college educated workforce.

(more…)

Posted April 14, 2015 by

Demo of College Recruiter for Schools and Other Consumer Marketers

Nicolette Jackson of College Recruiter

Nicolette Jackson of College Recruiter

College Recruiter is the leading niche job board used by college and university recent graduates searching for entry-level jobs and students hunting for internships.

For job seekers, College Recruiter features hundreds of thousands of entry-level and internship job postings from thousands of large and small employers. College Recruiter also has tens of thousands of employment-related articles, Ask the Experts questions and answers, blogs, videos, and more.

In this webinar, you’ll learn a little about the history of College Recruiter, the recent graduates and students who use it to find entry-level jobs and internships, and the solutions that we offer to higher education institutions and other consumer marketers who want to promote their continuing education opportunities, products, and services to college and university recent graduates and students.

(more…)

Posted April 13, 2015 by

How Programmatic Ad Buying Turbo Charges Mobile Banner Ads

Think banner advertising is dead? Think again:

  • Now software companies can deliver info about their latest creative software programs to college freshmen at specific graphic design schools.
  • Colleges founded in the 1800’s can now market their online master’s programs to graduating accounting majors.

At College Recruiter we work hard to make marketing goals a reality for our clients. We completed the implementation of programmatic ad buying into our mobile and display banner advertising solutions a year ago. Our embrace of this innovative idea allows us to ensure that you’re able to reach the right student with the right offer at the right time. Put another way, we can target your ideal prospect by overlaying both contextual and consumer demographic information.

(more…)

Posted March 14, 2015 by

Virtual Enrollment Fairs for High School and College Students Who Want to Continue Their Education

Struggling to engage with top recent grads and students because your admissions office just doesn’t have the resources to visit their schools over and over and over again? Virtual career enrollment events allow high school, college, and university recent graduates and students to engage in real-time with admissions counselors from one-, two-, and four-year colleges and graduate schools anywhere at anytime.

Events can be open so any candidate can register or by invitation only. Most schools want a virtual enrollment event with one booth and up to 1,000 potential students. For schools which want separate booths for each of their recruiting teams, College Recruiter can set up a maximum of six booths and up to 2,500 candidates. Either way, we handle the registrations, we train your team in advance, and during the event we provide a technical support team to manage candidate and recruiter questions.

(more…)

Posted March 03, 2015 by

Successfully Delivered Virtual Career Fairs

College Recruiter Virtual Career Fair

Many employer, higher education, and other clients of College Recruiter are continually looking for new ways of engaging with recent college graduates and students. They want something that will stand out, be innovative, and allow them to interact with difficult-to-reach young adults in new and innovative ways. Enter our new virtual career fair solution.

Ever been to an on-campus information event where one employer delivers a presentation on their organization and opportunities to a room full of interested candidates? That’s what our virtual career events are like when we set them up with a single booth.

Ever been to a job fair where multiple employers have booths and they either talk with multiple candidates at once or one at a time? That’s what our virtual career events are like when we set them up with multiple booths. (more…)

Posted June 02, 2014 by

Interview of Jimmy McCourt of College Recruiter at the College Recruiting Bootcamp

In this interview by Rob Humphrey of LinkedIn at the May 5, 2014 College Recruiting Bootcamp, Jimmy McCourt discusses the importance to organizations of having a strong employment brand which is consistent with your consumer brand.

The College Recruiting Bootcamp was organized by College Recruiter and co-hosted by LinkedIn at its headquarters in Mountain View, California. Over 100 corporate university relations leaders attended and more than 3,000 registered for the livestream. The Bootcamp was designed to help these staffing leaders more efficiently and effectively hire college and university students and recent graduates.
(more…)