• Oven-ready hires: The problem of matching available skills to our demands

    October 28, 2016 by

    Oven ready dishGuest writer Martin Edmondson, CEO and founder of Gradcore

    It feels like there is an ever-growing consensus among employers that university graduates should emerge fully formed, perfectly skilled and immediately work ready. The phrase ‘oven ready’ graduates appears far too often for my liking. It oversimplifies what is ultimately a very complicated issue: How do you match the supply of skills and people with the demands of the economy, when both are moving targets? In other words, how much should employers compromise when searching for the ideal candidate? How much should they training should they assume?

     

    This is such a significant issue in the UK that the government has created a ‘Teaching Excellence Framework’ for universities. One of its goals is to tackle “skill mismatches” in the economy. (Go figure that the same government is now limiting their own access to skilled talent via immigration clampdowns.)

    Every employer presents unique circumstances. So it’s critical for employers to examine their fundamental approach to hiring with a few questions such as:

    • What characterizes the hires you make that are successful, and those that are not?
    • What is the most critical factor for fit with your organization – skills, values, attitude etc?
    • How recently did you evaluate what is really important in the people you hire?
    • If all the evidence says that those people are not available for that price in this place, which one of those variables are you prepared to change?

    Here is the challenge: So many employers are seeking candidates with the skills that are in shortage areas. This is typically around digital and software roles where there is a major disconnect between employer requirements and the quality and quantity of graduates available. Employers (and policy makers who are trying to solve these problems) should try one of the following:

    1. Grow your own

    This is the long game, but often one of the most successful approaches if you have the time. Recruit graduates who have the core attributes or values that suit your organisation, but need to develop their skills further. Then put in place the structured training that will develop them. This could be in house training, or delivered under emerging models such as degree-apprenticeships.

    2. Think differently

    Stop looking at the really obvious candidates. This could be described as the Blue Ocean approach, getting away from where everyone else is fishing. Recently I saw a very interesting post from a company called Talla about mapping resumes using neural networks. This visual approach helps you to appreciate that people who superficially have seemingly different backgrounds are actually remarkably similar. Each of the dots below is a resume. This shows how different titles share characteristics:Point graph of title descriptions on resumes

     

     

     

     

     

    3. Up the budget

    Sometimes you simply need to either increase the budget in order to reach a wider audience, or increase salary to attract the necessary skills. While it’s never ideal, there are clearly certain economic realities that are hard to escape.

    Underlying all of this is a bigger societal question, which will be answered differently in different countries:

    Whose job is it to make a person employable?

    Is it the role of the education system and teachers? Employers? Parents or the state? Or are we all solely responsible for our own development? All play a part, but the prevailing national answer to this question goes a long way to deciding the expectations employers have of graduates and vice versa.

     

    Look forward to discussing this and lots of other topics around college recruiting at the College Recruiter Bootcamp in Washington DC on December 8.

    martin-edmondsonMartin is the CEO and founder of Gradcore, a social enterprise focused on graduate employment and employability. Martin has more than 15 years of experience in graduate recruitment and Higher Education. He founded Gradcore, and over the last decade has led a wide range of graduate recruitment and employability projects. These include running global graduate schemes for a range of large employers, delivering employability performance improvement in universities, and chairing the UK and European Graduate Employment Conferences. Martin was a member of the steering group for the ‘graduate recruitment in SMEs’ report for the UK government and has written for a wide range of newspapers and websites. Connect with Martin on LinkedIn.

  • 5 simple strategies for recent college grads struggling to save for retirement

    September 30, 2016 by
    save money words on a chalkboard illustrating back to school savings or instructions on how to save on your education costs

    Save money now, reap the rewards later. Photo courtesy of Shutterstock.

    We get it. You just graduated from college, and landed that first job. It’s an exciting time.

    It’s also expensive.

    You have your own apartment now, but rent is a lot higher when not living in that college town, or with fewer roommates to split the costs. Then there is that car payment and car insurance. And you are now paying for health insurance on your own for the first time. Wow, that is expensive, right? Suddenly, that salary you didn’t negotiate suddenly looks a lot smaller after taxes and deductions are taken out.

    And let’s not forget those dreaded student loans you are starting to pay back. Those are a real drain, literally and figuratively. Did you borrow money from mom and dad? It might be time to pay them back too. It’s tough. And now that you finally have a job and are making some money, you want to have some fun and spend a little extra, go on a vacation, or splurge on yourself.

    Save for retirement? Not now. There’s plenty of time, right? Yes, there is. But trust us, it’s never too soon for recent college grads and Millennials to focus on retirement. That may be the last thing an early-to-mid 20-something is thinking about, especially with so many other expenses.

    But…follow the wise advice of professionals.

    “With student loan debt and health care costs, many recent college graduates may think they need to defer or limit the amount they save for retirement until they have more money to put towards their retirement savings,” says Joe DeSilva, Senior Vice President/General Manager, ADP Retirement Services.

    ADP’s annual study on retirement savings trends shows that employees age 20-24 defer an average of 4.6 percent of their pay into a tax qualified retirement plan, while employees age 55 and older defer an average of 8.5 percent. Yet, the cost of waiting does not add up. Recent graduates should instead start saving as early as possible – even if it is just a small portion of income.

    “Being proactive today can reap big rewards tomorrow,” says DeSilva.

    Below are four steps recent college graduates can take today to set themselves up for the retirement they want tomorrow:

    1. Don’t wait to save until all your college loans are paid off: Save now to take advantage of compound earnings. If you wait even 10 years to start contributing to a retirement plan, you could miss out on many thousands of dollars in retirement savings.

    2. Actively plan your retirement: Even if a retirement plan is offered by your employer, only you can take charge of your future financial security. Ask your Human Resources department for help in deciphering your benefit options.

    3. Maximize your savings early in your career: Choose to have your employer automatically increase your retirement plan contribution every year.

    4. Establish good money management habits: Focus on saving, smart budgeting and planning for emergencies. In other words, live only within your means.

    While a recent college graduate isn’t likely to accept or move on from a job based on the retirement plan of the employee, it’s best to find an employer who at least offers a company match. That can help motivate recent college grads to start saving because it’s an easy way to start building your retirement base.

    “While they may have many decades before retirement, Millennials can benefit from employers who guide them in making smart retirement savings choices now, at the beginning of their careers,” says DeSilva.

    It’s never too early to start saving for retirement, even for recent college grads, entry-level employees and Millennials at all stages of their professional career.

    Want to learn more about how to save money for retirement while managing the start of your professional career? Then stay connected to College Recruiter by visiting our blog, and connect with us on LinkedInTwitterFacebook, and YouTube.

    Joe DeSilva, Senior Vice President/General Manager, ADP Retirement Services.

    Joe DeSilva, Senior Vice President/General Manager, ADP Retirement Services.

    About Joe DeSilva
    Joe DeSilva is Senior Vice President and General Manager of ADP’s Retirement Services business unit, which serves a national client base of small, medium and Fortune 500 businesses. He is responsible for setting the strategy and overseeing the day-to-day operations of the business, which includes Sales, Marketing, Product, Development, Service and Operations functions.

    The views expressed herein are those of the author, are intended for general information only and are not intended to provide investment, financial, tax or legal advice or a recommendation for any particular situation or plan.  ADP, LLC and its affiliates (ADP) do not endorse or recommend specific investment companies or products, financial advisors or service providers; engage or compensate any financial advisors to provide advice to plans or participants; offer financial, investment, tax or legal advice or management services; or serve in a fiduciary capacity with respect to retirement plans.  Nothing herein is intended to be, nor should be construed as, advice or a recommendation for a particular situation or plan.  Please consult with your own advisors for such advice.

     

  • Will robots replace fast food workers?

    August 29, 2016 by
    Robot works with cloud computer. Technology concept

    Robot works with cloud computer. Technology concept. Photo courtesy of Shutterstock.

    I was recently asked by a journalist whether robots are likely to replace the cashiers, cooks, and others who are employed fast food restaurants. As with most things in life, the answer isn’t so black-and-white.

    Many of the students and some of the recent grads who use College Recruiter are employed by fast food restaurants. In fact, one of our employees was a “sandwich artist” at Subway prior to joining us.

    There’s no doubt that automation will continue to impact the number and types of jobs in fast food restaurants but I don’t buy the argument that digital ordering, kiosks, tablets, and other methods will replace human workers in fast food restaurants. Just look at banks. Have ATM’s reduced the need for human tellers? Absolutely. But have ATM’s come close to eliminating the need for human tellers? Absolutely not.

  • 6 hiring trends job seekers should watch for in 2016

    June 19, 2016 by

    “Congratulations! We are pleased to inform you that you are hired in our organization.”

    No matter how many times you have read these magical words, they sound just as thrilling as you read them the first time. If you intend to read them again in your mail this year, then luckily the time is right for you to make a job transition.

    Photo by StockUnlimited.com

    Photo by StockUnlimited.com

    2016 brings a wave of new opportunities. As unemployment hits the lowest record since the last five years, there is more scope for job seekers to find better work opportunities; hiring is on the rise. However, this is not the only good news of the New Year. There are also the growing economic conditions that will have a positive impact on the pay scale and perks of employees, making it a perfect time to switch jobs.

    On one hand, this is a sigh of relief for job seekers who lived through the ordeal of recession and unemployment in the past couple of years. It also poses many challenges to recruiters who will have to revisit their company policies to compete in the market.

    Without further ado, let’s find out what other hiring trends the year holds for the job seekers:

    1. Social media will rule the roost

    Social media is ubiquitous. As it emerges as a new tool for hiring talent, your social presence will have a say in the success of your job application. Now is the time to update your social profiles as employers will be evaluating you through your presence on major social media platforms.

    Having an impressive online profile will not only increase your outreach to potential employers, but it will also get you in front of lucrative job opportunities offered by leading organizations. Therefore, it is high time for you to create strong profiles on leading social media websites, such as LinkedIn and Twitter.

    2. Hiring for remote workers will increase

    With improvement in collaboration tools, remote employees have evolved as an alternative workforce. No longer do recruiters have to resort to “in-house hiring” process which is both costly and time-consuming for the companies. Since employers can freelance work, the remote work culture will continue to thrive in 2016.

    So, if you are a part-time academic writer who offers assignment assistance with quality, you can make it a full-time job this year by finding freelance work opportunities.

    3. Flexible work will no longer be a dream

    In 2016, the employee’s fantasy of flexible work will become a corporate reality. With changing corporate cultures and attitudes, more businesses are inclining their hiring policies towards flexible work programs. The current year will see a rapid growth in businesses offering flexible hours and alternative work spaces which help them accommodate talent who cannot work under the regular work scenarios.

    4. Boomerang hires will be on the rise

    According to a survey by Workplace Trends, 76% of the companies are welcoming of the employees who once worked with them. As this hiring trend increases in popularity, more job seekers look for rehiring opportunities for their next job role.

    5. Video resumes will become more trendy

    With hiring getting more personal, more recruiters will expect to see video resumes of job seekers. In fact, a number of companies have already made video resume a compulsory thing in their job description. So, if you have not yet created a personalized video of your career description, it is about time to shoot a video long enough to demonstrate your professional skills and personal traits.

    6. Referral hiring will take the lead

    Referral hiring cuts down on the recruitment budget that employers have to bear with traditional hiring. With every passing year, it is emerging as a primary source of hiring workers. If implemented effectively, the referral hiring can significantly save the time and money of a company. As companies come to realize the valuable benefits of this form of hiring, more businesses will be investing in referral programs to hire talent.

    2016 is a happening year for job seekers. Get ready for the above-mentioned six trends to make your way to a successful career transition this year.

    Kaelynn Bailee, guest writer

    Kaelynn Bailee, guest writer

      Kaelynn Bailee is a HR manager working for a new start up that provides both educators and learners a platform to meet and discuss everything education. She also loves blogging and from time to time writes for other blogs.

  • 5 insurance facts for recent grads

    June 18, 2016 by
    Photo by StockUnlimited.com

    Photo by StockUnlimited.com

    When an individual is starting their career, it’s important to realize that life will throw many unexpected events on their way. This is something that happens to everyone. Having the right insurance can make getting past a difficult situation a lot easier. Financial experts agree there are a variety of insurance options available. There are also some types of insurance that are considered essential for dealing with unexpected things that can occur at any age.

    1.    Individual Situation

    It can be a challenge for a person starting a career to know what insurance they should purchase. Purchasing the right kinds of insurance should be determined by a person’s individual situation. A number of factors will determine this. It will involve employment benefits, age, lifestyle, and more. There are four different types of insurance experts recommend everyone have. They are health insurance, life insurance, long-term, and short-term disability insurance as well as homeowners/renters insurance.

    2.    Health Insurance

    In many cases, people starting a career could be just one serious illness away from disaster. According to a study done by Harvard University, 62 percent of all bankruptcies in the United States were a result of health related issues. Over 75 percent had some form of medical insurance. If a person has health insurance through their employer, they may want to consider the best plan offered. The key to getting the best possible health insurance is for a person to do research and know all of their options. Sometimes the least expensive health insurance is not always the best deal. Even with rising high co-payments and deductibles, health insurance is still something people must have. A minimal health insurance policy is still better than not having any type coverage.

    3.    Life Insurance

    According to an article in US News, people don’t often think of purchasing life insurance until after they’re married and have children. The reality is a younger person will be able to purchase a life insurance policy at a very low rate. This policy will grow in value over time. These types of life insurance policies can be adjusted as a person gets married and has children. This is the time when a person’s death could cause a financial burden to those who depend on them. If a person is unmarried and does not have children, it is also important they purchase life insurance. There is a good chance they will leave behind debts such as student loans, credit card bills, auto loans that must be paid. Without life insurance, these debts will become the responsibility of family members.

    4.    Disability Insurance

    This is the type of insurance people starting a career believe they may not need. Nobody who becomes injured or disabled on the job believed it would happen to them. According to statistics from the Social Security Administration (SSA) approximately 30 percent of individuals entering the workforce eventually become disabled. These are disabilities that make it impossible for a person to work until their retirement age. Workers with the best health insurance, generous savings, and good life insurance are not completely prepared to become disabled. Health insurance will cover medical bills and hospitalization. It’s common for employers to provide their employees with both short-term and long-term disability insurance coverage. If a person is an independent contractor or owns their own business, they can get this type of coverage from a private insurer.

    5.    Homeowners/Renters Insurance


    When a person is starting their career, they may need to rent a place to live. There are some leases that require a person to have renters insurance. This type of insurance will cover a person coming into a rental unit and getting injured. It can also cover a person’s things that might be stolen. Should a renter make a mistake and cause damage to the rental unit, this type of insurance may cover the damage. Should a person own a home and have a mortgage, the lender will probably require them to purchase and maintain homeowners insurance. In many cases, failure to pay a premium may be reported to the lender. Homeowners insurance is designed to cover the destruction of a structure, its contents. It can also protect a homeowner if someone is injured on their property and much more.

    Michael Rogers, guest writer

    Michael Rogers, Operations Director of US Insurance Agents

    Do you need help making other major life decisions as a recent grad? Keep reading our blog for more tips and follow us on LinkedIn, Facebook, Twitter, and YouTube.

     Michael Rogers is the Operations Director of USInsuranceAgents.com. With over five years of experience and knowledge in the insurance industry, Michael contributes his level of expertise as a leader and an agent to educate and secure coverage for thousands of clients.

     

  • How new OT laws affect compensation for recent grads, employers

    June 03, 2016 by
    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.

  • How new overtime laws will affect employers

    May 31, 2016 by
    How the new overtime laws will affect employers

    Photo by StockUnlimited.com

    The new overtime laws that go in place on December 1, 2016 will impact 4.2 million workers who will either gain new overtime protections or get a raise to the new salary threshold.

    This is cause for concern for both employees trying to understand the new overtime laws as well as employers who are doing everything they can to understand how these changes affect their business, hiring plans, and compensation packages.

    It could result in big changes for those who aren’t prepared, says Stephania Bruha, Operations Manager at Kavaliro, a national staffing agency that employs IT professionals, management, and administrative staff.

     

    “We at Kavaliro expect to see many more of our clients limiting employees to 40 hours per week, or requiring executive approval to work overtime hours,” says Bruha. “Recent graduates and new employees may have an advantage here, as they are starting fresh and don’t have to overcome habits from the past.”

    Bruha recommends employers get in front of this change. “We will be reassessing our employees more than a month before the new overtime laws go into effect to ensure that if status changes take place, they are well adjusted prior to the go-live date,” says Bruha.

    Communication will be key, as in all HR and hiring matters, to ensure your employees understand how they could be affected.

    “The worst thing that could happen is for your employees to misinterpret policies and think you are saying they are not allowed to report more than 40 hours a week,” says Bruha. “This is especially important for people who are new to the workforce, like new college grads, who may not know their rights, or have a little experience with labor laws. Employees need to know that you must report all hours worked, but they also need to understand if their company has set requirements for time entry.  Your employer may have severe penalties for violating the policy related to timekeeping because it is so strictly regulated by the Department of Labor.”

    Small and mid-sized employers are going to take a hit

    Employers – particularly small and mid-sized employers – are going to take a hit with the new regulations, says Kate Bischoff, a human resources professional and employment/labor law attorney with the Minneapolis office of Zelle LLP, an international litigation and dispute resolution law firm. Bischoff is co-leading a June 2, 2016, webinar titled Preparing for Changes to FLSA Overtime Regulations, discussing this topic and more. They will need to raise salaries over the $913 per week threshold or pay overtime.

    “This may mean employers hire more people so the need for overtime is less or they raise the costs of their products and services to cover the additional labor costs,” says Bischoff.

    New grads or interns looking for work typically don’t wonder whether their first post-grad job will be paid on an exempt (salaried) or a non-exempt (hourly) basis, points out Arlene Vernon, an HR consultant who works with small business owners and corporate clients providing HR strategy and management training. And it’s probably not a consideration regarding whether or not they take a particular job opportunity. However, since a new grad may find himself choosing between two job opportunities, employers need to realize that competitors may change how they present salary and compensation packages based on the new overtime laws, which in turn cold affect the decision an employee makes when deciding between two companies or job offers.

    Exempt versus non-exempt employment offers

    Let’s say Company A offers the grad $48,000 per year as an exempt position, and Company B offers the grad $46,000 as a non-exempt position. There is the potential that the resulting annual pay under Company B could be higher than Company A if the employee works overtime.  If the person is choosing a job based solely on compensation, this would be a consideration.  However, the real decision is whether the job is the right fit for the person, not whether the employee is eligible for overtime.

    “From an employer perspective, all companies, including those hiring new grads, need to re-evaluate all their positions paying less than $47,476 to determine how to handle any job reclassifications to non-exempt status,” says Vernon. “This could impact all or some incumbents in jobs paying around this new limit.”

    In making someone hourly, companies are not required to merely take employees’ salaries and divide them by 2080 to get an equivalent hourly rate.  Many companies will assess what overtime the person might be working and recalculate the hourly rate so that when the employee works overtime the employee’s final pay equals the full salaried amount, says Vernon, admitting that this can get confusing.  But in this scenario, the employee may be making less per hour, but the same or even more on an annual basis when you factor in overtime, depending on the employer’s approach.

    Some companies will be giving certain employees raises to bring them to $47,476 and keep them as salaried. “This may ultimately cost the employer less money than paying overtime at the lower wage,” says Vernon.

    Employers must educate employees

    Employers should educate employees who are moving from exempt to non-exempt on what work can and cannot be performed outside of regular work hours, adds Vernon. Exempt employees are accustomed to answering texts and emails at night and during weekends.  They may work whatever hours are needed to get the job done.  As a non-exempt employee, they must track and get paid for any non-scheduled hours worked which will increase their pay, but may be against company policy. Typically hourly employees don’t get to randomly create their own work schedules, while salaried employees do.

    “This practice needs to be unlearned by managers and employees,” says Vernon.

    For example, are managers who email the now-hourly employees at night and over the weekend now authorizing the employee to respond to the email and inadvertently approving overtime?  Or do managers need to learn to save employee communication for the work week to control payroll costs?

    These are among the many changes, challenges and questions employers are sorting out.

    “December 1 will be here before we know it,” says Vernon. “This change will have considerable impact on all employers no matter their size and whether or not they hire one or more grads below, at or above the new FLSA range.”

    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.

    Ready to begin your job search? Start at College Recruiter today!

  • How new overtime laws will affect interns and recent grads

    May 27, 2016 by
    How the new overtime laws will affect recent college graduates

    Photo by StockUnlimited.com

    How will the new overtime laws affect interns and recent grads? A variety of experts weigh in on this hot topic.

    Changes to overtime laws

    The Department of Labor expects the new overtime laws to affect 4.2 million workers – many of whom are likely new college grads out on their first “real” job.  As of December 1, 2016, the days of working 50+ hours a week and earning $35,000 should be gone, says Kate Bischoff, a human resources professional and employment/labor law attorney with the Minneapolis office of Zelle LLP, an international litigation and dispute resolution law firm. Bischoff is co-leading a June 2, 2016, webinar titled Preparing for Changes to FLSA Overtime Regulations, discussing this topic and more.

    Salary versus hourly

    There’s one thing college graduates should keep in mind, says Bischoff, and that is that salary has nothing to do with status.

    “Being paid a salary doesn’t mean that an employee is more valuable to his or her employer than an hourly employee,” says Bischoff. “It is simply a different way of paying people for their work.”

    Those who are nonexempt – those eligible for overtime – may earn time and a half when they work long hours and may even earn more than their salaried brethren, points out Bischoff. Those who are exempt and earn more than $913 a week will not be compensated for their long hours in the office in the form of hourly payments. In fact, when some employees shift from salaried to hourly, many times, they earn more as an hourly employee.

    The other thing about being paid on an hourly basis is that employers need to know how much you work, says Bischoff. With apps on smartphones and smart watches, employees can now track their time easier than ever before. “If you track your steps, you can track your hours,” says Bischoff. “The fact that you have to punch in or clock out only means you need to capture your time to get paid the value of your work. That’s all.”

    Ask questions to clarify status

    So what should college grads do and consider before accepting a job, or if they have questions about their current and future employment status at their existing job? Ask questions such as these, says Bischoff:

    • What will their overtime status be?
    • Will this position be eligible for overtime?
    • Will I be paid a salary?

    “For many college grads, work-life balance is important, so ask if you will be able to make it to your volunteer activity every Thursday evening,” says Bischoff. “While asking if you will ‘have to’ work overtime may be a signal to an employer that you might not be a dedicated employee, you can ask about particular events or activities important to you. You may glean from the answer the amount of hours you will put in.”

    What do the new overtime laws mean for interns?

    Currently, the vast majority of interns earn less than the $23,660 DOL threshold and therefore are classified as non-exempt and qualify for overtime. When the new rules take effect on December 1, 2016, the threshold will almost double to $50,440. The number of interns who earn between $23,660 and $50,440 is miniscule and, therefore, the law will directly impact virtually no interns, says Steven Rothberg, founder of College Recruiter. That said, there could be a substantial impact on new grad hiring as virtually all new grads earn more than $23,660, the average is about $46,000, and a substantial minority earn more than the $50,440.

    “At College Recruiter, we believe that the law will have a substantial impact on the number of hours worked by management trainees and other such workers who have traditionally been paid as exempt, salaried employees with no ability to earn overtime pay yet who routinely work far more than the standard 40-hour work week,” says Rothberg. “Employers will likely instruct these employees not to work more than 40-hours per week, which will effectively increase the compensation paid to and reduce the return on investment generated from these employees. Yet with a tightening labor market, more Baby Boomers retiring, and fewer Millennials graduating, it is unlikely that there will be any noticeable change in the number of recent grads finding employment within their chosen career paths.”

    Manufacturing director: New OT laws could hurt interns and recent grads

    John Johnston is Director of Manufacturing at States Manufacturing, a Minneapolis-based custom electrical and precision fabricated metal company with 49 employees.

    He fears the new overtime laws will hurt interns and new hires, namely those graduating from college or technical schools.

    “I would expect the starting wage to decrease to compensate for the change in overtime rules,” says Johnston. “Also, I would tend to expect the opportunities to reduce as well as the patience of employers. If we are going to pay more, we are going to raise our expectations and be less patient with someone because of the wage they are earning. When we have had lower wage earners at the start of their career, we are able to be more patient in part because the issues are not as magnified with a lesser wage. Once that increases, we have no choice but to be tougher that much quicker.”

    Johnston said his company may avoid hiring interns in the future due to the increased costs and instead balance it with multiple part-time employees. The company currently does not have any interns, partly because they were sorting out the details of the new labor and overtime laws.

    “I see this as a trend to save on escalating costs since benefits would not be required with part-time employees,” says Johnston.

    A ripple effect for college grads

    Elliot D. Lasson, Ph.D., SPHR, SHRM-SCP, is an adjunct professor at the University of Maryland, Baltimore County in Rockville, Maryland and a Human Capital Consultant with Lasson Talent Solutions. Lasson regularly presents to students on behalf of college career centers.

    According to Lasson, the new overtime regulations will have ripple affects all around.

    “Students who are in college or right out of college want to gain meaningful experience,” he said. “They are not paying all that money to be flipping burgers or driving for Uber after graduation. The conventional wisdom is that internships are valuable. And they objectively are. However, many employers misappropriate that label to justify in order to get free labor from students who feel desperate for that experience. In many cases, internships play out in a way where the students are gaining only minimal exposure to the workplace and field, while at the same time are not getting paid.”

    The Department of Labor previously identified six conditions that must be met in order to permit unpaid internship scenarios. “Many employers play fast and loose with these under the pretense that the work environment itself is more important than it objectively is,” says Lasson. And now, this extends to graduate school as well. The grad students are still “students” and therefore unlike their undergraduate peers who are not in graduate school can still “qualify” to be unpaid interns while in graduate school.  So, there is additional abuse of the system here as well, says Lasson.

    “With the popularity of unpaid internships, many employers are inundated with requests and may just take advantage of students without having a handle on the DOL guidelines,” says Lasson.

    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.

  • 61.9% of interns become permanent employees upon graduation

    May 04, 2016 by

    One of the benefits of being an owner of College Recruiter is that we went live way back in 1996 and so we’ve seen a lot of things come and go, including strong and weak labor markets. Today’s labor market is, in some ways, strong and, in other ways, weak.

    The National Association of Colleges and Employers (NACE) recently reported in its Internship & Co-op Survey that its mostly large employer members are extending offers to a larger percentage of their interns, which is an indicator of a strong labor market, yet the acceptance rate of those offers is also high, which is an indicator of a weak labor market. In other words, employers are offering jobs to a higher percentage of candidates as they’re worried that it will be difficult for them to hire enough of the right people if they don’t extend all those offers yet, at the same time, a high percentage of candidates are accepting those offers as they’re worried that it will be difficult for them to get hired if they don’t accept those offers.

    2004-16 Internship Offer, Acceptance, and Conversion Rates

     

    According to NACE, “this year’s intern offer rate—72.7 percent—is the highest it has been since the peak of the pre-recession market (2006), although the corresponding acceptance rate—85.2 percent—still remains well above pre-recession levels. In turn, these two figures yielded a conversion rate of 61.9 percent, a 13-year high.” So, if you’re an intern or employing an intern and wondering what percentage of interns get and accept offers to work for their employer upon graduation, a pretty good estimate will be 61.9 percent.

  • [video] The average cost-per-hire for on-campus recruiting is $3,582

    March 20, 2016 by
    Money saved for college with a small graduation cap

    Photo courtesy of Shutterstock.

    Despite conventional wisdom, the vast majority of the students and recent graduates of one-, two-, and four-year colleges and universities do not find their internships and entry-level jobs through their career service offices. The number of schools with well staffed and funded career service offices is, by many accounts, in the dozens yet there are over 7,400 post-secondary schools nationwide. Students at big, well funded, schools with strong brands amongst the largest employers of students can and often do find their jobs through their career service offices, but they’re the exception.

    From the perspective of the employer, it is also worth noting that college recruiting isn’t nearly as expensive for the vast majority of hires as it would be if all of those students and grads were hired through on-campus recruiting. A recent study by the National Association of Colleges and Employers (NACE) indicated that the AVERAGE cost-per-hire of recruiting a student through on-campus recruiting is now $3,582 when employers properly account for all of their related costs such as the costs for their college relations / recruitment office, pre-recruiting activities, recruiting trips, company visits, hiring costs, relocation, and advertising. Ouch. That cost is even higher for elite students in elite majors at elite schools. Double ouch. Continue Reading