The First Facility Management Blog

For over two decades, sourcing for services across both IT and business process sectors has gone global, with services providers from various countries offering a multitude of competencies. The globalization of service delivery has caused vigorous debate as industry, government, and the media have argued its impact on the U.S. economy.

In response to this (along with changes in cost structures due to the current economy), many IT service providers have been reconsidering U.S. locations as potential sourcing destinations, including lower cost, mid-sized metropolitan areas and rural communities. Many companies have found that low cost domestic sourcing can offer a key solution, complement global strategies, and help both U.S. and foreign firms expand their reach in the U.S.

“In today’s economic climate, everyone must find ways to work smarter and in a more efficient manner,” said Jeff Lande, executive vice president, TechAmerica. “Companies, governments, and others need the best talent at affordable rates, and many enterprises have moved to a global delivery model to innovate and execute on a 24/7 cycle. Since some of the best resources are right next door, increased attention is being given to sourcing to lower cost, domestic regions as part of an enterprise’s overall strategy.

“It is important to note that when companies are evaluating domestic locations, they are doing so in the context of a global environment,” continued Lande. “Some companies will be looking for a low cost domestic location as an alternative to an offshore location, while others will be looking for a domestic location to complement their global strategy. Foreign based companies may be looking at a U.S. destination to build local capacity, expand services, and gain market access. No matter the reason, the framework and model described in this report can be utilized.”

TechAmerica Foundation’s new report, Low Cost Domestic Sourcing: A Guide To Location Selection, provides a framework to help government agencies and private companies work through the evaluation process. For a pdf summarizing the report, click this link.

According to a recent survey conducted by CBSalary.com and SalaryExpert.com, facility management is among the top 20 professions anticipating sizable salary increases in 2010. The list is based on an analysis of data from the Occupational Employment Statistics provided by the Bureau of Labor Statistics, and ongoing surveys conducted by Salary Expert.

Last year, Facility Managers (defined as professionals overseeing all things concerned with the operation, repair, maintenance, and construction of facilities, equipment, buildings, and grounds) earned $89,262. This year, they earn a salary of $94,491 placing them in the 11th position on the list with a +4.38% increase.

The top 10 professions in order are: Oral Pathologists (+6.83%), Social Medical Researchers (+6.65%), Pharmacologists (+5.35%), Toxicologists (also +5.35%), Vocational Teachers (+4.93%), Deans (+4.9%), Social Psychologists (also +4.9%), Early Childhood Teachers (+4.8%), Insurances Agents (+4.73%), and Credit Representatives (+4.53%).

Completing the top 20:
12. Software quality assurance testers (+4.23%)
13. Financial securities clerks (+4.2%)
14. Food and beverage order clerks (+4.18%)
15. Computer network analysts (+4.05%)
16. Purchasing directors (+4.03%)
17. Public accountants (+4%)
18. Accounts receivable managers (+4%)
19. Government fire marshals (+4%)
20. Retail store managers (+2.9%)

SUMMARY OF 2010 FORECAST
And while employers are still slow to hire, CareerBuilder’s 2010 Job Forecast suggests the hiring market may begin to thaw, as organizations are beginning to consider hiring strategies designed to preserve the health and growth of their businesses for the future. CareerBuilder surveyed more than 2,700 hiring managers and human resource professionals nationwide across industries.

Full time
Twenty percent of employers plan to increase their number of full-time, permanent employees in 2010, up from 14% in 2009. Nine percent say they plan to decrease headcount in 2010, down sharply from 16% in 2009. Sixty-one percent don’t plan to change staff levels, while 10% say they are unsure.

Part time
Eleven percent of employers plan say they plan to add part-time employees in 2010, up slightly from 9% in 2009. Eight percent say they plan to decrease their part-time help in 2010, down from 14% in 2009. Sixty-nine percent plan no change in headcount, while 13% are unsure.

Hiring by region
Employers in the West are planning to increase their headcounts more in 2010 than the other regions of the country. Nearly one-quarter of employers (24%) in the West say they plan to add full-time workers in 2010, compared to 21% in the Northeast, 20% in the South, and 16% in the Midwest.

While plans to decrease headcounts in 2010 are down sharply across all regions, employers in the Northeast still plan to trim headcounts by 10%, followed by an 8% decrease in the South, Midwest and West.

Hiring by industry
Comparing selected industries, hiring is expected to increase in information technology, manufacturing, financial services, professional and business services, and sales in the coming year. Thirty-two percent of IT, 27% of manufacturing, and 23% of financial services employers plan to add full-time, permanent employees in 2010, followed by 22% of employers in professional and business services and 21% in sales. Health care employers are also planning to expand staffs at 21% followed by 18% of transportation employers and 15% of retail.

Hiring by job type
When asked which areas employers plan to hire for in 2010, one-third pointed to technology followed by 28% in customer service. Nearly one-quarter (23%) plan to add sales people, 18% will add research/development, 17% in business development, 15% in accounting/finance, and 14% in marketing.

Compensation
Even as companies continue to watch their spending, they still plan slight increases to salaries in the coming year. Fifty-seven percent of employers report their companies will increase salaries for existing employees in 2010, down from 65% in 2009. Thirty-six percent expect to raise salaries of existing employees by 3% or more, while 11% anticipate increases of 5% or more.

Twenty-nine of employers plan to increase salaries on initial offers to new employees, down from 33% in 2009. Nearly one-in-five (18%) employers will raise salaries on initial offers by 3% or more, while 7% anticipate increases of 5% or more.

HOW EMPLOYERS PLAN TO MOVE FORWARD IN THE NEW YEAR
Companies are looking to the future and making up for lost ground caused by the recession. The following are 10 trends for 2010:

1. Replacing Lower Performing Employees
Employers are taking advantage of the large number of top talent in the current labor pool to strengthen their work force. Thirty-seven percent of employers say they plan to replace lower-performing employees with higher performers in 2010. When asked to grade their current work force, 25% rated them an “A,” 60% a “B,” 15% a “C,” and 1% a “D.” Less than one-half of a percent felt their current staff was a failure.

2. Emphasis on Social Media to Strengthen Brand
The economy required companies to make some tough decisions about their businesses, which had a negative impact on their brands. Close to four-in-ten employers (37%) plan to put a greater emphasis on social media in 2010 to create a more positive brand for their organization. One-in-five employers plan to add social media responsibilities to a current employee, while close to one-in-12 (8%) plan to hire someone new to focus or partially focus on social media.

3. Rehiring Laid-off Workers
Companies needed to scale their businesses to market last year and four-in-10 employers say they were forced to lay off workers. Among those who had lay-offs in 2009, 32% of employers now say they plan to bring back workers with three-in-10 either doing it now or plan to do so in the first six months of 2010.

4. Flexible Work Arrangements
Companies plan to continue providing employees with greater flexibility in hopes of maintaining a better work-life balance. Thirty-five percent of employers say they plan to provide more flexible work arrangements in 2010, compared to 31% last year. These arrangements include:

• Alternate schedules - come in early and leave early or come in later and leave later - 73%
• Telecommuting options - 41%
• Compressed workweeks - work the same hours, but in fewer days - 32%
• Summer hours - 18%
• Job sharing - 13%
• Sabbaticals - 6%

5. Cutting Perks and Benefits
Even as companies look to the new year and toward growth opportunities for their businesses, many are still choosing to trim perks and benefits. Thirty-seven percent of employers say they will cut perks and benefits in 2010, up from 32% who said they trimmed in 2009. Perks and benefits employers plan to trim in the new year include bonuses, medical coverage, suspended 401k matching and office perks such as coffee, tea, and condiments.

6. Rehiring Retirees and Postponing Retirement
Companies understand the intellectual capital mature workers bring to their organization, and 27% say they are open to retaining their workers who are approaching retirement. Sixteen percent say they are likely to rehire retirees from other companies in 2010. Additionally, one-in-10 are likely to provide incentives for workers at or approaching retirement age to stay on with the company longer.

At the same time, workers have expressed interest in postponing retirement. Thirty percent of employers report they have received requests from workers approaching retirement age to stay on with their company, up from 22% last year.

7. Freelance or Contract Hiring
While employers still plan to be cautious regarding the number of full-time employees they add in the new year, many will turn to freelance or contract employees to help keep their businesses moving forward. Three-in-10 employers anticipate hiring freelancers or contractors in 2010, up slightly from 28% in 2009. Six percent expect to employ more freelance workers or contractors than last year, while 15% expect to hire the same amount and 10% plan to hire fewer.

8. Green Jobs
Employers will continue to turn some of their focus to the environment in the new year. Eleven percent of employers say they plan to add “green jobs” in 2010, the same amount who said they added them in 2009. “Green jobs” are positions that implement environmentally conscious design, policy, and technology to improve conservation and sustainability.

9. Bilingual Recruitment
Employers have identified having a diverse work force as an important measure of success as they begin to rebuild their businesses after the economic downturn. One area they plan to focus on is building a bilingual team. Nearly four-in-10 employers (39%) said they plan to hire bilingual candidates in 2010 and half said that if they had two equally qualified candidates, they would be more inclined to hire the bilingual candidate.

10. Business Travel
While employers are inching away from cost containment and more into growth, one area they still plan to save money on is business travel. Forty-three percent of employers say that in their organizations there will be less business travel in 2010 than in 2009.

As the job market tightens, job seekers are becoming more creative in their efforts to attract the attention of potential employers. One-in-ten hiring managers (12%) surveyed by CareerBuilder.com reported that they are seeing more job seekers try unusual antics to capture their attention compared to previous years.

Some of the most memorable tactics identified by these hiring managers include:
* Candidate advertised on a billboard.
* Candidate carried around a sign that said, “Will work for paying bills.”
* Candidate brought a broom to the interview to “clean up the waste and corruption in the office.”
* Candidate wore a shirt to the interview that said, “Please hire me.”
* Candidate showed up with breakfast for the employer every day until hired.
* Candidate approached the hiring manager in a restroom.
* Candidate sent a giant cookie with “Hire Skip” written in frosting on it.
* Candidate parked outside of the office building with a sign that said, “Seeking employment.”
* Candidate wrote a poem about why she wanted the job in her cover letter.
* Candidate promised to give the employer a foot massage if hired.
* Candidate noticed the employer wrote a blog about a particular restaurant. She persuaded the restaurant to put her name on the menu so the employer would see it the next time he ate there.
* Candidate created an electronic resume with flash animation and musical score.

“Candidates have a short window to make a lasting impression on potential employers,” said Jason Ferrara, senior career advisor at CareerBuilder.com. “Those who apply resourcefulness and an inventive approach to their job search may have a better chance of standing out in the minds of hiring managers. The key is making sure you are maintaining an appropriate balance of creativity and professionalism so you are remembered for the right reasons.”

This survey was conducted online within the U.S. by Harris Interactive on behalf of CareerBuilder.com among 3,388 hiring managers and human resource professionals (employed full-time; not self-employed; with at least significant involvement in hiring decisions) ages 18 and over between August 21 and September 9, 2008 (percentages for some questions are based on a subset U.S. employers, based on their responses to certain questions). With a pure probability sample of 3,388, one could say with a 95 percent probability that the overall results have a sampling error of +/- 1.68 percentage points and, respectively. Sampling error for data from sub-samples is higher and varies.

With unemployment rising and competition in the workplace increasing, it’s tough to get a job – or get ahead – in today’s market. More than one in four American adults – 27% – say they have encountered employment discrimination, according to a new survey by FindLaw.com, a legal information Web site. The most frequently cited forms of discrimination involved race, age and gender.

The survey asked 1,000 American adults if they believe they have ever experienced discrimination by an employer in job interviews, hiring, pay or promotions.

Among the survey’s findings:
• 42% of African Americans have experienced racial discrimination in the workplace.
• One out of 10 women (10%) claim they have experienced gender discrimination in the workplace.
• One out of seven people age 45 and older (15%) claim they have experienced age discrimination in the workplace.
• One out of eight people age 18 to 24 (13%) say they have also experienced age discrimination.
• While racial discrimination was highest in the South, age, gender and religious discrimination were most likely to occur in the Midwest.

Of those who said they have experienced discrimination in the workplace, the most commonly cited types of discrimination were:
- Race 39%
- Age 34%
- Gender 30%
- Religion 7%
- Sexual orientation 7%
- Other 26%

According to FindLaw.com, anti-discrimination laws regulate all aspects of work including hiring, firing, promotions, job duties, wages, benefits, and reviews. An employer’s work policies must be applied to all employees in a nondiscriminatory manner.

“It is important to note that not all discrimination is prohibited by law,” said Stephanie Rahlfs, an attorney and editor at FindLaw.com. “Only discrimination based upon a classification that is considered ‘protected’– race, color, religion, national origin, sex, age, disability, or union activity under the federal anti-discrimination laws – is illegal. For example, paying an employee lower wages than other employees because of differing work duties, experience or even attitude is not discriminatory.”

Rahlfs also noted that policies and actions that do not appear discriminatory on their face may nonetheless be prohibited under the law if those practices have the effect of discriminating against people in a protected class. For example, refusing to hire any applicant who has a child under the age of 5 is not discriminatory on its face, but may still be considered prohibited discrimination since that kind of policy would have the effect of discriminating against women.

FindLaw.com offers the following suggestions for those who believe they have been discriminated against in violation of the law.
• Bring your complaint directly to the attention of the employer and attempt to resolve the problem informally. The employer may not be aware that people within the organization are discriminating, or the employer may want to address your complaint and fix the problem.
• If you want to pursue a legal remedy, you should act relatively quickly. Anti-discrimination laws have strict time limits for making a claim. Federal laws require employees to file a complaint first with the EEOC before filing a lawsuit in court. In some circumstances, an employee is also required to file a complaint with the state agency charged with enforcing the state’s anti-discrimination laws.
• Get expert advice. State anti-discrimination laws can vary widely. Web sites such as FindLaw.com offer online lawyer directories that can help you find an attorney in your area who is experienced in employment law.
• If you are fired or not hired for discriminatory reasons, you should look for another job. Do so even if it seems that you are entitled to the former job. If you do not actively seek other work, it appears as though you are not seriously interested in employment. This can weaken your claim and may limit any award of back pay.

The FindLaw survey was conducted using a demographically balanced telephone survey of 1,000 American adults and has a margin of error of +/- 3%.

Just read the editor’s letter in the October issue and I realize I should read Atlas Shrugged again - thank you for that reminder!

Also, I don’t mean to pick a fight but I had to chuckle when Ms. Schwartz suggested that “both” presidential candidates exemplify “outstanding achievement”.  Other than being annointed by the media as the Democrat’s nominee (over a slightly more qualified woman), specifically what were Mr. Obama’s achievements as a freshman senator, state senator, or community organizer?  And other than co-sponsoring a misguided and unconstitutional campaign finance reform bill that has ironically resulted in his campaign being outspent by a 4 to 1 margin (source: Wall Street Journal), what are Mr. McCain’s recent achievements as an eternal senator?

I suppose we must acknowledge Obama’s uncanny ability to sound very eloquent while not answering a question.  And we should concede his ability to jettison politically expedient alliances with a racist preacher, a despicable American terrorist, and an organization infamous for fraudulent voter registrations.  And I guess we should note McCain’s ability to select a self-made woman as a running mate and allow his handlers turn her into a caricature in front of drooling media jackyls.  Perhaps we should admire his “maverick” attempt to alienate (pun intended) the base of his party with an amnesty plan for illegal aliens.

Now please don’t misinterpret this post an endorsement for either candidate or party - quite the contrary.  I think the Democrats (including Obama) would be better off moving to Europe where they are realizing that socialist utopian dreams = financial nightmares.  And since Republicans (including McCain) have had ample opportunity to demonstrate leadership since 1994 — they deserve to get even more pink slips in November.  The public will deserve the socialist misery that will be inflicted on the country as a larger and larger segment of the population is exempted from federal tax responsibilites and continues to demand wealth redistribution with more and more entitlements coming from fewer and fewer taxpayers.

So what does this political diatribe have to do with facility management?  One word—EMPLOYMENT!  Higher unemployment means less demand for facilities and facility managers - that’s a very simple concept - even for those of us who are products of the nation’s politicized and failing public schools.

But don’t count on the dying, obsolete media to remind us that the past two years have featured big government Democrats in control of the Congress and a big government president.  It’s not a coincidence that the past two years have featured rising unemployment, oil and gasoline prices shooting through the roof, and a crashing stock market.  Wealth is being destroyed as it is being redistributed through corrupt taxation policies that punish work, achievement, and even death.  Unfortunately, the next four years will likely promise more of the same regardless of who wins in November elections.

The United States - we, the people - desperately need new leadership steeped in “old school” common sense.

For everyone who has ever had an evaluation or performance review just remember, it could have been worse. These are actual [maybe] quotes taken from United States Federal Government employee performance evaluations:

1. “Since my last report, this employee has reached rock-bottom and has started to dig.”
2. “I would not allow this employee to breed.”
3. “This employee is really not so much of a has-been, but more of definite won’t be.”
4. “Works well when under constant supervision and cornered like a rat in a trap.”
5. “When she opens her mouth, it seems that it is only to change feet.”
7. “This young lady has delusions of adequacy.”
8. “He sets low personal standards and then consistently fails to achieve them.”
9. “This employee is depriving a village somewhere of its idiot.”
10. “This employee should go far, and the sooner he starts, the better.”
11. “Got a full six-pack, but lacks the plastic thingy to hold it all together.”
12. “A gross ignoramus — 144 times worse than an ordinary ignoramus.”
13. “He doesn’t have ulcers, but he’s a carrier.”
14. “I would like to go hunting with him sometime.”
15. “He’s been working with glue too much.”
16. “He would argue with a signpost.”
17. “He brings a lot of joy whenever he leaves the room.”
18. “When his IQ reaches 50, he should sell.”
19. “If you see two people talking and one looks bored, he’s the other one.”
20. “A photographic memory but with the lens cover glued on.”
21. “A prime candidate for natural de-selection.”
22. “Donated his brain to science before he was done using it.”
23. “Gates are down, the lights are flashing, but the train isn’t coming.”
24. “He’s got two brain cells, one is lost and the other is out looking for it.”
25. “If he were any more stupid, he’d have to be watered twice a week.”
26. “If you give him a penny for his thoughts, you’d get change.”
27. “If you stand close enough to him, you can hear the ocean.”
28. “It’s hard to believe he beat out 1,000,000 other sperm.”
29. “Some drink from the fountain of knowledge; he only gargled.”
30. “Takes him two hours to watch ‘60-minutes’.”
31. “The wheel is turning, but the hamster is dead.”

Many thanks again to Peter SJF Bance and his Friday Funny mailing list for this submission.

The Conference Board’s Employment Trends Index (ETI)™ continued a now year long decline in July, suggesting even more softening to come in the labor market. The index fell in July to 112.1, down 0.9% from June’s revised figure of 113.1, and down more than 7.5% from July 2007. 

“This economy remains too weak to stem the monthly loss in jobs,” said Gad Levanon, senior economist at The Conference Board. “Unless the labor market turns around soon, unemployment could pass 6% in early 2009 — and The Conference Board’s Employment Trends Index isn’t signaling any such improvement around the corner.”  

The year long fall in the Employment Trends Index (ETI)™ is seen in all eight of its components, Levanon said, most notably over the past six months in temporary help hires and part-time workers for economic reasons.

The Employment Trends Index (ETI)™ aggregates eight labor market indicators, each of which has proven accurate in its own area. Aggregating individual indicators into a composite index filters out so called “noise,” to show underlying trends more clearly. 

The eight labor-market indicators aggregated into the Employment Trends Index (ETI)™ are:
• Percentage of respondents who say they find “Jobs Hard to Get” (The Conference Board Consumer Confidence Survey)
• Initial Claims for Unemployment Insurance (U.S. Department of Labor)
• Percentage of Firms with One or More Jobs Open (National Federation of Independent Business)
• Number of employees hired by the temporary-help industry (U.S. Bureau of Labor Statistics)
• Part-time Workers for Economic Reasons (BLS)
• Job Openings (BLS)
• Industrial Production (Federal Reserve Board)
• Real Manufacturing and Trade Sales (U.S. Bureau of Economic Analysis)

The Conference Board publishes the Employment Trends Index (ETI)™ monthly, at 10 a.m. ET on the Monday that follows each Friday release of the Bureau of Labor Statistics employment situation report.

Recruitment Process Outsourcing (RPO) is growing rapidly and has the potential to be a multi-billion dollar market, taking advantage of the trend towards single process deals in human resources outsourcing. This is according to the latest report by independent market analysis firm Datamonitor. The report—”Opportunities for recruitment process outsourcing in a changing HRO market”—estimates the global RPO market in 2007 to be worth $720m and forecasts it will grow by 22% in 2008 to $880m, surpassing the $1bn level in 2009. According to the report, demand is predominately from Fortune 1000 companies in the U.S., but the market is growing rapidly in the U.K. and continental Europe and is beginning to gain traction in the Asia Pacific region.

While RPO vendors claim to reduce costs by up to 40% in some cases, it is the lure of recruiting a higher quality workforce that is driving growth. Although the strategic importance of recruitment means quality will remain of utmost importance, it is likely in an economic downturn that it is those who can deliver on both quality and price that will succeed. “Despite the expectation that outsourcing will thrive as companies search for ways to cut costs, increased unemployment will result in lower business volumes which will be reflected in the variable price nature of RPO contracts. But, this will be mitigated by the increasing demand for RPO from new clients,” says Patrick O’Brien, IT and BPO analyst at Datamonitor and author of the report. “For RPO to continue its rapid growth in the near term, vendors may have to go to market by pricing more aggressively as recruitment will need to be seen as a primary function for easy cost reduction among company processes.”

RPO vendors are split over the use of offshore provision. Many players have little experience or understanding of how to derive the fullest benefits from RPO, while others see it as unworkable in recruitment services which require constant contact with both the client organization and, using the client‚s brand, with candidates.

Approximately half of RPO vendors have some offshore workforce, mainly carrying out tasks around name generation, sourcing, early screening of resumes and other administrative duties. A few have moved tasks which involve contact with the candidate offshore as per customer demand.

“While there is a lot of resistance from vendors, the increasing competitiveness of the market and the growing focus on cost cutting in the economic downturn will push vendors into examining ways in which to begin to increase the use of offshore delivery,” says O’Brien.

The first half of 2008 has seen a wave of acquisitions as vendors attempt to build out their recruitment expertise, technology capabilities and geographic footprint. A number of competing vendors still need to broaden their capabilities, and many of the larger vendors are looking to expand further overseas.

Some companies have put forward global request for proposals (RFPs), but these have subsequently been split into regions and handed to different vendors. The one-vendor global deal has not arrived yet, but a number of vendors believe that a breakthrough will occur in the next 12 months. The key reason for the break-up of global RFPs has been the fact that vendors do not have the capabilities to deliver on an international basis. Many have taken heed and are busy investing in international expansion, acquiring companies, building a global set of processes and forming partnerships with vendors in other regions.