2016 | elwood staffing's company & talent report

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2016 COMPANY & TALENT REPORT

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Page 1: 2016 | Elwood Staffing's Company & Talent Report

2016

COMPANY&

TALENTREPORT

Page 2: 2016 | Elwood Staffing's Company & Talent Report
Page 3: 2016 | Elwood Staffing's Company & Talent Report

COMPANY REPORTPage 6 Field Leadership

Page 8 Financial Performance

Page 12 Elwood Staffing at a Glance

Page 16 Did You Know?

TALENT REPORTPage 19 Profile of a Typical Elwood Applicant

Page 20 Get Inside Their Heads Applicant Sentiment Index

Page 22 Save The Millennials Rethink The Review

Page 26 Nobody Likes a Quitter

Page 28 The Head and The Heart

Page 32 Employment Law Update

TABLE OFCONTENTS

Page 4: 2016 | Elwood Staffing's Company & Talent Report

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Dear Friends,

Another year and its unique set of business challenges is behind us. From tighter labor market conditions and increasing competition for job seekers to declining oil prices and the ripple effects of Affordable Care Act compliance, we—like many—felt some pain.

But we never back down from a challenge. We pushed hard and had some great achievements, but we ended the year shy of our milestone goal of $1 billion in annual revenue. And while we never like missing a target, we are reminded of our successes: We found 116,000 people gainful employment, continued making strides as a purveyor of workforce intelligence, never wavered in our commitment to superior customer service, and invested in new resources and strategies to meet the talent needs of our clients.

Looking forward, we have many reasons to be optimistic. The staffing industry on the whole is the strongest it’s been in nearly a decade, jobs growth in the U.S. is steady, employer hiring confidence is high, and Elwood is poised for continued growth fueled by expansion and innovation.

In this issue of our Company & Talent Report, we’ve once again compiled data and resources that highlight workforce and market trends and share innovative programs like our new Applicant Sentiment Index, recipes for employee retention, and a new employee performance review system—all with the goal of better understanding workers so we (and you) can better attract and retain talent.Our hope is that the information contained in this booklet spurs at least one conversation in your organization or prompts some level of action or change, as this means we’ve accomplished our goal.

With more than 250 service locations supplying more than 6,000 employers with talent every year, we have a constant finger on the pulse of employment trends. Each of us at Elwood is committed to finding new and consistent ways of sharing with you the valuable insights we gain, and we hope you look to us as advisors with the knowledge and capabilities to help you get ahead.

Thanks for your continued support of Elwood Staffing.

A LETTER FROMTHE CEO

Page 5: 2016 | Elwood Staffing's Company & Talent Report

Mark S. ElwoodChief Executive Officer

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Page 7: 2016 | Elwood Staffing's Company & Talent Report

COMPANYREPORT

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ALAN BALMER

Vice President, Workforce Solutions

JACKIEBROWN

Vice President, Workforce Solutions

MISSY CAUDILL

Vice President, Workforce Solutions

BARRY DANIELSRegional

Vice President

RON GRIFFINRegional

Vice President

FIELDLEADERSHIP

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Page 9: 2016 | Elwood Staffing's Company & Talent Report

DEB KELLER-WISE

Regional Vice President

CHRISTINE KRONKOW

Regional Vice President

SHANNON MCKAY

Regional Vice President, Strategic Accounts, Elwood Tradesmen

JAMES PERKINSRegional

Vice President

SETH SANDLER

Vice President, Elwood Tradesmen

DAVE STRYKER

Regional Vice President, Strategic Sales

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Page 10: 2016 | Elwood Staffing's Company & Talent Report

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2015 FINANCIAL PERFORMANCE

As a successful staffing partner, we must not only meet the staffing needs of our clients and associates; we must operate in a manner that ensures ongoing financial viability. We achieve this objective by properly managing risk exposure, continually implementing efficiency improvements, and complying with all regulatory requirements. The result is a strong balance sheet and the necessary liquidity to support the growing needs of our clients.

Page 11: 2016 | Elwood Staffing's Company & Talent Report

REVENUE1

Company revenue for 2015 was $804 million, which represents a 9.7% decrease from the prior year. The decrease was primarily driven by a significant workforce reduction in the energy sector as low oil prices adversely impacted the North American oil industry. However, strong demand for employees in other sectors partially offset the workforce decline in energy.

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Diversity is an important aspect of our business model, and Elwood intentionally seeks to serve a diversified mix of industries and geographies. This diversity leads to greater stability in fluctuating markets, which ultimately enhances our ongoing ability to serve clients and associates. In 2015, we saw continued strength in demand for employees in the manufacturing and logistics sectors and successfully expanded our capability to staff within the food, pharmaceutical, and aerospace sectors. Revenue grew in the Southeast and Midwest, while weak demand in the energy sector prompted a modest contraction in the Southwest.

Revenue$ in millions

Revenue by Geography2015

Revenue by Industry2015

Page 12: 2016 | Elwood Staffing's Company & Talent Report

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OPERATING COSTS1

A tightening labor market and rising health care costs fueled an increase in operating costs as a percentage of revenue during 2015. Costs reached a three-year high as greater competition for employees forced higher spending on recruiting and retention. Some key components of our ongoing strategy to manage costs include investments in technology, operational process improvement, and strategic branch office placement.

Operating Costsas % of Revenue

Operating Costsby Category for 2015

Page 13: 2016 | Elwood Staffing's Company & Talent Report

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Notes:1Results for 2011, 2012, and 2013 are shown pro forma to include the February 2013 acquisition of SOS Staffing Services, Inc.

ASSETS AND LIQUIDITY

Total assets as of December 2015 were $149 million and total liabilities were $44 million. Liquidity, as measured by current ratio, improved from 3.2 to 3.5 during 2015. Elwood employs a conservative approach to managing assets and debt, which preserves our ability to meet financial obligations and allows us to make investments that expand and enhance our services to clients and associates.

COMPLIANCE

Elwood is committed to operating in full compliance with all laws. To ensure we are complying with financial requirements, we engage the services of independent experts. Our financial statements are audited annually by the CPA firm of Blue & Co., LLC. Income tax returns are prepared by the accounting and business advisory firm of Grant Thornton LLP.

Total Assets $ in millions

Current Ratio

Page 14: 2016 | Elwood Staffing's Company & Talent Report

Specializing in search and contract placement, Elwood Professional matches highly skilled engineering, information technology, and business management professionals with mid-level, VP, and executive openings.

With a focus on placing skilled trades professionals, Elwood Tradesmen® supports clients throughout the U.S. for projects in a wide variety of industries with helpers, apprentices, journeymen, and master craftsmen.

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ELWOOD STAFFINGAT A GLANCE

At Elwood, we like to think we’re large enough to offer big-company solutions but small enough to personally show clients we care. We demonstrate this by giving clients access to all levels of Elwood management and by consistently providing flexible solutions that many firms simply cannot match.

We are your total staffing solution. Representing organizations of all sizes and industries, we place a wide array of talent with skill sets ranging from light industrial, skilled trades, and construction to administrative and clerical, professional, technical, and more.

Elwood Staffing® recruits and screens top industrial and administrative talent and matches them with our clients’ opportunities, creating mutually beneficial relationships that move companies and people forward.

INDUSTRIES SERVED

Aerospace · Alternative Energy · Automotive · Civil & Commercial Construction

Customer Service · Distribution & Warehouse · Engineering · Heavy Industrial

Information Technology · Manufacturing & Production · Oil & Gas · Retail · And more

Page 15: 2016 | Elwood Staffing's Company & Talent Report

COST SAVINGSWe handle the business responsibilities, including interviewing, hiring, discipline, and termination. Our rates include all hiring-related costs—such as benefits, payroll, unemployment, and workers’ compensation—and all tax filing and record keeping.

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FLEXIBILITYWe provide a workforce that flexes with you. Working with temporary associates allows our clients to easily flex their workforces according to fluctuations in business levels.

COMPETITIVE EDGEOur benefits package, which includesa plan that satisfies the Affordable CareAct’s Minimum Essential Coveragerequirement for individuals, helps attract top talent. Benefits include health, vision, dental, life, and disability coverage; holiday pay; performance rewards; referral bonuses; and more.

PRODUCTIVITYYou focus on core competencies while we decrease time-to-productivity by reducing lengthy hiring processes, conducting orientations, managing timekeeping and attendance, customizing screening, and more.

SUPERIOR CUSTOMER SERVICEIn the event you are not satisfied with one of our associates, we will find a suitable replacement. We are committed to providing superior customer service and strive to become a benchmark of excellence both within and outside our industry.

WORKFORCE INTELLIGENCEWe collect and analyze data to develop and share actionable workforce resources with clients, prospects, and partner organizations. We use this knowledge to improve our operations and to provide unparalleled service to those we touch.

Page 16: 2016 | Elwood Staffing's Company & Talent Report

25,000TEMPORARY ASSOCIATES EMPLOYED DAILY............................................APPROXIMATELY

1,000INTERNAL EMPLOYEES

NEARLY.........................

6,000+CLIENTS SERVED ANNUALLY............................

#11U.S. INDUSTRIAL STAFFING COMPANY*

LARGEST......................................

180+ ACROSS OUR SERVICE & DELIVERY FOOTPRINT

BRANCHES 70+ON-SITES.................................................

20U.S. STAFFING COMPANY*

TOP LARGEST.........................

*Ranking from 2015 Staffing Industry Analysts published statistics

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ELWOOD STAFFINGAT A GLANCE

Page 17: 2016 | Elwood Staffing's Company & Talent Report

West Region

Southwest Region

Midwest Region

Southeast Region

Northeast Region

Elwood Staffing Branch Office

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Page 18: 2016 | Elwood Staffing's Company & Talent Report

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Last year, we shared that our president, John Elwood, was elected as chairman of the board of the American Staffing Association (ASA) at the organization’s national conference held every fall. This year, we happily report he wrapped up his very successful term and will remain a member of the board of directors for a ninth year.

Due to our reputation for dedication to learning and leadership development within the industry, ASA invited five of our corporate and field leaders to conduct seminars at the conference on topics ranging from worksite safety inspections to the power of big data to hiring the best internal talent.

And lastly, we were the recipient of an ASA VOICE Award for our 2015 Company & Talent Report. VOICE Awards honor the best staffing industry marketing, advertising, multimedia, and public relations campaigns of the year.

Elwood Staffing makes strong showing at staffing industry’s largest event, STAFFING WORLD

DID YOUKNOW?

Construction is on the rise across the nation, and over 70% of contractors and subcontractors indicate finding qualified tradespeople is their biggest concern1 due to an unprecedented shortage in qualified workers. Elwood Tradesmen, backed by Elwood Staffing’s more than 30 years of experience, specializes in supporting clients throughout the U.S. for projects in a wide variety of industries—from aerospace and commercial construction to renewable energy—with master craftsmen, journeymen, apprentices, and helpers.

In 2015, through strategic growth initiatives, we grew our Tradesmen division by 45% in top-line revenue and more than doubled our sales and account management team. In 2016, we’re committed to opening 10 new offices and hiring additional staff to meet the needs of every new and existing Tradesmen client.

Elwood Tradesmen is growing—FAST!

Page 19: 2016 | Elwood Staffing's Company & Talent Report

NPSscore

% of Promoters(9s and 10s)

% of Detractors(0 through 6s)

In 2014, we rolled out the Purple Index, an internal index designed to track the level of customer service provided to job applicants by staff members in each Elwood branch. In 2015, we completed the first full round of telephone surveying, which allowed us to set a benchmark—by branch and as a company—and paved the way for utilization of a robust online surveying tool. Over the life of this initiative, we’ve spoken with over 4,200 job seekers and aim to quintuple that number by the end of 2016.

The Purple Index utilizes the Net Promoter SystemSM (NPS®) to calculate satisfaction. We intentionally survey job seekers prior to placement, so as to not receive satisfaction scores colored by receipt of a job. Job seekers from every branch are asked the question: On a zero to 10 rating scale—zero being not at all likely and 10 being most likely—how likely are you to recommend Elwood Staffing to a friend or colleague based on your most recent interaction with us?

Based on NPS calculations, the lowest possible score is minus 100% and the highest is 100%. Our company Purple Index score is 42%—much higher than the staffing industry’s average satisfaction score of 24%2.

To complement this initiative, our chairman of the board and director of associate engagement travel around the country quarterly to deliver superior customer service training sessions, discuss our chairman’s book, Two Factor Theory of Customer Service, and talk openly and frankly about Purple Index results for the attending branches. These three-hour sessions give employees the tools they need to address applicant feedback and continually improve customer service.

Continued emphasis on SUPERIOR CUSTOMER SERVICE

1The Associated General Contractors of America (AGC). The Challenges Facing a Growing Industry: The 2016 Construction Hiring and Business Outlook. Rep. N.p.: n.p., 2016. Print. Pg. 4 2Inavero. “Staffing’s Talent Satisfaction NPS Benchmarks - Inavero.” Inavero. N.p., n.d. Web. 19 Jan. 2016. Net Promoter® and NPS® are registered trademarks and Net Promoter SystemSM and Net Promoter ScoreSM are trademarks of Bain & Company, Inc., Fred Reichheld, and Satmetrix Systems, Inc.

DETRACTORS

0 1 2 3 4 5 6 7 8 9 10

PASSIVES PROMOTERS

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Page 20: 2016 | Elwood Staffing's Company & Talent Report

TALENTREPORT

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FEELINGS ABOUT THEIR LOCAL JOB MARKET

87%say quantity of jobs is increasing or staying the same

91%say quality of jobs is increasing or staying the same

78%say local wages are higher or the same as surrounding areas

60%require a one-way commute less than 30 minutes

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AVERAGE NUMBER OF PRIOR JOBS: 3

HIGHEST LEVEL OF EDUCATION

No Diploma or In Progress: 6% High School Diploma (or GED): 33%

Vocational School: 4% Associate Degree (or some college): 15% Bachelor’s Degree (or higher): 4% Did Not Respond: 37%

22% HAVE PROFESSIONAL/TECHNICAL SKILLS

53% HAVE DISTRIBUTION SKILLS

53% HAVE MANUFACTURING SKILLS

37% HAVE CLERICAL SKILLS

PROFILE OF A TYPICALELWOOD APPLICANT

Page 22: 2016 | Elwood Staffing's Company & Talent Report

The Applicant Sentiment Index (ASI) represents just one way we collect, analyze, and release the most powerful and up-to-date workforce intelligence. Because the staffing sector often feels change before any other sector, we created the ASI to monitor the pulse of the employment landscape to detect changes and predict and prepare for market shifts.

The ASI is a series of questions presented to every Elwood Staffing job applicant. Though participation is optional, we average over 2,000 new responses each week. We collect responses by ZIP code, allowing us to slice and dice responses precisely and provide insight at the national, state, regional, and local levels.1 The depth and breadth of this data set are vast and, most importantly, statistically sound.2

QUANTITY AND QUALITY OF LOCAL JOBS

GET INSIDE THEIR HEADSAPPLICANT SENTIMENT INDEx

The Applicant Sentiment Index is Elwood Staffing’s only publicly shared index, designed to track the collective mind of our nation’s contingent workforce. The survey’s questions were hand-crafted based on the critical factors we believe affect job seekers’ and workers’ employment decisions. Each week, we hear from more than 2,000 new job seekers—making our survey one of the biggest of its kind.

What we’ve found so far is contingent job seekers feel overwhelmingly positive about the size and the quality of their local job markets. Over 85% of respondents say the quantity of job opportunities available to them locally is increasing or staying the same, and over 90% of respondents feel the quality of local job opportunities is increasing or staying the same, indicating people generally feel they don’t have to look far to find a job—or even a better job.

When compared with releases and forecasts provided by economists, analysts, the Bureau of Labor Statistics, and others, these findings prove even more compelling, as the mindset of contingent job seekers aligns with those models of growth and economic recovery. Contingent job seekers are often the first to notice or experience workforce reductions due to even the slightest dip in business—making them slightly more pessimistic than other groups of American workers when heading into a downturn. Conversely, they are often the first group of workers to secure employment during a recovery—a time when companies seek to achieve and maintain total flexibility as part of a long-term contingent strategy. The fact that our applicants currently hold positive feelings about their local opportunities is a positive sign for the overall job market. This also means employers need to fight to keep talent engaged, because workers don’t have to look long or hard to find other employment if they want it.

I Believe the Number of Open Jobs in My Local Area is Currently:

I Believe the Quality of Open Jobs in My Local Area is Currently:

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Page 23: 2016 | Elwood Staffing's Company & Talent Report

COMMUTING TOLERANCE

The positive sentiment about local opportunities described earlier signals more than a strong job market—it also signals candidates probably aren’t willing to endure long commutes to find work, a model many employers relied on during the recession, early parts of its recovery, and mistakenly even still today. In fact, our data suggests 60% of employees require a one-way commute less than 30 minutes, and over half of those will only travel up to 20 minutes. It’s important to stress here that respondents specifically cited the total number of minutes—not miles—they are willing to travel. To put this in perspective, a commuter living in a small city with minimal traffic, a few stops, and speed limits ranging from 25-45 mph would need to live within a 15-mile radius of an employer’s facility in order to keep a commute under 30 minutes. A commuter in an urban area needs to live even closer.

QUALITY OF LOCAL WAGES

Responses to one question on the topic of wages uncover what we consider to be lukewarm feelings. While nearly 80% of respondents feel they have the potential to earn equal or higher wages by staying local, the clear majority (66.7% of all respondents) believe local wages are only equal to those in surrounding areas. This means a few things for employers. First, unless you are offering wages in the upper quartile when compared to others in your area, you do not have any meaningful competitive advantage in wage. Your wage is simply a commodity; it’s indistinguishable from the rest and easily substituted with another. Second, with only 22% of the potential employee base believing they can earn higher wages elsewhere, few have a logical reason to look for a job outside their local area—much less accept one and endure the extra cost and time commitment required of a commute. If the perception is that one can earn equal wages here or there, the logical course of action is to seek nearby opportunities first.

1For a summary report of ASI responses from job applicants in your area, please contact [email protected]. 2 Collected data (19,528 unique responses) has a margin of error of +/- 0.7% at the 95% confidence level for population N, conservatively defined as the population within the national labor force that seeks contingent employment.

At the Most, I Am Willing to Travel ___ Each Way for the Right Job.

I Believe Wages in My Local Area Are:

WHAT DOES THIS MEAN?

We fully believe this data further supports our notion that wages alone are not enough to be successful; it’s only when competitive wages are coupled with ongoing and strategic engagement and retention practices that a competitive differentiator is formed. Additionally, we advise you bolster and focus your recruiting efforts locally before expanding your search radius, as you are more likely to retain local workers than you are to retain commuters who may ultimately be tempted by a closer opportunity.

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Page 24: 2016 | Elwood Staffing's Company & Talent Report

For years, individuals and organizations alike have been saying, “the Millennials are coming,” but the reality of this statement is the Millennials aren’t coming anymore, they’re here. And maybe even more important is Millennials aren’t just here, they are the

largest generation currently punching a time clock in the American workforce. By definition, Millennials are members of the American population born between 1981 and 1997.1 This cohort makes up more than one-quarter of the total U.S. population and 34% of the American workforce. So what does this mean for managers? The answer is simple: It means change.

COMMUNICATION IS KEY

Having come of age alongside social media and technology, Millennials are accustomed to emailing professors and tweeting at celebrities and corporations, and many feel it is only natural to communicate with bosses and superiors just as easily, but that’s not always reality. This points to a dichotomy that exists in the workplace when it comes to communication. On one hand, there are still droves of experienced employees who believe non-communication is the best form of feedback.

SAVE THE MILLENNIALSRETHINK THE REVIEW

TRADITIONALISTS: 1928-1945 BABY BOOMERS: 1946-1964 GEN X: 1965-1980 GEN Y (MILLENNIALS): 1981-1997

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Page 25: 2016 | Elwood Staffing's Company & Talent Report

The adage, “If your boss isn’t coming to you, you’re doing a good job,” still rings true for many employees in upper-level management positions. On the otherhand, Millennials crave feedback. They crave accessibility and open communication, and if you, as a superior, aren’t talking to your Millennial employees about their work and their contributions to the organization, you are inhibiting career development and risking premature departure.

Gone are the days when it was acceptable to only have performance-related reviews with your employees once or twice a year. Now, it is imperative performance conversations or check-ins take place at the very least monthly, if not weekly or daily. By engaging in consistent and frequent dialogue with employees on a regular basis, you can better gauge the quality of work being produced, recognize areas for improvement, and provide a more solid and cohesive work environment.

This shows Millennials they are valued for their work and are part of an organization that puts emphasis on learning and growth.

This bite-sized feedback is good for more than just Millennials, though; it’s good for your whole workforce—and even you. Traditional performance reviews are known for the big decisions they help to make—decisions on compensation, promotions, and firings. But, ask yourself, “How accurate are theseinfrequent reviews in making such monumental decisions?” Implementing a system that supports more frequent feedback in smaller doses allows managers to have a better understanding of each employee when it comes time for a comprehensive salary and performance review. When you commit to talking to your employees more often, you ensure your team shares the same vision and goals, and you are able to quickly and swiftly fix any problems that might arise before it’s too late.

Managing a handful of bite-sized conversations over the course of a year may seem like an overwhelming task, but with a little help from your HR team and the adoption of a simple, optional tool, keeping track of your conversations couldn’t be easier. We recommend partnering with your human resources colleagues to create a short questionnaire that will help guide managers in quarterly performance-related conversations. Curating questions pertaining to an employee’s contributions, learning and development, frustrations, and areas for improvement, provides a well-rounded understanding of an individual’s strengths, weaknesses, and progress over time. We’re diving in headfirst and making a similar change to our corporate review process in 2016.

SAMPLE QUESTIONNAIRE:

How have you contributed to the company this quarter, and what have been your greatest contributions?

In what ways have you grown professionally this quarter?

If you could change anything about your current position or work environment, what would you change?

IS THE YEARLY REVIEW EXTINCT?

From start-ups to corporate giants, organizations across the board are starting to see and feel the problems that arise from traditional performance reviews, so much so the percent of employers who eliminated performance reviews tripled to 12% between 2012 and 2014.2 So, is it time for you to do away with the traditional review, too? Not completely, but making the effort to engage your employees in ongoing conversations that offer constant feedback and ideas for improvement and growth throughout the year stands to do much more for your organization than the traditional performance review does alone.

While the need for bite-sized feedback came with the surge of Millennials entering the working world, changing the way we offer feedback and talk to our employees stands to benefit everyone in the workforce.

Sources: 1Fry, Richard. “This Year, Millennials Will Overtake Baby Boomers.” Pewresearch.org. Pew Research Center, 16 Jan. 2015. Web. 30 Oct. 2015. 2Greenfield, Rebecca. “What’s After Annual Performance Reviews? Never-Ending Performance Reviews.” Bloomberg.com. Bloomberg, 12 Oct. 2015. Web. 2 Nov. 2015.

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Here’s the thing…

WE’RE NOT JUST TALKING ABOUT RETENTION BECAUSE WE’RE BORED WITH WAGES. We’re talking about retention because it matters right now.

IT’S YOUR GAME-CHANGER. There’s a strong linear relationship between falling unemployment rates and rising voluntary quits. So, how do you buck the trend?

UP YOUR EMPLOYMENT EXPERIENCE—

NOT JUST YOUR WAGES.

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Q1

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Voluntary Involuntary

75%

65%

55%

45%

35%

25%

WELL, NOBODY EXCEPT ECONOMISTS.

Voluntary departures in an economy indicate workers are confident enough in their abilities to find new jobs that they’re willing to quit their current ones. Quitting is how workers “put their money where their mouths are” in an improving job market. That’s why when quit rates increase, economists pay attention. We at Elwood Staffing pay attention, too.

In January, the U.S. Bureau of Labor Statistics (BLS) published a Job Openings and Labor Turnover Survey (JOLTS) that confirmed what we and many of our clients already knew: Quits are on the rise. 2.8 million Americans quit their jobs in November 2015; that’s more quits than occurred in any month since 2008.

National trends are interesting, but they conceal wide differences in different markets. What do increasing voluntary departures mean for Elwood Staffing’s clients? We decided to investigate.

NOBODY LIKES A QUITTER

VOLUNTARY DEPARTURES 2006-2015

Each quarter, we benchmark turnover for a group of more than 100 of our largest clients. This benchmarked group is useful because it allows us to track large-scale trends over time while keeping our sample relatively stable in terms of industry, geography, and seasonality.

We pulled turnover statistics for the benchmarked group from 2006-2015 and divided turnover into voluntary departures and involuntary terminations. As shown in Figure 1, quits comprised 64% of turnover in Q3 of 2015—the highest proportion of turnover in the 10 years we analyzed. Also, for the first time since the economic downturn, quits have outnumbered involuntary terminations for nine consecutive quarters.

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FIGURE 1 Voluntary and Involuntary Turnover

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MARKET-LEVEL INSIGHTS

The quit-rate trends in our benchmarked group show the difference between an employer’s market and a candidate’s market, but they leave us with a few questions. For starters, the national unemployment rate has hovered around 5%; do we expect quit rates to continue to increase as the unemployment rate decreases, or is there a rate at which quit rates top out? Second, how do we quantify the relationship between unemployment and quit rates?

Luckily, Elwood’s broad geographic footprint provides us data from many different markets with varying conditions. During 2015, counties in which Elwood operates had unemployment rates as low as 1.6% (Mountrail County, ND, October 2015) and as high as 27% (Yuma County, AZ, August 2015).

For our analysis, we studied data from our core business for all jobs that ended between November 1, 2014, and November 1, 2015. We included only job endings defined as turnover: voluntary departures and involuntary terminations. We also collected the monthly unemployment rate from the BLS for every county in which our clients operated for the same period of time.

As seen in Figure 2, we found there is a strong relationship between local unemployment rates and the proportion of turnover represented by quits. A regression analysis revealed that for every 1% the unemployment rate decreases, a 2.14% increase in quits as a percentage of turnover can be expected. Obviously, individual results will vary.

HOW TO TRACK LOCAL MARKET UNEMPLOYMENT STATISTICS

To view your local historic unemployment rates and keep tabs on its current state, visit the BLS’s Local Area Unemployment Statistics (LAUS) website at www.bls.gov/lau/.

We recommend the following:

· Sign up for the monthly state-level unemployment rate RSS feed so you can have new information pushed directly into your Outlook feed reader or your web browser’s homepage

· Visit the site at least quarterly to download county-level data

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FIGURE 2

WHAT DOES THIS MEAN FOR YOU?

While the economy may seem strong today—and unemployment rates are at their lowest since the recovery started—our data shows there is still room for about two-thirds of our markets to continue to see declines in the local unemployment rate in order for them to reach their lowest pre-recession levels in 2007.

So, don’t sit idly on the sidelines; you need to stay ahead of the curve. If your business can’t afford a rise in voluntary turnover and you know unemployment rates will continue to fall, now is the time to put a plan in place to combat what we know is an inevitable increase in turnover heading your way. We’ve said it before, but it is worth repeating: The law of supply and demand applies to labor markets. Strong retention doesn’t happen by accident. It takes planning.

Voluntary Turnover by Unemployment Rate

70%

60%

50%

40%

30%

20%

2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12%

Voluntary Turnover Linear (Voluntary Turnover)

Local Unemployment Rate

Vol

unta

ry T

urn

over

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There are obvious, quantifiable traits job seekers consider when evaluating a new position: the commute, the pay, the job description, the benefits, and the hours. It’s relatively easy to compare the attributes of each potential position and accept or reject a job because it just makes sense to do so.

That’s because the head, or practicality, attracts people to jobs.

But what keeps them around?

Think about all of the jobs you’ve ever held. Which one was your favorite? Maybe in high school, it was the low-stress lifeguarding position where you made a ton of friends; maybe right after college, it was an entry-level position that opened your eyes to a new world through mentorship from a colleague. Your favorite jobs made logical sense at the time—they paid money, you were fine with the commute, and you knew the hours—so you took them; however, you probably returned to the pool a few extra summers even when you could’ve earned more elsewhere, and you’ve retained positive feelings based on a set of attributes you could not evaluate when you first applied.

That’s because retention hinges on the heart.

Once someone is in your door, you know they’re relatively comfortable with your wages, your benefits, your operating hours, their commute, and the like. It should be a given you need to continually adjust these things to remain competitive as the world changes, but this is not the area you need to focus on to optimize retention. You need to cultivate an environment that speaks to your employees’ emotional needs—their hearts.

THE HEADAND THE HEART

How do we know? We took a closer look at all voluntary turnover in 2015 among our associates (see Figure 1). We compared quits for practical reasons (like commute distance and shift hours) against quits due to emotional factors (like not feeling respected and lack of advancement opportunities), and what we found is, over time, the emotional factors exceed the logical ones. This means the longer employees stay with your company, the greater the need for the things that keep them happy and engaged and foster a sense of affection. There are certainly life events that will always drive a few employees away, but with a little work and some ingenuity, you have unbelievable opportunity to retain everyone else (remember that lifeguard job?!).

By now, you’re probably thinking to yourself: What about pay? They didn’t mention pay as a quit factor! That’s because we excluded wage-related turnover in our analysis. Why? Because if pay is not adequate, it will always overshadow any and all other needs. A competitive pay strategy has to be the foundation of a successful retention strategy. We simply buffed the tarnish off the silver to obtain an unclouded reflection. (See page 31 for a competitive paystrategy guideline.)

Practical Reasons (can be evaluated before accepting job): Too Physical, Too Hot/Cold, Other Job Closer to Home/Transportation, Better Working Hours, Better Benefits, Not Enough Working Hours, Disliked Shift Emotional Reasons (Can only be evaluated over time): Concern for Safety, Not Challenging, No Advancement Opportunities, Not Enough Training, Not Treated with Respect by Co-worker, Poor Communication, Supervisor Negative Behavior, Supervisor Poor Communication, Too Much Overtime, Cleanliness of Facility, Job Duties Other/Life Circumstance (not displayed on chart): Moved, Not Eligible for FMLA, Personal-Not Related to Assignment, School, Not Able to Be Reached, Pay/Better Job with Higher Pay

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0%

5%

10%

15%

20%

25%

1 2 3 4 5 6 7 8 9 10 11 12

Voluntary Departures by Reason

Per

cent

of A

ll V

olun

tary

Dep

artu

res

Months Worked at Time of Departure

Practical Emotional

FIGURE 1

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Not surprisingly, none of the factors we identified are part of a list of practical reasons employees are initially attracted to a job; none can be experienced by reading a job post or looking around during an interview. The things that matter most in the long run to employees are the unique, intangible parts of company culture that only become apparent over time.

To meet each need listed above multiple times over, we believe there are four steps you can take.

STEP 1: PROVIDE AN EXCELLENT START WITH A 30-DAY HIGH-TOUCH PLAN

Our proprietary data shows up to 40% of turnover can occur in the first 30 days of employment; furthermore, an external study shows 4% of workers across the nation have quit on the first day due to a disastrous welcoming.2 By implementing a well-designed, well-executed, high-touch welcoming and onboarding process, you mitigate the risks of new employees falling through the cracks, feeling lost or unwelcome, or leaving your company too early. A critical component of your onboarding plan is training the folks involved to do their parts.

Here’s a sample timeline:

SO, WHAT’S OUR RECIPE FOR SUCCESS?

We work hard to listen to workers to find out what makes them tick—or, rather, what keeps them ticking at one place. In mid-2015, we conducted a study1 where we analyzed thousands of answers from internal employee surveys and in-person associate interviews. Through this, we identified seven factors that are most strongly correlated with employees reaching a state of harmony at work—or, in other words, a state of comfort or happiness with their work environment.

Safety as a top priority of the company

Opportunities for advancement

Confidence in leadership of the company

Feelings of value and shared goals

Communication

Training

Treatment/Inclusion

0-5 days 5-10 days 10-20 days 20-30 days

Prior to StartExcellent experience and orientation

Day 1On-site orientation and welcome

Day 2New employee lunch (individual or group) with supervisor or team leader

Day 3Check-in call from HR team, upper management, or even an executive

Days 5-10Check-in meeting with supervisor or team leader

Day 10HR team conducts check-in, thanks employee, and provides company logowear item

Day 30New employee receives wage increase

Days 15-20New employee group lunch with supervisors, managers, or leaders

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STEP 2: FOCUS ON INCLUSION

Your goal is to achieve a work environment in which all individuals are treated fairly and respectfully, have equal access to opportunities and resources, and can contribute fully to your organization’s success. As much as possible, you must avoid any practice that creates disparity between sets of employees. After all, everyone works together to make the same products and serve the same customers.

Here are a few practices we suggest: · Include all employees in communications and meetings, where practical · Provide equal benefits, such as holiday pay, paid time off, and/or shutdown pay, to all employees regardless of tenure or position

· Design employee perks such as cookouts, family days, and bonuses so that all employees can participate

· Train and hold accountable supervisors, managers, and executives to treat all employees with high regard and address each by name

STEP 3: BUILD SOCIAL CONNECTIONS

Applicants who have friends or acquaintances at a particular employer are more likely to seek work there and, once hired, stick around. We know this because the greatest percentage of our applicants—over 30%—come to us as referrals from thousands of working associates, a trend on par with other employers. This indicates relationships are just as important to current employees as they are to the job seekers they refer.

Here are a few practices we suggest:· Provide nametags so employees can learn and address each other by name · Implement an attractive referral bonus program and promote it heavily · Consider establishing social clubs to forge relationships between like-minded workers, such as the following:

Book Hunting / fishing Scrapbook Running / fitness Motorcycle Volunteerism

STEP 4: MAINTAIN A POSITIVE REPUTATION

Over 80% of job seekers say online employer reviews influence their decisions on whether to apply or not, and nearly 50% say company reputation has a significant impact on whether they accept a job offer or not.3 Your reputation is so important, and you must consider and proactively manage all elements of your reputation:

Understand your reputation: · General brand awareness: Do people know about and trust your company? · Work environment: Do people consider you to be a good employer with a positive culture?

· Social: Do people believe your company to be socially and environmentally responsible?

Manage your reputation: · Be proactive. Ask happy customers and employees to complete online reviews; unhappy people will always complain first.

· React. Seek to collect and understand negative reviews, and take action to correct them.

· Ask. Ask for feedback—from anyone who will give it—and continually improve.

1Elwood Staffing. The Seven Wonders of the Work(place): Climbing Maslow’s Pyramid. Rep. N.p., 6 July 2015. Web. <www.elwoodstaffing.com/whitepapers>. 2Moscato, D. (2005). “Using Technology to Get Employees On Board,” HR Magazine, April: 107-109. 3Indeed. “Indeed Surpasses 4 Million Employer Reviews.” Web log post. Indeed Blog. N.p., 29 Jan. 2014. Web. 12 Dec. 2015. 4Elwood Staffing. Becoming An Employer Of Choice. Rep. N.p., 6 Feb. 2015. Web. <www.elwoodstaffing.com/whitepapers>.

SELF-ASSESSMENT TOOL: HOW DOES YOUR COMPANY RATE?

Starting Pay

Pay Progression

Inclusion

Onboarding (“strong start”)

Social Connectivity

Reputation

Flexibility (e.g., attendance, schedules)

Opportunities for Advancement

Advanced Training

Strong Safety Culture

Quality Supervisors

Stability of Work

Needs Improvement Average Strong

Are you maximizing your recruiting and retention efforts?

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BUILDING BLOCKS: YOUR COMPETITIVE PAY STRATEGY

The “Recipe for Success” previously outlined hinges upon the existence of a competitive pay strategy. We define a competitive pay strategy as one that offers starting wages at least $2.25/hr above the local minimum wage, at or above the 50th percentile when compared to local wages for similar positions, and inclusive of a well-defined and attainable pay progression schedule.

1As shown in Figure 1, voluntary departures based specifically on pay drop off dramatically as pay soars above minimum wage. The reason for this is very obvious: Associates need to make enough money to

sustain themselves or a family, and, often, minimum wage—or close to it—is simply not enough. Much like research in human motivation suggests, people have to fulfill the most basic needs before they are able to address others. When pay is too low, employees depart in droves in search of fulfillment of this basic need, regardless of other retention measures you have in place. It’s around $2.25/hr above the minimum wage where we first see the steepest decline in departures cited specifically for pay.

2As shown in Figure 2—data from our ASI—78% of job seekers feel as if wages

offered locally are the same or higher than wages offered in surrounding areas. We can extrapolate this to mean 78% of job seekers see little to no difference in the wages they can attain from one employer to the next. In order to stand out in this commoditized environment, you need to pay in the upper

half, ideally in the upper 25%. How do you know if you’re meeting this standard? Each year we publish a report based on our annual wage survey that allows you to access detailed information about wages offered in your region. You can find a copy of this report in the Business Resource Center on our website. Higher-than-average starting pay will bring candidates in your doors and retain them during the critical first weeks of employment.

Today 1 Year 2 Years 3 Years 4 Years 5 Years

Effective Buying Power of $10.50 Hourly Wage(Compared to Today’s Wage)

$1.50

$1.00

$0.50

$-

$(0.50)

$(1.00)

$(1.50)

$(2.00)

$(2.50)

1-6 1-12 1-18 1-24 1-30 1-36

Employee Departures by Annualized Wage Increases(Sum of Losses Every 6 Months)

100%

80%

60%

40%

20%

0

TOTA

L P

ER

CE

NT

DE

PAR

TE

D

MONTHS

<1% annualized raise 4-7% annualized raise

ANNUALIZED WAGE INCREASES

Premier Employer: Offers 6% annual wage increase to outpace cost of living adjustments. Wage raises (2.956%) offered every 6 months.

Average Employer: Offers 4% annual wage increase to match cost of living adjustments. Wage raises (1.98%) offered every 6 months.

Below Average Employer: Does not offer wage increases.

Today 1 Year 2 Years 3 Years 4 Years 5 Years

Effective Buying Power of $10.50 Hourly Wage(Compared to Today’s Wage)

$1.50

$1.00

$0.50

$-

$(0.50)

$(1.00)

$(1.50)

$(2.00)

$(2.50)

1-6 1-12 1-18 1-24 1-30 1-36

Employee Departures by Annualized Wage Increases(Sum of Losses Every 6 Months)

100%

80%

60%

40%

20%

0

TOTA

L P

ER

CE

NT

DE

PAR

TE

D

MONTHS

<1% annualized raise 4-7% annualized raise

ANNUALIZED WAGE INCREASES

Premier Employer: Offers 6% annual wage increase to outpace cost of living adjustments. Wage raises (2.956%) offered every 6 months.

Average Employer: Offers 4% annual wage increase to match cost of living adjustments. Wage raises (1.98%) offered every 6 months.

Below Average Employer: Does not offer wage increases.

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FIGURE 2

FIGURE 3 FIGURE 4

FIGURE 1

3As shown in Figures 3 and 4, pay progression is the perfect

complement to higher-than-average starting wages. As noted above, high starting pay will get people in the door and keep them entertained long enough to partially buy into your company; however, the honeymoon period will eventually end, and stagnant pay will lower an employee’s buying power—hardly the way to reward an employee for longevity and hardly a reason for an employee to stick around.

Pay-Related Quits as a Percent of all Assignment Ends(by $/hr over minimum wage)

I Believe Wages in My Local Area Are:

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BROWNING-FERRIS INDUSTRIES OF CALIFORNIA, INC. (Decided August 27, 2015)

1. WHAT’S BROWNING-FERRIS ABOUT?

Browning-Ferris (BF) contracted with Leadpoint Business Services to provide workers for a variety of tasks involving sorting recycled materials. When Teamsters Local 350 sought to unionize around 120 Leadpoint workers at the BF facility, it sought a ruling from the National Labor Relations Board (NLRB) as to whether both companies could be considered employers of those workers and, thus, be required to bargain with it if the union were to be certified as their representative.

The NLRB established a new legal standard for joint employment under the National Labor Relations Act (NLRA) by holding that a company is a joint employer if it exercises “indirect control” over working conditions or if it has “reserved authority” to do so. A host employer need not exercise actual, direct, or immediate control over another entity’s employees to be considered a joint employer; the board will now look at the unique circumstances on a case-by-case basis to assess any indirect controls a host entity has over the supplier’s employees’ essential terms of employment.

EMPLOYMENT LAW UPDATE

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2. WHAT’S THE IMPACT OF BROWNING-FERRIS?

If entities are joint employers, they can be jointly and severally liable for any unfair labor practice committed by the other joint employer. This means that—even if only one of them committed conduct the NLRB found unlawful—both employers would be found to have violated the law and could potentially be responsible for remedies imposed by the Board.

Critical points to consider here are (1) the NLRB’s enforcement powers do not include fines or penalties but consist primarily of remedies such as posting notices, rescinding the unlawful act, and committing not to engage in future violations; (2) most staffing firm clients already exercise supervision and control over temporary workers’ day-to-day work and activities, work hours, work equipment, and termination of assignments; thus, most clients were already joint employers of temporary workers for NLRA purposes prior to this new standard; and (3) the Board has issued several prior decisions in which clients that exercised such control were determined to be joint employers of temporary workers. These rulings had little, if any, adverse impact on staffing client relationships.

Additionally, this decision will likely not have significant implications for unionization of temporary workers. Prior Board decisions that made it easier for temporary workers to unionize did not demonstrably result in increased unionization of such workers, and that largely remains the case today.

3. SHOULD I AVOID JOINT EMPLOYMENT BECAUSE OF THE NEW JOINT-EMPLOYER STANDARD?

Joint employment is a legitimate, legal, and essential part of the staffing relationship. Operational supervision of assigned employees by a staffing firm’s client is normal, expected, and beneficial. As joint employers, staffing clients typically enjoy the same immunity from liability for assigned employee work-related injuries that staffing firms enjoy under state workers’ compensation laws. To the extent clients disclaim employer or joint-employer status in staffing contracts, this immunity may be jeopardized.

Furthermore, staffing firm clients have long been held to be joint employers under equal employment opportunity, workplace safety, and wage and hour laws. Under these laws, and under the NLRA, the legal risks are generally the same as those to which clients will be exposed with respect to their internal employees. The flexibility, efficiency, and benefits of staffing outweigh such risks.

EEOC V. ABERCROMBIE & FITCH (Decided June 1, 2015)

1. WHAT’S ABERCROMBIE ABOUT?

A young female applicant was not hired by Abercrombie & Fitch (Abercrombie) due to the fact her headscarf violated the company’s “look policy.” Abercrombie suspected, but was not certain, the applicant wore a headscarf for religious reasons.

Abercrombie holds that an employer can be liable under Title VII for refusing to hire an applicant (or for discharging an employee) based on a “religious observance and practice” even if the employer does not have actual knowledge that a religious accommodation is required.

2. WHAT’S THE IMPACT OF ABERCROMBIE?

An employer may not make an applicant’s religious practice, confirmed or otherwise, a factor in employment decisions. An employer seeking to avoid an accommodation violates Title VII even if it has no more than an unsubstantiated suspicion that an accommodation would be needed.

A job applicant with a bona fide need for religious accommodation must prove only that a prospective employer’s desire to avoid the accommodation was a “motivating factor” in its decision not to hire.

YOUNG V. UPS, INC. (Decided March 25, 2015)

1. WHAT’S YOUNG ABOUT?

Young was a part-time driver for United Parcel Service (UPS) who became pregnant and, as a result, was unable to lift items weighing up to 70 pounds, a requirement of all drivers. After Young became pregnant, she asked for a brief leave of absence. Shortly thereafter, Young submitted a doctor’s note with a recommendation she not lift more than 20 pounds, and she asked for an accommodation to work light duty. The company refused these requests and did not allow her to return to work because lifting more than 20 pounds was an essential function of her job.

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2. WHAT WAS THE COURT TRYING TO DECIDE?

In Young, the Court addressed whether or not the Pregnancy Discrimination Act (PDA) requires an employer to provide the same work accommodations to an employee with pregnancy-related work limitations as to employees with similar, but non-pregnancy related, work limitations. The court decided that a pregnant employee can establish a prima facie case of discrimination by alleging the employer denied a request for an accommodation and the employer accommodated others “similar in their ability or inability to work.” If the employee can do so, then the employer must demonstrate a legitimate, nondiscriminatory reason for denying accommodation. The Court noted an employer can’t rely on the fact that an accommodation may be “more expensive” or “less convenient.” If a neutral policy imposes a significant burden on pregnant workers, the employer’s justifications for doing so must be “significantly strong.”

3. WHAT’S THE IMPACT OF YOUNG?

Young stands for the idea that although a pregnant employee doesn’t have a “disability,” she may nonetheless be entitled to a reasonable accommodation. And, employers must do more than simply refrain from active discrimination, because they can now be liable under the PDA if they accommodate a large percentage of non-pregnant employees but fail to do so for pregnant employees.

Young shows that employers who exclude pregnant employees from discussions about available reasonable accommodations—when other categories of employees remain eligible for such accommodations—run a significant liability risk.

Courts will evaluate the extent to which an employer’s policy treats pregnant workers less favorably than non-pregnant workers with similar inabilities to work and determine whether there are any legitimate reasons for such differences. The focus will be on the negative impact on female workers, rather than an intentionally biased policy. Thus, employers can be liable for discriminatory conduct regardless of intent.

An employer’s policies and processes are key to avoiding and defending claims, even if the ultimate answer in a particular situation is that the requested accommodation is not available at that time or would impose an undue hardship on the business.

Notably, at least 12 states and the District of Columbia have enacted laws that treat pregnancy like a disability and, therefore, require employers to provide reasonable accommodations to pregnant employees absent a showing of undue hardship.

These states include Alaska, California, Connecticut, Delaware, Hawaii, Illinois, Louisiana, Maryland, Minnesota, New Jersey, Texas, and West Virginia. EEOC & BRIGHT LINE LEAVE OF ABSENCE POLICIES

BRIGHT LINE LEAVE POLICIES VIOLATE AMERICAN WITH DISABILITIES ACT (ADA).

In recent litigation, the Equal Employment Opportunity Commission (EEOC) has negotiated large settlements for employees terminated under inflexible leave policies. However, a recent ruling out of the 10th Circuit held that employers generally will not be required to allow employees more than six months’ leave of absence for disability. The court held that six months is “more than sufficient in nearly any case.”

NLRB § 7 EMPLOYEE PROTECTIONS

CONCERTED ACTIVITY

Participation in social media (even off-duty and off-premises) may be protected concerted activity such that Facebook rants that disparage the employer or management—and even “likes” of such posts—may be protected if related to terms and conditions of employment. Further, handbook policies barring “negative comments” about co-workers or those requiring employees to represent their organization in the community in a “positive and professional manner” are unlawful.

The 5th Circuit enforced an NLRB finding that an employer’s confidentiality policy prohibiting discussion of employee pay constitutes an unfair labor practice under the NLRA. Thus, when drafting, applying, and enforcing policies, employers must be mindful of NLRA protections of concerted activity, even if the workforce is not unionized.

INTEGRITY STAFFING SOLUTIONS V. BUSK (Decided December 10, 2014)

Integrity Staffing holds that the Fair Labor Standards Act does not require employers to pay employees for time spent in security checks, because a security check is not the principal activity or an intrinsic element of employees’ jobs. Compensability of pre- and post-work activities continues to be a case-by-case determination.

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Steve’s primary areas of responsibility include overseeing accounting, finance, treasury, and tax functions. He initially joined Elwood Staffing in 2000 as controller and moved into the chief financial officer role in 2002. Prior to joining Elwood Staffing, Steve worked in public accounting and as an analyst for a Fortune 500 automotive parts supplier.

Steven J. Hunnicutt, CPA, CGMA Chief Financial Officer

Mark joined the company in the fall of 1987 and has served in many capacities such as sales consultant, vice president, and president prior to being named chief executive officer in 2003. As CEO, he likes to maintain a healthy balance of duties—focusing on operational and financial performance and strategic initiatives while cultivating relationships by visiting branch offices around the country and spending time with existing and prospective customers.

Mark S. ElwoodChief Executive Officer

Lia is responsible for providing legal advice to the organization, strategically identifying legal risk, structuring proactive policies and procedures, negotiating and finalizing large commercial transactions, and managing Elwood Staffing’s Legal Department. Prior to joining Elwood Staffing in 2007, Lia practiced law with a civil law firm, focusing on the employment and labor law sector.

Lia R. ElliottGeneral Counsel

Vic maintains complete oversight of budgeting and financial reporting—both on a consolidated basis for external review and at a more detailed level for internal management purposes. He joined the company in 2014 after working in both corporate finance and public accounting.

Victor J. Meyer, CPA, CGMAVice President of Finance

John has management oversight of the Human Resources, Risk Management, Safety, and Unemployment Claims Departments. Additionally, he manages the company’s insurance programs and provides legal support and advice to the company primarily in the areas of wage and hour, employee relations, the Affordable Care Act, insurance, and risk. John was General Counsel of SOS Employment Group for 18 years before it was acquired by Elwood Staffing in 2013.

John K. MorrisonSenior Vice President and Legal Counsel

John oversees the executive management members of the Legal, Risk Management, Human Resources, and Field Operations Departments. He is also the immediate past chairman of the board of the American Staffing Association, of which he has been a board member since 2008. John has been with the company since 1996.

John A. ElwoodPresident

Dave leads the company’s Workforce Solutions group, a department dedicated to the growth and development of large, multimarket accounts. He and his team support field staff with sales, implementation, service delivery, account management, and best practices for Elwood’s largest and most complex clients. Dave has been with Elwood Staffing since 2011.

David S. MeyercordSenior Vice President

Brett is responsible for shaping, managing, and maintaining the company’s information technology environment. He and his team actively develop and implement plans to improve the organization’s communication, access to information, and organizational efficiency. Brett spent 20 years in IT operations and management in private, public, and international companies prior to joining Elwood Staffing in 2013.

Brett A. FloraVice President of Technology

Mike is responsible for working with the company’s sales force on new business development. He is also responsible for maintaining and growing some of Elwood’s strategic clients. Mike served as president of TRI Staffing for three years before it was acquired by Elwood Staffing in 2006.

J. Michael Stockard, Jr.Executive Vice President

Dr. David Elwood founded the company—then Elwood Consulting—in 1980. He recently authored a book, “Two Factor Theory of Customer Service,” which shares his passion for and beliefs about superior customer service. He frequently visits the company’s field teams, inspiring individuals to grow and develop as leaders. Prior to founding the company, he served as a consultant to businesses in the areas of employee selection and opinion surveys and worked as a clinical and research psychologist.

David L. Elwood, Ph. D.Chairman of the Board

Nick leads the company’s operational team. With oversight of field and risk operations, learning and development, and internal/external reporting, he works closely with the branch network and internal sales team to ensure best practices are in place and followed across the organization. Nick joined the company in 2005.

Nickolas J. Seger, CPA, CGMAVice President of Operations

Mike is responsible for Elwood Professional, the company’s high-end search and placement division. His team serves the Engineering, IT, and professional-level hiring needs of the company’s national client base. Mike previously worked on Wall Street and in the technology industry. He joined the company as the chief operating officer in 2004 and was appointed president of Elwood Professional in 2012.

Michael D. Elwood President, Elwood Professional

Kevin is responsible for branch performance and customer relations. He directs client strategy meetings, proposal development, and field operations—and works with management to build client relationships. Kevin was with SOS Employment Group for 13 years before it was acquired by Elwood Staffing in 2013.

Kevin L. Hardy Senior Vice President

John drives organizational health through learning and development, change management, and strategic support of service operations. John was with SOS Employment Group for 20 years before it was acquired by Elwood Staffing in 2013.

John A. NiedermeyerVice President of Strategic Services

EXECUTIVELEADERSHIP

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The information herein is intended only for general purposes. Nothing contained or expressed herein is intended to or shall be construed as legal advice, and no attorney-client relationship is formed. If you have questions about any law, statute, regulation, or requirement expressly or implicitly referenced, contact legal counsel of your choice.

All information is proprietary and confidential.

DOLLARS & SENSE | WAGE AND BENEFITS REPORT

This series of annual reports contains wage and benefits data for clerical and production workers in manufacturing, distribution, and oil & gas facilities throughout the U.S. Unlike other resources that report average wages, Dollars & Sense focuses on starting wages. This unique approach allows us to paint a more accurate picture of actual wage offerings, as our data is protected from the influence of accrued wage raises.

RECENT WHITE PAPERS

Together, We’re Better Safe Than SorryBackground Checks: Friend, Foe, or “Frenemy”? · Download Our Sample Hiring MatrixThe Seven Wonders of the Work(place): Climbing Maslow’s PyramidDo You Give a Tweet About Your Online Presence?Becoming an Employer of ChoiceCan You Afford to Pay Minimum Wage?Flexibility: The Art of Bending Without BreakingEmployee Retention: When Traditional Benefits Aren’t EnoughBenefits 2014: Standing out in a Candidate’s MarketA Ticking Time-Bomb, No More: Executive-Sponsored Mentorships Can Help Your CompanyEmployee Engagement: The Antidote to Turnover

To request additional copies of this report or any resource listed above, please contact [email protected]

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For this and more workforce intelligence, visit the BUSINESS RESOURCE CENTER at www.elwoodstaffing.com/BRC.

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CORPORATE HEADQUARTERS 4111 Central AvenueColumbus, IN 47203

812.372.6200www.elwoodstaffing.com