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interbiznet presents the Bugler
February 23, 2006
Building and Seeding Talent Pools 1
Read John Sumser's Electronic Recruiting News for insight on the Industry.

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Reveille and Hyperbole

TempWorks Software, a provider in the staffing software industry, announced financial results for the year ended 2005.

The staffing solution provider increased sales from $3.9 million in the year ending 2004 to $4.9 million in 2005, resulting in a 25 percent growth rate. The 4th quarter of 2005 represented the tenth consecutive quarter of growth for the software company.

O/E Learning, Inc., a provider of human performance improvement solutions, and Humax Corporation, provider of social capital research and training, announced the availability of the Online Reciprocity Ring(TM). The Online Reciprocity Ring is a powerful Web-based collaboration tool that creates a "virtual community," and enables individuals, teams, and organizations to solve common problems, institute best practices, cut through bureaucracy, share knowledge, locate resources and, ultimately, achieve their objectives.

The Principal Financial Group receives high rankings from Large Retirement Plan Clients; Chatham Partners Study marks sixth consecutive year of rising Satisfaction Scores for Principal.



You Should Know

  • Bush Budget Would Cut Popular Health Programs  President Bush has requested billions more to prepare for potential disasters such as a biological attack or an influenza epidemic, but his proposed budget for next year would zero out popular health projects that supporters say target more mundane, but more certain, killers.

    If enacted, the 2007 budget would eliminate federal programs that support inner-city Indian health clinics, defibrillators in rural areas, an educational campaign about Alzheimer's disease, centers for traumatic brain injuries, and a nationwide registry for Lou Gehrig's disease. It would cut close to $1 billion in health care grants to states and would kill the entire budget of the Christopher and Dana Reeve Paralysis Resource Center.
    (The Washington Post)






India:
  • Scientist's Visa Denial Sparks Outrage in India  A decision two weeks ago by a U.S. consulate in India to refuse a visa to a prominent Indian scientist has triggered heated protests in that country and set off a major diplomatic flap on the eve of President Bush's first visit to India.

    The incident has also caused embarrassment at the highest reaches of the American scientific establishment, which has worked to get the State Department to issue a visa to Goverdhan Mehta, who said the U.S. consulate in the south Indian city of Chennai told him that his expertise in chemistry was deemed a threat.
    (Washington Post)




Global:
  • Outsourcing Is Climbing Skills Ladder   The globalization of work tends to start from the bottom up. The first jobs to be moved abroad are typically simple assembly tasks, followed by manufacturing, and later, skilled work like computer programming. At the end of this progression is the work done by scientists and engineers in research and development laboratories.

    Report From Ewing Marion Kauffman Foundation A new study that will be presented today to the National Academies, the nation's leading advisory groups on science and technology, suggests that more and more research work at corporations will be sent to fast-growing economies with strong education systems, like China and India.

    In a survey of more than 200 multinational corporations on their research center decisions, 38 percent said they planned to "change substantially" the worldwide distribution of their research and development work over the next three years — with the booming markets of China and India, and their world-class scientists, attracting the greatest increase in projects.
    (New York Times)











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Survey Says:
Employers Are Confident About 2006 Bargaining Goals

Employers report high levels of confidence about achieving their bargaining objectives this year, according to BNA's Employer Bargaining Objectives survey report for 2006.

Ninety-one percent of survey respondents say they either are "very confident" or "fairly confident" that they will meet their 2006 contract goals, the survey found. This is down slightly from the previous year, when 95% of surveyed employers expressed similar levels of confidence about achieving their bargaining objectives

The following are highlights from the survey:
The strengthening economy has not spurred employers to boost contract proposals for wages. Plans for first-year wage adjustments closely mirror those reported for the previous year, with 40% of employers proposing increases of 3% or more. Over the life of the contract, however, less than one-third of the surveyed employers plan to offer average annual increases of 3% or more, which is down from 2005. Other pay provisions, such as lump-sum payments, ratification bonuses, cost-of-living adjustments, and two-tier compensation structures, also show a downward trajectory from the prevalence seen in past years.

Employers will put emphasis on gaining concessions in health-care benefits, while appearing most likely to make concessions in the area of wages. Many employers will take aim at health-care costs during 2006 contract talks, as a substantial majority identify health-care benefits and insurance as a priority area for obtaining concessions. On the other hand, employers most commonly choose wages as the area where they would consider giving up ground during contract negotiations in 2006.

Employers will focus largely on cost-sharing provisions as a way to control health-care expenses. More than three in five surveyed employers will either bargain to increase existing health-care cost-sharing provisions (48%) or introduce employee premium contributions, copayments or deductibles for the first time (14%). Premium contributions will receive the greatest attention from employers in 2006, followed by copayments and deductibles. In addition, nearly three in 10 employers will seek to make cutbacks in particular health-care provisions, such as benefits for hospitalization, prescription drugs, surgical procedures and doctor visits.

Issues of outsourcing and the use of temporary or contract workers remain prominent in 2006. More than one in three surveyed employers expect the use of temporary, contingent or contract workers to be an issue in 2006 contract talks, essentially unchanged from figures reported last year. Similarly, about one-quarter of employers plan to bargain for the reduction or elimination of restrictions on subcontracting -- the same as the previous year.

Copies of the full report are available for $195 (plus applicable state sales tax and shipping fees) from BNA PLUS, 1231 25th St. N.W., Washington, D.C., 20037; 800-372-1033 or (202) 452-4994 or e-mail bnaplus@bna.com. For more information on this and other BNA surveys and to use free online metrics calculators, visit http://www.bna.com/surveys.

(Robert Shew, BNA Inc.)






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