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March 16, 2006
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Reveille and Hyperbole  
 TALENThire.com, an Atlanta-based recruiting technology firm, announced today the opening of a West Coast office in Southern California. "The opening of the office is a direct result of our rapid growth—since we've brought on our 500th member, our client's needs have required us to expand" said Rick Stockfield, partner with TALENThire.com. "By opening the West Coast office, we are better poised to directly serve our client's needs." The company's recruiting tool streamlines recruiter vendor management while offering cost saving initiatives through a "name your price" fee model on companies' fee-approved positions.

WetFeet's Internship Programs Report 2006 reveals a broad gap in hiring yields among employers that rely on their internship programs for road-tested, full-time talent. The WetFeet study demonstrates that employers with best-in-class programs are able to convert more than twice as many of their interns to full-time hires than are other companies.

A new blog focusing on issues facing the human resources industry will provide expert commentary, analysis and news updates from RealLife HR, a leader in benefits management and outsourcing solutions for companies nationwide. Launched today, the blog is targeted to HR professionals, including benefits administrators, vice presidents, CFOs and other corporate executives seeking ways to streamline the HR process and stay abreast of trends and current issues. The RealLife HR blog can be accessed directly at www.reallifehr.com/blog, or through a link on the company's Web site, www.reallifehr.com.

AtlantaExecutive.com, a comprehensive career management resource, today announced the launch of its site catering to senior level executives working in, or wishing to relocate to, the Atlanta metro area. AtlantaExecutive.com was founded by Chris Miller, who moved to Atlanta shortly after he sold the national executive job board 6FigureJobs, a business he started and ran for several years. Says Miller, "As executives gain a better life-work balance, they are reluctant to relocate for a new job, especially those with school-aged children. This belief was the genesis for creating AtlantaExecutive.com. Additionally, technology has enabled executives to more easily transition from one industry to another or one job function to another."

The Human Capital Institute (HCI), a global professional association and educator in talent management strategies, announced today that Libby Sartain, Senior Vice President of Human Resources and Chief People Officer for Yahoo! Inc., will speak at HCI's inaugural National Human Capital Summit in Chicago April 6-7.

Mypayrollquote.com announced today it's launch of the only dedicated portal aimed at Payroll/HR professionals and companies seeking outsourced payroll services. Located at mypayrollquote.com the company provides multiple price quotes and options from payroll service providers for companies with one to over 10,000 employees.

Leading advocates for Chicago-area employers and job seekers announced today the first-of-its-kind integrated employment matching system to improve the quality and efficiency of hiring job candidates throughout the region. Based on the QuietAgent.com technology, the innovative job matching program is being offered to employers and job seekers through organizations including City Colleges of Chicago*, Chicago Public Schools, University of Illinois-Chicago (School of Business Administration), National Able Network®, Mayors Office of Workforce Development, Chicago Housing Authority, Career Advancement Network, Inc. (through a grant by the McCormick Tribune Foundation).

Deck Chairs
HRmarketer.com, the no. 1 marketing and media visibility service for companies selling to human resource decision makers and employee benefit brokers, has named Kevin Grossman chief operating officer (COO). The company also reported record sales and membership growth....Workplace Options, the largest provider of work-life employee benefits in America, announced today the promotion of Alan King to President of the Company. Mr. King will continue to report to Dean Debnam, who remains CEO and who will assume the position of Chairman of the Board for Workplace Options. Mr. King will also be a member of the Board....Carol Graney, Shawnee, Kansas, is the new Director of Business Development Midwest Region for The Forward Group, publisher of two national online Career Centers for employers that want to recruit mature workers 50 and older at Seniors4Hire.org and eager young adults in the high school and college age groups at Teens4Hire.org....Elizabeth Woods Brooks has joined the Stamford office of Buck Consultants as Director in the Communication practice.
 

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You Should Know
Global:
How to Write a Want Ad That Rocks
Interactive firms are finding their incoming orders increasing and are revving up their hiring engines to take advantage of the overwhelming demand for Human Capital (talent) that have come with the Internet advertising boom. The search for qualified talent in digital media jobs is quickly going white-hot. After a lengthy drought in opportunity, interactive talents are finding themselves in a world demanding their special skills: DHTML, PhotoShop, Flash, HTML, Java, and search engine algorithms, to name a few highly desirable guru level experiences that are highly desirable today. Media buyers and every digital skill set under the sun are in an ever increasing spiral of demand. Your problem is exacerbated by the demographics. Fact: the talent pool is getting smaller and will continue to shrink. So, what do you do? (adotas)

Realize first that you have less than 2 seconds to capture the mind's eye of your ad reader. The first quarter- to-half-second, the human eye scans colors and shapes and in the next 1.5 seconds drinks the bold type and entire first line. A headline with five words or less is where the viewer decides whether to continue or move on. If your job headline does not lead to a benefit or take longer than 3 seconds to "show the money" in your digital ad; guess what? You lose. The vast majority scan a job posts headline and pick up only the bold or italicized copy and dollar signs. Less than 17% of online job seekers read word-by-word. Your ad does not mention specific money or benefits? You lose a great number of your qualified readers in the blink of an eye.

Employer Branding

  • A joint publication with the DTI and Best Companies, Achieving best practice in your business: high performance work practices - linking strategy and skills to performance outcomes, was published in February 2005. It includes a survey of CIPD members and case studies from a sample of companies from the Sunday Times 100 best companies to work for 2004. View the publication
     
  • We have produced a research report on employer branding, Branding and People Management: What's in a Name? This is available to purchase online in our View the summary


(CIPD)

internal communications Speaking to the people
A decade ago, internal communications, in all but the largest of organisations, amounted to one writer turning out reams of staff newspapers that were swiftly consigned to the bin. Now, the function has become so sophisticated and widespread that universities offer postgraduate diplomas in internal communications. Gone are those dog-eared newspapers, replaced by e-mail, poster and plasma TV campaigns planned by career communications specialists. (TMCNet)



Beyond the classifieds
Is Marico's latest campaign balancing a corporate image building routine and a recruitment exercise? A man lives on the 10th floor and takes the elevator to the ground floor on his way to work. But when he returns, he takes the elevator to the 7th floor and walks up the remaining floors. The man in question is no fitness freak. Nor does he have a point to prove to his wife. He's a dwarf who cannot reach the lift button for the 10th floor. Interesting, but what's the connection between the short-statured man in the ad copy and fast moving consumer goods company Marico? It's a part of Marico's effort to tell the world — more precisely, the universe of prospective employees — that its work environment encourages lateral thinking and does not stunt growth. And the Rs 1,000-crore FMCG major is pumping Rs 2 crore into a campaign of six print ads and three 30-second television commercials. (Business Standard)

Japan:
Aggressive hiring policies afoot as economy grows
Corporations have already started giving employment tests to new graduates for recruitment scheduled for the spring of next year, showing that the employment prospects at major firms for new graduates look good. The long-moribund economy has finally taken a tentative step toward new growth as firms switch their hiring policy to one of aggressive employment after gaining confidence in hopes of a recovery in performance. The recruitment pattern at companies has undergone a major change in recent years as they have increased the number of midcareer personnel they take on so as to have employees that will be of immediate benefit (DailyYomiuri)

UK:
HR must be responsible for the employer brand
The row between British Airways and in-flight caterer Gate Gourmet last summer is likely to go down in HR history as a textbook example of an industrial dispute gone wrong. But it's also arguable that the media frenzy caused more damage than the wildcat strike itself.What people are most likely to recall from the dispute are all the colourful bits (the sacking by megaphone, the striking workers barricaded in the canteen) without stopping to consider what was fact and what was fiction. But as a case study in industrial relations, it offers some pretty valuable lessons. Gate Gourmet's HR chief Richard Wells acknowledged as much at our HR Directors Club breakfast briefing last week as he attempted to separate the myths from the reality. (Personnel Today)

US:
Covenant, All Saints to combine operations Consolidation to trim annual expenses by $15 million
Covenant Healthcare, the parent of Elmbrook Memorial Hospital here, is consolidating with a sister organization, All Saints Healthcare in Racine, under the common name, Wheaton Franciscan Healthcare, with the combined business expected to trim annual operating costs by $15 million. John Oliverio, president/CEO of Wheaton Franciscan Healthcare, said the medical group concept was recommended by doctors. He said the new combined identity of Covenant and All Saints will better reflect the organization's mission, identify all entities as part of a single organization, establish a single employment brand and provide an opportunity to strengthen the brand in the marketplace. (GMToday)

Frisco Considers Hiring Image Consultant
Frisco is considering hiring a $49,000 image consultant to develop the town's brand and create a marketing plan for 2007. This year's budget has $220,000 for marketing and communication, but Councilman Dan Fallon said the town needs a professional analysis on how the money would be most efficiently spent.(CBS4Denver)

Blue collar hiring: Not so blue
Experts say that many manufacturers are hiring workers despite headlines about big auto layoffs, trade gap. The headlines suggest anyone wearing a blue collar is about to take it in the neck. General Motors and Ford  plan to trim 30,000 production jobs apiece in coming years as they shut factories across North America.  The trade gap continues to set records as Americans gobble up an ever-growing pile of goods made more cheaply in China and other developing countries.  It would seem like a "help wanted" sign in a factory is as much a thing of the past as 50-cent gasoline, 25-cent pizza or black and white televisions.  But experts say that the outlook for hiring in manufacturing isn't nearly as bleak as the recent headlines would suggest. (CNN)

OPM director pushes part-time work in lieu of retirement
Federal employees should be able to work fewer hours in their later career, staving off full retirement, the Office of Personnel Management chief said Monday. OPM Director Linda Springer said she wants part-time arrangements for longtime federal employees to become common and easier to arrange, as a piece of a plan to cope with an aging workforce in what she termed a "transformation of the mindset." "I don't think, personally, it has to be a cliff," Springer said, referring to the transition between full-time employment and retirement. "Why can't we have people work 10 hours a week, 20 hours a week?" (GovExec)

Skilled Worker Shortage a Growing Issue for U.S. Organizations
New workers lack some competencies, and many organizations are recruiting skilled workers from outside of the United States to fill skills gaps, according to half of the human resources professionals polled for a survey. (SmartPros)


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Survey Sez:
Equity Compensation Continues Shift Towards Restricted and Performance-Based Stock

In response to expensing requirements, technology companies continue to shift equity compensation away from stock-option based-based plans, according to a new compensation trends survey from Culpepper and Associates.

Prior to expensing requirements, 68 percent of tech companies offered non-qualified stock options and 53 percent offered qualified options as part of their equity compensation plans. The percent of companies offering either of these plans dropped by 11 points after the option expensing rules under FAS 123(R) took effect.

"Although stock options remain the most popular equity compensation vehicle, restricted stock and performance-based stock have become more commonplace," says Will Parsons, Senior Vice President of Research with Culpepper. Prior to expensing requirements, 31 percent of companies offered restricted stock. Currently, 38 percent of companies offer restricted stock. The percent of companies offering performance-based stock increased from 17 percent to 24 percent.

Over half of the companies offering employees equity-based compensation intend to maintain their current level of penetration. Of the 41 percent of companies making changes in the plan penetration, nearly all intend to restrict equity compensation to higher job levels than before.

The Black-Scholes option pricing model continues to be the most commonly used method for calculating the value of employee stock options. Eighty-seven percent of companies use this method for purposes of expensing options. Nearly all companies use the same valuation method when reporting the option expense on financial statements and communicating the value of the options to employees.

Seventy-three percent of companies plan to make, or have made, changes to their option-based compensation plans. All of the changes involved a reduction of the use of options with 48 percent reducing the number of employees receiving options and 44 percent reducing the total number of options granted. One-third of the companies will be replacing some or all of the stock options with shares of restricted stock or restricted stock units.

"Changes are not limited to stock option plans. Over half of tech companies also plan to alter or eliminate their Employee Stock Purchase Plans (ESPPs)," according to Parsons. The most common change is an elimination of the "look-back" feature, which allows an employee to purchase stock at the lowest price within a specified time-frame. Seventeen percent of companies with ESPPs plan to eliminate this employee benefit.

"Technology companies continue to adjust equity-based compensation plans in response to expensing requirements. The trend is toward reduction of the reliance on stock options and an exploration of other equity vehicles, mainly restricted stock, restricted stock units, and performance-based stock," concludes Parsons.

A copy of the survey report is available at http://www.culpepper.com/p/TrendsInEquityPay/

About Culpepper

Culpepper and Associates (www.culpepper.com), founded in 1979, conducts worldwide salary surveys and provides benchmark data for compensation and employee benefit programs. Our data spans a full-range of jobs in technology and life science companies, from board members down through every area, function and level.

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