contract work

All posts tagged contract work

Abolishing Noncompetes May Stimulate Contractor Market

In January, the Federal Trade Commission announced a proposal that, if successful, would represent a seismic shift in the way business is conducted across a variety of sectors: abolishing noncompetes. The practice of contractually protecting specific corporate interests, which has existed in some form for hundreds of years, is likely to come under more scrutiny over the next few weeks and months than ever before.

What could all that wrangling mean for employees (specifically contractors), and how might it affect employers – particularly their bottom lines? We’ll know more after the FTC closes the public comment period March 10, but any subsequent decision will likely be met with opposition from employers and business groups. The final word on the subject may yet be a long way off, but here’s a quick primer on how a ban on noncompete clauses could be expected to affect employers and employees – and possibly even stimulate the market for independent contractors.

Business as Usual for Employers?

There are legitimate reasons businesses can point to for pushing back on a the potential of abolishing noncompetes. The hiring clauses help insulate companies from the widespread sharing of trade secrets and proprietary information that could unfairly benefit competing organizations. The argument for noncompetes, which often prevent employees from working for or consulting with a company’s competitors for a prescribed length of time, can be compared to the spirit behind the pharmaceutical industry’s intellectual property protections: “The patent system,” according to PhRMA, “strikes a balance between promoting innovation and affordability for patients who rely on new treatments, improvements and cures.”

Noncompetes help safeguard the profit motivation, ensuring that businesses aren’t investing in new technologies, initiatives and employee growth simply to see their hard-earned gains passed on to business rivals. Companies that make sound decisions and smart investments, reasonable minds would surely agree, deserve to be rewarded for their efforts.

However, the FTC argues that noncompetes actually hinder innovation and notes that employers “have other ways to protect trade secrets and other valuable investments that are significantly less harmful to workers and consumers.” At least one labor law opinion asserts that restrictive covenants can and should be written more narrowly: “The restrictions themselves should be no broader than necessary to protect those legitimate interests, and they must be reasonable in terms of duration, geography and scope of activities prohibited.”

And after all, employee movement flows both ways. Over time, shared knowledge feeds corporate innovation that tends to be a tide that lifts all ships. Abolishing noncompetes ultimately could boost rather than curb business.

More Freedom for Employees and Contractors

Employees understandably disagree with the current deployment of noncompete clauses. No small amount of anecdotal and empirical evidence indicates that noncompetes suppress wages and professional development, handcuff employee mobility and make it difficult for workers to render services to multiple companies over a relatively short period of time – an especially problematic sticking point for contractors. The FTC estimates that a ban on current noncompete practices “could increase wages by nearly $300 billion per year and expand career opportunities for about 30 million Americans.”

Even those on the employer side agree that a noncompetes ban would prompt organizations to become more creative in retaining talent, leading to juicier compensation for permanent employees while ensuring less restrictive movement between assignments for contract employees.

Whether noncompetes stay or go isn’t an issue that’s likely to be resolved soon. But in the meantime, a more focused, transparent approach to noncompetes could help both sides find a common ground that would benefit all parties.

Looking for more guidance on the contract market? Check out PeopleCaddie’s blog.

How to Be Successful as a Contractor in 2023

Far too often, independent contractors take an opportunistic approach to their job choices. Of course contingent workers should be ready to strike when the iron’s hot – including now, while the job economy still favors workers and while companies are increasingly leaning into contract labor. But the tendency to take a short-term, myopic career view can hinder contractor success, now and in the future.

Rather than limiting themselves only to whichever attractive job opportunities happen to arise at any moment along their personal timeline, contractors should be thinking about their career progression and actively plotting out a road map – even if it’s just a rough sketch – to their preferred destination. That may (and likely will) change over time. But without an initial sense of direction to help guide their decisions, contractors allow fate and circumstance to dictate where – and often how far – their career takes them.

Instead of this rutterless approach, as the calendar flips to 2023 and many industries turn to assessing their resources and projected outlays for the coming year, now is the time for independent contractors to take stock of their current path and career goals. The best place to start: with a partner who will have your best interests in mind and the tools to help you fulfill them.

How to Be Successful as a Contractor

Selecting an Agency Partner

Most contractors know that staffing agencies can help them find work. But how do you go about evaluating which agency is the best partner for you and your independent contracting career? A good staffing agency has the ability to connect you with plenty of new opportunities with preferred companies. A great agency partner will help you outline a career path and curate high-quality gigs and employers that help you stay on your track and maintain pace toward your goals.

PeopleCaddie provides independent contractors with a broad selection of excellent opportunities while also working with them to construct a career plan that helps them decide which of those opportunities are most professionally beneficial at any given time. Historically, contractors haven’t had the same career training and advancement opportunities as permanent employees. But for those with the same ambitions and interest in optimizing their career progression, PeopleCaddie can help position you to take the appropriate steps throughout your contractor journey.

Contractor Success Requires A Strategic Process

Contingent labor workers are often stereotyped as mercenaries, guns for hire who are willing to take on whatever work comes their way at the right price. But today’s contractor has a more sophisticated sense of their career, recognizing that a more strategic approach will yield not only the highest quality opportunities but those that allow them to build their skills and take periodic upward steps toward more lucrative and personally-fulfilling work.

By partnering with PeopleCaddie, contractors gain access to hiring and career professionals with the experience, expertise, and network resources to help them plot their next moves and land the gigs that propel them forward on their preferred career arc. Independent contractors can save their time and energy, avoiding the traditional laborious job search process and leaving PeopleCaddie to target opportunities that fit with their long-term goals.

Download the PeopleCaddie app now to begin outlining your career path and position yourself to make 2023 your most productive year yet.

Reasons Contracting Beats Full-Time Work

Since the onset of the Great Resignation, many workers are approaching their careers, and employment in general, with a new outlook. Job candidates that may have only considered traditional full-time work in the past are now weighing the benefits of independent contracting. And there are many reasons contracting beats full-time work.

The flexibility and variety of contract work offers freelancers the ability to live life on their own terms – live where they want to live, work when they want to work, care for loved ones, travel, you name it. Although full-time employment works for some, anyone in the job market should be aware that there are other viable paths – some of them that may suit you best. With that, here are five ways contracting beats full-time work:

Schedule

The primary reason contracting beats full-time work is the flexibility it provides. Many contract positions are work-from-home setups, allowing contractors to skip the commute, take care of children or family, or just work in a comfortable environment. The ability to pick and choose contracts allows freelancers to build new skills and keep their work-life fresh while helping them carve out more personal time between projects if they like.

Compensation

Contractors typically make more money per hour than their full-time counterparts, but there are a number of reasons it pays to freelance. For instance, 1099 employees are able to deduct business expenses, which results in lower tax liability and more cash in their pockets. And because projects usually require specialized skills (and thus pay more), contractors can work fewer hours for the same amount of money – particularly in specific sectors, such as accounting and information technology.

There’s more: A full-time, salaried employee might work 60 hours per week and not be paid for that extra time. But a contractor gets to bill for every hour, so any overtime is compensated. And what about inflation? Full-time employees are stuck at a pay rate that won’t be adjusted for an increased cost of living (which, incidentally, we’re experiencing now). Meanwhile, a contractor can adjust their hourly rates as needed to earn the market rate and adjust for inflation.

Meaningful Work

Contractors have the ability to pivot to different projects and clients much more easily than traditional full-time employees. Whether you have a sense of duty or wanderlust, freelancing means never having to stay in one place too long.

Let’s say an IT professional wants to learn a new skill or broaden their experience in a specific area, and their best option is working for a company with a large carbon footprint. If protecting the climate is important to them, perhaps they contract for a short time – long enough to sharpen that skill – and then move on to a carbon-neutral employer when the time is right. Independent contractors have the agility to switch projects as they see fit, for any reason.

Advancement Opportunities

Contractors don’t necessarily have to jump from client to client to build their careers. While working for a single client, a contractor can take on increasingly higher-level assignments and potentially work their way up to the management level within a company. And for a contractor who finds the perfect fit, sometimes projects can even lead to a full-time offer with an employer who finds value in that employee’s work.

Remote Work

Working remotely doesn’t necessarily mean working from home. Want to hit the beach? Bring your laptop! Remote work allows a contractor to move anywhere in the country (or even out of the country) and still work in a specific field. And for the remote worker who lives in a low-cost area but whose employer pays in accordance with the higher cost of living where headquarters is located, contract work can even translate to yet another financial benefit.

There are advantages to both full-time and contract work, of course. But if you value flexibility and the ability to modulate your life-work balance, contracting might be the better choice for you.

Looking to shift to contract work? Set up your profile on PeopleCaddie and start searching for contract jobs today.

Should You Quit With a Recession Looming?

We’re in a booming job market, with an unexpectedly high number of jobs (372,000) having been added in June. Yet most economists agree that circumstances are ripe for a potential recession. Some workers who don’t remember the economic times of 2008 might be wondering what job hunting will be like, and whether or not it’s wise to make quit during a recession.

Even in light of the “Great Resignation,” the current bullish job economy is not sustainable. If the tide begins to turn, how might the fallout affect workers who are considering making a career move?

What Happens to Jobs in a Recession

In the economic recovery phase following the initial waves of Covid, jobs have been readily available for those seeking work. The unemployment rate has dropped as low as 3.6 percent, while compensation has increased and employers have bent over backwards to attract and maintain talent. It may not feel quite like boom times (thanks, inflation), but workers are indeed enjoying a moment.

A recession, on the other hand, tends to prompt instinctive belt-tightening around many industries. In 2008, for instance, companies and workers faced hiring freezes and layoffs. The unemployment rate ballooned, ranging from 5-10 percent. It’s not unreasonable to presume that a recession in 2022 or 2023 could lead to similar outcomes.

Preparing for a Recession

Although economists’ predictions of a recession looming range from 30-50 percent, workers would do well to prepare as if a recession is likely. This leads to the question at hand: Should an employee quit their job with a recession looming? The answer isn’t a simple one, but here are a few takeaways that can help:

There’s an old adage that has some value here: It’s easier to get a job when you have a job. Employers are looking for established employees who are willing and able to go with the flow as industries and the economy change. Equally beneficial: during periods of high inflation, which can precede a recession, there’s opportunity to generate competition for your services amongst employees. That results in higher pay.
More than ever, focus on producing quality work. If layoffs do become necessary, companies will prioritize holding on to the more proactive and productive members of their staff.
Evaluate job opportunities with longevity in mind. Until now, workers knew that if a particular opportunity didn’t pan out, several more would likely be there for the picking. In a recession, that’s less likely to be the case. A position with better security or long-term prospects may be more valuable during a recession than another job that is more fulfilling or that pays slightly more.
Situations may present themselves where quitting a job is a necessity during poor market conditions. If a company offers attractive severance packages in exchange for voluntary resignation, it becomes easier to capitalize with emergency savings in hand. Even better, one could turn to contract work and a talent cloud like PeopleCaddie. That allows these people to collect severance in addition to a contractor’s salary. With PeopleCaddie, when contractors work at least 30 hours a week, they gain access to our benefits package which includes health insurance.
While a recession may slow full-time hiring, it may open up opportunities on the contingent labor side. Examine how you can leverage the benefits of contract work to secure opportunities with companies engaged in full-time hiring freezes.

Should You Quit During a Recession?

A move or career change might seem like a good idea now, but as the possibility of a recession draws nearer, job hopping could be a risky choice for those who depend on a steady, reliable income. Job numbers are expected to decrease in the coming months, and the reward for those who sit tight in the interim might be remaining gainfully employed when companies start cinching those belts.

Of course, what comes at a premium during any recession is stability. Full-time work is binary. A layoff reduces income to zero. Contract work can provide more security during times of economic upheaval because a “40-hour work week” could be allocated in pieces to different companies.

Lose one of those jobs and you haven’t lost your entire income. Essentially, contract workers hedge their income by diversifying risk across a number of different companies.

Interested in learning how you can do so? Join our talent cloud to see the opportunities available to you.

Pitfalls of Contract Work and How to Avoid Them

Freelancing is often sold as a dream job. “Be your own boss!” “Set your own hours!” Although those elements are certainly part of the package, the reality is that there is a downside to independent contracting. Some of these hazards are avoidable, some are less so. But being prepared offers a freelancer the chance to live their best life. Here’s how to identify and, when possible, avoid the pitfalls of contract work.

When Demand Dries Up

In most situations, an agreement between contractors and employers will outline the expected duration for any given assignment. Occasionally, this information isn’t available, and often circumstances can change. Example: For event-related freelancers such as graphic artists, event coordinators and performers, 2020 proved to be a black hole due to the pandemic. Most of these contractors expected to earn a certain level of income throughout the year, but when on-site events disappeared, so did their work. Circumstances changed.

In a less dramatic example, an accounting contractor who expects 40 hours a week from a client may suddenly learn they’re needed for only 10. How do they adjust to this new reality? While these scenarios are sometimes unavoidable, it helps to secure work well in advance and include scenarios such as these in contracts so they are accounted for when planning bills and finances.

When the Cup Runneth Over

When trying to plan finances around freelance work, some contractors have a tendency to overcommit. Avoid putting yourself in the position of stretching your bandwidth to the breaking point – particularly if it means doing so to keep up with a lifestyle beyond essential expenses.

No judgment – we all like nice things! – but a freelancer risks a lot more than a few luxury items if they come up short on a project. Failing to deliver, or late delivery, can be a reputation-killer. It could cost you future work with that client and may even end up in non-payment, depending on the severity of the situation. Take care to commit to only the amount of work that can be reliably delivered on time and at a high level of quality.

When the Taxman Comes Around

When receiving money as a 1099 contractor or freelancer, it’s important to set aside money for the IRS and to educate yourself on tax laws and procedures. This will help avoid being stuck with a huge tax bill (plus penalties) come April 15. Paying expected taxes quarterly and putting away 25-30 percent of earned income will help prevent an unwelcome surprise at tax time. It’s also advisable to consistently track business expenses and keep documentation. Hiring a CPA can help.

When Payment Is a Problem

Freelancing comes with some risk, depending on the clients a contractor does business with. Sometimes payment arrives late and the worker must make a choice: continue working and wait for payment or cease working. Although it’s tempting to keep working to avoid losing the contract, the client has breached the freelancer agreement. Hauling the client into court shouldn’t be your first instinct, but it’s important to hold them accountable and steer clear of clients who are late or absent on payday. Chances are, it won’t be the last time.

Freelancing can be a dream job, but it’s important to watch out and prepare for the potential pitfalls of contract work. PeopleCaddie can help by making it simple to find work, structure agreements, get paid consistently and on time, and take care of taxes and insurance, allowing independent contractors to sidestep some of their toughest challenges right out of the gate.

PeopleCaddie can help you navigate the pitfalls of contract work. Contact us to find out how.

The Unique Value of the PeopleCaddie Ratings System

One of the more difficult aspects of job seeking for independent contractors has been conveying the value of skill, experience and past results to hiring professionals. Creating and updating resumes and portfolios takes time and effort, which can add up for workers on shorter contracts. Companies don’t always invest in or track the performance of contractors as they would their full-timers, leaving them at a disadvantage when attempting to attract future employment. For a contractor, putting your best foot forward often feels like an elaborate game of Twister.

And it’s no picnic on the other side. Recruiters increasingly rely on algorithms to sort through the first wave of job applicants. Even the old stand-by – references – are no longer a reliable resource. The transparency of information from candidate-provided sources has always been suspect at best, of course, but companies have also become skittish over time about potential legal liability, most commonly defamation.

PeopleCaddie has an answer to the problem: a unique ratings system that helps recruiters who access our talent cloud to better understand what a candidate may provide their company after hiring. Rather than relying on the vague qualitative analysis and uncertain motivations of traditional references, PeopleCaddie’s rating system quantifies the hiring and job-seeking process, transforming crowdsourced data into insights that help both employers and employees. Here’s how they work:

Quantitative vs. Qualitative: Making Hiring More Reliable

The varied priorities and personalities among managers and supervisors might lead one to draw dramatically different conclusions about the strengths and weaknesses of an employee than another. Rather than basing the hiring process on subjective criteria and opinions – qualitative analysis – PeopleCaddie is reinventing traditional hiring using standardized quantitative measures. And because every PeopleCaddie contractor is required to accept our terms of use, all reviewers are indemnified against any liability related to their feedback, allowing them to provide ratings without fear of legal ramifications.

The PeopleCaddie ratings system covers three key areas:

Quality of work
Timelines of work
Contractor professionalism

Contractors are rated by former employers on a scale of 1-5 stars within each of these categories, and PeopleCaddie combines those scores to assign the contractor a composite star rating. This helps employers searching for contractors to quickly identify top candidates and compare them against one another.

Trustworthy References: No More Unverified Sources

Under the traditional hiring system, checking references was a difficult, time-consuming process that often couldn’t be verified. A hiring manager might know that a candidate worked at Company X, but they couldn’t be certain who that candidate worked for or reported to directly. A candidate had the ability to cherry-pick their best references – perhaps even peers or friendly colleagues willing to speak in glowing terms.

On the PeopleCaddie platform, however, a candidate’s rating must come from a person who was responsible for approving their timesheets or directly supervised the contractor at a previous employer. Our database even indicates how many ratings a contractor has received from employers within our network, as well as who within each company provided that contractor’s rating. And if a candidate hasn’t previously worked for a company in the PeopleCaddie network, we take the necessary steps to verify the person identified as the candidate’s supervisor, leveraging resources such as our proprietary user network, LinkedIn, Zoominfo and others in order to ensure that our clients have the benefit of full transparency.

Hiring is an inexact science. The stakes are high and the success rate historically has tended to be lower than most employers care to think about. But with a quantitative candidate evaluation system and reference verification, PeopleCaddie clients have the resources to remove the guesswork from hiring to bring on contractors confidently.

Interested in learning more about the PeopleCaddie ratings system? Contact us!

Rethinking Workplace Benefits

In today’s job market, companies are facing stiff competition for skilled, reliable and qualified employees. In the current labor climate, one of the major deciding factors for workers evaluating open positions or job offers are the workplace benefits that come with a role.

Just as the job market is changing, workers have begun prioritizing benefits differently. Here are a few important considerations for employers trying to stay a step ahead of these changes:

Traditional Employee Benefits

For many years, the typical series of benefits companies offered to attract employees was fairly standard: health insurance, vacation/PTO, sick leave, and pension/401k with possible contribution matching.

In many cases, however, employees either didn’t have the need or felt unable to access at least some of these offerings. For instance, a married worker who was already covered under their spouse’s health insurance wouldn’t benefit from a second health plan. Additionally, many employees have avoided taking advantage of paid time off, concerned that their absence might place a burden on their coworkers, company or customers.

How Covid Changed Worker Priorities

The upheaval of the pandemic turned the labor market on its head – and with it, worker expectations. After employees began working from home, weaving child care into their work days and building more flexibility into their lives, many workers began reevaluating the traditional work-life balance.

Working from home also allowed employees to eliminate their commutes, resulting in more personal time and, in many cases, healthier habits. Remote work allowed for more sleep, home-cooked meals, workouts between meetings and spending more time with loved ones. These lifestyle changes, for many workers, have become non-negotiable even as companies begin angling toward a return to the office.

Adjusting to New Benefits Expectations

Given the shift in the labor market, with employees now holding as much leverage as they have had in decades, most companies are (wisely) rethinking their benefits packages and asking questions they possibly haven’t considered in years: What do employees really want? What are competitors offering in terms of benefits?

Because work-from-home is a benefit that has climbed the list of typical worker priorities, employers willing to offer the option will want to determine its boundaries. For example, if an employee is allowed to work outside the office, is the benefit restricted to their home or can they work anywhere – a coffee shop, the beach, out of the country? How might a worker who takes a break to run a quick errand be handled from a payroll standpoint? Are these moments considered PTO or should they be treated the same as a conversation at the water cooler or a restroom break in the office?

And what about hybrid work? How does an employer determine which days a worker is required to be in the office? Should the decision be left up to the employee? If so, how will workers sync up on projects if their days in office don’t align? A hybrid model may still work when collaboration between colleagues is necessary, but employers should give plenty of advance consideration to whether and how it fits into their business.

Ultimately, today’s workforce is looking for flexibility – flexibility in work location, hours and sometimes even tasks. Until the labor market shifts yet again and jobs become more scarce, employers should continue evaluating and adjusting traditional benefits, and find ways to offer workers the flexibility they seek in order to compete for the top talent in the job market.

Need more insights on how to manage your labor force? Check out the PeopleCaddie blog.

Part-Time Employees Vs. Contractors: An Examination

A question for employers: Are all employees created equal? Or, more aptly, should they all be treated the same? No one doubts that full-time employees, part-time employees, contractors and seasonal employees all deserve certain basic rights, considerations and courtesies, of course. But does it actually make sense for employers to approach each of these different types of roles in a similar fashion? If the objective is a well-connected, well-oiled workforce, then the answer is yes.

Consider one example: When a company hires part-time employees, they may work 20 hours every week for a full year. In the case of a contractor, they could work full time for six months and then not work for the next six months. At the end of the year, both employees have worked the same number of hours, and theoretically they have contributed the same amount of work to the company.

Why, then, are part-time employees often considered “internal,” while the contractor is considered part of the company’s external talent pool?

It’s a fundamental question framed by urgent immediate context: In the midst of the current labor shortage, more companies are looking to freelancers and contractors to supplement their workforce. But these organizations may not currently be equipped or have processes in place to properly manage this mix of traditional employees and independent contractors. Where should they begin to align?

Communication is key. In the workplace, this goes for communication about projects and work tasks, as well as human resources and employee information. Contractors often serve roles that are similar or identical to those of other employees, so failing to deliver them the same (potentially business-critical) information could actually be detrimental to the company. And in this labor market, with more businesses adopting hybrid work schedules, it’s even more important that all staff is working from the same playbook in order to complete deliverables.

Managers and employers should view all of the various worker classifications (traditional W2, part-time W2, contractors, freelancers and consultants) as essential components of a single combined workforce. This will result in improved efficiency, higher productivity, clearer communication and, not to be overlooked, a more unified workplace staffed with more satisfied employees.

Those are all worthy goals, and there are tools available to employers to help achieve them. PeopleCaddie makes it easy to get in touch with former contractors, hire and onboard whenever needed. Let’s say a software contractor has just finished a project, but it’s necessary to bring them back for modifications, enhancements or product support. A freelancer is more likely to return to an organization when they were treated well during their first stint supporting the company. When an employer treats their contingent workforce the same as the company’s other employees, they’re more likely to develop solid relationships and ensure that they cultivate a pool of reliable resources.

And what organization wouldn’t want to bring in an employee who is already familiar with their co-workers and company processes, and who has already been integrated into the company culture? That employee will undoubtedly have an easier time being brought up to speed, and they figure to make for a better immediate fit than a candidate who is completely new to the organization.

Think of contractors the same as you do full-time staff and offer them the same communication. By integrating the two talent pools and demonstrating that they receive equal consideration from management, you’re more likely to build a productive, united workforce.

Considering adding contractors to your workforce? See how PeopleCaddie can help.

Minimize Stress in the Workplace

Stress is making workers sick. From high blood pressure to heart disease to mental health issues, employees are increasingly at risk due to stressors in the workplace. Jeffrey Pfeffer, a professor of organizational behavior at Stanford School of Business, recently told the Boston Globe that more than 100,000 people in the U.S. die each year due to adverse work conditions. That figure, which doesn’t account for workplace injuries, reflects only those deaths tied to “workplace management.” As American workers push themselves harder than ever to get ahead (or just maintain their place) at work, businesses are striving to do more with less – and employees are feeling the strain. Despite this grim development, employers can find ways to minimize stress in the workplace.

Stress manifests itself in different ways in the work setting: employee absences, increased doctor visits and extreme moods or outbursts, for instance – and it’s important for employers to watch for these signs and adjust accordingly. Supervisors and business leaders control many of the factors at work that ensure a colleague’s workload is manageable and their environment is comfortable and conducive to productivity.

Let’s say a typically productive employee begins slipping – calling in sick or showing physical signs of stress, such as exhaustion – it’s a good time to check in with the employee. Tactfully, ask how they’re doing. A conversation alone can help minimize stress. Are they overloaded? Do they feel they’ve been forced to take on too much responsibility? Is there anything that can be done to help ease their burden at work or, if possible, make things easier outside the office? The nature of the employee’s difficulties may not fall within the scope of the workplace, but even just a bit of empathy can show a worker that they’re valued. Regular check-ins open a dialogue that could help a colleague manage and possibly solve their problems.

Today’s workers are under extreme pressure to produce. With post-Covid staffing shortages and increased costs of doing business, working – whether in or out of the office – can be an intense and difficult experience. Quotas and sales figures hang over the heads of many employees. And in our increasingly data-driven society, key performance indicators (KPIs) add new levels of stress for others. Under pressure to hit their numbers, employees may work extra hours, possibly foregoing sleep, exercise and down time with family.

In light of all this, employers should prioritize providing resources to help employees minimize stress. Offering a medical plan that includes mental health services can help workers seek help when needed. Offering a “quiet room” or a day off to a stressed out employee can make all the difference. In one study, doctors took blood pressure readings of employees under extreme stress and noted their elevated numbers. After a 5-10 minute break in a quiet environment, when the immediate stress had subsided, those individuals’ blood pressure readings had decreased.

Again, check in with your employees on their workload, stress levels and, if appropriate, home life. Establish a process for evaluating workers and helping to lower their stress and anxiety. These processes might include reviewing the employee’s workload, meeting with the employee to determine the sources of workplace stress or connecting the employee to healthcare resources. Reducing stress in the workplace has a cascading effect on productivity, but hopefully we’re all looking out for the well-being of our colleagues simply for its own sake. It’s up to employers to set that example.

Looking for more tips on managing your workforce? Check out the PeopleCaddie blog.

Rethinking Hiring Habits and Norms

There was a time when college credentials held more weight in hiring than they do today. Fresh from commencement, graduates would often have more chances of obtaining a job than someone with commensurate experience. But today, particularly in the field of information technology – and especially in the private sector – skills are beginning to outweigh education. Companies are rethinking hiring habits and how they evaluate and hire employees.

Historically, degrees had been a proxy for certain capabilities. In the rapidly changing tech industry, however, companies are taking a closer look at candidates who have deep practical experience even if they don’t have a degree. For example, a prospect with four years of real-world software-development or system-administration experience might find it easier to compete for a position than a candidate who has a four-year degree and no experience.

In rethinking their hiring habits, recruiters must also consider how an employee will fit within a company’s corporate culture. An IT professional with experience is likely to need less support from their peers to be brought up to speed than a new college graduate. This makes for a smoother transition and onboarding experience, and less strain on the company’s workforce.

The technology sector, in particular, has a high rate of turnover, as professionals are often engaged through finite-duration contract jobs, and employers are constantly competing for skilled workers. From the standpoint of both return on investment and productivity, it’s critical to minimize the time it takes to onboard, train, and offboard an employee.

As recruiters and human resources professionals strive to make the hiring process more efficient and cost-effective, many are relying on artificial intelligence to take a first look at incoming resumes. AI models can pick up skill-specific keywords, which makes recruitment more effective. College degrees become almost irrelevant – or are at least weighted differently. Relevant skills diminish the importance of a degree as a singular criteria.

While some industries will benefit from requiring a four-year (or longer) degree, others – such as information technology – are attuned to demonstrated, relevant skills. On the bleeding edge of technology, time is of the essence, skills are quickly rendered obsolete and workers have to keep their skills sharp with real-life experience. A worker who has shown they can do the job right now brings special value to the table.

Employers and their recruiters should re-evaluate their own hiring protocols, deciding whether skills or schooling should be weighted more heavily during recruitment. The decision might mean the difference between a costly and inefficient hire who is saddled with increasingly exorbitant student-loan debt and an easily onboarded and valuable employee who doesn’t need the additional compensation to service their debt.

Rethinking your hiring habits? You might want to consider contingent labor. Contact us to find out how PeopleCaddie can help.