April 19th, 2010
I’ve heard it said, “When the wife is away the man will play”:
- Feet up on the furniture.
- Brew in one hand.
- The clicker in the other.
- And his favorite sports team flashing on the TV.
I was thinking about buying boxer shorts for my four-legged little buddy, so the two of us could sit on the couch like a couple of bums enjoying the reprieve from house hold duties. But to my surprise, with my wife Jane away for the weekend with two of her girlfriends, having sole responsibility for the house, launched me into some type of testosterone-fueled nesting frenzy.
 The Power of Ownership - A Simple Lesson I Learned at Home For the Temporary Staffing Industry
I was consumed with keeping clutter away, counters cleaned, and our newly refinished floors washed and polished. I vigilantly monitored the garbage levels in the kitchen, continuously ran recyclables to the outside bin, planned meals two or tree days ahead of time, and the real kicker – planning my social schedule a few days out; a task normally efficiently taken care of by Jane.
Initially, I was confused by my level of energy and enthusiasm for these household tasks. But after pondering my new found zeal, the “power of ownership” came to mind. With Jane gone, the wellbeing of the house, the dog, and the cat was totally on my shoulders, and I thoroughly enjoyed stepping up to the plate assigning my signature and pride to the jobs at hand – the power of ownership at work.
My wife is an awesome woman. She has a pit bull’s grip on so many areas of our life at work and home and it truly boggles my mind how well she does it all. The way her masters in fine arts has translated into a mastery of details completely befuddles me. However, her being away created a vacuum in areas that I was surprisingly willing and able to fill.
The Power of Ownership and the Temporary Staffing Industry
A lot of staffing firms are stuck because of people – really good people that are so good at what they do that no one wants to step into their areas of responsibility and give it a crack. For the smaller firms in the temporary staffing industry to move from an entrepreneurial model to a highly leveraged strategic design, staffing executives and professionals from the top down need to create power vacuums in their companies that other people can fill. There is an art and science to doing this intentionally. Staffing managers that learn to let go and empower their employees infuse seismic amounts of new energy into their staffing firms.
Email me ways you’ve choreographed empowerment in your organization – either personally or across the organization – to share in a future blog post with the Mad Staffing readers.
Contact us to discuss how we can support you in your efforts to empower staffing managers and professionals with AST’s staffing software.
Dave Reiss
Founder and CEO
Applied Systems Technology
845-534-7100 X1102
dave@astusa.com
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Tags: the power of ownership Posted in
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March 31st, 2010
A few weeks ago many of you participated in the blog/survey on how you’d characterize your staffing company’s culture in my post What the Town Dump Teaches the Staffing Industry About Culture.
I recently finished crunching the statistics and seeing if there are any interesting staffing industry trends to report on. 18 people responded to the corporate culture survey. Here are the results and my “mad thoughts”:
- Two most common characteristics were Client Centric and Collaborative: 72 % percent of the respondents described their culture with these qualities. For many staffing companies the business of order fulfillment is a team sport with staffers collaborating often in a bullpen environment – exchanging as much information dynamically as possible.
- Next two most popular characteristics were Efficient and Self-improving: 61 % described themselves this way. Initially we were a little surprised many of you chose efficient probably because most staffing companies are running very lean at this time based on the financial stress caused by the economy over the past two years. The caution we would put out there is to scrutinize internal processes so that the organization can sustain or improve efficiencies as the economy improves. Challenging economic times help identify and weed out complacent behavior while good times often hide inefficiencies; check out Junk Your Staffing Agency’s Clunkers – Start a New Staffing Industry Trend!
- Competitive, nurturing, and innovative were identified by 55% of the respondents. It is significant to note that only about one half of the respondents described their cultures as competitive. The readers of Mad Staffing might want to take this as a marker to stop and evaluate their own organization to see how they fit into this category since it is one of the key organizational drivers that affects growth. What is also interesting is that 6 of the respondents characterized their cultures as both competitive and nurturing which would indicate that these two qualities are not incompatible in the same company.
- 44% of you identified with High Performing and Creative: It is not surprising that they would come in very close to the categories of innovative and competitive. It is noteworthy that in all instances except for one, high performing accompanied competitive. I would hope that this would further encourage the readers of AST’s Mad Staffing blog to evaluate the competitive nature of their organizations.
- 33% of you classified your organizations as Disciplined and Frugal: The low percentage on discipline did not surprise us. Our observations have been that the majority of staffing organizations are not heavily process oriented. In less stressful economic times, staffing companies have been able to make decent to very good profits largely on entrepreneurial efforts and management. Mad Staffing believes that a significant opportunity for financial growth will be achieved by embracing process improvement – in essence stream lining and automating processes to free-up human capital for more value added client-focused work. Staffing organizations moving in this direction will have to embrace a more disciplined approach to operations. Staffing companies will have to attack the below the line expenses, the largest being human capital to make up for margin pressure which is probably going to be around for a long time.
- The last four categories were Critical at 22%, Wasteful at 11%, and Frustrating and Paralyzed at 5%. A few observations regarding these numbers: First, we are happy to see that according to these statistics, most of the people in the industry seem to be relatively positive with only a few feeling that they are working in paralyzed and frustrating environments. The one anomaly that we would like to investigate further is the discrepancy between the number of organizations that would not describe themselves as disciplined and frugal (which is fairly high at almost 70%) and the number that would describe themselves as wasteful (which is only 11%). One possible explanation is that a non-process oriented businesses. which often characterizes a staffing firm, compared with a manufacturing company, would not necessarily consider a lack of discipline wasteful.
Feel free to email dave@astusa.com to let me know what you think of the trends, my analysis, and what your explanations and thoughts are about these staffing industry statistics.
Also, contact us if you are interested in talking to us about ways we can help you save and make money with technology after 25 years of developing and implementing staffing software systems.
Dave Reiss
CEO and Founder
Applied Systems Technology
Don’t forget to connect with me on:
Tags: staffing industry culture, staffing industry statistics, staffing industry trends Posted in
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February 23rd, 2010
Fall is a beautiful time of year in the Hudson Valley, NY. People come from all over the New York metropolitan area to see the natural wonder and panoply of colors brought on by the change of seasons. Right in the middle of this glorious scene, while nature is displaying her fall beauty, you will find me driving to the town dump with a truck full of leaves.
Fall’s the best time to visit the Hudson Valley!
The town dump is also the public works garage. While emptying the leaves out of my Toyota 4Runner, a long line of the town employees’ pick-up trucks caught my eye and reminded me of the power of culture on human behavior. It taught me a powerful lesson.
These Dodge pickups teaches us staffing industry executives and professionals alot about culture.
Here are the three things grabbed my attention:
- All of the public works employees drove trucks.
- Almost all of them seem to be excited about Dodge trucks.
- And they all seemed to enjoy backing their trucks into their parking spots.
Interesting behavior- either they all discussed the fastest way to get out of dodge as the clock hits 4:00 pm, or there is some other less conspicuous agent at work.
This is a simple but powerful picture of the effect that peers have on our behavior in the workplace – the power of culture.
The funny thing is that if their employer insisted they buy Dodge trucks and park them as shown in the picture…the bossman might end up in the leaf pile (I’ve seen these guys; they’re no sissies). If there wasn’t a physical reaction, there would certainly be complaints of micro management and “Who the [blank] are you to tell me what to drive and how to park!”
I’m not sure how long it actually took for this fleet of vehicles to fall into line, but I am certain that it was voluntary, and that each of the participants came to what they thought were strong individualistic conclusions about the best dang vehicle to drive, and the best direction to park them in. The fact is that our peers in the staffing industry have a profound influence and can change how we behave for better or worse – changes we are barely conscious of. This is the awesome power of culture.
What type of culture is driving the undercurrents of behavior in your staffing firm?
Contact us about how we can help you develop the most efficient processes and support you in creating a more high performing culture within your staffing firm with your staffing software and technology.
Dave Reiss
CEO and Founder
Applied Systems Technology
Don’t forget to connect with me on:
Tags: culture, staffing executives, staffing industry, staffing industry culture, staffing professionals Posted in
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February 9th, 2010
Recently went to Hudson Street Cafe, one of my favorite breakfast haunts, to treat myself to Donna’s oat bran pancakes with REAL maple syrup. Donna owns the café and creates all the incredible recipes and dishes; checkout their website: http://www.hudsonstreetcafe.com/. As I placed my order with the attentive waitress, this guy named Klaus at the next table broke into my space, affirming what I already knew – my bent for healthy eating. Maybe it was the oat bran pancakes or the poached eggs that triggered his comments, but regardless, my peaceful breakfast was quickly hijacked as Klaus then proceeded to go ‘Oprah’ on me sharing all the ‘miracle working, get rid of your aches and pains, lose 30 lbs in a week, gain untold vitality’ hope and benefits of the acai berry, a palm fruit cultivated for its widely touted health benefits. Yup, you guessed it, Klaus was a distributor and I could become one too!
What can the acai berry do for your staffing firm?
Klaus actually was a nice guy and seemed to believe in the little berry and its miracle working cures. I held off on placing an order, since a case of four bottles of MonaVie juice pulls about $130 a month out of pocket; I could probably lease a Kia for that much! But Klaus and the berry got my attention and I figured there are some things that we could all learn from the acai berry and its tempting promises:
- Lesson # 1: Be suspicious of anything that looks like a quick fix to your staffing business issues, no matter how popular the broader business or staffing industry trend may be. Big improvements take big deliberative changes implemented in smaller manageable steps.
- Lesson # 2: Hope is important, we need it. Hope is what gets us out of bed, it motivates us. It becomes sustained if it puts us on a path of believing that our problems can be solved; it puts us on a path of discovery. And if it is the right path, it will yield even more reason for hope, which you should generously share with your salespeople and staffing professionals.
- Lesson # 3: Fad diets and fad foods do not sustain change. They do not bring about substantial long term results, but we do need to get rid of and keep the fat off.
- Lesson # 4: When the fat goes, vitality and energy show up. Our resources are precious – the right amount of cash, the right amount of employees, the best and most efficient processes and tools within and outside of your staffing software are all important. The top performing staffing operators create vitality and energy in your staffing company and in the marketplace by carefully managing these four key ingredients in your organizational recipe.
- Lesson # 5: Google anything or anyone you’re suspicious of. This was initially a joke, but actually is a good habit to get into; when I got home and googled “acai berry,” Google showed me that “acai berry scams” was a popular search term, which yielded many results including this article on CNNhealth.com, Group challenges acai berry weight-loss claims.
Check out these two websites devoted to popular scams and fads: http://www.popularscams.com/ and http://www.crazyfads.com/.
And contact us about how we can help you develop the most efficient processes and fit staffing business with your staffing software and technology.
Dave Reiss
CEO and Founder
Applied Systems Technology
Don’t forget to connect with me on:
Tags: acai berry, fads, scams, staffing industry fads, staffing industry trends, staffing software Posted in
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February 1st, 2010
Have you heard of the RE Factor? If you like to play with explosives on the weekends, then maybe you know it as the relative effectiveness factor, which measures an explosive’s power (e.g. TNT) in camparison to its weight. The higher the RE factor the bigger the bang per pound.
The RE Factor: A New Staffing Industry Metric
Well, I’m bringing the RE Factor to the staffing industry and to your staffing business – and I’m not talking about mysterious packages that get mailed from remote places.
What I’m talking about is significantly improving the financial well-being of your staffing business by focusing on a different RE Factor: Return on Employee. Instead of explosive power per pound, we’re calculating revenue dollars per employee!
The calculation of such an important staffing industry metric is relatively simple:
Total revenue divided by the number of FTE’s (Full time equivalents)
This gives you the revenue production by employee, which gives you an accurate picture of the efficiency/productivity of your staffing business.
As a service business, the staff payroll is the biggest overhead cost to the business and therefore the most important lever for manipulating and improving the net profit. Many staffing executives underestimate the financial impact of improving the net profit as a percentage of revenue by as little as .5% of sales.
The following illustration highlights the financial incentive for maximizing your staffing firm’s RE Factor:
A $10,000,000 staffing firm that averages 3.4% net profit will add $70,000.00 to the bottom line by improving the net profit by 6/10ths a percentage point. That would be the mathmatical equivalent of adding 1.7 million dollars or 17% to the sales.
Where you might find it challenging to grow your revenue by 17% in this economy, if you take the time, you can probably build a business model that can pick up a 6/10ths of a percentage point on your net profit. Manufacturing companies have focused on this initiative and have increased the output of each employee by 300% in the last 30 or so years through process improvement and automation.
Let me know what you think of the RE Factor and ways you think staffing firms can improve their output per employee.
Dave Reiss
CEO and Founder
Applied Systems Technology
Don’t forget to connect with me on:
Tags: RE factor, return on employee, staffing industry metric, Staffing Industry Metrics Posted in
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January 27th, 2010
My wife says that I am the risk taker in the in the house. She’s probably right since I have always been drawn to the adventures of single track mountain biking and glade skiing. Some only see the danger in going off the main road or trails, but more often than not I have found undiscovered treasures in those remote places. So here ’s a question; are there some remote places that you need to go to today to find treasures for your staffing business?
 Bucking staffing industry trends on the road less traveled
Here are some suggestions on how to find treasures for you and your staffing agency in remote places:
- Get out of the traffic for a few hours.
Like most of you, I developed the habit (It has almost become an obsession) of checking my e-mails first thing in the morning. E-mail is like being in traffic for me – lots of things flying by, all vying for my attention. The addictive part of my personality is drawn to this activity because it feels like work and scratches that itchy desire to accomplish something. Recently, I dared to ask myself on a relative scale how important is looking at e-mail compared to other activities I could be doing for my staffing software business?
- Get to higher altitudes.
I have the good fortune of having some strong operational people working for my staffing software company. That good fortune would be a waste if I did not remove myself from operational activities so that I could see the big picture. Douglas Macarthur was somewhat imperial in his approach as a general – he is arguably one of the greatest generals in the history of the United States and was able to turn the tide on the Japanese during the second world war. He went to the higher altitudes where he conceived of the leap frog strategy that left the Japanese wasting their resources on Islands that the pacific forces ignored under Macarthur’s direction. Guides always go to the highest elevations so they can choose the best routes for the journey.
We too can carve out time to step back and look at the current condition of our staffing businesses, consider staffing industry trends along with those of our client’s industries – basically make the time to do a good ol’ SWAT analysis!
Taking my staffing software company off the beaten track
- Listen to Simon and Garfunkel and the sounds of silence.
I have no idea what this wonderful singing duo was talking about, but I do know that you see and hear important things when you get away from all the noise. Sometimes success, I mean the really important things that make a difference, are found in a number of subtle ripples – in whispers or low tones. If we are not listening deeply, we miss the whispers and with them some of the greatest opportunities to advance our businesses. These ripples can be in subtle things that prospects and clients are or even worse are not saying, or in conversations revealing certain staffing industry trends. They could be in observations that our employees have made that we do not give enough weight to.
This week I was able to identify a few initiatives that our team believes will improve our staffing software, our client’s ROI, and make a significant difference in our success over the next two years. I almost missed the opportunity because of natural impulse of staying busy. Comment on the blog to share with us some great things that you have been able to accomplish by bucking staffing industry trends and taking the road less traveled.
Dave Reiss
Founder and CEO
Applied Systems Technology (AST)
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January 20th, 2010
There is nothing more obnoxious than someone who is reformed – reformed smokers, reformed meat eaters and especially reformed gas guzzlers. I admit it, I am a reformed gas guzzler – though I did crack a smile over newly elected Senator Scott Brown’s devotion to his GMC pickup. I bought my first Toyota Prius three years ago, and recently purchased my second one. The more I think about my sleak, efficient, and productive Prius, the more I think a staffing firm should work like my car. Okay…I’m getting a bit carried away, but track with me on this one; if you put some of these ideas into place, you’ll put big bucks back in your pocket.
Here are three lessons we can learn from the Prius. If these don’t result in thousands of dollars in profit, I’ll swap my Prius for a Hummer – I promise!
 If only more staffing agencies in the staffing industry were as efficient as a prius!
- Get the job done with less resources, especially expensive ones.�
Everyone knows that the price of oil has increased dramatically in the last ten years. I have found a tool (a hybrid car) that allows me to get the same job done in a high quality way while saving a bundle of money every month. As the economy levels out, and you look into the future, you need to grab every tool, process, and practice that will enable you to get the job done with fewer resources. The ideal RE Factor (Return on Employee) will make the greatest contribution to wealth creation as it relates to revenue for your staffing business. Those operators that embrace process engineering to achieve an optimum RE Factor will produce the best returns on their businesses. This is all about “trade ins” – processes that are being done by staff that can be automated in your staffing software, integrated timeclocks and other technologies; and tasks done by staff that can be done more efficiently through process redesign and better operational discipline.
- Lighter is better.
Michael Jordan, the famous basketball player, was known as a light eater. That is why he was called Air Jordan – he literally flew – over the heads of his competition. Toyota made the Prius a light car so it could travel further with less cost. Many staffing companies are traveling lighter. Bad times are good times to jettison bad or marginal employees. In many instances, those companies are running better now than before. That’s because they kept their highest producing and therefore more efficient employees -now it’s time to keep it that way. Proactively design your staffing firm so you do not have to add many employees as business improves. Think of all the things that you could do with the extra money. Here is the challenge – figure out how to keep your staffing firm light.
- Think alternative sources of energy.
Here are a few alternative energy sources for your company.
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New channels of services – self service portals for clients and candidates
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On-line applications or kiosks for candidates that come in the door (On average, it take a coordinator 10 to 15 minutes to enter an applicant in a front office application)
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Electronic billing (Think of the stamps and labor saved from all those envelopes and especially colating and attaching timeslips.)
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Resume import and parsing
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Document management
Comment on this blog to let us know one thing that you are going to do or doing now this year that is going to make your staffing agency as efficient as a prius!
Dave Reiss
Founder and CEO
Applied Systems Technology (AST)
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January 11th, 2010
Last year the government completed another one of its ingenious ways to stimulate the economy – the cash for clunkers’ program. A number of people actually made out pretty well trading in one of their old jalopies for a newer fuel efficient model with the Federal government contributing $4000. Since all of us were not able to benefit from the program, we came up with a clunker program of our own that will produce some real hard cash for you and your staffing companies – stuff you can put in your bank account, or buy one of these babies…!
 A not-so-fuel-efficient clunker replacement!
First let’s define what “staffing industry clunkers” are – activities performed by your staff that suck precious time and resources away from the activities that produce money and value, and accelerate the success of your staffing business.
Clunkers leading the way in staffing industry trends include:
What additional clunkers do you see topping the list of staffing industry trends? Add them to the list by commenting on this blog – we’d love to hear from you!
Dave Reiss
Founder and CEO
Applied Systems Technology (AST)
Tags: efficiency, productivity, staffing industry clunkers, staffing industry trends, staffing software Posted in
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December 14th, 2009
Eye opening service and client intimacy is facilitated by creating a 360 degree view of a client relationship.
360 is the number of degrees in the circumference of a circle. In the CRM (Client Relationship Management) world, it means understanding a relationship from every angle-providing you with a complete operational view.
For staffing firms, this means that your team is able to gain a 360 degree view of the relationship you have with both your client customers and your candidates. This view provides knowledge and situational awareness to your staff, and an outstanding service experience for your clients.
Benefits You Will Gain from a 360 Degree View:
The following is a list of things that you achieve by strategically designing and deploying this type of client view.
- One call resolution – Rid your company of the fragmented and departmentalized feeling when clients call your office. Today, world class service means whoever answers the call can handle the request.
- Significantly improve the operating efficiency of your organization by minimizing the number of touches required to handle client and contingency employee requests for information.
- Create a more client centric culture throughout the organization-one in which all employees share the same goal of improving the “experience” for your clients.
- Improve relationship between front and back office operations personnel by broadening the understanding of those functions across the staffing enterprise.
By designing and deploying a 360 degree view of each of your relationships you will dramatically improve the overall experience for your clients–helping you overcome commoditization and differentiate your services based on value, not price.
Tags: 360 business assessment, better CRM, client relationship management Posted in
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