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Associated General Contractors
of America (AGC)
According to a report AGC released earlier this year,
“71% of construction firms are planning to expand payrolls this year and hire more
workers.
In order to stay competitive in recruiting and retaining workers, 49% of firms
indicated they have increased base pay,
30% are providing incentives and offering bonuses and
23% of firms have increased their contributions to employee benefits programs”.
National Construction Workforce
 Established in 2000
 Local headquarters, with an office in Cincinnati and recruiters stationed
remotely in Arizona and Wisconsin.
 Closely held, making client focused decisions for long-term relationships.
 Specializing in staffing and direct placement, serving the following industries:
 Commercial, Industrial and Multi-family Construction
 Architecture
 Engineering
Types of Contract Labor
Temporary Workforce
Contingent workforce – utilize additional labor pool to help manage workload
peaks and valleys (as an alternative to the hard and soft costs of hiring and firing).
Contingent workforce benefits:
• Better manage client demands during peak season.
• Mitigate costs and risk of unemployment tax, benefits and
workers compensation associated with seasonal or cyclical
hires (As compared to a direct hire and eventual layoff)
• Leverage additional recruiting resources (IE access to
other labor pools, with an opportunity to keep the best
employees)
Temp to hire
 Temp-to-hire – leasing employees from a labor provider for a
contracted period of time, before they automatically become a direct
hire (try before you buy)
 Benefits-
 Defer benefit costs by the length of the trial period.
 Mitigate costs and risk of unemployment tax, benefits and workers
compensation associated with hiring the wrong person.
 Leverage additional recruiting resources (vendor partner becomes an
outsourced recruiting department for these positions).
$ Pay rolling $
 Pay rolling – lease employees from a labor provider on a
semi- permanent basis
 Benefits-
 Outsource costs associated with being a large employer long-term. EX: avoid costs
associated with payroll processing, benefit administration, workers compensation
and unemployment tax.
 Provide for better cash flow management (EX: monthly versus weekly)
 Create more options for benefits, based upon employee population size
Sample Costs of hiring an Employee
Direct Costs:
example
+ $15.00 per hour
+ 7.65% FICA
+ 0.6% FUTA on first 7000 of payroll
+ 5% SUTA on first 9500 of payroll
+ 6% workers compensation rate
+ 8.16% for paid leave **
+ 2.53% for 401(k) **
+ 13.92% for group medical **
+ .07 / hour assumed for payroll
processing and w-2
Indirect Costs:
example
+ Time & dollars spent sourcing,
recruiting, onboarding
+ Time & dollars spent managing
non-productive issues
+ Payroll changes, etc.
+ Opportunity cost of not performing
work due to lack of manpower,
doing something else with time
spent managing direct costs, value
of positive impact on cash flow
** http://www.bls.gov/news.release/pdf/ecec.pdf
Contrasting Sample Costs with Leased Labor
Using the previous slide sample direct costs
assumptions
Direct Placement
What to look for during placement process
 Passive candidates—the agency should bring candidates that you
cannot find on your own with a simple job board subscription.
 Detailed pre-screen notes—it is hard to justify value if the agency
is just passing you a resume that was downloaded five minutes
before, leaving you to make the initial contact and subsequent
determination as to whether or not they are worthy of a live
interview
 Construction specific recruiting resources— the agency your
choose should be “well capitalized,” in terms of job board
subscriptions, CRMATS tools, and number of recruiters (their
backgrounds), outbound calls and call time
Lifecycle
LOOK for the agency partner to supply
 A consultative relationship
 Contingent (or temporary) workforce
 Temp-to-hire options
 Outsourced payroll service
 Direct placement services
all aided significantly by construction-specific expertise
and an intense focus on recruiting resources in a dynamic
and ever challenging labor market
Core competencies
 Staffing for commercial and industrial contractors (aka contract labor)
 Our w-2 employees.
 Leased to our clients, on an as needed basis, billed hourly.
 We provide full benefits and continued training.
 Direct placement for commercial and industrial contractors
 We recruit highly talented individuals, often white collar in nature, directly to
client’s payroll.
 No ongoing bill, but rather just a 1-time fee with a quality assurance
period.
NCW Recruiting Tools
 14 full time recruiters, construction
 3 part-time recruiters
 CRM/ATS and various job boards
 70,000+ candidate records in our
database (5,000 in 2011)
Partner Agency with Construction Roots…
 NCW employs a recruiter who was formerly a PM with an above ground tank welding
contractor.
 NCW employs a recruiter who was formerly a Journeyman Carpenter and Millwright.
 NCW employs within its Field Support team a licensed HVAC Installer, and is ASHE
licensed Apprentice Carpenter.
 NCW employs two recruiters who are certified OSHA instructors
 NCW employs a recruiter who carries multiple NCCER Journeyman certificates and
NCCER training licenses
National Construction Workforce
Your Representative to call:
Debbie Smith
Cell 513-403-7592
Cincinnati Chapter NAWIC

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Staffing Agency- do you really need one?

  • 1. Associated General Contractors of America (AGC) According to a report AGC released earlier this year, “71% of construction firms are planning to expand payrolls this year and hire more workers. In order to stay competitive in recruiting and retaining workers, 49% of firms indicated they have increased base pay, 30% are providing incentives and offering bonuses and 23% of firms have increased their contributions to employee benefits programs”.
  • 2. National Construction Workforce  Established in 2000  Local headquarters, with an office in Cincinnati and recruiters stationed remotely in Arizona and Wisconsin.  Closely held, making client focused decisions for long-term relationships.  Specializing in staffing and direct placement, serving the following industries:  Commercial, Industrial and Multi-family Construction  Architecture  Engineering
  • 4. Temporary Workforce Contingent workforce – utilize additional labor pool to help manage workload peaks and valleys (as an alternative to the hard and soft costs of hiring and firing). Contingent workforce benefits: • Better manage client demands during peak season. • Mitigate costs and risk of unemployment tax, benefits and workers compensation associated with seasonal or cyclical hires (As compared to a direct hire and eventual layoff) • Leverage additional recruiting resources (IE access to other labor pools, with an opportunity to keep the best employees)
  • 5. Temp to hire  Temp-to-hire – leasing employees from a labor provider for a contracted period of time, before they automatically become a direct hire (try before you buy)  Benefits-  Defer benefit costs by the length of the trial period.  Mitigate costs and risk of unemployment tax, benefits and workers compensation associated with hiring the wrong person.  Leverage additional recruiting resources (vendor partner becomes an outsourced recruiting department for these positions).
  • 6. $ Pay rolling $  Pay rolling – lease employees from a labor provider on a semi- permanent basis  Benefits-  Outsource costs associated with being a large employer long-term. EX: avoid costs associated with payroll processing, benefit administration, workers compensation and unemployment tax.  Provide for better cash flow management (EX: monthly versus weekly)  Create more options for benefits, based upon employee population size
  • 7. Sample Costs of hiring an Employee Direct Costs: example + $15.00 per hour + 7.65% FICA + 0.6% FUTA on first 7000 of payroll + 5% SUTA on first 9500 of payroll + 6% workers compensation rate + 8.16% for paid leave ** + 2.53% for 401(k) ** + 13.92% for group medical ** + .07 / hour assumed for payroll processing and w-2 Indirect Costs: example + Time & dollars spent sourcing, recruiting, onboarding + Time & dollars spent managing non-productive issues + Payroll changes, etc. + Opportunity cost of not performing work due to lack of manpower, doing something else with time spent managing direct costs, value of positive impact on cash flow ** http://www.bls.gov/news.release/pdf/ecec.pdf
  • 8. Contrasting Sample Costs with Leased Labor Using the previous slide sample direct costs assumptions
  • 10. What to look for during placement process  Passive candidates—the agency should bring candidates that you cannot find on your own with a simple job board subscription.  Detailed pre-screen notes—it is hard to justify value if the agency is just passing you a resume that was downloaded five minutes before, leaving you to make the initial contact and subsequent determination as to whether or not they are worthy of a live interview  Construction specific recruiting resources— the agency your choose should be “well capitalized,” in terms of job board subscriptions, CRMATS tools, and number of recruiters (their backgrounds), outbound calls and call time
  • 12. LOOK for the agency partner to supply  A consultative relationship  Contingent (or temporary) workforce  Temp-to-hire options  Outsourced payroll service  Direct placement services all aided significantly by construction-specific expertise and an intense focus on recruiting resources in a dynamic and ever challenging labor market
  • 13. Core competencies  Staffing for commercial and industrial contractors (aka contract labor)  Our w-2 employees.  Leased to our clients, on an as needed basis, billed hourly.  We provide full benefits and continued training.  Direct placement for commercial and industrial contractors  We recruit highly talented individuals, often white collar in nature, directly to client’s payroll.  No ongoing bill, but rather just a 1-time fee with a quality assurance period.
  • 14. NCW Recruiting Tools  14 full time recruiters, construction  3 part-time recruiters  CRM/ATS and various job boards  70,000+ candidate records in our database (5,000 in 2011)
  • 15. Partner Agency with Construction Roots…  NCW employs a recruiter who was formerly a PM with an above ground tank welding contractor.  NCW employs a recruiter who was formerly a Journeyman Carpenter and Millwright.  NCW employs within its Field Support team a licensed HVAC Installer, and is ASHE licensed Apprentice Carpenter.  NCW employs two recruiters who are certified OSHA instructors  NCW employs a recruiter who carries multiple NCCER Journeyman certificates and NCCER training licenses
  • 16. National Construction Workforce Your Representative to call: Debbie Smith Cell 513-403-7592 Cincinnati Chapter NAWIC