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“They share any information that’s available concerning our business or things that might affect our business. And I think they also are very effective in helping you understand why you need to look at things differently if you’re not looking at them the right way.
- Tanya Henry, Executive Director, Milwaukee Careers Cooperative”

 

We are constantly on the alert for all the latest industry news, legislative updates, trends and more that could possibly impact your staffing business. Our president and CEO, Julie Ann Bittner, also shares her insights on the staffing industry in her message (link below). And when we don’t see information about a topic we feel is critical for you to know, we create it ourselves to share in our monthly email.

Press Room

Beyond the Numbers, Volume 1 Issue 2

In this issue:

Protecting your staffing company from identity theft, choosing the appropriate encrypting software and best practices for creating passwords.

 
 

Identity Theft:How Vulnerable Is Your Staffing Company?

 
We’ve all seen the news stories—a laptop containing personal information for thousands of people was stolen, putting those people at risk for fraud or identity theft. Or maybe you know someone whose information was compromised and heard first-hand accounts of the frustration, time and money spent trying to recover.
 
In 2007, the total individual losses from fraud in the U.S.—including identity theft—totaled $49.3 billion. The cost is not only in dollars; it leaves victims feeling frustrated, angry, and helpless.
 
As members of the staffing industry, we all handle people’s confidential information including social security numbers, bank account and routing numbers, addresses and phone numbers day in and day out. What we see as standard report information, others may view as an opportunity to commit identity theft.
 
Making the Grade - pt 2

Does Your Funding Provider Make The Grade? Part 2

 

Pricing

Finding the right funding provider can seem like a daunting task. There are many to choose from, but not all offer the same services or pricing structures.
 
In last month’s issue we looked at how to compare levels of service in terms of commitment, problem solving capabilities, accountability, attention to detail, and trust. This month we turn our attention to the numbers. This is where a specialty funder can give your staffing company the flexibility and growth potential that a bank either can’t (or won’t), or will charge you dearly for.
 
Funding providers offer two types of relationships: full service, which includes funding as well as administrative services, or funding only. There’s a major pricing pitfall that can impact both types of relationships, but first we’ll examine the potential traps unique to each.
 

Full Service

 
Some full service funding providers offer a tiered pricing structure—the higher your volume, the lower your rate. This can sound pretty good to a staffing company that’s focused on growth. However, you want to review the terms of a tiered pricing structure closely.
 
Making The Grade - pt 1

Beyond the Numbers, Fall 2008

Bankruptcy Preference Claims—
The Letter No One Wants To Receive

 
As the country continues to struggle with difficult economic times, some of our clients have expressed concerns about the financial strength of their own customers. A weak economy can lead to business failures—and when the businesses that fail are your customers, it can place your staffing company at risk.
 
When a business declares bankruptcy, a common misconception is that staffing companies have a priority status for any unpaid invoices because the invoices are for wages. This is not the case. Unless the claim is secured in some way, the invoices are considered a “fee for service” and are not given a priority status.
 
In addition to unpaid invoices, staffing companies are also at risk for having past invoice payments called back. This is known as a bankruptcy preference claim. The purpose of preference claims is to discourage a company from paying its “preferred” vendors or creditors just before the company declares bankruptcy. The preference claim helps ensure that all unsecured creditors are treated equally.
 

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