1099 Versus W-2 Contractor

May 7, 2010 – 3:14 pm

You’ve been laid off from your employer of several years and a few days after the lay off you get a call - “Do you want to come back as an independent contractor?”  Sounds great - you get to keep working with a company you are very familiar with, may get a little more freedom in your work and you get to keep income coming in, but this has a lot of implications that go along with it.  These implications have grown recently with the Obama Administration cracking down on the misclassification of workers.  Please see the below articles that indicate why the Obama Administration is cracking down on misclassified workers and what type of workers qualify as misclassified.  Please also see information in our previous blog from May 2009, “Are You a Misclassified Employee” for more information and resources.

The likelihood of a past employee of a company truly qualifying as an independent contractor is highly unlikely.  The company had this person classified as an employee for many years and suddenly they’re an independent contractor? - the government is not going to buy that without a lot of other evidence showing this person truly did decide to go independent, especially when there’s plenty of taxes on the line. 

If your employer asks you to come back as a contractor through an agency, this is an entirely different matter.  This is W-2 contract work, meaning those taxes still get paid to the government through the staffing agency, and there is no reason for the employee to register as their own company or figure out what taxes they owe as an independent contract when tax time comes.  This is another situation when staffing agencies come in handy — a staffing agency can payroll the individual.  Perhaps the company is wary of bringing someone back as their full time employee during these sticky economic times, but they know someone that they would be very happy to bring back for a few days of work or perhaps on an ongoing basis, to fulfill some of the holes the layoffs left.  Payrolling through an agency is a good way to bring this person back, without having to worry that they’ll be the next company the government cracks down on, and it takes stress off of the employees who haven’t had experience with what being a 1099 contractor entails. 

http://www.inc.com/news/articles/2010/02/cracking-down-on-contractors.html

 http://www.inc.com/magazine/20080901/employee-or-contractor.html

By Paul Struble | Posted in Employment Law | Tagged , | Comments (0)

Soft Skills Identified in Interview Process

December 21, 2009 – 8:44 am

When we identify a candidate of interest for a particular opening, our next course of action is to take the candidate through a process which involves a non-technical interview and a reference check.  We have received the question from candidates, of why this is important when the client is interested in their technical abilities.  Doesn’t the client just want their resume?  What is the point?  Please see the related article below about hard skills versus soft skills in the hiring process.

We find it important to get to know the candidate and his/her job history and present the individual as a whole person, not just a resume, to our clients.  This helps the client to get more in-depth knowledge on soft skills than is typically received in one interview - they are receiving information regarding the candidate from different perspectives, from those who have worked with the individual before, from our reference profile, and from their own impressions when they meet this individual face to face.  This helps the client to achieve a good read on how this individual can fit the position and company.  Although many individuals may have the necessary hard skills, it takes a person who can effectively work within the client’s environment to put these hard skills to the best use.  A good soft skill and hard skill fit is what is wanted in all hiring scenarios - finding an individual whose attitude, personality and goals match those of the company are what create the best hires and increase the likelihood that the client will want to keep our candidate for the long run or work with our candidate again.

http://www.cobizmag.com/articles/great-hires-and-bad-hires/

By Paul Struble | Posted in Employment | Tagged , | Comments (0)

The High Cost of Hiring Mistakes

October 7, 2009 – 7:56 am

We’re starting to see some upward movement in the economy and more companies hiring.  We are seeing a trend where companies are taking longer to go through the interview process, as well as wanting to see more resumes or being very strict about skill needs.  This slow hiring approach can be frustrating to candidates, but companies need to know they are on firm ground with the right candidate before proceeding in this tricky economy.  Please see the links below - the first is a long list of many possible hiring/ turnover costs, the second is a video discussing the high costs of wrong hiring decisions. These are prime examples of why many companies choose to utilize staffing agencies as a tool to make the correct choice for their organization. 

Aorist works best in slower, strategic searches to help companies find the right person for their organization.  We take time to get to know our candidate and how they can contribute to the opening - we want to present them as a whole person to our client.  We take the same care in filling contract and contract to hire scenarios as we do with direct placements - this is the opportunity for the right candidate to shine.  We take pride that most of our contract to hires and even some of our shorter term contracts results in long term relationships between the candidate and company.

Many candidates wonder why a company would choose to go with a contract or contract to hire scenario over doing a search on their own.  Most companies simply want to try out the person before risking the high costs associated with a direct hire.  Sometimes the individuals doing the hiring within the company are so submerged in their daily tasks that they don’t have the necessary time to devote to finding the right candidate.  The contract relationship can be beneficial to the candidate because they can experience whether or not the job and company are the right for them - the “try out” goes both ways.

Before the hire is the best time to put in the due diligence necessary to ensure the relationship is long lasting.  This makes for happy clients and happy candidates.  Most individuals wouldn’t purchase a house or a car before checking out several different options and seeing which is right for them - we respect that companies what to take the same cautious approach with their major “purchase”.  Most individuals spend 30% of their weekday at their job - finding the right one is a major life decision and we want to assist the candidate in making the right choice.

http://isquare.com/turnover.cfm

http://www.cobizmag.com/videos/view/the-high-cost-of-hiring-wrong/

By Paul Struble | Posted in Employment | Comments (0)

Staying in touch

July 17, 2009 – 8:15 am

Lately we’ve been saying the same words to many - “please stay in touch”.  There are lots of individuals with amazing skills looking for jobs in this down economy – the thought on our mind is “if only we had the job to fit those skills…”.  Often, individuals inquire on the best way to stay in touch.

 

With Aorist – calling or email is fine, whatever your preference.   Email is very simple – feel free to send an email every week or couple of weeks letting us know you are still available and inquiring if there is anything new.  Let us know if you’ve acquired any new training or experience.  Email allows the recruiter time to become reacquainted with your resume before responding.  When calling, ask to speak to a recruiter and inquire what is new with Aorist – it may take a minute or so to open your file in our database and take a quick look.  If you’ve seen an opening of interest, we’d be happy to answer any questions or discuss your experience.

 

The more your name and skill set comes to our attention, the more likely we are to think of you when a matching opportunity becomes available.  Keep in mind, weekly calls or emails are a good frequency – it unlikely that dramatic changes will occur on a day to day basis, but a week or two can make a difference. 

 

It is likely that the majority of the time our answer will be “nothing new”.  This can be disconcerting.  However, this call or email is more about keeping in touch.  If we know you, we’ll be the ones calling when a good match comes along. 

 

Please do not feel disheartened if the answer is “we have a new opening, but we need this specific skill” or “we have another candidate of interest”.  Although we favor those candidates we know, the candidates we send over are ultimately driven by the skills the client is seeking.  We will not waste your time if we already know our client’s answer.     

 

A more passive way to keep in touch is to keep track of openings on our website and call/ email when you find one of interest.  Keep in mind, we do not always post openings we feel will be a quick fill.   

 

Please see the below link for an outside perspective on this subject:

 

http://www.geekinterview.com/articles/resource/25.html

By Paul Struble | Posted in Employment | Tagged | Comments (0)

It’s tough out there

June 16, 2009 – 10:21 am

Here is an article to give all the job seekers a little hope:

http://www.forbes.com/feeds/ap/2009/06/09/ap6523233.html

It’s been a slow year for the staffing industry, but we are starting to see a bit more variety in the openings becoming available.  It is still an “employers market”.   We are seeing clients “holding out for the right one” and wanting to see candidates who match all their needs.  Employers seem more wary of making the wrong hiring decision in the down economy, and this is creating slow-to-fill openings … even those for which qualified candidates are few and far between.

We realize it’s frustrating out there.  It’s hard to maintain a positive attitude when it feels like your resume is being sent into a black hole.  Don’t blame yourself - get your resume up to par, but it is not necessary to rewrite and rewrite - in most cases, it’s the economy, not the resume, that’s the problem.

It is important to remain calm.  Although the hiring managers may understand that a candidate is showing the signs of stress, they might select another candidate who maintained a more professional bearing in their interactions.  Showing strength in the face of hardship is often the sign of a strong candidate who will be able to transfer this ability into managing stressful job situations. 

It is important to aim your resume or cover letter at the specific opening.  This is always important, but is even more important when there are many individuals competing for the same job.  Going that extra mile says that you are truly interested, not just shooting off resumes.  A little extra time spent giving specific details in a cover letter of when and how you developed the skills for the job can create immediate interest.  Forgo sending the same, overly formal cover letter to everyone you approach - the main focus should be how your skills match the requirements listed in the job description. 

Keep in touch with recruiters at places with multiple openings or companies of specific interest to you.  Remind them that you are interested in hearing about any available opportunities by email or in a brief phone conversation.  They’re more likely to contact you if they know you’re interested and looking.  Keep contacts to a minimum - once every week or two should be sufficient.  If your messages are not met with polite feedback, that company may not worth be your time.  A harsh attitude says more about that company’s values than your qualifications to work there.

Focus on the positive - refresh your skills by taking classes or through your own research.  Do some volunteer work to keep your mind off your search and to have something new to add to your resume.  Work at that hobby that you usually have to keep on the backburner.  Spending your time day in and day out looking for a job can make the situation even more stressful - there are a lot of factors out of your control and job searching is hard work - give yourself a break.    

It might take a while longer to truly pull our economy out of this, but keep looking and don’t lose hope.  You’re not the only one experiencing this - there are a lot of very skilled individuals looking for work.  We’re all looking forward to a strong recovery, and one of these days its going to break loose.

By Paul Struble | Posted in Employment | Tagged , | Comments (0)

Aorist & recruiting

June 16, 2009 – 10:17 am

Never worked with a recruiter before?  Curious about the relationship?   Please read the article in the link at the bottom to get a general idea of how recruiters work and then compare it to how we work.  

Aorist works on a job order basis.  This means that we keep in contact with many companies and respond to their staffing needs as they develop.  Our focus is on small to medium size engineering and manufacturing companies along the Colorado Front Range and in the Boise area.  When a need arises, we search out candidates for the client’s job.  We do not search out jobs for candidates.  However, we are interested in keeping in touch with individuals who are searching for jobs - we may not have the right match at the moment, but your skill set could be perfect for the next opening we get.  We typically search our internal database before we search other job sites.

When matching resumes, we are looking for the things that are most important to our client.  Often our client is focused on a particular skill set or experience in a particular industry, and if we hope to fill the job we have to address their needs.

Sometimes clients have changing needs and their job descriptions will morph.  They may start out believing that a general skill set will meet their requirements, but then decide they need a more specific skill set.  Sometimes clients are eager to make a quick decision and interview candidates right away, and sometimes they want to see a lot resumes before they make a decision.  Our clients are human beings dealing with dynamic situations, and its very tough for recruiters to predict what they’ll do.

We are paid by the client company when our candidate begins working at their company.  We focus on creating relationships that last, because we want to work with our clients and candidates over and over again! 

We welcome replies to our job postings and always appreciate it when candidates inform us of how they meet the requirements for the job, and also what they may be lacking.  This is simple to convey in a concise cover letter along with your resume.

The more information you provide, the better.  We want to understand your whole job history, and all of the skills you have acquired.   We don’t know what you don’t tell us.  If you have skills matching an opening and they are not described on your resume, you need to add them to your resume or tell us in a brief cover letter.

The recruiting business is fickle.  We need one thing one moment, and another the next.  We can’t make any promises that we will place you.  However, we take great care in presenting our candidates, because that is what creates great placements!  We’re looking forward to finding a good match for you.

http://www.careerbuilder.com/Article/CB-1220-Getting-Hired-What-Works-When-Working-with-Recruiters/

By Paul Struble | Posted in Employment | Tagged , | Comments (0)

How can Aorist assist you?

May 12, 2009 – 3:45 pm

As you read through our website, we hope you will notice our commitment to treating individuals like individuals and not commodities, as well as holding up high ethical standards.  It is no secret that the staffing industry has gotten some bad press over the years (see the second link at the bottom if you don’t know what we mean) and we feel that it is our job at Aorist to combat that negative stereotype by impressing our candidates as well as our clients with excellent matches that will survive for years to come.

We are a member of the American Staffing Association, which is an organization that matches our beliefs in holding up high ethical standards within the industry.  Everyone in our office is certified through ASA, which includes training in employment law.  Please see first link for ASA’s staffing facts, and see why the staffing industry is and has been beneficial to many individuals.

Here at Aorist, we are focused on a very specific niche, which is engineering and manufacturing-related technical positions.  The majority of the companies we work with are small to medium-size engineering and manufacturing organizations, and they often have both their engineering and production operations under the same roof.  Having a clear area of focus helps us to find and keep in touch with candidates well suited for our clients and vice versa.

We are also a small organization, based in Denver for 40 years and focused, for the most part, on the Colorado Front Range job market.  We also work in Boise, ID, and it is our goal to expand our presence in that market as well, once the market begins to approve.  We believe that smaller areas of geographical focus also helps us to retain relationships with candidates and clients.

We actively maintain a large database of candidates and do our best to keep it up to date.  That way we remember them when they call, we remember when they’ve worked with us before, and we can reach out to them when the right job comes along.  We are always interested in meeting new candidates who are interested in working with companies in our niche.

We respond to all resumes as quickly as we can, because we believe that everyone should be treated with respect.  Even if they are not the best match for the current openings, they could very well be the best match for an opening down the road.

Our commitment to good matches is based on our interest in working with clients and candidates on a repeat basis.  Many of our clients have been our friends for many years, coming to us when they need someone to fulfill a contract role or to find the next member of their team.  We have put many of our candidates to work over and over as they have gone through different phases of their lives.  We are always interested in meeting new friends, creating long term relationships, or renewing relationships with old friends.  Our sales team takes the time to personally visit the offices of our clients and potential clients to meet them face to face, see what their facility is like and improve on our understanding of their needs.

When we identify a promising candidate for an opening, we take time to get to know them through our own interactions and reference checks.  We keep this information handy, so we know what is appealing to them and where they might be the best fit, either for the current opening or down the road.  We try our best to present an accurate vision of our candidates to our clients, so they will be more likely to bring them in for an interview.

We want our clients and employees to come back to us!  We want our client to be so pleased that they want to hire the employee direct - so they will remember that good placement and will call us the next time they have a need.  If our client has only a short term requirement, we want to impress them with a top notch candidate, so they will come back to us for their next need.  And we want our employees to be happy with their assignments, so they will want to work with us again. 

We take care of our employees by providing them with an insurance program that works on a week to week basis (we pay weekly), providing holiday pay for the six major holidays after 350 hours, and a week of paid vacation after 2000 hours worked.  We are always open to hearing how our candidates and clients are feeling about the assignment and placement.  We want to hear the good and bad so that we can continually improve.

We are always willing to communicate, whether it be through email or by phone.  Just try us!    We want to make your experience of the staffing industry favorable - so favorable you won’t want to work any other way.  Please watch our videos and see real people who have had good experiences working with us! 

http://www.americanstaffing.net/jobseekers/facts.cfm

http://www.eminfo.com/article.asp?aid=91

By Paul Struble | Posted in Employment | Comments (0)

Are you a misclassified employee?

May 12, 2009 – 3:23 pm

Here is a typical employee misclassification scenario.  An individual applies for job directly with a company.  The company invites the individual to come on as a “contract” employee because the need is short term, intending to classify him/her as a 1099 independent contractor for tax purposes.  The individual is not really set up as an independent contractor, but he/she needs the work, accepts the company’s rationale and does not question the 1099 arrangement.   

Does this sound familiar?  Then you may have been a victim of employee misclassification.

In today’s job world, many individuals choose to represent themselves as independent contractors because they like the freedom of doing project based work on their own time, typically from their home.  This is fine, as long as the individual is really his/her own boss and is working with several companies (when business is good), doing spurts of work or tackling one specific order of business for a client.  However, some employers are intentionally misclassifying their employees as independent contractors, either to save the money they should be paying for employment taxes and benefits, or just because they are uninformed (which is an excuse the IRS will not buy - see the IRS resource below).

Some of these companies claim that the “independent contractor relationship” has not been sufficiently clarified by the IRS (check out the IRS resource below to see for yourself and to judge whether you believe this is true).  That is why it is important for workers to know their true classification and make sure that any employment arrangements they make are properly classified.  This is good to know, because if you knowingly go along with the misclassification you’ll find yourself in hot water with the IRS, too.

If you are a true independent contractor, you’re set up to pay your own employment taxes and make your own quarterly tax deposits.  You work on your own schedule, and may have employees or subcontractors of your own.  You are not doing the work that the company specializes in, e.g. doing HVAC design for an HVAC design company.  You are able to take on other work as you deem appropriate.  You get paid when you finish the work or in agreed upon intervals while you are working on the project.  You agreed to produce an outcome or finish a specific amount of work.  You use your own tools to complete the work.  You buy your own worker’s comp insurance and have no right to unemployment compensation.  And as a true independent contractor you’re not hoping to be hired direct by the company because you already have your own business, and the company probably won’t offer to hire you direct because they specialize in a different line of work.    

If you are truly an employee, you are involved with the basic work of the company.  You have a supervisor directing your work or you are directed by the company on how work will be done.  You get paid on an hourly or salary basis.  You use the company’s tools to perform the work.  You have a particular schedule laid out by the company, and you are free to leave the company any time you choose.

So what should you do if you believe that you are being misclassified as an independent contractor when you are really an employee of the company?  Our suggestion is to ask to be payrolled through a professional staffing service, such as Aorist.  We will be responsible for paying you, depositing the required taxes, and providing employment benefits for you.

Aorist employees are not independent contractors.  They are employees who have the skills to do the work desired by the company, either for temporary assignments or for assessment periods while the company decides whether they want to hire them on full time.  This is an appropriate employment solution for someone who is not the company’s employee but is on the company’s site, doing the work of the company under the company’s supervision, and being paid on an hourly basis.  The individual must be classified as someone’s employee during this scenario, and Aorist can fulfill that responsibility.

If you believe you’ve been misclassified in prior jobs, you are able to file form SS-8 with the IRS to have the IRS clarify your true classification (see the IRS link below).  Please review the resources below for more in-depth information on who is and who is not an independent contractor, and the ramifications of being misclassified.     

More on the subject of independent contractor misclassification:

http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

http://articles.latimes.com/2008/apr/21/business/fi-smallbiz21

http://jobsearchtech.about.com/od/laborlaws/l/aa121800.htm

By Paul Struble | Posted in Employment, Employment Law | Comments (0)

Overqualified?

May 12, 2009 – 2:16 pm

In these tough economic times, many individuals have switched their game plan from searching for the “right” job, to searching for “a” job.  While this type of climate is quite advantageous for employers hoping to catch a “star player” for their team, it can be extremely frustrating for the rest of us. 

The frustration for job seekers is being turned down for jobs they know they could easily do, and this rejection can be very hurtful.  Especially when there are bills to pay - being benched while the numbers are spiraling downward will drive a person to take whatever is available, just to be able to do something.

The frustration for recruiters is that although there are a wide range of candidates available who may have the basic skills required for the job, that doesn’t change the client’s goals for the job.  Based on their job description they may appear to be seeking an individual whose skills fit into a broad category, but what they are truly seeking is an individual from that broad category with a very particular skill, such as a particular software application, or very specific industry experience.

Also, there is the question of fit.  Although a candidate may have the desired experience because they held a similar job earlier in their career, the client will be asking themselves how long that candidate is likely to stay in a lower level position, making far less money.  Recruiters have to consider how many times their client will tolerate having to refill a position, and the answer is usually “do it right the first time”.  Its simply not realistic to expect a high level individual to stay in the lesser role when higher level jobs start becoming available - and we don’t.  Unless its for a very short assignment, we have to focus on the long term fit.

Our message to all our candidates is to think positively.  You have a lot to offer, and when the time is right, a great company will snatch you up.  There are many highly professional, highly skilled individuals on the job market right now, and those companies that are in a position to hire are naturally taking advantage of the employer’s market.  Your time will come, and we’re looking forward to placing you with a great team, in a relationship that makes sense for everyone. 

Please read the article in the link below for more on this issue:

http://www.careerbuilder.com/Article/CB-1215-Getting-Hired-Dealing-with-the-Overqualified-Label/?ArticleID=1215&cbRecursionCnt=1&cbsid=7c940ed6de4e4e88b0074ad01b15e7f0-295021273-RQ-4&ns_siteid=ns_us_g_dealing_with_the_over_

By Paul Struble | Posted in Employment | Comments (0)