Insperity revenue up 5% but net income falls

Insperity Inc. (NYSE: NSP) reported fourth-quarter revenue rose 4.6 percent year over year to $557.1 million. The Houston-based professional employer organization attributed the rise to a 1.1 percent increase in the average number of worksite employees paid per month and a 3.5 percent increase in revenue per worksite employee per month.

However, gross margin narrowed and net income fell.

Insperity reported fourth quarter net income fell 44.0 percent in the fourth quarter to $5.3 million from $9.4 million in the same quarter last year.

The company reported an after tax non-cash impairment charge of $2.9 million associated with a write-down of goodwill and intangibles related to a 2010 acquisition, partially offset by a $2.0 million tax credit.

Fourth-quarter gross margin narrowed to 16.2 percent from 17.6 percent in the year-ago quarter.

Full-year 2013 revenue rose 4.5 percent to $2.3 billion, while full-year net income fell 20.7 percent to $32.0 million.

Insperity shares fell by 2.35 percent in early afternoon trading to $31.64, according to Yahoo! The company had a market capitalization of $809.03 million.

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Staffing firm settles EEOC retaliation suit, denies wrongdoing

Jiudicy Inc., doing business as Labor Finders, will pay $150,000 to settle a retaliation lawsuit brought by the U.S. Equal Employment Opportunity Commission, the federal agency announced. However, Jiudicy strongly denied any liability or wrongdoing.

According to the EEOC’s suit, Jiudicy unlawfully terminated a female office administrator in retaliation for reporting sexual harassment. The employee worked at Juidicy’s Cumming, Ga., location and reported that she received sexually harassing phone calls from her supervisor. The company conducted an internal investigation into her complaint, according to the EEOC. The company fired her three days after the complaint, citing six separate reasons for the termination.

As part of the settlement, the two-year consent decree includes provisions for equal employment opportunity training, reporting and posting of anti-discrimination notices.

Juidicy President Anthony Giudicy strongly denies any wrongdoing in this case.

“We actually won in three lower courts, where it was thrown out on summary judgment,” he said.

The case settled at the appellate level because the insurance company believed it was the most cost-efficient way to proceed, according to Giudicy. “It was their call, it wasn’t ours,” he said.

“It was thrown out three times and the EEOC kept coming and coming,” Giudicy said. “This is just another example of the federal government overreaching and putting the clamps on small business.”

Jiudicy Inc. operates 14 Labor Finders locations in Georgia and six in Florida. Labor Finders International Inc. is an industrial labor staffing franchise company based in Palm Beach Gardens, Fla. It ranks 53rd on Staffing Industry Analysts’ list of largest U.S. staffing firms and 17th on the list of largest U.S. industrial staffing firms.

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Employment trends index signals no slowdown for upward trend

The Conference Board’s employment trends index increased in January to a reading of 116.61, up from December’s downwardly revised reading of 115.62. The January reading is up 6.0 percent from the same month a year ago.

“Despite weak job reports in December and January, the Employment Trends Index is not signaling a slowdown in employment growth,” said Gad Levanon, director of macroeconomic research at The Conference Board.  “We expect solid job growth and rapid declines in the unemployment rate to continue in the coming months.”

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Dice appoints Twitter exec to board of directors

Job board operator Dice Holdings Inc. (NYSE: DHX) appointed Brian (Skip) Schipper, vice president of human resources at Twitter, to the company’s board of directors.

Prior to joining Twitter, Schipper was the chief human resources officer at Groupon. Previously, he was the chief human resources officer at Cisco Systems and has held executive level human resources roles at Microsoft, DoubleClick, PepsiCo, Compaq and Harris Corp.

“We are very excited to have Skip join our board and contribute his unique perspective built by creating talent strategies for top technology and internet companies,” said Dice President and CEO Michael Durney.

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Staffing Stream: HR’s diabolical plot

Human resource and procurement professionals are winning the battle while also losing the war for talent, writes Scott Wintrip in a new blog post on The Staffing Stream. Wintrip, president of the Wintrip Consulting Group and StaffingU, discusses why those who sell staffing and recruiting services are to blame for the situation. To read the full post, click here.

The Staffing Stream is a blog where issues, trends and views from all corners of the staffing industry are discussed. Our ecosystem includes a range of thought leaders — such as executives at staffing firms, buyers of staffing services and representatives of industry vendors, among others. For more information, go to The Staffing Stream home page here.

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Quote of the week: What search firms know about recruiting

“The search industry has been forced to evolve. It’s no longer simply about finding people,” said Tierney Remick, president of Korn Ferry International’s (NYSE: KFY) consumer marketing practice, in a Q and A with the Chicago Tribune’s Blue Sky Innovation. “The organizations that embrace talent as a strategic investment — that means acquisition, development and retention — are going to win going forward.” To read the story, click here.

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Temp jobs rise, penetration rate flat

Temporary help services jobs rose in January; however, the percentage of total nonfarm employ that are temporary jobs was flat in January, according to revised number released today by the U.S. Bureau of Labor Statics. The penetration rate — temporary help services jobs as percent of total nonfarm employment — was 2.02 percent in January.

January’s numbers reflect annual data revisions done by the bureau.

Temporary help services jobs’ penetration rate had reached an all-time high of 2.06 percent in December, according to initially reported numbers. However, December’s revised penetration rate was 2.02 percent.

Total temporary help services jobs rose by 8,100 in January from the previous month on a seasonally adjusted basis for a total of 2.78 million, according to revised data from the BLS.

On a year-over-year basis, temporary help services added 228,700 jobs, a 9.0 percent increase.

Total nonfarm employment rose by just 113,000 jobs in January to a total of almost 137.5 million. The Wall Street Journal reported the weak gains could heighten fears about the economic recovery.

The U.S. unemployment rate was at 6.6 percent in January, down from 6.7 percent in December.

College-level unemployment fell to 3.2 percent in January from 3.3 percent in December. College-level unemployment can serve as a proxy for professional employment.

Click on charts below to enlarge

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LinkedIn to acquire Bright

LinkedIn (NYSE:LNKD) agreed to acquire Bright, a three-year-old online job search platform. The transaction is valued at approximately $120 million, subject to adjustment, and consists of approximately 73 percent stock and approximately 27 percent cash.

“What LinkedIn does best is connect talent with opportunity at massive scale,” said Deep Nishar, LinkedIn’s senior vice president of products and user experience. “By leveraging Bright’s data-driven matching technology, machine-learning algorithms and domain expertise, we can accelerate our efforts and build out the Economic Graph.”

The acquisition is expected to close during the first quarter of 2014, and several members of Bright’s team, including those from engineering and product, will join LinkedIn.

 “We may become less visible than we were before, but it’s now more likely than ever that you’ll feel the impact of our work,” Bright Founder Eduardo Vivas wrote in his blog.

Parker Barille, VP Product at LinkedIn, blogged about the deal here.

Bright uses an algorithm, the Bright Score, to find a fit between job seekers and job openings.

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Canada adds 29,400 jobs, full-time jobs up

Canadian employment rose by 29,400 jobs in January to a total of almost 17.80 million, according to seasonally adjusted numbers released today by Statistics Canada. Full-time employment rose by 50,500 jobs while part-time employment fell by 21,100 jobs.

Over the past 12 months, employment increased by 146,000 jobs, or 0.8 percent. However, the employment rate fell to 61.6 percent as employment grew at a slower pace than the population.

The Canadian unemployment edged down to 7.0 percent in January from 7.2 percent in December.

Ontario gained 6,000 jobs in January for total employment of almost 6.9 million. Ontario gained 23,100 full-time jobs and lost 17,000 part-time jobs during the month. Ontario’s unemployment rate fell to 7.5 percent in January from 7.9 percent in December.

Saskatchewan and Alberta posted the lowest unemployment rates among all provinces in November at 4.3 percent and 4.6 percent respectively.

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Health costs hinder small business hiring, study finds

One third of small firms say they are purposefully not growing as a result of the Affordable Care Act, according to The 2014 Small Business Health Care Survey released by the National Small Business Association.

Survey participants were asked, “Are you restructuring your workforce in any way due to the Affordable Care Act?” Responses include:

  • I am not restructuring my workforce due to the Affordable Care Act: 48 percent
  • Not growing: 33 percent
  • Subcontracting more projects out instead of hiring on employees: 15 percent
  • Hiring more part-time versus full-time employees: 14 percent
  • Reducing hours for existing employees: 10 percent
  • Considering leasing employees: 7 percent
  • May utilize a professional employer organization (PEO): 2 percent

The majority of employers surveyed said offering health insurance is very important to recruiting good employees, but just 51 percent of the smallest firms offer health benefits. Among the 70 percent of small firms overall that do offer health insurance, the majority report paying for more than half of the cost of their employees’ plans.

Ninety-one percent reported increases in their health plan at their most recent health insurance renewal, with one in four reporting increases exceeding 20 percent.

“Cost is the No. 1 driver of whether or not a small business will offer health insurance,” said NSBA President Todd McCracken. “These costs have real-world implications: one-third of small businesses held off on hiring a new employee and more than half say they held off on salary increases for employees.”

The survey found the average monthly per-employee cost of health insurance premiums for a small firm is $1,121. When asked in 2009 for the estimated monthly cost of their health benefits package, it was just $590 per employee. However, the percentage of respondents who said they offer any health-related benefits to their employees increased from 66 percent in 2009 to 70 percent in 2013’s survey.

The survey was conducted online Nov. 20 and Dec. 4, 2013 among more than 780 small-business owners with fewer than 500 employees.

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