The combined revenue from Nelson Staffing, Nelson & Associates and Nelson Technology increased 17.7% this past year compared to the 2010 period. The same groups were up 13% in January 2012 over 2011 when normalized for the extra holiday. Individual performance in January was led by Nelson Technology up 79%; Nelson & Associates up 14%, and Nelson Staffing up 7% over the prior January.

Tony Bartenetti, Sara Boyd and Melanie Quandt all deserve recognition for this success!

Direct Hire Openings at 8-year high…and more

Recent input from the Nelson business unit leaders provides interesting insights…

Though clients have very specific requirements, the 8-year record level of job openings is a positive indicator that demand is gaining momentum and good for business.

Nelson Technology has experienced a 57% increase in January placements year over year (KUDOs Melanie Quandt)… and customers are predicting a 50–300% increase in new hiring!

Nelson Staffing in the Central Valley, ably led by Beth Noseworthy, has experienced tremendous increase in demand. The Fairfield, Sacramento and Modesto offices have benefited from this significant increase in new orders.

Goodbye WorkforceLogic… and THANKS!

This week, we are celebrating the 2011 TOP PERFORMER VMS/MSP award from SIA with a get together with the WFL compliance and development groups! These two groups have worked fabulously behind the scenes and contributed significantly to the many years of success of the WorkforceLogic enterprise. Special thanks to Todd Trask and the development team he hired, managed and nurtured since 2001. Jeff Phelps led ABE, then WFL compliance from the late 1990s and was instrumental in hiring Melissa Oliva and many other compliance team members. That WFL compliance group is a well-respected industry leader in the human capital marketplace.

As these two groups move on to the ZeroChaos entity, the Nelson family wishes them all the very best in this new combined ZC/WFL venture!

SIA 2012 Executive Forum to be represented by Nelson management

Craig Nelson CEO, Monty Houdeshell Chairman, Tony Bartenetti VP Nelson Staffing, and Jeff Phelps COO of iWorkGlobal will attend the Staffing Industry Analysts conference on March 13-16 in Las Vegas. They will meet with industry leaders to discuss strategic issues, trends, opportunities and current challenges facing the industry and staffing firms today.

eBay awards WFL/ZC compliance and payroll services contract

Bruce Schumikowski and the combined WFL/ZC team were awarded a new contract extending a WFL relationship with eBay over many years. This contract is valued at approximately $30M annually in spend thru the system. Well done and congratulations!

Staffing Industry Analysts February trends report summary notes

US Labor Department states number of job listings at highest level in years

Buyers are afraid of ICs because of legal risks and that is giving the staffing business and the compliance division a boost

US temp staffing is up 17%

US permanent staffing is up 34%

The unemployment rate has dropped to 8.3%

Mild but widespread economic growth is anticipated.

Payment terms for staffing firms have improved whereby 48% of staffing firms require payment in 30-60 days. And yet, ECRI stands by its earlier recession prediction…stay tuned!

SF 49ers provide January excitement!

As a longtime (50 plus years) 49ers fan, I can say that the playoff games against the New Orleans Saints and the New York Giants were two of the greatest games I have ever experienced…NO QUESTION; entertaining, exciting, and riveting! Just like the old days. Thank you Jim Harbaugh, his coaching staff and players for a GREAT year!

Now we approach 2012 and 2013 with high expectations! Did I mention I have booked New Orleans for next year’s Super Bowl????

Celebration with RW Baird in Sonoma

Bret Schoch, Brian Cole, John Gallagher and Haseeb Ashraf will be joining the extended Nelson family this week in Sonoma to celebrate the closing (which took place on January 1) of the WFL/ZC transaction! As all can attest…it was a SLOG, sometimes very frustrating, and required infinite patience, but the Baird team represented our interests to the end. A great deal of patience was required during the absolutely fierce negotiations… dealing with me was no walk in the park.

Steve Furtado deserves accolades for the many extra hours he and his accounting team worked while pushing the envelope as our financial “insider” during this transaction!

Thanks to Bret and Baird, Steve and the rest of Team Nelson …one and all.

Gary’s Recommendations/Predictions:

Academy Awards…

Best Movie: The Artist…must see it! Unique film and a great cast!

Best Actor: Gary Oldman in Tinker Tailor Soldier Spy…See this too!

Great Must Read: The Art of Racing in the Rain…a dog’s story that explores humanity in a funny and insightful way…a very quick read because you absolutely can’t put it down!

More Later…

Gary

by Gary Nelson on January 6th, 2012

Nelson sells majority interest in WorkforceLogic to ZeroChaos

On Monday, a press release will go live announcing the sale of a majority and controlling interest in WorkforceLogic to ZeroChaos and its financial partner Snow Phipps. The Nelson Companies retained R W Baird as our exclusive Investment Advisor/Banker for this transaction.

When combined, WorkforceLogic and ZeroChaos will provide clients with an expanded menu of workforce solutions as well as a formidable supplier network with quality talent. The release will quote me as follows: “In a consolidating market that demands ever more in terms of value and services offered, the combination of WorkforceLogic’s top-performing VMS and MSP services with the strength of the 1.5-billion-dollar-strong ZeroChaos company will increase our capabilities both domestically and internationally.” The Nelson Family will retain a minority interest in the combined company. The three Nelson Staffing groups, HRhome and iWorkGlobal will continue to be owned and operated by the current Nelson management teams.

Craig Nelson, new CEO at NFC & Candland Joins ZeroChaos

With the sale of WFL, Catherine Candland, our CEO since 2010, is moving to ZeroChaos. I’m pleased to announce that Craig Nelson will replace her assuming the role of CEO for the Nelson companies, effective January 12, 2012. Craig has been with the company over ten years and has established strong relationships with staff, clients, and community members at all levels. He personifies the Nelson core values which have sustained this company for over 40 years. I am confident this succession transition will be smooth and the company will thrive under Craig’s leadership. Special thanks to Catherine Candland for all her efforts related to this transition.

 Best Revenue Performance Ever for the company

In 2011, our total revenue—all NFC/WFL business units included—was $435.7 million. That’s a 9.5% increase over 2010’s revenue of $398.1 million!

The Staffing Divisions fared extremely well. Their revenue in 2011 was $118.0 million, which is an increase of 17.8% over 2010’s revenue of $100.1 million.

Net Operating Expenses rose significantly last year as well as we continued to invest in the future…with additional staff, expanded our geographic and office presence and made major enhancements to the WFL application/technology. This has resulted in a decrease in net income/profitability compared to the prior year.

Nelson’s Values rolling out in 2012

Following on the kick-off of our Values initiative announced at last year’s All Hands meeting, a steering committee has worked on the definitions of Excellence, Integrity, Empathy, and Innovation as they exist within our Nelson Culture – much more work than it sounds. This week, an expanded group of Values ambassadors met to further vet and move along this critical initiative. You’ll hear more about this from Craig Nelson and Anna Norgueiro when they bring the 2012 Strategic Plan and Values initiative to the branches in January and February.

How ‘Bout Those NINERS?

With the 2011 addition of leadership by Head Coach Jim Harbaugh (and the Nelson-Niner staffing relationship) the 49ers are heading into the NFL playoffs after fulfilling my prediction they would win the NFC West! They will host a game at Candlestick and WIN…as they make plans to play in the 2012 Super Bowl.

Movie Reviews by Gary

“Descendants” with George Clooney is a wonderful film with Hawaii scenes at its best and a compelling family story line. Funny spots and sad!

“Tinker, Tailor, Soldier, Spy” is a GREAT movie…MUST SEE! Gary Oldham plays the retired UK spy/agent perfectly. Great cinema! Keeps you on your toes!

More Later, Gary

WorkforceLogic was awarded the compliance, risk mitigation, and payroll services contract at Salesforce.com for 2012.

Competing with several major human capital firms this was a BIG win for WorkforceLogic and the compliance team. Congratulations to Bruce Schumikowski, Melissa Oliva, and the compliance/professional services teams for a great start to the New Year.

Following on the heels of the “Overall Top Performer MSP” recognition by Staffing Industry Analysts, this sets the stage for an outstanding New Year.

WORKFORCELOGIC Ranked Top VMS and MSP Performer 2011 in Staffing Industry Analysts’ Customer Satisfaction Survey

WorkforceLogic has received top ranking as a VMS and MSP Overall Top Performer in the 2011 customer satisfaction survey conducted by Staffing Industry Analysts (SIA).  WorkforceLogic is the single MSP provider in the United States to have received top ratings from the 2000 buyers and staffing providers surveyed.  This is the second consecutive year that WorkforceLogic has been ranked as a top performer.

According to Bryan Pena, Vice President at Staffing Industry Analysts, “In order to be considered for the ‘Top Performer Overall’ list, vendors had to score in the top quartile for both staffing providers and buyers.  Only one managed service provider rated in this year’s survey scored high enough with both key audiences to qualify.” WorkforceLogic!

“This recognition is a testimonial to the high level of customer service  our professional staff has provided to our clients and is a trademark of our company.  Since we established the company ten years ago, we have successfully serviced clients like Yahoo! and NetApp.  Our reputation for quality service has been the differentiator and this ranking supports that success,” said Gary Nelson, Founder and Chairman of the company.

SF 49ers WIN NFC West and Head to Playoffs

Since Nelson became the official staffing partner for the SF 49ers and Jim Harbaugh became head coach, the team has wrapped up the title and will head into the NFL playoffs come January!  The talented leadership we have in place once again speaks volumes…. it is all about the talent you have at the top of the organization.  The 49ers have one of the best coaching staffs in football.  As you may recall, I predicted that SF would win the West title before the season began!

NELSON DIRECT HIRE is Smashing Records!

Compared to last year the Nelson Family of Companies (NFC) Direct Hire results are outstanding!  The Nelson Company Direct Hire is up over 80% year-over-year through November!  Special note of congratulations to Nelson Search up 70% year-over-year; Nelson Technology up 300% year-over-year and Nelson Associates over last year by 90%!

Leadership from Tony Bartenetti, Todd Witkin, Melanie Quandt and Sara Boyd deserve special kudos!

iWorkGlobal Hires Kay Ring

Kay Ring joins iWorkGlobal… leading the US business development activities domestically.  She joins Paul Voakes, our London based CEO, and Jeff Phelps, the San Francisco-based COO in developing this new compliance/risk mitigation and payroll services offering internationally.

Kay transfers from WorkforceLogic….. and will be selling to US-based multi-national firms and PEO’s.  iWorkGlobal is covering over 50 countries currently and expanding to other jurisdictions monthly.  Paul Lloyd and Jessica Wessley from the UK office both spent time with us recently in the US working with staff and customers.

Happy Holidays to One and All!

As we enter the Christmas season, we have a great deal to be thankful for… an extremely solid year in our 40-year-old staffing business, establishing our new iWorkGlobal business with wonderful UK based partners, and WorkforceLogic bouncing back adding LinkedIn and Salesforce.com to our list of top quality new logos. 

May your holiday time with family be special and the New Year a healthy and prosperous 2012.

Cheers!

Gary

Staffing Industry Analysts lowered its 2011 and 2012 growth estimates for the U.S. staffing industry.  According to the updated forecast, the U.S. staffing industry is expected to grow 10% in 2011 to reach $113.5 billion.  This is a downgrade from the 12% projected in the forecast released in April.  Industry revenue growth is expected to further slowdown in 2012 to 7% to reach $121.9 billion.

The slowdown is driven by less-than-stellar performance by the commercial staffing sector.  “We are now in that stage of recovery in which commercial cools and professional takes over as the primary growth driver of the temporary staffing market,” said Senior Research Analyst Tony Gregoire, who produced the forecast.

“We assume that the economic recovery will remain uninspiring going into 2012, with GDP growth around 2%, rather than the 3% we expected in our April forecast.”

NELSON BEATS U.S. STAFFING INDUSTRY REVENUE GROWTH!!!

Nelson Staffing exceeded the industry averages the past two years (2010 and 2011).

In 2010, Nelson Family of Companies (NFC) was up 29.5% compared to industry average of 12% and in 2011 NFC is forecast to have a 16.9% year-over-year increase compared to the industry average of 10%.

NFC is projected to beat the 2012 7% forecast by Staffing Industry Analysts.  The budget next year provides for 15.6% growth.

IT Staffing growth is projected to be 12% next year but Nelson Technology is budgeted for 34% growth year-over-year.

The table below provides more detail for your review!

Source:  Staffing Industry Analysts

IS WORKFORCELOGIC 2011 VMS/MSP TOP PERFORMER?

Staffing Industry Analysts (SIA) could award WorkforceLogic 2011 TOP PERFORMER recognition in both VMS and MSP categories.  This would follow last year’s recognition as 2010 TOP PERFORMER in these same two categories.  The 2011 survey is based on 2,235 individual responses from 702 different staffing companies.

WorkforceLogic was one of only five U.S.-based VMS firms so recognized in this staffing company survey in 2010.

INDEPENDENT CONTRACTORS DISCOURAGED IN CALIFORNIA

The most recent Employment Taxes/West ASAP newsletter, New California Law Discourages Independent Contractors and Sole Proprietorships by Potentially Penalizing Businesses that Use Their Services, by GJ Stillson MacDonnell and Alison S. Hightower, is available on http://www.littler.com/ under the Press and Publications section.  Please visit http://www.littler.com/ to review this ASAP and additional information about our publications and seminars.

Summary: The practical consequences of a new California law, effective January 1, 2012, could prove to discourage businesses from utilizing independent contractors based in California, while also discouraging service-providing sole proprietorships and other independent contractors from providing services to other businesses in California.

ANOTHER RECESSION IS ON THE WAY!!

The R.A. Cohen Consulting Newsletter dated October 26, 2011 reported… “In our last Newsletter, we mentioned that Staffing firms have started to plan and budget for 2012.  We found at that time that many had fuzzy plans due to the many conflicting views on the economy in the short term.  Most were not planning for a double-dip recession; however, that sentiment seems to have changed somewhat in a few short weeks.

While many firms believe that economic growth is decelerating and are, therefore, planning for slower growth, Staffing Industry Analysts (SIA) reported last week that the Economic Cycle Research Institute (ECRI) (a group SIA and others hold in high regard) reported that we are in the early stages of another recession.  What is so significant about ECRI’s prediction is that they have never had a mis-call or false alarm on a recession call and they have predicted every recession since they started calling recessions.  They believe the recession will be mild.

Our advice repeated from our last Newsletter is to approach 2012 with great caution and let the business push you and your staff.  Be careful about adding overhead and, perhaps, slow down any bold growth plans you have… go slower and, perhaps, more conservatively than your instincts may indicate.”

EMPLOYMENT OUTLOOK

Comerica Economic Alert

According to Robert A. Dye, Chief Economist, “October payroll employment data showed a modest gain of 80,000 jobs for the month.  The U.S. unemployment rate ticked down to 9.0 percent.  Those two numbers, by themselves, are not particularly impressive.  However, we can see some more encouraging signs deeper in the report.  The preponderance of evidence suggests the likelihood that the U.S. economy will fall into recession before the end of 2012 is now lower.  We were right at the tipping point through September.  We now take a step back from the edge, to 40 percent.  This is still elevated.  We are not out of the woods yet.”

Deutsche Bank:  Month-Over-Month Growth Outperforming the 20-Year Average

Just released November 4, 2011 from Paul Ginocchio of Deutsche Bank:

“Most important in our view, from this morning’s Employment Report, is that month-over-month temporary volumes, not seasonally adjusted, were +2.9% in October vs. a 20-year, non-recession average of +1.9%.  This is the third month of significant out performance vs. the average after under-performance from April to July.  There could be three reasons for this outperformance and we think each one is a contributing factor:

1. US economy is in better shape than thought and slightly accelerating;
2. The recent uncertainty in the global economy may be benefitting the temporary staffers as companies increase their flexibility; and,
3. Structural shift to temporaries vs. permanent is leading to higher growth vs. history.

WORKFORCELOGIC VMS 7.1 RELEASE IN NOVEMBER

The WorkforceLogic 7.1 release promises a fresh, modern look and feel and a new semi-monthly timecard which is intuitive, visually appealing, and functionality rich.  The 7.1 release will be available on November 21, 2011 and will feature:

• New Monthly Timecard and Pay/Bill Cycle
• New Web 2.0 User Interface and Design Style Guide
• New Worker Dashboard

WORKFORCELOGIC CLIENT LIST GOES TO 121

WorkforceLogic client growth indicated an increase from 111 clients in February to 121 in October!  Thanks to Dale Yoger and Bruce Schumikowski for major contributions to new customer acquisitions this year.

LITTLER GLOBAL EMPLOYMENT LAW CONFERENCE

Littler Mendelson’s International Employment and Labor Law Practice Group hosted the 2011 Global Employer Institute in Washington D.C last week. This annual conference cannot be missed by anyone who needs to stay educated on pressing international employment and labor law issues.  We sent five staff representatives from iWorkGlobal and WorkforceLogic to attend this invaluable conference.  Jeff Phelps, COO at iWorkGlobal said that the session topics were phenomenal. More importantly, he realized that 85% of the issues faced by attendees at the conference around global payroll and compliance can be solved through partnering with iWorkGlobal.

WHY COMPANIES ARE NOT ADDING STAFF

As reported by ManpowerGroup in the Wall Street Journal October 24, 2011:

• 52% of U.S. companies report difficulty filling jobs
• 47% of employers blame prospects’ lack of “hard” job skills or technical skills
• 35% of companies cite candidates’ lack of experience
• 25% of companies blame lack of business knowledge or formal qualifications
• 28% of companies are increasing staff training and development

PERSONAL

• Niners on top of NFL West… as predicted!  Now starting to “dream” of the playoffs!
• Saw “Margin Call” and was slightly disappointed.  Slow in developing the plot, but very rich in thoughts.
• Buster Posey taking batting practice and ready for GIANTS Spring Training.

More later….Gary

Nelson Family of Companies (NFC) had flat revenue of $108M in Q3; equal to last year.  Although hours increased 5.5% over the same period in 2010, we continued to invest in staff and technology increasing operating expenses by 8.3%. 2011 YTD revenue for NFC was $331M.   Increases in WorkforceLogic (WFL) and all our staffing divisions contributed to the growth. All good news aside, the business recovery and major revenue/gross profit increases we experienced over the past 18 months have stalled.

Early signs in October continue to indicate a slowing in the hiring of contingent workers.  Our business is extremely sensitive to the economy. In my experience, it is clearly the lack of meaningful policies and government leadership that has contributed to the erosion of corporate confidence and new job creation. I expect the NFC business and our financial performance will remain flat for the remainder of the year. The addition of significant new customers in Q4 could change that in a positive way very quickly, however.

NFC STAFFING ADDS SOLID CUSTOMERS IN Q3

Congratulations to Lisa Crossett and her East Bay Nelson Staffing team for landing Contra Costa County as a new customer. Congratulations also to Tony Rado for bringing in Lego Universe for Nelson Interactive. Melanie Quandt and her Nelson Technology (NT) team continue to build volume, significantly exceeding last year’s numbers! NT is up 65% on temp GP YOY and is at 90% of their 2011 direct hire goal. Driving this growth are new Nelson Technology opportunities, including Stanford Hospital, Callidus, Plum District, Thomas Keller, Intrexon, and BNBuilders.  There continues to be “great demand” for talent in mobile, open source, and automation development.

Nelson Interactive has experienced terrific momentum as well, adding four significant new clients this year. Recently returning from the Game Developers Conference in Austin, Texas, this division experienced  a great deal of interest from both potential clients and job candidates. Kudos to Holly Bravenec, Leesa Dreo, Chris Chrisley and Tony Rado for their work at the conference.

This month, Nelson Staffing, our commercial division, had its highest weekly hours billed in years… longer than I can remember! The Fairfield team surpassed their 2011 annual budget in August.  Congratulations!

Nelson & Associates continues to experience high demand for finance and accounting professionals!  The Direct Hire performance has been outstanding… up 82% in YTD Revenue in 2011 compared to the same period last year.

UP AND COMING… EDUCATION AND NETWORKING EVENTS IN OCTOBER

Nelson Technology is hosting an event at District Wine Bar in SOMA on October 20th. We have an interesting “Tech Talk” planned titled “Ruthless Collaboration – Agile & Extreme,” featuring the Vice President of Technology from Truecar and demonstrations by Do.com, a subsidiary of Salesforce.com. The second networking event is Nelson Staffing’s final seminar of the year, “Trending Up,” in Palo Alto on October 26th.  To learn more or to RSVP, please visit our Nelson Company events page.

WORKFORCELOGIC FEATURED AT SIA’S CWS AND RISK MANAGEMENT CONFERENCE

The combined Contingent Workforce Summit and Risk Management conference was held  in Las Vegas early October. Scott Brewer hosted the SOW panel that also featured Cyndi Scallion from Cox Communications. Cathy Wingate chaired the Global Risk panel and Grace Soriano-Abad from NetApp provided solid insights. Melissa Oliva and Glen Tolleson both led very successful roundtable sessions that highlighted WFL capabilities and differentiators in both MSP and compliance. WorkforceLogic’s panels and break-out sessions at the conference were well attended. Traffic and customer interest at theWorkforceLogic conference booth was “exceptional” this year… New business opportunities for MSP/VMS and compliance exceeded expectations!!!   Thanks to the WFL team/staff for this success!

WORKFORCELOGIC 7.1 ESSENTIAL (VMS) WILL BE RELEASED IN NOVEMBER 

This highly anticipated release highlights our enhanced user-friendly interface and our global timekeeping capabilities.  Details to follow next month.

WORKFORCELOGIC CHANNEL PROGRAM TAKING OFF

Under the leadership of Dale Yoger, the WFL Channel program is expanding as a result of continued interest from strong regional staffing firms. Opportunities for the MSP/VMS offering have been traditionally focused on $5M to $35M annual spend customers but are now expanding to even larger spend prospects. There is significant interest in the WFL sales training offering that is designed to improve the knowledge base and skill set of the Channel partner sales force. This has received rave reviews and interest from current partners.

iWORKGLOBAL.com

The US and UK based partners of iWorkGlobal.com have made tremendous strides in the past few  months…resulting in soon-to-be ten end user customers in over 16 countries. The provision of employer of record, compliance, recruitment and payroll services by iWorkGlobal will soon be expanded to include comprehensive Expat consulting services.

GARY’S RECOMMENDATIONS

50/50 was a solid and entertaining film with great performances by all…. a story that tugs at the heart and underscores the importance of good supportive friends during the struggle with cancer. MUST see!

Ides of March, a movie with a star-studded cast, Clooney and Gosling, was very interesting, yet slow at times. Worth the ticket on a rainy day.

Watch the SF 49ers as they continue their march to the NFC West Division championship.  The win over the Buccaneers and Lions was worth watching!

More Later…

Gary

The Nelson Family of Companies (NFC) had 245,203 weekly hours compared to 228,500 last year in the same period.  This is an increase of 9.3% over 2010.

For September month-to-date, NFC as a company is ahead of last year’s same period by 5.6%.  Nelson commercial staffing is up 9.11%, Nelson & Associates (our finance/accounting group) is up 20.10% and Nelson Technology is up 80% compared to the same period last year.  WorkforceLogic is up 1.5% overcoming the loss of a major revenue source earlier this year… which is a phenomenal accomplishment!  Well done to one and all.

NFC is heading into the final 2011 quarter with a head of steam and will likely end up with a very strong year!

Thanks to our wonderfully talented and productive staff!

BUSY TIME AND NO BLOGS

These past weeks, I have been super busy working on a game-changing business opportunity.  The work has been exhausting and fraught with the stress that comes with the times.  So, forgive the absence of BLOG information. Stay tuned…

STAFFING INDUSTRY ANALYSTS’ UPCOMING CONFERENCES

We are sponsoring SIA’s Contingent Workforce Summit and the Risk Forum again this year.  We will have a large group of WorkforceLogic staff attending the event October 4th-6th.  We will be hosting a select group for a special dinner event!  If interested, please contact Courtney Dickson @ cdickson@workforcelogic.com.

INTERNATIONAL EXPERTISE NOW!

We have established a new limited partnership with 90+ international experts through iWorkGlobal.  Our participation will be led by Jeff Phelps, who recently returned to the NFC fold after a short absence.  This offering will support WorkforceLogic and their multi-national customers.

KUDOS TO SPECIAL FOLKS!

… Bruce Schumikowski for landing LinkedIn, our most recent new WFL account.

… Glen Tolleson and Cathy Wingate for expanding our business relationship within Cox Communications.

… Craig Nelson and Karen Randall for hosting Nelson Staffing clients in the special suite at the Niner-Seahawk game.

And, Bev Abernathy and her exceptional AR team for continuing to reduce the DSO on the receivables.

PERSONAL

I spent last Sunday on the sidelines of the Niner-Cowboy pre-game (a TREAT) and then lived and died through the OT disaster!  I am still convinced that Harbaugh will take us to the promised land..sometime soon!  Keeping the Faith!

Unbroken, a World War II True Story of Survival written by Laura Hillenbrand is spellbinding.  I suggest you read this soon to better appreciate the many unsung US military heroes who have gone before us so we can enjoy the freedom we experience every day!

More Later!

Gary

The Nelson Family of Companies (NFC) had 2011 first half revenues of $233.M a 24.7% increase over the same period last year.  WorkforceLogic (WFL) had gross revenues of $167M and the Nelson Staffing Groups had $55M in revenue.  Both were up 24.7% over the same period in 2010.  The rate of growth year-over-year slowed in the second quarter as demand slowed slightly compared to the prior 18 months.

LINKEDIN Awards MSP/VMS Management to WorkforceLogic

After a thorough and competitive RFP process, LinkedIn selected WFL to manage their global contingent workforce program.  In addition, WFL will provide compliance and payroll services to this leading high technology firm.  

“TRENDING UP” SEMINAR on AUGUST 24th in NORTH BAY

Nelson is hosting the Rohnert Park seminar on 2011 economic trends and effective ways to retain employees in this new competitive environment.  This is scheduled from 8:00 am to noon and is free to all clients and interested parties.  To reserve space, contact the local Nelson office or email Dawn Garzoli at dgarzoli@nelsonhr.com.

49′ER 2011 SEASON IS ON with NELSON Selected as Preferred Staffing Provider

The season will include major radio and in stadium advertising and promotion of the partnership between the local professional football San Francisco team and the Nelson Staffing groups.  The radio ads will run on KNBR during the season… with yours truly as company spokesperson!  Stay tuned!

NORTH BAY HEART SELECTS CRAIG NELSON AS CHAIRMAN

This major fundraiser kicks off with a walk on August 21 at Howarth Park in Santa Rosa.  The second event is in San Rafael at McInnis Park on September 17.  Please plan to join us at one or both events.  It is always a great time for a great cause.

ZAMZYK, CLEWES, GUSTAVSON, AND RADO – Key New Hires for the Company

Jeff Zamzyk joins as Senior Vice President of Business Development for our exciting new company… iWorkGlobal.com.  This new NFC division, reporting to Craig Nelson,  provides compliance and payroll services with international coverage in over 90 countries.  Check the website for more information!

Kristin Clewes and Debra Gustavson have joined WFL. Clewes is Vice President of Business Development and Debra is a Director in the mid-section of the US.

Tony Rado, Vice President of Nelson Interactive, and will continue to bolster this gaming specialty division for the NFC. 

PERSONAL RECOMMENDATIONS & PREDICTIONS

My summer reads have all been poolside mysteries…”Lost Light” and “Black Ice” by Michael Connelly and “The Lazarus Vendetta” by Robert Ludlum.  All three worth your time.

“Billy Elliott” the musical now playing in San Francisco and New York City is a definite MUST SEE!  We saw this great Elton John musical in London a few years ago.  We will go for the second time soon!

I am on record as predicting the San Francisco Giants win the West and get into the playoffs again this year.  Getting beyond that…is anyone’s guess!

I am also predicting the Harbaugh lead SF 49′ers win the NFC West… REALLY…  just because Nelson is now aligned with them and we make the difference.

More Later…

Gary

Bay Area News Group Announces 2011 Survey Results

In the employee-based survey of Bay Area companies conducted by Workplace Dynamics, Nelson Family of Companies was ranked one of the Top Places to Work.  The rankings were based on surveys collected by this independent company specializing in employee engagement and retention.  The calculations were based on company leadership, compensation, training, career development, diversity, family-friendly inclusion, and values.

I am very proud that our company has been recognized as one of the top places to work.  Having strong and tenured talent on our staff has positioned us well to serve the customers of the Nelson Staffing groups and WorkforceLogic.

Mac Tully, President of the Bay Area News Group publications says, “Despite the challenges of the economy, the Bay Area continues to set the standard for progressive companies such as Nelson, which provide positive, enriching work experiences for their employees.”

WORFORCELOGIC IS A TOP MSP ACCORDING TO HRO TODAY

Customer Satisfaction for Managed Services Program Ranks WFL in Bakers Dozen

HRO Today ranked WorkforceLogicamong the top 12 Managed Services Providers (MSPs)  in the country out of a field of 198.  This prestigious award, called the Baker’s Dozen, annually recognizes the key players in the global contingent workforce industry based on customer satisfaction surveys.  WorkforceLogic’s MSPwas ranked in the top four of the 198 in the MSP field in the “breadth of service” category.  Ranking this high in breadth of service shows that our program meets the varied needs of our clients.  Few others can claim a 15-year track record of providing services that include vendor management SaaS, on-site managed services, compliance, and payroll services.

This is the second year HRO Today has listed WorkforceLogic in their second annual MSP Baker’s Dozen survey.

Facebook, NetApp, Clorox, Hitachi Data Systems, Sony, Yahoo!, BNP Paribas, eBay, and Cox Communications are just a few of the highly respected companies who provided input evaluating WorkforceLogic’s MSP program.  This recognition follows on the heels of the earlier 2010 SIA report that ranked WorkforceLogic a “Top Performer VMS/MSP,” one of only five US firms so recognized.

BUSINESS SLOWS SLIGHTLY IN THE SECOND QUARTER

Fast-paced growth starts to flatten over the past 90 days.

The year-over-year growth in revenue and gross profit we have experienced in 2010 and the first quarter of 2011 has started to slow.  Although we are still seeing improvement year over year, the rate of growth is less.  This may be the result of a diminishing level of consumer and business confidence, the US reaction to the tsunami impact on the Japanese economy and nuclear energy issues, and/or the domestic concerns related to the US Federal debt limit issue.  Demand for staffing services remains solid.  The supply of quality talent is beginning to be a challenge for all companies and staffing firms.

GARY’S PERSONAL UPDATE

I apologize…

I have been remiss in blogging for several weeks!  I will be in Brazil and Peru the next two weeks for a brief holiday and a family wedding in Lima… then London in mid-July on business.  I promise to blog more frequently!

RECOMMENDATIONS

I am reading the Kurt Wallander detective series by author Henning Mankel this summer.  Wow.  A Danish Stieg Larsson-type author.

Marcia, my wife, is reading too.  For the parents of teens, she recommends Anne Lamott’s Imperfect Birds. Regarding Chinese immigration issues, try Jean Kwok’s, Girl in Translation.  And for Japanese internment WW2, try Jamie Ford’s Hotel on the Corner of Bitter and Sweet.  All fabulous reads she says.

Thanks all!

More later,

Gary

Nelson Family of Companies (NFC) had $117MM first quarter revenue this year, an increase of $34MM over 2010.  WorkforceLogic (WFL) had a 46.5% Q1 improvement year-over-year and our combined Nelson Staffing groups had a 28% increase in revenue compared to 2010.  This outstanding performance is a direct result of the quality teams we have in place in the entire organization. 

US Temp Help Up 12.4% in Q1 2011

The US Bureau of Labor Statistics (BLS) reported a 12.4% Q1 increase year-over-year and a 12.5% increase in March compared to last year.  The Nelson Companies surpassed both these quarterly and March averages by a significant margin. 

Manpower Reports 22% Increase in Q1 2011

J.P. Morgan reported on Thursday that the Manpower Group had revenue growth of 22% year-over-year.  The US was up 56% year-over-year including acquisitions (+14% organic).  Manpower management is projecting Q2 2011 revenues to increase 10-12% year-over-year. 

Q2 2011 Forecast Still Positive

According to The Palmer Forecast, “demand for temporary workers in the US is expected to increase 12.4% on a seasonally adjusted basis for the 2011 second quarter when compared with the same period in 2010.” Greg Palmer, founder of G. Palmer and Associates, says “it is clear that the flexible labor markets are showing signs of continued improvement, when compared to historical sequential and year-over-year trends.”  Palmer said the persistently high unemployment rates (8.8% in March) continue to have far reaching effects across a broad spectrum of workers.  He added that he expects unemployment to remain stubbornly high for the foreseeable future. 

SIA Temp Staffing Revenue Benchmarks

How much revenue was generated by suppliers of temporary staffing in 2010?  Staffing Industry Analysts (SIA) estimates U.S. revenue of $80 billion this most recent year, representing a 12% increase from 2009.  After major cuts to contract labor in 2009, companies have ramped up their use of temporary staffing this past year.  The 2007 high-water mark was $98.9 billion that then decreased to $71 billion in 2009.  SIA projects that by 2012 the US temporary market will make up $97.3 billion, near pre-recession levels. 

Las Vegas… Here We Come

The NFC Chairman’s Club members (top 10% of the company) head to Vegas mid May to celebrate.  The Venetian Hotel and Resort is our home away from home!  LinkedIn will be the key note speaker for the team.  Headline acts from Cirque Du Soleil and the Jersey Boys will entertain us along with feasts “fit for the stars” at top level restaurants! 

WFL Offers New Business Intelligence Reporting… Information is Power

Cognos provides outstanding reporting capability for clients… and WFL now offers this enhanced feature set. Training is available through our client services team or contact Tricia Baker (tbaker@workforcelogic.com) in Sonoma. 

WFL Achieves Gold Partner Status from Microsoft Again

•  Gold Independent Software Vendor
•  Silver Software Development

Achieving the Gold ISV recognition was no easy feat this year.  Besides needing a certain number of Microsoft Certified Professionals on-staff, we were required to solicit customer recommendations and subject the WFL application to a rigorous Certified for Windows Server 2008 R2certification test performed by VeriTest. 

Of course, it was a team effort to do this, but special thanks must go to Luke Doss. There’s no way we would have achieved the Certified for Windows 2008 R2 certification without his hard work and mastery of tools we had to do this test. 

Other people who were instrumental to getting this done, through direct contribution or encouraging and promoting this effort:  Jake Smith, Eric Edelstein, Brandon Crowell, Stuart Thompto, Glen Tolleson, Alex Stoopenkoff, Bruce Schumikowski, Kendall Lohrmann, GGK (big help), plus our awesome MCPs in WFL Development and IT.   This is an awesome accomplishment! 

Nelson Expands to Austin, Texas

Nelson Staffing and Nelson Technology are operating in Austin as we speak!  Hiring Nelson staff in Texas provides coverage for the technology and interactive sectors that are specialties of our family company.   

Sacramento Seminar on Economic Insights & Retention

Nelson Staffing is hosting an educational seminar in Sacramento on May 11^th.  It is a complimentary seminar for clients and prospects focusing on social networking, economic insights, and retention strategies.  Contact your local Nelson office or Dawn Garzoli (dgarzoli@nelsonhr.com) for details. 

Nelson Technology Sees Demand for FTE Talent at a Peak

Open full time employment (FTE) job requisitions represent over 35% of the current openings.  The sectors driving this hiring frenzy include web development, social media, mobile, and cloud/web services.  Internalization projects, business intelligence and analytics are seeing significant growth as well.  

Good Stuff from Littler

The recent 2011 Littler Employer conference in Phoenix was a tremendous success.  Garry Mathiason was the highlight… again!  Do not miss this event next year. Jeff Phelps, Melissa Oliva (WFL), and I hosted a wonderful opening night dinner.  Joining us were Shanti Atkins (ELT), Erik Vonk (BOTH), Margie Lee (SONY), Meryl Rosenthal (Flexpaths), and Debbie Raike (Lemo) as our special guests. 

Book Review Corner

“Blood and Thunder” by the author Hampton Sides, provides a wonderful biography of Kit Carson with great insights on how we handled (or mis-handled) the Navajo Indian populations at the time.  This insider snippet is from John Brady, our long-time NFC Board member. 

More later, 

Gary

Hours Volume increased substantially and was up 27% in Q1 2011 over the prior year!  Nelson’s Staffing groups were up 11% over Q1 2010 and WorkforceLogic (WFL) was up 38% year over year.  This significant improvement over last year surpasses the industry wide year-over-year 12.5% March increase and the February increase of 12.8% over the prior year.

SOLID GROWTH PREDICTED IN 2011

According to JP Morgan, “US flex staffing is now facing more difficult year over year comps, as industry growth restarted in February 2010. We believe flex staffing is now on a solid growth track.  We remain constructive on the outlook for the flexible workforce in April and further out, as we believe a conducive economy and enhanced secular adoption will drive industry growth through the year.”

Flexible staffing as a percentage of total non-farm payroll increased to 1.73% since the June 2009 bottom of 1.34%. The penetration rate will continue to grow according to JP Morgan as the memory of the recession continues to spur business to look to flex staffing as a source of agility in an uncertain economic environment.

49ERS SELECT NELSON STAFFING AS OFFICIAL PRIMARY PROVIDER OF TEMPORARY STAFF 

The San Francisco 49ers organization selected Nelson Family of Companies (NFC) to provide flexible staff over the next four seasons.  The agreement was announced last week by Craig Nelson and Tony Bartenetti.  The selection was made by the professional football team from four finalists.  The company will be  cooperating with the team in promotional and public relations activities beginning this summer.

NELSON EVENT ATTRACTS A CELEBRATORY CROWD

This year’s attendance at the companywide All Hands Meeting was an all-time high as we gathered in Sonoma to celebrate 2010 results… the best financial year in company history!

The top 10% of company NFC staff, “ The Chairman’s Club,” was announced and will be whisked off to a much deserved weekend in Las Vegas mid-May with spouse or partner!

CORE FAMILY VALUES INTEGRATED IN THE WAY WE DO BUSINESS

The family shareholders introduced an initiative to re-energize and integrate our core values into the way we do business.  The values were rolled out as part of the awards previously honoring exemplary employees/family who exemplify these values:  Laurie A. McGuinness, Lucy D. McIntosh, Mike Jordan, and me, Gary D. Nelson.  Streamlined and powerful in word and as deeds the NFC values are: EXCELLENCE, INTEGRITY, EMPATHY, and INNOVATION.   

The 2010 winner for Excellence is Laura Phaby; for Integrity, Sherrie Sherman; for Empathy, Nancy Mellor; and, for Leadership and Innovation, Laurie Hearne.  These employees, members of our TNT, our Nelson Interactive Team, and our many returning former employees are part of the ground swell that are re-energizing NFC from the inside out.  Look for these values in everyone and in everything we do.

NELSON TECHNOLOGY IS HOT!

The Nelson Technology Center of Excellence achieved Tier One status at Facebook and has had 90-100% coverage at SONY, Adobe, and Hitachi.

Nelson Technology has had a 96% fill ratio on all non-VMS temporary business.

DIRECT HIRE IS UP 50% YEAR OVER YEAR

The demand for full-time staff continues to heat up as the number of orders ramps and hiring managers are responding more quickly to obtain the talent real time.

WORKFORCELOGIC OPENS INDIA SERVICE CENTER

To better serve our WFL multi-national companies requirements, we have hired staff in India to compliment the Ireland and London based staff to oversee the MSP operations under the guidance of Cathy Wingate.

Back home from London where I visited my new granddaughter, Lulu (real name Alexandra)!  I also  met with Skillstream CEO, Steve Lucas, for dinner at JSheeky. Lucas is a mentor and model for how he built his UK-based VMS business.  I can only hope we match that success in the next few years.  If you are in London and get a chance to see the production by the National Theater of Frankenstein.. run, don’t walk, to get a ticket!  It is truly amazing.

PREDICTIONS

• 49ers in the NFC playoffs the next four years!
•  San Francisco GIANTS come back from a terrible start to take the NL West!

ACADEMY AWARDS

I was right about Kings Speech and Colin Firth… missed on Geoffrey Rush!

Film Festival in Sonoma this weekend.  That’s where you’ll find me… no surprise there.

More later!

Gary