IT mergers and acquisitions on way to record year

IT mergers and acquisitions are set to skyrocket.

The global value of publicly disclosed technology-related mergers and acquisitions was $396.4 billion in October, according to a report by Ernst & Young. M&A in the industry is on track to beat the 2000 record M&A value of $412.4 billion.

Some 45 percent of the executives surveyed said that they planned to actively pursue acquisitions in the next year, and 80 percent predicted global M&A will flourish in 2016.

October was the most profitable month of the year for tech company buyers, IT World reported. The largest deals were the $67 million purchase of EMC by Dell and the $19 billion acquisition of SanDisk by Western Digital.

The growing use of mobile, cloud and big data technologies in business is spurring the increase in M&A, IT World reported. Network systems and storage hardware are combining, and mobile devices are changing the ways software and applications are developed. With all the changes, innovative tech companies that can bring business systems up to date are in high demand.

"While digital disruption is not a new story, we have clearly entered a new chapter in its impact on M&A," said Ernst & Young global technology industry leader Jeff Liu.

A record 1,069 publicly disclosed mergers and acquisitions were made in the third quarter of 2015, marking the seventh consecutive post-dot com bubble record for technology deal volume, according to IT World.

Partially driving the boom is a growing number of IT businesses buying non-tech companies, the source reported, citing IBM's acquisition of assets from the Weather Company for its Watson platforms. More traditional industrial companies are also buying IT companies to strengthen their analytics and improve profit margins.

The Trevi Group
www.thetrevigroup.com

Video: The Recruiter's View - The Labor Market Outlook for 2016

For more information, view the full "The Recruiter's View: The Labor Market Outlook for 2016" article by clicking here. - See more at: http://www.thetrevigroup.com/new-blog/2015/12/2/the-recruiters-view-the-labor-market-outlook-for-2016-see-video

The Recruiter's View: The Labor Market Outlook for 2016

The U.S. labor market continues to expand, and in 2015, 230,000 new jobs has been the monthly average through October. Many companies are in growth mode, focusing on key strategic hires to support this expansion. At the same time, a great deal of attention is being placed on engaging and retaining top performers that will ultimately join forces with new hires to build stronger, more dynamic teams. Despite this focus on harnessing quality, skilled talent, companies are finding that recruitment and retention is increasingly problematic, especially in the executive, managerial and professional sector. This is due to the candidate-driven market, an environment in which top candidates have the upper hand because of more available job opportunities and a growing shortages of highly specialized talent. As high performers have multiple job offers to consider and the ability to reject less desirable work opportunities, employers are faced with making fundamental changes to their recruitment and talent management strategies to gain greater access to the brightest talent in 2016 and beyond.

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New data from the most recent MRINetwork Recruiter Sentiment Study, a biannual employment landscape survey of MRINetwork recruiters across approximately 600 worldwide offices, indicates that the candidate-driven market, which has experienced a consistent uptick since 2011, is at an all-time high. Remaining unchanged from survey findings in the first half of 2015, 90 percent of respondents feel the executive, managerial and professional sector is candidate-driven.

Additionally, top performers continue to reject job offers. Forty-four percent of participants listed “accepted another offer” as the primary reason for offer rejections, up from 37 percent in the first half of 2015. Low compensation packages and counteroffers were also top reasons for turndowns.

The candidate-driven market and offer rejections are nothing new. However, as companies increasingly concentrate on recruitment of skilled, strategic talent, they face the dilemma of properly vetting candidates, while also creating a streamlined, engaging applicant experience that top candidates have come to expect. Then add to that the need to engage and retain top performers. With more employees looking for new opportunities and companies forced to prioritize their retention efforts, recruitment must now compete with retention, despite the desire to bring on new talent.

There are possible signs of recruitment slowing behind retention, when we look at how long it takes to get an offer. In previous years of the survey, recruiters reported that most offers were being extended between 1-4 weeks of the candidate’s first interview. In the most recent survey, recruiters say job offers are now being presented between 3-6 weeks. Additionally counteroffers are rising, up two percentage points from the first half of 2015. These trends have emerged, in spite of recruiter recommendations since 2011 to expedite the hiring process and provide more competitive compensation packages to avoid losing “A” players.

So what will employers need to do differently in 2016?

Create a more candidate-centric experience that demonstrates interest in the incumbent vs. just trying to see how interested the applicant is in the organization.

“Candidates want quicker and simplified ways to apply for openings and go through the interview process, yet employers and HR departments make the simple process of applying for one of their openings more complicated”, said a recruiter responding to the study.

Consider the entire hiring process from the candidate’s stand point, from the time they apply for the position to the start of onboarding.  What does the process look like when you consider the level of interaction and communication from your staff? What does it say about the organization, the company culture and the work environment that the future hire can expect? Above all, what lasting impression does the process leave with candidates?

Compensation is important, but advancement opportunities lead. When evaluating a potential job move, top candidates are primarily focused on their future employer’s ability to provide opportunities for them to move up within the company, both immediately and in the future. In fact, according to the survey, almost half (45 percent) of recruiters felt advancement opportunities would be the most important consideration for candidates looking to make a job move in 2016. While counteroffers may temporarily help you keep key employees on board, these individuals will eventually leave, if this is the only thing keeping them there.

Engage employees by making career-pathing part of your company culture and value proposition.

Career-pathing takes advancement opportunities to the next level by mapping out a long-term plan for each employee’s incremental progression to new roles within the company. Providing fun things like cool technology, flexible scheduling and employee appreciation events are great, but ultimately your top performers will leave if they see there are no real opportunities for upward mobility. Making career-pathing a fundamental part of your talent management strategies and promoting it in the interview process can reduce some of the time and effort spent on retaining key employees, enabling you to spend more time on growing your teams.

Prioritize succession planning now.

You know your baby boomer employees will eventually retire, however their departure appears to be accelerating. According to the survey, vacancies from retirement grew to nine percent, up four percentage points since the first half of 2015, and after remaining relatively static in previous years. It’s clear that the more senior members of your staff are beginning to feel more confident about retiring. Now is the time to begin grooming key staff members who can become the company’s future leadership.

All signs point to 2016 being a pivotal year for recruitment in the executive, managerial and professional space and potentially the overall labor market. The insight and trends that recruiters have been observing the past few years, in regards to the candidate-driven market, are coming to light across virtually all industries and sectors. If employers truly want to expand their teams, and not feel burdened by retention issues, they will need to create modern, full cycle practices that look at recruitment and talent management strategies as an inter-connected process, rather than two separate efforts.

> Click here view the complete study. 

The Trevi Group
www.TheTreviGroup.com 

Employment Summary for October 2015

The latest Employment Situation Summary from the U.S. Bureau of Labor Statistics revealed that the nation experienced significant job growth during the month of October. The overall unemployment rate dropped from 5.1 percent to 5 percent.

Gains seen in a variety of sectors

According to the report, total non-farm payroll expanded by 271,000 jobs last month, above economists projections for 200,000 new roles. The sector that added the most positions was professional and business services, which increased its workforce by 78,000. About 46,000 of these jobs were in the administrative and support services field, while computer systems design and related services and architectural and engineering services added 10,000 and 8,000 jobs, respectively.

Healthcare expanded by 45,000 positions, many of which were in the ambulatory care services and hospitals. The retail sector created 44,000 jobs, largely due to clothing and automobile retailers. Food and beverage businesses created 42,000 jobs, while the construction industry grew by 31,000 positions.

Some industries that experienced little or no change to their workforces include wholesale trade, transportation and warehousing, manufacturing, information, financial activities and government.

Strong report increased likelihood of Federal Reserve rate increase

According to The New York Times, October's report is strong enough that the Federal Reserve could be inspired to raise interest rates in the near future. The news source explained that an unemployment rate of 5 percent is close to what many economists consider "full employment," which is typically accompanied by a Fed evaluation. However, the Fed has treated the post-recession economy with an extremely gentle hand, so rate hikes are not guaranteed despite October's positive showing.

The issue will likely be raised at the Fed's Dec. 15-16 meeting, noted the Times. The quality of November's report will be a major deciding factor.

The Trevi Group
www.TheTreviGroup.com

Attracting Talent with Public Relations

Public relations, or PR as it's often called, is something we've all heard of but what does it really mean? Frequently companies think that PR should be leveraged to promote company news; everything from new hire announcements, office openings and website launches, to new products or services, and mergers and acquisitions. While some of these events may be deemed newsworthy, PR is most powerful as a tool to raise a company's profile, communicate the brand and culture, and continually position internal experts as industry thought leaders. Most importantly, when public relations is leveraged effectively, employers can extend their ability to reach top candidates and attract them into their organizations. All too often, this is an opportunity that is missed when it comes to recruitment and hiring, because many companies only focus on archiving as many "look how great we are" press releases on their websites as they can.

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So how does PR work and how can companies use it to entice top performers? Press releases are what most people think of when it comes to PR, but in actuality this is just one of various tactics that can be used to gain media coverage and communicate a compelling message. Additionally, PR is often mistaken for marketing, with the expectation that there will be a dotted line to a sale or new business. "Companies that are most successful with PR understand that at the core, PR is a public service, the purpose of which is to educate and connect with the community at large," says Nysha King, media relations specialist for MRINetwork. "Working in concert with marketing, the focus of PR should not be on self-promotion, but instead on the insight that the organization can provide, and how this information contributes to an ongoing dialogue, creating consistent, positive messages and stories about the company. These messages work over time to create a positive perception of the organization, ultimately making clients and prospects more receptive to engaging in business transactions, while also piquing the interest of 'A' players who could potentially work for the firm."

King offers the following tips for companies looking to attract talent with PR:

Seek out opportunities to discuss industry trends, challenges and projections for market activity. Contributing an article, submitting recent research findings and speaking at an industry conference are all ways that employers can offer up industry knowledge and different approaches to work that will raise their organization's profile. These efforts can start with a simple pitch note to the editor, or a proposal to the events committee. Top candidates want to work for companies that are innovative and forward thinking; media coverage provides the opportunity to leverage thought leadership that can be enticing to prospective hires.

Showcase your company culture. Whether it's through social media or company ambassadors, one of the best ways to communicate what it's like to work at the organization is through employees. Capture fun events and unique aspects of the office environment that demonstrate why it's a great place to work. Then post pictures and describe what is being depicted on social media, the company website and other external communication vehicles. Additionally, identify high performers who can represent the organization and share their unique stories via career spotlights or contributed articles in publications.

Partner with other organizations on initiatives that complement your business focus. Engaging in philanthropy or other projects that align with the company's mission is a good way to demonstrate goodwill. Collaborating with associations and institutions that may benefit from the organization's expertise on a volunteer basis, provides a softer, human element that provides more depth to the company culture which can be especially appealing to candidates. Today's talent are increasingly focused on working for employers who are ethical and display a commitment to meaningful causes.

Manage your reputation on employer review sites. At some point, you're bound to receive poor reviews from disgruntled former employees, on sites like Glassdoor.com. Get in front of these reviews by responding to any negative information and presenting the company in a more positive light. In your online posts, admit to any past challenges and discuss how the organization is working to improve these areas. Many times, just the simple acknowledgement of an issue diffuses the situation and demonstrates a company's integrity.

Whether a company is big or small, media coverage is something that every organization can successfully pursue to attract and recruit top talent. "Employers must first identify what they want to convey about their culture and then determine the available resources to disseminate this information through consistent messaging," adds King. "Once this is established, employers can create and roll out manageable PR strategies that communicate why the organization is a great place to work."

The Trevi Group
www.TheTreviGroup.com  

Employment Analysis Summary Report -- for September 2015

The September Employment Situation released by the U.S. Bureau of Labor Statistics was a bit disappointing, with lower than expected job growth and an unchanged unemployment rate.

A total of 142,000 jobs were added in September, much lower than the average monthly gains seen over the last 18 months, and below economists’ expectations for 200,000 new jobs. The unemployment rate remained at 5.1 percent. The civilian labor force participation rate fell slightly, dropping from 62.6 percent to 62.4 percent. The amount of workers taking part-time jobs for economic reasons, also decreased by 447,000.

Small gains occur across major industries

The sector that experienced the most growth was healthcare, which added 34,000 jobs. Within this field, hospitals and ambulatory care services accounted for most of the gains. Information added 12,000 jobs in September, while food services payrolls expanded by 21,000 jobs. Business and professional services added 31,000 jobs, with most new positions appearing in the computer systems design and legal services subsectors. Retail hiring was also on the rise, as the field created 24,000 new jobs, mostly in general merchandise stores and automotive dealerships.

Manufacturing, construction, wholesale trade, financial activities, transportation and warehousing, and government all showed little or no change throughout September. Employment in the mining industry was once again on the decline, losing 10,000 positions over the course of the month. Average hourly earnings fell by $0.01 to $25.09. This slight decline comes after August's gain of $0.09.

Lack of major growth raises concerns

Despite many economists’ belief that the September job report shows the U.S. economy is weakening, others feel employers are temporarily holding off on hiring as a result of recent turmoil in the financial market. According to Fortune, job growth for all of 2015 is still hovering around 200,000 per month, which is quite strong. However, the source explained that the data should give pause to anyone hoping to claim that the U.S. economy has reached escape velocity.  The New York Times added that the uncertainty caused by the July-September job reports will likely inspire the Federal Reserve to hold off on increasing interest rates until next year, though earlier in 2015 they were expected to go up in the fall.

The Trevi Group
www.TheTreviGroup.com

Leveraging Modern Communication Methods to Engage and Build Company Culture

Your organization has accomplished the hard task of attracting and bringing A-players on board. Now how do you keep them? That's a question that companies face more and more, as confidence builds in the labor market, and top performers feel more comfortable about making job moves. A focus on internal communications has become increasingly important as a way to connect and engage staff, and ultimately build a desirable company culture that encourages high-performance and instills the brand from within. Modern communication methods and tools are helping pave the way in this effort.

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There is nothing new about the concept of internal communications. Most organizations use the same basic methods to communicate information across the company, whether it's an employee publication or intranet, memo or all hands meeting. What differs among companies is how these tools are leveraged, both to keep the lines of communication open, and to maintain an enthusiastic and positive outlook about the organization. "Companies that are most successful with internal communications use a strategic approach across multiple platforms - it's not just about communicating company announcements but making a concentrated effort to define your culture," says Scott Bass, director of marketing & communications for MRINetwork. "When modern, interactive communication methods are incorporated into the process, employers increase their ability to engage staff and create an environment where people are 'checked-in' as opposed to 'checked-out' at work."

Bass provides the following insight to companies looking to engage with modern communication tools:

Extend communication through internal social platforms. The success of social platforms like Facebook and Twitter can have a similar impact when used internally. Internal social networking tools like Yammer provide employees with a quick way to share positive company news, recognize the contributions of individual staff, and collaborate on projects, with the added ability to include pictures, documents and videos. It also breaks down physical silos, exposing employees to other parts of the company they would not normally get to see.

Augment traditional company-wide meetings with video and audience polling tools. Company-wide meetings are a quick way to communicate information from the top down, but they can also become routine and mundane. Bring to life the leaders of your company and others through brief video messages or webinars. There is only so much passion that can come from a static text memo or audio conference call. This does not have to be produced by expensive, professional video companies. Most modern mobile devices have high-quality recording capabilities and available easy-to-use editing apps that are more than appropriate for an internal communication. In addition, polling tools, such as Poll Everywhere, can help invigorate meetings by expanding the capacity for a two-way conversation, and showing staff their opinions matter by letting them vote on topics, instantly showing their feedback in real time.

Involve all levels of the organization in your communication strategy. Antiquated communication methods that just focus on a business leader addressing the organization do not lead to desirable results. Highlight successful individuals in the organization and have them lead meetings or draft communications. Allowing them to share insights and best practices about their daily routines will not only help others become successful, but bring to life the personality of your company. This will also create recognition opportunities for your top performers, as they will now be perceived as the "celebrities" within the company creating even more stickiness.

Share highlights of your communication methods with clients. Companies prefer to do business with forward-thinking, modern organizations where employees have a sense of pride. Your company culture can be a major differentiator when competing. Summarize your company culture, along with your communication methods that drive it, in sales presentations. Share examples of your communication methods to not only highlight this competitive edge, but to motivate other organizations to do the same. This "behind-the-scenes" look at your company will result in stronger relationships with clients, exposing the human-element behind your company.

Implement communication tools that fit your business. Ultimately, no matter how fun or cool modern communication methods may seem, consideration should be given to whether they are right for the company culture and size. Focus on technologies that present the most potential for improved interaction, excitement and discourse across the company that will support business objectives.

Technology is enabling companies to breathe new life into standard internal communication methods like never before. "Leveraging these platforms in a meaningful way is increasingly becoming necessary to drive employees to become active participants in the work culture," adds Bass. "While modern communication methods are not a fix all for talent retention, they are key in creating an enjoyable, engaging work environment that provides top performers with one more reason to stay."

The Trevi Group
www.TheTreviGroup.com 

Florida adds jobs in August

Florida experienced job growth in August, adding over 15,000 positions. 

According to the Sarasota Herald Tribune, this was an improvement over July, when the state created just over 13,000 positions. August's figures were not as positive as June's numbers, however, which revealed a growth of over 21,000 positions. Still, the state's payrolls expanded in a number of sectors.

Significant growth was seen in the service-producing industry, while additions in the goods-producing field were not as notable. The source reported that trade, transportation and utilities added 3,700 positions while the professional and business services sector expanded by just under 3,000 new jobs. Construction and manufacturing added 300 and 500 workers to their payrolls, respectively. 

The Tampa Bay Times reported that although Florida failed to hit the impressive marks it set in June, it remained a leader in U.S. job growth last month. The coastal state was within the top three states in terms of actual jobs created, and within the top 10 for job growth percentage based on population. It was an integral part of why the South had the highest rate of private sector job growth over any other U.S. region in August, explained the Sarasota Herald Tribune. 

The Trevi Group
www.TheTreviGroup.com

Job growth on the rise in California

California's labor situation improved in August.

The Los Angeles Times reported that the state created over 32,000 new jobs, causing the jobless average to tick down to 6.1 percent. This shift represents a drop of 0.1 percent from July's figure. The source noted that California added more positions to its payroll last month than any other state. Florida earned the No.2 spot in this area, creating just under 20,000 jobs. 

The government sector added the most jobs, expanding its workforce by over 31,000. Leisure and hospitality added 10,600 positions, while trade, transportation and utilities created 7,900 jobs. The information field increased its payrolls by 1,000 positions, while education and health services added nearly 4,000 jobs. The Associated Press reported that certain areas still sustained losses however, including professional and business services, mining and logging, other services and manufacturing. 

California's unemployment rate is now at its lowest average since the beginning of 2008, explained the source. Over the past 12 months, the state's jobless rate has fallen by 1.3 percent. There has also been a significant reduction in the amount of residents receiving unemployment benefits as more Californians are securing gainful employment.

The Trevi Group
www.TheTreviGroup.com

Does Your Company Have the Cool Factor?

Every organization wants to be considered a "Best Place to Work" in order to attract and retain top talent, yet there is no cookie cutter formula for achieving this. Many factors go into making your company a great place to work such as company culture, employee benefits, and other perks. One thing that remains constant among the most desirable employers is the "cool" technology factor. As companies increasingly focus on providing more enjoyable work environments and improving employee engagement, technology is playing a key role in championing those efforts. This is becoming especially important for attracting top millennial talent, as technology and the flexibility, creativity, and efficiency it can bring is extremely valuable to them.

First Friday Preview - September 2015 from MRINetwork on Vimeo.

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Deciding when and how much to invest in the latest technology can be an arduous task for many organizations, and will depend greatly on the industry in which the company operates, as technologies can provide a different impact in manufacturing environments, for example, vs. an office setting. Typically the focus is on improving productivity and efficiency, and transitioning people away for doing things the way they always have for years. The process is often not fun and is met with resistance. However, when you consider the ability of technology to provide the "cool" factor of being a great place to work, it provides added incentive for employers to introduce new equipment and software.

So why is the technology push more important now than ever before? It really is a reflection of the highly digitized, mobile world in which we live, especially as more Millennials are entering the workforce and eventually maturing into greater leadership positions. "As the job outlook continues to improve, candidates are attracted to companies that incorporate the latest gadgets and technologies into daily work functions," says Reagan Johnson, director of technology operations for MRINetwork. "The best talent know their skills are in high demand, so an employer's ability to sell prospective hires on the flexibility, more efficient communications, and the fun these technologies will provide, is invaluable."

Johnson provides the following tips for companies looking to enhance their "cool" factor through technology:

Make it mobile. Today's professionals value the flexibility to do their job wherever and whenever, and mobile technology makes that possible like never before. Consider laptops or 2-in-1 laptop/tablets over desktops, so your talent don't feel shackled to their desks. These will provide the flexibility to take work into the conference room, the coffee shop, or home for those late night meeting preparations before an early day. Cloud technologies such as Office 365's OneDrive and Google's Drive make any document available on demand, for quick reference and use by backing it up online and making it available to smartphones and tablets. Voice communication tools are additionally available to make phone numbers mobile. A number, and the voicemail accompanying it, can be set up to ring through to more than just one employee’s desk. This further allows employees to have the flexibility to take and make calls from anywhere.

Make it slick. Technology should look modern and cool. For example, while a small light laptop looks very impressive, it can also be made easier to use in the office environment by pairing it with a docking station and a multiple-monitor setup. This enables the laptop to operate as a desktop, in a more ergonomic manner for the office. Done right, a multi-monitor laptop set up can be impressive to see, leaving a good impression on potential talent, and also provide great efficiencies while working in the office.

Make it about communicating. Today's top talent are very connected, social and are used to getting instant feedback on their performance and in their communications. Consider implementing an instant communication platform such as Skype. This technology allows instant communication in a controlled environment that speeds up results. In fact, younger professionals use email less and less and will prefer more modern options to communicate.

Embrace social media for your company's communications both internally and externally. Top performers looks for companies to be communicating via social media. Consider apps such as Yammer to build an internal social environment for your employees to share ideas and garner feedback. Millennials, in particular, value frequent feedback and evaluation and respond best to visual data. Business intelligence tools that provide visual graphic dashboards are a great way to communicate constant, instant feedback to your teams so they can strive to out-perform themselves.

Ultimately, what makes an organization cool or fun is a combination of many factors. "Technology is becoming a critical piece of the pie in terms of building an enjoyable, engaging company culture, while also sending a message to current and prospective clients that the company is a forward-thinking, modern business," adds Johnson. "Marketing efforts, as well as recruitment and talent management strategies, now require an emphasis on the "cool" technology factor to attract and retain top performers, and maintain brand equity with clients and investors."

The Trevi Group
www.TheTreviGroup.com