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Contract Employee's Newsletter
Helping Contract Professionals
Manage Their Careers
March 01, 2002
Edited by James R. Ziegler
A Companion to:
The Contract
Employee's Handbook
www.cehandbook.com
Sponsored by:
P.A.C.E. - Professional
Association for Contract Employment
www.pacepros.com
About The Contract Employee's Newsletter
The Contract Employee's Newsletter is a free e-mail publication
for technical and professional contractors containing news, commentary,
tips, links to useful resources, nuggets of wisdom submitted by
readers, and anything else that seems appropriate at the time. The
CENewsletter is distributed bimonthly or whenever issues warrant
and time allows. The subscriber list is confidential and will not
be disclosed outside this organization.
In This Issue
Read recent
issues of The Contract Employee's Newsletter.
Suggest A
Topic For The Newsletter
Ideas Anyone?
Thank you for your excellent suggestions for future newsletter
topics. Keep 'em coming. Chances are, if a topic interests you as
a Contract Professional it will certainly interest the majority
of our readers.
Guest Appearances
I would like very much to publish short guest contributions
to the Contract Employee's Newsletter. Maybe a marketing tactic
that works for you, or a true story of agency madness? I'll cite
your name, your e-mail address, and a link to your professional
website. I can't pay you, but I'll make sure that everyone who reads
the Contract Employee's Newsletter knows who you are and what you
do. It can't hurt, and, who knows, it might help your consulting
career. Contributions should be of general interest to all Contract
Professionals.
Mail your suggestions to suggestion@pacepros.com.
Return to Table of Contents.
Contract Employee's
Workshop
Here It Comes To Concordia University, Irvine, CA
The next CEWorkshop is scheduled for April 06, 2002 in Irvine,
CA, in the heart of Southern California's "Technology Coast"
and Orange County at beautiful Concordia
University.
The meeting room will accommodate only forty participants, so make
sure that you reserve your place early to guarantee a spot. There
will be a waiting list, and we will notify late registrants in the
event an opening becomes available.
When put into action, the practical information you receive in
the CEWorkshop can be worth tens of thousands of dollars in increased
earnings during the coming year. You cannot afford not to
register for this valuable workshop.
Visit the CEWorkshop
Information Page for registration information and directions.
Visit the CEWorkshop
Agenda to view topics covered during this valuable event.
In the meantime watch this space for details on upcoming CEWorkshops
in a community near you.
I am always open to your suggestions. E-mail your ideas and suggestions
for the CEWorkshop to Workshop@pacepros.com
Return to Table of Contents
News and Views
NAPSTRACK Legislative Quarterly Report
Today I am revisiting the NAPSTRACK Legislative Quarterly Report,
which I first reported on in the September
15, 2001, issue of the CENewsletter. Founded in 1961, the National
Association of Personnel Services (NAPS)
is the oldest association of its kind. NAPS represents 1800 staffing
firms throughout the United States in contingency and retained search,
direct hire, temporary staffing, employee leasing, and contract
employment. Services to member firms include education and certification
of staffing professionals and lobbying on behalf of the staffing
industry.
NAPS, itself, is of no particular interest to highly compensated
Contract Professionals. For one thing, the association represents
member firms that universally view the client as their only customer.
In other words, NAPS operates on the "wrong" side of the
fence. Second, NAPS members deal mostly with lower paid clerical
and light industrial workers.
Nevertheless, the NAPS website has one feature, NAPSTRACK,
that should be of interest to every Contract Professional that uses
recruiting firms to land contract assignments. The NAPSTRACK page
reports quarterly updates on the status of legislative and court
actions affecting the personnel services and staffing industry.
Below are some excerpts from the NAPSTRACK page dated January
2002. It is apparent from the court cases and pending legislation
that states are moving at an increased pace over previous years
in the general direction of requiring full disclosure of billing
rates, letting contractors seek higher wages and better benefits
at the same client through a competing agency, and requiring that
agencies offer decent benefits to their temporary employees. This
is good news for Contract Professionals who find work through recruiting
firms.
HAWAII
Pending Legislation
BILL NO.: H1963
SUMMARY: "Temporary Worker Bill of Rights" would
require staffing firms to post a list in their offices or at the
client worksite of all clients at which work is available, and for
each job opportunity, the staffing firm would have to provide the
rate paid by the client for the firm's services, the method of computing
compensation and benefits, the job description, and the length of
the assignment. Staffing firms would have to pay assigned employees'
wages and benefits equal to those of the client's employees. They
may not restrict an employee from accepting a permanent position
with the client, but may receive a "reasonable" placement
fee from the client.
STATUS: Not yet assigned to Committee.
[Ed. Note: This is a particularly far-reaching bill.
Bills of this scope are invariably defeated. Nevertheless, it only
takes the successful passage of one such bill to set a precedent.]
MASSACHUSETTS
Pending Legislation
BILL NO.: H2314, S484
SUMMARY: Caps rate for services provided by nursing pools
to licensed nursing facilities at 135% of the median salary cost
per hour for direct care nursing staff employed by nursing facilities.
STATUS: Passed Joint Healthcare Committee, to Senate Ways
and Means Committee.
[Ed. Note: This bill clearly is an attempt by the legislature
to limit the obscene profits made by temporary staffing agencies
that place nurses in licensed nursing facilities. I suspect, however,
that this type of law will have the unwanted effect of simply pushing
down the hourly wage paid to temporary nurses. A more effective
law would address the entire staffing industry, not just nursing
pools, and would require that staffing firms pay their assigned
employees wages and benefits equal to those of the client's employees.]
MINNESOTA
Pending Legislation
BILL NO.: H895
SUMMARY: Requires staffing firms to post a list in their
offices or at the client worksite of all clients at which work is
available. For each job opportunity posted, the firm must provide,
among other things, the rate paid by the client for the firm's services,
the method of computing compensation and benefits, a job description,
and the length of the assignment. Requires that temps be paid wages
and benefits equal to those of the client's employees. Firms may
not restrict the right of a temp to accept a permanent position
with a client, but may receive a "reasonable" placement
fee from the client.
STATUS: Missed 2001 deadline to pass Commerce Jobs and Economic
Development Committee. Bill not expected to be heard in 2002.
[Ed. Note: This bill is virtually identical to the Hawaii
bill, above.]
NEW YORK
Pending Legislation
BILL NO.: A3736, S801
SUMMARY: Requires employer fee paid placement firms to keep
certain records concerning job orders and advertisements for one
year, and not advertise for jobs for which they do not have on file
bona fide job orders without disclosing that fact.
STATUS: Assembly Consumer Affairs and Protection Committee.
[Ed. Note: Wow. What a concept. Staffing agencies could
only advertise bona fide job orders. Yoo hoo, Dice.com, anybody
listening?]
BILL NO.: A7428
SUMMARY: Requires staffing firm to provide temps with wages
and benefits equal to those of client employees if the employee
works for client for 90 days or more, disclose to employees the
rate charged to clients and post detailed job descriptions.
STATUS: Missed 2001 deadline to pass Assembly Labor Committee
- still pending.
[Ed. Note: New York ROCKS!]
OREGON
Recent Litigation
CASE: Volt Services Group v. Adecco Employment Services
COURT: State Court of Appeals
SUMMARY: In this "tempnapping" case, Volt sued
Adecco for taking over Nike account and 150 of Adecco's temps, each
of whom had employment contacts with Adecco providing they would
not work, directly or indirectly, for the client for 90 days following
termination of employment with Adecco. Appellate Court found that
the employment contacts were enforceable, and that 90 days was not
an unreasonable period of restriction. Additionally, the Court found
that a jury could determine whether the provision of the American
Staffing Association Code of Ethics amounted to an industry standard,
and whether it could be used to establish that Adecco used improper
means in obtaining the services of Volt's temps. The provision of
the Code of Ethics in question provides, among other things, that
in workforce transition cases, "assigned employees of the outgoing
firm should, whenever feasible, be allowed to continue working on
the payroll of the outgoing firm for some reasonable transition
period."
[Ed. Note: This case is similar to an earlier "tempnapping"
case in NH. See my discussion of that landmark NH Supreme Court
decision in the September
15, 2001, issue of the CENewsletter.]
PENNSYLVANIA
Pending Legislation
BILL NO.: S685
SUMMARY: Requires contingent workers to receive the same
wages and benefits as the client's full time employees.
STATUS: Senate Labor and Industry Committee.
[Ed. Note: Anyone beginning to see a pattern developing?]
TENNESSEE
Pending Legislation
BILL NO.: S303
SUMMARY: Requires staffing firms to pay assigned employees
wages no less than those of the client's employees.
STATUS: Introduced.
[Ed. Note: Yep. It looks like a pattern.]
WASHINGTON
Pending Legislation
BILL NO.: S5033
SUMMARY: Requires the staffing firm and its customers to
allow employees to inspect their personnel files.
STATUS: Senate Rules Committee.
[Ed. Note: This legislation is a direct response to the
practice by Microsoft of keeping personnel files on their agency
temps and contract employees. Microsoft is so stubborn. When will
Microsoft finally "get it" that treating leased workers
like their own employees only invites reclassification by government
agencies and the courts. Microsoft refuses to acknowledge that agency
temps are staffing vendor employees, and treat them accordingly
at arm's length. Yet Microsoft fights tooth and nail when there
is any attempt to reclassify agency temps as the company's employees.
See the discussion of Viscaino v. Microsoft in the January
01, 2002, issue of the CENewsletter.]
Return to Table of Contents
Marketing Tips
Use Press Releases To Boost Your Credibility As
A Vendor Of Consulting Services
Maybe you thought only big companies with sexy projects and compelling
corporate news submitted press releases? Think again. Businesses
of any size can use press releases effectively to make newsworthy
announcements and let the public know about new services and strategic
alliances. One-person consulting businesses can leverage press releases
to the max to enhance their professional standing and generate buzz
about their capabilities.
Effective public relations is a key element in the success of any
business. And press releases are one of the most effective ways
to get media coverage. Every business has something that
would interest the press.
Possible topics for your own press releases include:
- Pro bono work for a local church or charity.
- An interesting project with a client.
- New products, services, and capabilities.
- Special events and community activities such as participation
in local Chamber of Commerce programs.
- Joint projects with a strategic alliance partner, client, or
vendor.
- Class offerings and seminars given by you on topics related
to your skill set.
- Public speaking at professional meetings, conventions, and
conferences.
If something about your one-person consulting business is interesting
to you it will probably be interesting to others as well.
But even if the newspapers never write a story about you,
the press release itself is validation of your status as a bona
fide vendor of consulting services.
A press release written by you about one of your clients can be
just as powerful as a testimonial written by your client about you.
By bragging about your client, you are also bragging about the part
you played in your client's success.
Imagine the impact of a professional portfolio containing press
releases and news articles, letters of recommendation, status reports,
and samples of your deliverables, all of which validate the importance
and quality of your work. Now compare this with a boring, wimpy
resume and boring, standard, cover letter submitted, hat-in-hand,
by an out-of-work employee or newbie contractor.
All things considered, who would you rather hire for an important
consulting project? A Contract Professional with validation or a
desperate, out-of-work employee?
Here are some simple guidelines for writing and distributing your
own press releases.
Define your target audience
The first step in defining your target audience is to develop a
demographic profile. Who do you want to reach with your press release?
Your audience will consist of businesses and decision influencers
that would benefit by learning about your services. What vertical
market or markets? Where located? What size companies? Established
or startup? Nonprofit, private sector, or government?
What publications does your audience read?
Identify the publications that your potential clients are most likely
to read. Consider trade magazines, online newsletters, industry
websites, local business tabloids, and local newspapers. Make sure
that you send your press release to the appropriate editor for stories
in your area of expertise. And please do not spam your press release
to everyone with an e-mail address. Target your press release for
the most effective, positive exposure. Send press releases to your
professional network, and include the addresses of authors who write
articles in your area of expertise. A well designed press release
can establish you as an "expert source" for future articles
by industry authors.
Get the editor's attention
Editors receive reams of press releases every day, so your press
release should be "catchy" and not too long in order to
catch their attention. Stick to the facts, and keep the news value
high. Your press release is not an advertisement, and must
not read like a self-serving advertisement. Of course, we all know
that the real purpose of your press release is to sell
your consulting services. But the etiquette is similar to that of
an online forum - no overt selling allowed.
In creating your press release, do the following:
- Include the name of your consulting business and a very brief
explanation of the features and benefits of your service.
- Keep the body of your news item short and to the point, and
tell an interesting story.
- Explain who is likely to use your services.
- State concisely what problems your service addresses, and why
your solution is important.
- Identify the contact person for your consulting business.
- Include full contact information: Postal address, telephone,
fax, e-mail, and website address.
Write a professional quality press release
Your press release must be professional, newsworthy, and factual,
and most of all it must be credible. The following factors establish
your professional credibility:
- Your press release must be focused, concise, and well written.
- Include only verifiable facts and newsworthy information. Editors
reject anything that resembles an overt sales pitch.
- The information must be relevant to both the editor and your
target audience.
- Use simple, short sentences and simple words. Avoid industry-specific
jargon and acronyms.
Follow these simple rules when composing the actual content:
- Break up long sentences into two or more shorter sentences.
- Avoid pronouns and ambiguous statements. It is better to be
too clear than to be unclear.
- Don't try to sound "official" -- you'll just sound
silly. Write the way one normally speaks.
- Avoid repeating the same words over and over, and edit out
unnecessary words and verbiage.
- Carefully proofread the story. Ask one or more "good writers"
to read your press release and offer editorial feedback. Spelling
errors and bad grammar will "kill" you.
Use proper press release format
There is an industry standard format for press releases. Stick to
the standard format.
Search Google.com using the keywords <press release> to locate
real press releases and articles about how to write effective press
releases. One site I found particularly useful is PRW at www.press-release-writing.com.
Here you will find a press release template, sample press releases,
and numerous newsletter articles on every aspect of press release
writing at www.press-release-writing.com/newsletters/.
You can purchase press-release submitting software, and there are
literally hundreds of online press-release submission services.
They are probably about as effective as mass-mailing a resume. That
is . . . not very.
Build your own targeted distribution list
I recommend that you concentrate on building your own targeted list
of colleagues, former coworkers, former supervisors and clients,
magazine authors and editors, newspaper reporters and editors, and
other business contacts. At its core, your press release distribution
list includes your professional network. But it also includes many
more people who wield influence and/or write articles in your area
of expertise.
Celebrities and corporations hire publicists and Marcom (marketing
communications) writers to keep their names in the public awareness.
Good PR is cheaper than advertising, and it is many times more effective
when done right. With a little practice you will get it right every
time.
So, what if you do all of the above and your press release campaign
is a bust? Have you wasted your time? Not a all. Eventually your
portfolio will contain a stack of very professional press releases
that very effectively document your professional development and
validate your status as a respected and highly competent Contract
Professional.
Action item -- Create your own press release
You can create you own press release right now. This exercise will
force you to think deeply about the full value of your relationship
with clients, and will help you focus on the value-added essentials
of your business.
Search your favorite search engine for <"Press Release">
or <Press Release "Name of Your Specialty">. For
example, try <"Press Release" Web Development> or
<"Press Release" Accounting>, or <"Press
Release" Net Security>.
Select a press release, any press release, and copy the content
into your word processor. Use this content as a model to build a
template for your very own press release. Change the contact information
at the top to your own, and add a brief statement about your business
at the bottom. This boilerplate content remains unchanged,
and serves to frame the unique news story in the body of each new
press release.
Create a catchy and compelling headline for your news story. Follow
the headline with a summary that tells the entire story in one short
paragraph. Let the reader know the who, what, when, where, and why
so that they understand the release without having to read any further.
If they want more information they will e-mail or call you.
The summary is followed by a paragraph establishing your credibility,
and should contain a notable quote by you and/or a representative
of the client. The quote should enforce the power behind the story
that you are telling. Give the name and the credentials of the person
giving the quote. Make sure that the quote is extremely professional
and specific to the subject of the story.
Presenting your consulting business as news may be difficult
at first, but it will become easier as you gain experience in writing
newsworthy stories about what you do. Now, whenever you enter into
a new project or develop a new, interesting, professional relationship
you can whip up a new press release.
Post all of your press releases in the portfolio section of your
consulting business's website, and include hard copies in the supporting
documentation that you show during fact-finding interviews with
your prospective clients.
Return to Table of Contents
Ask Dungaree Dan
HR Asks "What Is Your Expected Salary?"
Q: Dear Dan -- What should I say when the HR representative
asks "What is your expected salary?" -- Signed: Expecting
More
A: Dear Expecting -- First of all, if you are an IT consultant
you don't have a salary. You have a billing rate, and you bill by
the hour or by the project.
Second, I suggest that you turn the question around. Try this approach:
"That's an excellent question, and I was thinking along
the same lines. It is important to know that we are both in the
same ball park, don't you agree?
How much have you budgeted for this project, and what skill level
(in terms of hourly billing rate) that are you looking for?"
Believe me, the client knows how much they can spend, and there
is no reason why you should bill any less than the rate the client
has budgeted. They are the ones with the money. Let them set the
range. If the money is too low tell them your skill level requires
a higher rate. Thank them, and excuse yourself. No need to waste
your time or theirs.
Now, I can't imagine that this conversation would even take place
before you, the IT consultant, have interviewed the client
to determine where the boo boo is and how much it hurts.
Remember, employers interview job candidates. Professional consultants
interview the client. You cannot state your rate until you know
the parameters of the problem, including how much money and logistic
support the client is willing to contribute to the problem.
Plastic surgeons, architects, lawyers, financial advisors, and
IT consultants are all professional consultants. They interview
their clients (patients, home builders, investors, corporations)
to determine what is the problem and how much money the client is
willing to spend. *T*H*E*N*, and only then, do they make a diagnosis
and propose a solution that is within the client's means and consistent
with the client's needs.
Third, why are you talking to HR in the first place? Out-of-work
employees talk to HR. Unless you are looking for a regular, full-time
job you should not be talking with HR at all. As a consultant or
Contract Professional you are a vendor of consulting services.
Vendors talk with Procurement. Any company that lets its HR department
handle the procurement of consulting services creates a co-employment
situation from the get-go. This practice only makes it easier for
government agencies and the courts to reclassify all Contract Professionals,
including agency temps, as common law co-employees of the company.
Fourth, maybe the HR representative actually wants to hire you
as a regular, full-time employee. If this is agreeable to you, then
you should settle for an annual salary that is nothing less than
1000 times your usual hourly billing rate. Anything less, and you
are taking a hit in the pocketbook. -- Signed: Dungaree Dan
Questions for Dungaree Dan
Send your questions about contract employment to Ask
Dungaree Dan. We will try to answer all of your questions, and
we will publish the most interesting ones in The Contract Employee's
Newsletter.
Return to Table of Contents.
Contract Employee's
Glossary
Terminology For Contract Professionals
More terms from Appendix
B: Glossary of Terms for Contract Professionals of The
Contract Employee's Handbook.
Corporate resolution
A written document issued by a corporation's board of directors
that describes an action taken by the board on behalf of the corporation.
Corporate veil
The term corporate veil refers to the fact that the personal assets
of shareholders, directors and officers are generally protected
from law suits brought against the corporation. See corporation.
Corporation
A corporation is a legal entity formed and authorized by law to
act as a single person. It consists of one or more persons and is
legally endowed with various rights and duties including the capacity
of succession. Corporations are owned by one or more Shareholders.
Fiduciary responsibility lies with a Board of Directors. The corporation
is managed by it’s corporate officers, namely, the President,
Vice President, Secretary, and Treasurer. In the case of a One-Person
Corporation one individual serves as the sole share holder, the
sole member of the Board of Directors, and all four corporate officers.
Directors and officers are necessarily employees of the corporation.
Corp-to-corp
Short for corporation-to-corporation. See corp-to-corp contract.
Corp-to-corp contract
A corp-to-corp contract is a business-to-business contract between
two corporations. The term is frequently used to describe either
the business relationship or the actual contract between a one-person
corporation and the corporation’s client. Examples are the
contract between an incorporated contractor and a recruiting firm,
or between the contractor and a pass-through agency. The term also
describes a direct contract between an incorporated contractor and
the end user of the contractor’s services. Corp-to-corp contract
is often used interchangeably (and incorrectly) with 1099 contract.
Cost center
A cost center is an area of responsibility within a company or organization
against which costs are accumulated. By contrast, a profit center
is an area of responsibility that generates revenues for a company
or organization. Examples of cost centers are Human Resources, Marketing,
and Administrative Services, which spend money, but which do not
directly generate revenues. Examples of profit centers are Sales
Departments and Consulting Divisions which generate receipts and
receivables. See profit center.
Curriculum vitae
Literally, course of life. A curriculum vitae, or CV, is a form
of chronological resume usually found in academic circles. A CV
lists sequentially positions held, publications, accomplishments,
memberships, honors, and education. Such an exhaustive and comprehensive
document is inappropriate for contract workers who need only justify
that they have the skills and experience needed to successfully
complete a specific assignment.
Customer
A customer is an individual or business that purchases a product
or service from a vendor. A client is a customer that has an ongoing
professional relationship with a vendor.
Return to Table of Contents.
Strategic Alliances
COBOL Veterans, Legacy Reserves, Micro Focus, and
P.A.C.E.
Computerworld let the cat out of the bag in the March
04, 2002, issue. Computerworld reported on a major Free Agent
Initiative coordinated by Legacy
Reserves, Micro
Focus, and P.A.C.E. to bring COBOL Technologies to the Web through
the aggregation, training, and repurposing of COBOL veterans so
they can use Java and other technologies to Web-enable mainframe
applications. The initiative will be formerly announced in June
at the COBOL
Expo 2002 conference in Chicago.
Seventy-five percent of the world's computer data is encoded in
COBOL technologies, yet the pool of COBOL professionals is shrinking
at the rate of 13% every three years. Only one university in the
world, the University of Amsterdam, currently offers a formal curriculum
in COBOL technologies.
It is infinitely easier to train a veteran COBOL professional in
Web Services than it is to train a Java jockey in the complex business
rules of COBOL. Hence the rationale for the strategic alliance of
Legacy Reserves, Micro Focus, and P.A.C.E. in this vitally important
Free Agent Initiative.
P.A.C.E. will provide the infrastructure that will allow companies
to search the Legacy Reserves database for COBOL veterans with Web
Services skills. Companies will then use P.A.C.E. as the employer
of record to mitigate the risks of co-employment and to provide
their COBOL professionals with the best benefits package available
to any employee in any company in the USA.
P.A.C.E. -- Helping companies and COBOL Professionals web-enable
legacy systems.
Return to Table of Contents.
The Contract Employee's
Project
The Contract Employee's Project is the larger context under which
the following interrelated vehicles operate to promote and defend
the interests of Contract Professionals:
Copyright and
Publication Info
Copyright (c) 2002, James R. Ziegler. All rights reserved.
You may copy or forward this free publication provided it is left
intact with all links and this notice unchanged. Any unauthorized
duplication, including republication in part or in full for commercial
use, is an infringement of copyright.
Published by:
P.A.C.E. - Professional Association for Contract Employment
1355 Willow Way, Suite 244
Concord, CA 94520
U.S.A.
http://www.pacepros.com/
Editor:
James R. Ziegler, Ph.D.
Executive Director
P.A.C.E. -- Professional Association for Contract Employment
(925) 680-0200
cenewsletters@pacepros.com
Return to Table of Contents.
Disclaimer
The Contract Employee's Newsletter is designed to provide information
in regard to the subject matter covered. Use is granted with the
understanding that the publisher and authors are not engaged in
rendering legal or financial advice. If expert assistance is required
you should seek the services of a competent professional.
The purpose of this information is to educate and entertain. The
publisher and contributors shall have neither liability nor responsibility
to any person or entity with respect to any loss or damage caused,
or alleged to be caused, directly or indirectly, by the information
contained in this Newsletter or by information contained in any
web site or resource referenced by citation or hypertext link within
the pages of this Newsletter.
Return to Table of Contents.
Subscribe to The Contract
Employee's Newsletter
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Newsletter: Sign Up Now! Useful News & Updates
Return to Table of Contents.
Sign-off
I hope you have found the information in this newsletter to be
interesting, informative, and provocative. I encourage you to share
the CENewsletter with your friends, colleagues, coworkers, clients,
and agency recruiters.
Why clients? Because you need every ally you can get. Why agency
recruiters? Because they need to know the jig is up.
Wishing you success in your contracting career,
James R. Ziegler, Ph.D.
Executive Director
P.A.C.E. -- Professional Association for Contract Employment
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