How Data Mining Plus Staffing Software Equals Finding Top Talent

Traditional recruiting and staffing has oftentimes focused on intuition and subjective interpretation of information. Much of this past analysis was conducted using resumes and applications, matching skills with available positions.

But, in decades past, recruiters didn’t have access to the massive amounts of data available today.  To put it in perspective, Google CEO Eric Schmidt announced at its 2010 Atmosphere convention that 5 exabytes of information (one exabyte equals 1 billion gigabytes) had been created between the dawn of civilization and 2003, but now, that much information is created every two years.

As staffers and recruiters, an incredible amount of information is at our fingertips. And effectively mining this data to assist in the hiring process can lead to better, more effective onboarding decisions.

Here are just a few reasons why:

  1. Numbers rarely lie.  As subjective animals, it can be hard at times for humans to objectively evaluate all options presented to them.  But by trusting the numbers to guide the options presented to us in the first place, especially with the help of robust staffing software, we almost can’t help but choose between far more qualified options than if we were to trust our instincts alone.
  2. Data mining is a new art to master.  Many companies, even those with large financial resources to invest in the recruiting process, are still using traditional hiring methods.  In an age where big candidate data is available, and you have the software and tools to effectively analyze it, mastering this art can provide a significant competitive advantage.
  3. Better decisions are made with more available data.  Isn’t data analysis a big part of why companies are willing to pour millions of dollars into any type of strategy they employ?  If thorough data analysis is a component of every initiative, every strategy, tactic and decision will be infinitely more educated.

Overall, better recruiting methods can be achieved, more superior talent can be found, and our clients – and our agencies – can be more successful by embracing and mastering the analysis of big candidate data.

To learn more about how staffing software by Bond US can help you effectively mine and manage big candidate data, request a free demo.

Help Your Clients Avoid Employee Misclassification Risk

Employment AgreementMisclassifying employees as independent contractors is a very tempting proposition during difficult economic times.

After all, companies can get out of payroll taxes, unemployment, workers’ compensation, paid sick time, vacation and health insurance.  Companies can save substantial amounts of money that can instead be allocated towards other important business needs.

This is probably why the IRS is cracking down on this practice.

Misclassification is not a good idea at all, as it can land companies in a world of trouble with the IRS.  And this is true whether the misclassification was intentional or unintentional.

Recruiting or staffing agencies can ensure their clients stay on the right side of the law in this matter by employing some of the tests the IRS uses to evaluate if workers are functioning as employees.  These tests are designed in part to examine behavioral and functional control, which means they assess whether a company has the right to direct and control an employee’s work and the financial and business aspects of his or her job.  In addition, they will also take a look at the type of relationship a company has with workers, and whether that tends to describe an employee/employer relationship.

Some examples of what is evaluated include:

·         How the business pays the worker

·         The extent to which the worker can realize a profit or incur a loss

·         Whether the business provides the worker with employee-type benefits

Dependent on the outcome of these tests, one option companies can employ to avoid misclassification risk is the development of a contract for temporary employees.  In a general sense, this contract would be designed to limit the control a company has over the worker, while also spelling out the agreed-upon responsibilities of each party.

Other strategies that can help avoid misclassification include labeling any work as a project that can be completed at any time by the contractor, requiring invoices from the contractor for all services, and structuring the contract between the contractor’s business entity (if applicable) and companies.  But again – this is all dependent on the outcomes of tests offered by the IRS.

What will always ring true is that each employment situation is unique with its own challenges and complexities.  And your clients will always look to you as an expert in all employment matters.  This means there will be a certain expectation with your clients that you will be the one that helps to prevent them from any trouble with the IRS.

While some of the options I offer above can be taken into account when consulting your clients, note that employment guidelines can change rapidly.  In other words, the advice you can take from a static post in a dynamic world is this – always stay up to date on the changes – and when the IRS is involved never offer advice today based on what you knew to be right yesterday.

To learn more about how staffing software by Bond US can help ensure your staffing agencies processes remain efficient, in the face of ever-changing employment guidelines, request a free demo.

Advice For Successful Onboarding of Contingent Workers

I’m just going to be blunt – coordinating the successful onboarding of temporary employees with your clients can be a huge challenge.

While external tools like our own staffing software can help you discover better matches, there will always be outside factors that can prematurely poison a relationship.  And unfortunately, even if the relationship between your clients and temporary employees grows negative outside of your control, it will still reflect poorly on your staffing agency – from the viewpoint of both your client and your candidate.

While you will never have complete control over how your clients onboard contingent workers, you fortunately can take some actions to ensure your agency is seen as a conduit to a successful employee / temp relationship.

First and foremost, ensure you can draw a straight line between the objectives of your candidates and the objectives of your clients.  Do you have a shipping client that simply needs an influx of workers for the holidays?  This will likely not be a fit for a candidate seeking temp to hire.

Next, ensure you have a clear understanding of the unwritten needs and capabilities of your candidates.  For instance, it makes no sense to place a temporary worker with a client that pays $1 or more per hour less than the candidate’s asking price.  Even if everything else appears to be a fit, this relationship will likely end quickly, forcing you to rush a new candidate into place.  Additionally, if you have candidate that depends on public transportation, it makes little sense to place them with a client located far from any bus or train lines.

Finally, ensure you have a clear understanding of your client’s onboarding process – and when necessary – suggest subtle improvements.  I am not suggesting that you demand changes, only that you consult where necessary – based, of course – on your experience with other clients.  While this may at times be a bit out of the scope of your agreement – it can help to position your staffing agency as an indispensable consultant – even helping you to capture more revenue from that client when budget time rolls around.

No, you can’t completely control how your clients onboard contingent workers, but you definitely can set the stage for a beneficial relationship.  By keeping the insight above firmly in mind, you can expect better success.

To learn more about how staffing software by Bond US can help your more effectively match temporary workers with your clients, request a free demo.

See Our Recruiting Software In Action This Month At NAPS

From September 19th to the 22nd, the National Association of Personnel Services (NAPS) will be holding its annual conference at the Westin Riverwalk hotel in San Antonio, Texas.

Attendees of NAPS will learn about a number of facets of the recruiting industry including how your psychology affects your business, creating a culture of responsibility throughout your entire organization, techniques for integrating social media into your growth strategy, and methods for overcoming agency objections, among others.

In addition, by attending you will have the opportunity to demo Bond recruiting software – live on site – to learn how our newest features can help your firm more effectively locate top talent, streamline organizational processes and reduce costs.

If you are planning to attend NAPS, or will be in San Antonio later this fall, get a head start on your competition by learning how Bond recruiting software can fit into your 2013 budget – and more importantly – help you achieve your 2013 recruiting objectives.

Register for a recruiting software demo at NAPS, or if you are not able to attend, request a free online demo.

NAPS Event Details:

September 19th – 22nd, 2012

Westin Riverwalk Hotel
420 W. Market St.
San Antonio, TX 78205


$795.00 for NAPS members/$1295.00 for non-members (Registration link).

Bond Announce Unaudited Interim Results


  • Revenue of £17.4m (2011: £18.4m)
  • Recurring revenue of £11.7m (2011: £11.0m)
  • Administration expenses reduced 3.6% to £13.1m (2011: £13.6m)
  • Operating profit £1.0m (2011:  £1.4m)
  • Diluted earnings per share 0.43p (2011: 0.01p)
  • Adjusted earnings per share 2.07p (2011: 2.85p)
  • Significant new contracts won in Australia and Japan resulting in a 63% increase in revenues in our Asia Pacific operation
  • Strong growth in Outsourcing Division

Commenting on the results, Group Chief Executive Steve Russell said:

“The staffing software market remains challenging and while we remain cautious about the UK and USA, the group is well placed to take advantage of continued growth in key emerging markets and to prosper when growth returns to the economy.

In the last six months Bond has continued to invest in, and expand operations, in Asia Pacific, leading to a significant contract win in Japan, showing continued confidence in our service offering and strength in this market.”

We are pleased to report the unaudited interim results for the six months ended 30 June 2012.


Although the Group’s recurring revenues have shown healthy growth, sales of software, in particular to the UK staffing industry, reflect the lack of IT investment being made by some of the larger recruitment companies.  They also reflect the on going change in business model from the traditional licence sale to the provision of software on the basis of Software as a Service (“SaaS”). This has resulted in total revenues for the group showing a 5% drop for the six months from £18,375,000 in 2011 to £17,443,000 in 2012.

The increase in recurring revenue means that 89% of administrative expenses (excluding the amortisation of development costs) are covered compared with 82% for the same period last year.

With a reduction of 3.6% in administrative expenses the group operating profit, before the amortisation of acquired intangibles, was £995,000 (2011: £1,393,000) and basic earnings per share from continuing operations were 0.48p per share compared with 1.25p for the same period in 2011.  The adjusted basic earnings per share from continuing operations were 2.07p for the first six months (2011: 2.85p) and adjusted diluted earnings per share were 1.83p (2011: 2.52p).

The group generated cash of £991,000 from operating activities in the period (2011: £1,534,000).  Overall the company has increased net debt by £995,000 after capital expenditure of £1,973,000, mainly in on going product development.

Recruitment Software Division

Whilst the Recruitment Software Division has experienced difficult market conditions, we have been encouraged by continuing growth in recurring income from software support and SaaS which is up by 6.4% from 2011 to 2012.

Our Asia Pacific operation has made great strides in the first half of 2012 announcing the largest deal ever signed by us in Australia and the first contract of note through our Japanese office, both of which have had a positive impact on the first half of 2012 with revenues up by 63% and an operating loss of £89,000 in 2011 has been turned into an operating profit of £167,000 in 2012.  The contracts should also have a further positive impact in the second half of 2012 and 2013 when the deployments are completed and more revenue is recognised.

In the US the process of merging the three separate operations has continued into 2012 so that whilst revenues have fallen by 8%, the operating profit before amortisation from this region has increased by 44% to £892,000 from £621,000.

Market conditions have been the most difficult in the UK where there has been an absence of sizeable licence sales during 2012.  For this reason the operating profit before amortisation of development costs has fallen to £237,000 compared with £973,000 in 2011. The Company has a number of significant sales prospects but there is no question that the lead time for decision making has lengthened. To counter this, the company is considering a number of proposals to reduce the UK operating costs.

Analysis of Recruitment Software Division revenues

HR and Payroll Software Division

The HR & Payroll division supports two HR packages, a payroll and an integrated HR and payroll solution. Their target market is small to medium sized enterprises in both the private and public sector.

The division made an operating profit before amortisation of intangible assets of £867,000 representing a very healthy operating margin of 37% as costs have been adjusted to provide on-going support on all HR and payroll products as well as moving the strategic products forward.

Outsourced HR & Payroll Services

This division comprises two separate operations, Strictly Education which provides outsourced HR, payroll and other services to schools in the UK state sector, and Bond Payroll Services which provides payroll bureau services to organisations in both the private and public sectors.

The revenues for the division are a combination of monthly fees under annual contracts for a variety of outsourced services together with fees payable in respect of consulting services for projects undertaken on behalf of customers.

Strictly Education has seen an 11% increase in revenues from 2011 to 2012.  Underpinning this growth is an increase of 18% in recurring income from annually renewable contracts. Consultancy revenues have remained flat as the UK Government cuts back on state spending on schools.  Operating margins have remained the same at 12% resulting in an operating profit of £475,000 in 2012 (2011: £446,000).

Bond Payroll Services has seen a 2% increase in revenues year on year to £979,000 and operating profit is at a similar level to the first half of 2011 at £250,000.  The business is now processing an average of 57,000 payslips per month which represents a 5% increase on last year. This follows additional investment in staff to improve customer service and retention rates as well as to generate new business through a greater sales and marketing effort.  The business will see the benefits in the second half of 2012.

Product Strategy

The group continues to invest a significant proportion of revenues in enhancing its product portfolio although overall expenditure on development fell slightly to £2,530,000 in 2012 compared with £2,575,000 for the same period last year.

Current trading and future prospects

Whilst the market for staffing software in the UK remains slow, the group has significant prospects both in the UK and abroad, although these are likely to be SaaS and may not have a material impact on the short term results. Trading has improved since the half year end and the recent opening of an office in Singapore demonstrates our confidence in the Asia Pacific region and its prospects for growth. The HR and Payroll division continues to produce high returns and the Outsourcing Division continues to grow at a satisfying rate.

It is true that there is much uncertainty surrounding the prospect for the global economy but the group is well placed to take advantage of the growth areas that do exist and to prosper when growth returns to the world at large.

Martin Baldwin
24 September 2012

For further information, please contact:

Bond International Software Plc: 
Tel: 01903 707070
Steve Russell: Group Chief Executive
Bruce Morrison: Finance Director

Tel: 0207 466 5000
Tim Thompson
Nicola Cronk
Gabriella Clinkard

Cenkos Securities plc:  
Tel: 020 7397 8900