Tag Archives | employer

Recruiting vs Staffing

Difference Between Recruiting vs Staffing

The difference between recruiting vs staffing is that recruiting is acquiring talent to be a full-time employee. Whereas staffing is the hiring of an agency to provide temporary workers.

Recruitment / Placement

There are many recruitment agencies or placement agencies. It may also be referred to as a retained search. They typically charge a percentage of the hire’s salary as a placement free. Those agencies then collect resumes, interview, vet, and eventually get the client’s approval for hire. After the client approves and hires the recruit, the agency has finished their job. The client company not only hires the recruit, but is also responsible for the Social Security, Medicare, and employment taxes. In addition, those employees usually expect benefits such as health insurance and 401K.

Staffing Agency

Conversely, a staffing agency fills the gap when a client company needs a number of employees immediately but does not have the resources (capital) to afford all that is involved with hiring an employee. Staffing provides temporary workers that can be specialized to the client and bills them on an agreed to hourly rate

Hiring Process Through a Staffing Agency

A staffing agency has numerous job ads published to recruit the best talent. The agency then reviews the resumes, interviews potential candidates, and eventually, finds the perfect employee to fill a position at a client company. Depending on the demand, agencies can have a significant amount of employees that they can deploy.

Hiring a Staffing Agency

When hiring a staffing agency, it is important to assess your needs. Are you seeking specialized workers? Do you need 80 employees tomorrow or just 2? Different staffing agencies are going to be able to help you with what you need.

Advantages of Hiring Through a Staffing Agency

Some advantages of hiring through a staffing agency include seeing a potential employee in action before making the commitment to hiring them. Companies also are able to offset the costs of hiring to the staffing agency – essentially stretching their dollar. Additionally, companies are able to get a number of employees quickly, bypassing the weeks hiring usually takes.


Looking to hire a staffing agency to fill your accounting department needs? The Strategic CFO has recruited the best talent to serve your staffing needs. Click here to learn more about how we can serve you best.


recruiting vs staffing

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What is a Staffing Agency?

See also:
Recruiting vs Staffing
What the Current Hiring Process Costs
When You Know It’s the Right Hire

What is a Staffing Agency?

A staffing agency is an entity that has employees that can be hired out for temporary or long term work. A staffing agency is also referred to as an employment agency. It provides temporary workers. Some agencies are industry focused or specialized. For example, The Strategic CFO’s staffing line focuses on accounting and financial positions.

Staffing agencies are different from placement agencies or retained search services. Placement agencies collect a fee to recruit a full-time employee. Those employees belong to the client company – not the agency.

How Do Staffing Agencies Work?

Staffing agencies conduct both the hiring and firing of employees. They also pay for the employment taxes, Medicare, Social Security, etc. The client company specifies the amount of temporary workers needed and the hourly rate. Frequently, the agency specifies the hourly rate for each worker, but it is negotiable.

Why Hire a Staffing Agency

One would hire a staffing agency if they need employees now and they want to offset employment costs (benefits, employment taxes, etc.). There is either a time constraint or a resource contract. Some of the benefits include getting a number of employees quickly and knowing that they are qualified for the position.

Oftentimes, agencies have run credit reports, criminal background checks, and drug tests on those employees so the client never has to worry.

Difference Between Hiring and Working For a Staffing Agency

Whether you are seeking to work for an agency or hiring an agency, there are several things that you need to know.

Working for a Staffing Agency

When you work for an agency, you can expect to work with companies for anywhere from a couple of months to a couple of years. You are technically an employee of the agent and working with the client. However during your time at a client’s office, you act as a regular employee of the company. In some cases, companies will hire the employee from the staffing agency. This is a great opportunity for those employees as they get exposed to different industries and company cultures. Temporary work also allows you for you choose your own schedule. Only want to work a couple days a week? Or have the summer off? Some agencies will work around their staff.

The Strategic CFO’s staffing line brings each staffer in every quarter to review their work and to further their financial leadership skills. If an bookkeeper wants to become a staff accountant, then there is opportunity to get the training needed to make that leap.

Hiring a Staffing Agency

When you hire an employment agency, you need to choose the right agency. Are you looking for positions that anyone can do or are you seeking for a more specialized trade? There are staffing agencies that supply manufacturing workers, domestic workers, and/or professional employees.

It is important the client company is communicating often with the agency to get the most out of the relationship. If a particular employee doesn’t fit, then the agency needs to know in order to replace that employee. Agencies have access to a variety of staff and make it their goal to pair the right employee with the client company.


Looking to hire a staffing agency to fill your accounting department needs? The Strategic CFO has recruited the best talent to serve your staffing needs. Interested? Click here to learn more about how we can serve you best.


Staffing Agency

Staffing Agency

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New Graduates: What Employers Are Looking For

what employers are looking for

Last week, we discussed the importance of having creativity in the workplace. Watching my Wolff Center for Entrepreneurship students walk across the stage was a bittersweet moment. However, I remembered something important. Most of those students will be fine because they have what potential employers are looking for.

2017’s Highest-Demanded Jobs

I’m sure there are a lot of highly-demanded positions in other industries such as the medical field and education. In conjunction with Indeed and Glassdoor, I’ve found that these occupations are also some of the most demanded in business for 2017:

Data Scientist

For those of you who don’t know what a data scientist is, a data scientist is an analytical data expert that gathers data and assists with business decisions. According to Indeed, the data scientist salary averages from $110,000 to $130,000, depending on the region you work in. This occupation continues to grow, and is projected to reach a 15% growth rate next year.

Office Manager

Long-gone are the days where office managers only handled administrative tasks. Recently I was talking with my associates, and they all told me similar things. “If it wasn’t for my office manager, I wouldn’t have come up with the idea for XYZ!” Office managers contribute to more than simple tasks, and as a result, they earn more as well.

Web Development and Design

Even though the digital age was introduced over 30 years ago (doesn’t that make you feel old!), one of the most interesting parts of the internet is how it evolves. As we discussed last week, the algorithms within major websites like Google is ever-changing. This means that jobs are also changing, growing, and expanding.

Designers are also getting more advanced. I used to think photoshop was a big deal, but now there are occupations such as UX (user experience) designers. In Houston alone, the median base pay is around $75,000. That’s not bad for a starting salary.

Internet Security

This also goes into web development, but may be more company-centric than website development-centric. The internet is not the only thing growing in intelligence. More people are finding ways to steal important pieces of information such as credit cards, passwords, and addresses. It’s a constant battle with the hackers versus security – the bad versus the good. At least one good thing comes from the many hackers in the world… jobs!

What are your Strengths?

From a graduate’s point of view, you have to reflect upon your own strengths and how to apply them in your new company. What makes you stand out from the rest? What can you bring to the table?

Conversely, as a business, what are your strengths? What makes you stand out in a crowd?

Teaching Skills versus Teaching Talent

what employers are looking for

In teaching at The Wolff Center for Entrepreneurship, I learned a few things myself. One of those things is that you can teach skills, but not talent.

The difference between talent and skills is this – a skill is the ability to do something well; an expertise. A talent is a natural aptitude or skill. If someone is learning how to write blogs, or draft up email campaigns, that person is learning a skill. However, how that person adapts, grows, and the aptitude at which the skill is being learned determines the talent that the person has.

How do you know what to look for in a new hire? Download our free Star Quality whitepaper to find out!

Can everyone have the same talent?

Unfortunately, not. In fact, they shouldn’t. Imagine having an office where everyone has the same talent in one skill set but not the rest. That would hurt productivity and make things in the office kind of boring, don’t you think?

To sum it all up, having multiple talents – a star-quality team – is ideal for your company. That’s what the hiring process is for.

What to Watch Out For

To all of the employers out there, there are some common issues that everyone should watch for when dealing with those new employees

Starting off with a Weak Hire

All of these problems can be avoided with a simple solution – find the right hire for your company by investing time looking for that person. If you rush to find someone to fill a slot, chances are you won’t have that person for very long (or maybe you’ll wish they were gone). And if that’s how you’ve been hiring your employees, chances are the last person left or was let go because of that same reason.

Don’t Lose your Temper!

So you’ve got a new hire, and your trainer comes into your office complaining about his lack of drive. First of all, don’t worry! Don’t lose your patience when dealing with a new hire. Like I mentioned earlier, that person can learn the skills you need to get the job done. Help them harness their natural talents and productivity will follow.

Employee Turnover

According to Compensation Force, employee turnover rate in the United States was 17.8% in 2016 and is expected to grow to 18-20% in 2017. Hopefully, you’re investing time and thinking long-term when it comes to your new hires. Again, this can all be solved by having a sound hiring process.

Hiring the Perfect Team

what employers are looking forHow do you know if someone has the “star quality” for your star quality team? It’s all in the process. If you find yourself constantly hiring and firing, it may be time to re-evaluate your hiring practices.

These are a few questions I tell my clients to ask themselves, beginning with does your potential hire…

  • Have the desire to solve problems?
  • Make wise decisions?
  • Have the ability to juggle multiple priorities?
  • Prove that he/she has good written and oral communication skills?

If you answered all of these questions “yes”, then you’re halfway there. Now you have to ask yourself the most important question… “Will this person thrive in this company for years to come?” Hiring is more than filling a spot. It’s providing opportunities with the intention to grow your employees.

What kind of boss will you be – a manager or a leader?

Conclusion: What Employers Are Looking For

In conclusion, getting hired for a new job has a process, and hiring a new person is also a process. Why waste time (and money) hiring and firing people? With enough patience, you might just find that perfect person (if you’re hiring), or job (if you’re looking) that fits the talents and skillset you need. Are you wasting time hiring and firing people? That’s a lot of paperwork! Check out our free 5 guiding principals for recruiting a star-quality team now!

what employers are looking for

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Access your Recruiting Manual Execution Plan in SCFO Lab. The step-by-step plan recruit the best talent as well as avoid hiring duds.

Click here to access your Execution Plan. Not a Lab Member?

Click here to learn more about SCFO Labs

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How long do you keep a job?

how long do you keep a job?

That’s the biggest question being asked by both employees and employers alike: how long do you keep a job? What’s normal in this day and age? If you would have asked 20 or 30 years ago, the answer would have been: “You keep a job for 20-30 years.”

So, how long do you keep a job?

Let’s analyze this from two perspectives: the employee and the employer.

Employee

As an employee, it’s typical for an employee to take a little while to get used to their job (3 years to be exact, but we’ll talk about that a little later!).  When you first get hired, you may notice that the first 6 months or so of your job are really unproductive. You are trying to grasp the systems, organization of the company and so much more. It’s difficult to jump into a job at 100% efficiency.

But as an employee, it’s reasonable to expect for you to work in multiple companies throughout your career. It’s even expected for someone to have multiple careers throughout their lifetime. But how long is an appropriate time for you to stay at one job?

First, it’s important for you to realize how expensive you are as an employee. Through searching, hiring, training, mentoring, and investing time and money into you, a company expects that its investments will return a profit. Simply put, you should stick around as long as you are providing more value than they’ve invested in you.

The company that has hired you has essentially invested in you. They are looking for their return on investment (ROI). Of course, they are going to have bad investments (i.e. anyone who leaves before 3 years) and really good investments (i.e. anyone who stays with the company 3+ years).

Employer

As an employer, you’ve probably realized that there is one thing that you can’t avoid: humans. You buy from them. You sell to them. You work for them. And you hire them.

Humans are an integral part of business and life. Nowadays, using only resumes to screen candidates for jobs is a thing of the past. LinkedIn, although it may not be the best platform, has become the Facebook for resumes.

how long do you keep a job?

LinkedIn

Have you ever searched for employees through LinkedIn?   There’s always that person who first looks like a great candidate. They’ve worked in prestigious positions in reputable companies, BUT then you find your eyes focusing on the time spent working there. 3-, 5-, 9-, 15-months… It’s safe to assume that there is something wrong! Whether it is the employer just not liking the employee or the employee being extremely fickle, it’s easy to assume that if someone has a work history like that, you should run in the opposite direction.

That’s not to say that you should automatically run the other way if a candidate lists 4-6 jobs for only a couple months. Analyze their age, stage in life (recent college graduate?), and type of position. Particularly with internships, the average time spent in those positions are 3-4 months.

Be aware of what their LinkedIn profile looks like. It could be your biggest indicator of likelihood of that candidate lasting at least 3 years at your organization.

3-Year Breakdown

Let’s digest what we’re calling the 3-year breakdown!

Year 1

The employer will lose money on an employee during the first 6 months of their job. The employee is training for the position, getting used to the culture and way of doing things, and trying to provide some value. It is acceptable to assume that you will lose money during those first 6 months of an employee’s job.

During the second half of the first year, the employer can expect to break even. Hopefully by this point, your employee should be feeling comfortable and is actually helping the company rather than costing you money. If you’re still losing money through the 3rd and 4th quarter because of a new employee, it’s probably okay. Every employee and every organization is different.

Year 2

Thankfully, you won’t be losing money into Year 2 after the hire of a new employee. By now, the employee should be earning the company revenue to cover his/her salary plus some for the company to reinvest. Most employees, however, continue to flirt with breakeven.

Year 3

By year 3, your employee should be excelling in the company. At this point, we come to a critical decision point: the employee leaves (by their choice our yours) or the employee continues on with the company. It’s important to get to at least year 3 to ensure that you’ve gotten value out of your hire – watch that your revenue increases with the hire.  All things being equal, you should expect to see higher profits due to good hires.

If you haven’t, then you’re employee either left early or you made a bad hire.

How do I hire a star-quality team?

It shouldn’t take you til the end of Year 3 to determine whether or not you made a good hire. Do a better job during the hiring process to know who and what you’ve hired.

It all starts with who you are attracting to your company. Try to attract star-quality candidates. Describe the type of team that you would deem star-quality in regards to your organization. Hold fast to those bullet points that you’ve created as a type of criteria when recruiting.

Still having issues figuring out how to recruit star-quality candidates to build your team? Download the free 5 guiding principles for recruiting a star-quality team. A bad hire could be catastrophic to your company. Hire star quality candidates today!

how long do you keep a job?

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how long do you keep a job?

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Can You Grow a Company With Only “A” Players?

"A" Player

LeBron James: hate him or love him, you have to admit that he’s a talented basketball player. When he started out his career in Cleveland, he was a promising player. Unfortunately, his gifts were too much for the team since there wasn’t a support system to cultivate his “A” player qualities. After 7 years, James move to Miami to play for the Heat. Almost overnight, LeBron became a national champion, not just an MVP.

Can You Grow a Company With Only “A” Players?

First of all…

  1. There are not many “A” players to select from.
  2. If you can find an “A” player, you can’t afford all of them.
  3. Not everyone can be an “A” player.

The brief answer to that question (can I grow a company with only “A” players?) is no. If you had only “A” players in your company or organization, nothing would get done due to ego, competition, lack of compensation, etc.

When I first started The Strategic CFO, I thought to myself… “I’m going to hire people like me.” I quickly figured out that a company can’t grow if it’s comprised of the same type of person or the same level of skill.

What made the difference?

The organization made all the difference. It is absolutely imperative that you have an organization that is set up for success.

Optimize the employees that you have currently. While they may be “B” players, it is your responsibility to set them up for success. Put in procedures and systems for them to succeed in their own capacity.

Do I Hire 1 A Players OR 2 B Players?

It depends. Oftentimes, you have to assess the person’s motives. Is the “A” player just looking at the position you’re offering as a stepping stone or a long-term commitment?  If it’s the latter, you might want to think long and hard before hiring them.  High turnover costs more than you may realize…

Remember, “A” players are expensive. What would be better for your organization?

What I’ve learned in my own company as well as through working with clients is to hire people with talent. I’m not necessarily looking only for “A” players, but also “B” players that are willing to work and learn and invest in their company.

Regardless of your decision, you must optimize the talent you’ve hired and retain that talent for your organization to be successful. The Number #2 reason why businesses fail is because of employee turnover.  In my experience, “A” players are in greater demand and, consequently, have more opportunities to jump ship.  Investing time and resources to nurture and retain loyal employees with talent is often a better strategy than filling your bench with superstars.

(Are you trying to build a star-quality team? Download our free, exclusive 5 guiding principles for building a star-quality team here.)

 A few months back, we posted a blog about how when there is a recession, fewer professional job are available. Oftentimes, when companies are scrambling to fill in empty key positions, they hire anyone. This is one of the major mistakes that companies make!  Decide what you’re looking for and make the right hire the first time. Hiring just anyone because you need someone right away can cause huge problems down the line.

What are Your Expectations?

Steve Jobs once said, “I’ve learned over the years that, when you have really good people, you don’t have to baby them. By expecting them to do great things, you can get them to do great things. The original Mac team taught me that A-plus players like to work together, and they don’t like it if you tolerate B-grade work.”

As a leader, it is crucial that you set your standards. I’ve always found that by having “A” player expectations, “B” players are able to rise to the occasion. For example, I could hire the best sales and marketing intern money can buy. But I don’t. I hire for talent, not specific skills.  The intern may not have the experience or the skills, but if they have the drive to succeed and the talent to adapt, I’m willing to invest in them.

Demand talented people. Know that talent is more valuable than skill. You can easily teach skill, but you can’t teach someone to be talented.

What Can They Do vs. What They’ve Done

Are you hiring because of what is listed on their resume or are you hiring because they have X amount of potential to grow and add value?

Enterprise, the car rental company, hires trainee managers at around $40,000 a year. While their pay isn’t comparable to other car rental companies, their expectation is that you will be promoted within 9-12 months. They specifically hire people that they would love to have as their manager. This is why Enterprise dominates the car rental industry and is continuing to grow.

Enterprise knows that they can’t afford the “A” players, but they can mold and transform those “B” players to be successful. And every year, their sales increases. This is just one example of how a company can grow without hiring only the “A” players!

With oil prices slowly crawling up from a low point in February, this may be the right time to start growing your business. While the economy can be volatile at times, it is smart to prepare and structure your business to withstand storms.

Download our free whitepaper 5 guiding principles for recruiting star-quality team today to start building the team your company needs to grow.

Lead Magnet - 5 Guiding Principles for Recruiting a Star-Quality Team

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A Players

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Recession = Fewer Professional Jobs Available

If you haven’t been living under a rock for the past 15 months, then you have probably noticed that the decline in oil prices has resulted in many Houston businesses experiencing symptoms of an economic recession. What does a recession mean for you? Historically, recessions equate to reduced availability of professional jobs.

less professional jobsWhile the effects of the free fall in oil prices may have not spilled over to your economic sector yet, banks are already restructuring the troubled loans of oil and gas companies. This could result in more layoffs in the energy sector. In addition, it will likely impact other industries as well.

But even greater than the oil and gas industry, we’re seeing international economic upsets in China, Latin America, and in other areas of the American market economy. Some are expecting to see in 2016 a recession greater than that of the 2008 recession.

How Most Companies React to Recessions

Most companies without effective leadership would begin to cut the upper management who complete the 20% of the work. This leaves the lower level employees that complete 80% of the work. Many of our clients lay off the CFO and other “non-essential” leaders within the company. Why pay $50,000-$100,000 more for an employee when they only complete 20% of the work needed? Fewer professional less professional jobsjobs are thus becoming available because those positions are now deemed obsolete or as overhead.

Companies are removing experienced professionals from their positions due to their higher cost. Therefore, we tend to see many “battlefield promotions”. The military coined this term as a promoted soldier due to the death or injury of a senior officer.

Like in the military, employees are often promoted during a recession not necessarily because of their skills. But because their supervisor left or was laid off. CEOs or hiring managers feel that if these employees can do 80% of what their manager did, then asking them to do the whole job isn’t too much of a stretch.  While they might have the talents to succeed, they may not have the skills needed to complete that last 20%.

One way a business can protect itself from such a situation is by making a practice of hiring star-quality team members. These members can rise to the occasion when faced with rough economic times.

NOTE: Want some guidelines to develop a star-quality team? Download the Guiding Principles for Recruiting a Star-Quality Team to make sure your team can adapt in rough economic times.

Fewer Professional Jobs Available

As difficult as it is for those receiving battlefield promotions to get up to speed quickly, the fired managers face an even tougher challenge. Suddenly, there are more qualified candidates in the marketplace than there are positions available and fewer professional jobs available. The available jobs have been filled from within through battlefield promotions.

Highly-experienced individuals found that they have to take positions they are overqualified for at reduced pay.  This is where the value of the network you have built (or will wish you had built) really pays off.  Your connections in the marketplace can mean the difference between securing a desirable position, or settling for what you can find.

When looking for a job with limited openings in the marketplace, find an organization where you fit and can provide value.  Even if that means taking a pay cut, the money should come when things turn around.

Hiring & Restructuring Human Capital

Regardless of how this emerging recession is impacting your organization, realize that the #2 reason why businesses fail is employee turnover. Think about it. The costs associated with replacing an employee include: hiring, interviewing, on-boarding, training, mentoring, and waiting approximately 6 months before they find themselves accustomed and productive in your organization. The hiring process is getting longer and thus, more expensive.

As you’re building a new team or assessing your current employees for possible battlefield promotions, consider how you can build a star-quality team. A star-quality team will carry your company through tough times. Assess your current employees as if you were hiring them for the first time. If a battlefield promotion is necessary, who will rise to the occasion and provide the most value to your company?

In tough times, companies generally try to run leaner.  There are ways to do more with less and to measure the productivity of those limited resources. If you’ve exhausted all resources within your organization, then look at how to hire the right people to build your team.

Check out the guidelines that The Strategic CFO uses as we advise our Retained Search clients to help find the perfect fit. Click here for your FREE download of those guidelines.

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Professional Employer Organization (PEO)

See Also:
Advantages of Professional Employer Organizations
How to Select a PEO
PEO Compared to Outsourcing Payroll
Professional Employer Organization FAQ’s
Service Department Costs

Professional Employer Organization | PEO Definition

The Professional Employer Organization or PEO definition is a vendor that assumes, via contract, a significant portion of the employer’s responsibilities and associated risk for either all or a portion of the Business Owner’s workforce.

Many mistakenly view he PEO Arrangement and Employee Leasing as one in the same. But there is actually quite a difference. The original employee leasing model transferred certain responsibilities from a client company to the employee leasing company. Thus, it created the original concept of “fire, hire, and lease back”, which does not occur in the PEO arrangement.

The PEO brings services to the Business Owner, including the management of Payroll and Payroll Taxes, Employee Benefits, Human Resources, and a Safety / Risk Plan. If a PEO relationship is terminated, the “co-employees” will cease to work for the PEO but will continue as employees of the “Work Site Employer”. By comparison, a leasing or staffing service supplies new workers on a temporary or project-specific basis. These leased employees return to the staffing service for reassignment after completion of their work with the client company. Define employee leasing as a supplemental, temporary employment arrangement where one or more workers are assigned to a customer for a fixed period of time.

Some state statutes governing PEOs still use the leasing terminology.

Evolution of the PEO Industry

The growth of the PEO industry gained momentum about 25 years ago when provisions in tax and pension laws made employee leasing very attractive to the owners of small and medium sized businesses. Subsequently changes in federal legislation basically eliminated those loophole provisions.

A second growth spurt in the mid-1980s was based on economies of scale in buying workers’ compensation and health insurance. They expanded coverage to larger numbers of employees. In addition, lessee companies reduced their costs through the bulk purchasing process. This phase eventually fell prey to imprudent risk management practices on the part of a number of staff leasing companies. It led to the failure of several of the companies and blemished the entire industry.

The current growth surge began in the early 1990s. Characterized by increased professionalism and less risky business practices, the industry has also seen increased regulation by the federal and state governments. PEOs now use the economies of scale in Payroll Processing, Employee Benefits, Human Resources Management, and Safety and Risk Management. An additionally advantage is the assumption by the PEO of administrative functions that have become increasingly complex because of employment regulations. PEOs offer a compelling business option for Business Owners.

Determine which candidates are the right fit for your company using our 5 Guiding Principles For Recruiting a Star-Quality Team.

professional employer organization (peo)

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Access your Recruiting Manual Execution Plan in SCFO Lab. The step-by-step plan recruit the best talent as well as avoid hiring duds.

Click here to access your Execution Plan. Not a Lab Member?

Click here to learn more about SCFO Labs

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