I was looking over my contact list yesterday evening and came to a stunning (but not shocking) realization. I could only identify five people that are happy with their current job. Virtually everyone I know would jump if a better opportunity presented itself, and most are either actively or passively pursuing side interests and opportunities with the hope that one day soon, that “perfect job” will rear its glorious head.

Many years ago, a mentor and friend suggested that employment nirvana required three significant attributes - 1) doing something you enjoy and truly believe in; 2) the opportunity for advancement; and 3) decent cash. I would argue that a majority of my former and current colleagues can check at least one box, less than fifty percent can check two, and an increasingly small minority have found that perfect combination of passion, pay and promotion.

In the industries in which I’ve worked (human resources, the public sector, outsourcing, call centers), attrition is ridiculously high. Industry events turn into reunions as thousands of former colleagues emerge with new logos and titles beneath their names. Thousands more troll the trade show floor hoping to find the next job that just may be the “perfect fit”. It’s well-known lore that many industry executives use such events to lure dissatisfied workers from their current employ.

Paying the price in all of this are employers and families.

The gap between the recruiting pitch and life in the trenches approaches Grand Canyon-like proportions as employers become increasingly desperate for talent. Recruiters are typically incented on volume, not retention, so forcing a square peg into a round hole is second nature. Hiring managers are often too busy to perform proper due diligence and instead need a warm body in seat as quickly as possible. And executives stand to lose precious dollars from their P&L if preapproved headcount are not onboarded in a timely fashion.

Unfortunately, families pay the biggest price. Forced to endure the 24-hour lifecyle of their loved ones, the mirage of work/life balance and predictable employment is more ellusive than ever. With the new job “high” fading ever faster, loved ones must suffer through the sad realization that this, alas, was yet again not the job everyone had hoped for. And the cycle continues….

I want to blame someone for this mess but I struggle to identify who. The job boards and recruiting technologies simply present what is entered - garbage in, garbage out. Employees feel the grass is always greener - and is often is - but everything comes at a price. Employers are not evil-doers yet cannot clearly convey what life is really like behind closed doors. This forces us to put our trust in our friends who know these firms well. And when that fails, our gut instinct is the only remaining barometer.

Let’s keep the conversation going.

In an article published by Business Process Management Today , Senators Chuck Grassley (R-Iowa) and Dick Durbin (D-Illinois) are investigating nine firms who accounted for nearly one-third of the H1-B visas offered last year. The nine firms represent either the parent or American subsidiary of some of the largest Indian outsourcers in the market, including Infosys, Wipro, Tata, Satyam and Mphasis.

Contention for the precious few H1-B work visas has increased over the years, as organizations are increasingly challenged to secure highly skilled, foreign-based employees. In fact, the volume of H1-B visa requests has overwhelmed US Citizen and Immigration Services, forcing them to release an announcement last Friday stating their data centers are in a backlog for processing.

According to the Department of Labor:

The H-1B program allows an employer to temporarily employ a foreign worker in the U.S. on a nonimmigrant basis in a specialty occupation or as a fashion model of distinguished merit and ability. A specialty occupation requires the theoretical and practical application of a body of specialized knowledge and a bachelor’s degree or the equivalent in the specific specialty (e.g., sciences, medicine and health care, education, biotechnology, and business specialties, etc…). Current laws limit the number of foreign workers who may be issued a visa or otherwise be provided H-1B status to 65,000.

To combat the growing problem, a nonprofit organization called Compete America has lauched a campaign to change the current program and process for H1-B applicants. Regarding themselves as the “Alliance for a Competitive Workforce”, Compete America is supported by some of the largest employers and industry associations in the nation, ranging from Coke and Microsoft to SHRM and the US Chamber of Commerce.

Called into question is both the number of applications made available each year as well as the process by which applicants are selected. Implications of fraud and abuse run rampant as organizations scramble to secure these precious visas.

Let’s keep the conversation going.

The HR BPO market took another shot to its increasingly thinning armor last week when Hewitt announced their second quarter results. This was the first quarter in which they elected to break out the HR BRO operating unit as a distinct P&L.

HR BPO segment revenues increased 5% in the second quarter, to $131.2 million, from $124.9 million in the prior-year quarter. Adjusting for the decline in third-party supplier revenues of $10 million, and the favorable effects of foreign currency translation of approximately $1 million, HR BPO revenues increased 15%. Hewitt said that growth was driven primarily by contracts that went live within the twelve-month period.

The HR BPO segment loss was $61.2 million in the second quarter, compared with a loss of $41.5 million in the prior-year second quarter. They stated that the increased loss was primarily due to $15 million of pretax charges related to the anticipated restructuring of an HR BPO contract and asset impairments. The delta would have been larger, but they also had a $7 million charge recorded in the prior-year quarter associated with the recognition of a loss provision for an HR BPO contract.

Their HR BPO business is really dragging their corporate results. Their consolidated income for the quarter was $12.9 million and their HR BPO division generated 17% of the consolidated revenues but contributed $61 million in losses for the quarter. Unfortunately, they only disclose revenue and operating income for the HR BPO segment. Therefore, we don’t know whether losses are mainly attributed to heavy SG&A or their contracts are just plain losing money. I suspect it’s the latter.

They mentioned in the earnings call that more restructuring charges may be coming this year for their HR BPO business. They also mention that they are being more selective in deals they pursue (with only 3 qualified deals in the pipeline). This selective top line growth is a trend found in all of the HR BPO providers.

There is much postulating that Hewitt’s public disclosure of heavy HR BPO losses logically sets in motion shareholder support for full or partial divestiture of the former Exult assets. This then begins the game of determining - a) which large-market outsourcers would desire this asset as an anchor for entry into HR BRO (HP?); b) if the large offshore providers would acquire such an entity to establish a broader US presence (Wipro?); and most importantly, c) if anyone turn this business unit to profitability.

As the HR BRO market continues to struggle to maintain fiscal credibility, many will be watching future reports such as these.

Let’s keep the conversation going.