Jobvite recently published a free ebook entitled 33 Essential Social Recruiting Stats, and this eye opening collection of information reveals that employers are already stepping up their efforts to recruit through social media sites because this method is, well, effective.

One interesting statistic that Jobvite published is that 73% of surveyed people between the ages of 18 and 34 found their most recent job through social media.  Jobvite also published that 55% of surveyed companies indicated that they would invest more in social media hiring this year. This means that social media hiring is likely to increase in the future.

Most recruiters already pore over social media sites and the internet to find candidates with relevant skills, and, while many large companies are laggards in adopting social media as part of their employment strategy, they are beginning to see the benefits.

One challenge that employers face is that they do not have the in-house knowledge to effectively use social media for employment purposes. Using a third party can help organizations make the most of internet recruiting, as many of these third parties already use social media for recruiting purposes.

SimplicityVMS is one third party VMS system that integrates with social media sites, making it easier for employers to directly hire their contract and temporary workers through social media.

For more information about SimplictyVMS, or to learn about how your business can benefit from a third party, click here, or contact:

Christina Fabugais
Marketing Manager
Contingent Workforce Solutions Inc.
Direct Phone:  416-642-9077
Toll Free:  1-866-837-8630 x9077
Email:  christina.fabugais@cwsolutions.ca

Organizations cannot afford to approach their contingent workforce management in an ad-hoc, as-needed manner. They must begin to manage their entire workforce, including the contract and temporary segment, efficiently. A third party can assist organizations to create an effective contingent labour management program that gives visibility into the costs, mitigates risk, and provides a record of the worker’s employment with the organization.

Aberdeen research surveyed companies and divided these organizations into best-in-class, industry average, and laggard categories. The best-in-class category consisted of organizations that were in the top 20% performers. They had 87% compliance to federal/state/regulatory labour and tax policies concerning contingent workers, 4.4 contingent worker quality ranking score, and 21% contingent worker spend savings.[1] These organizations have implemented many best practices that organizations should imitate when using a third party or managing contingent labour internally.

There are various third parties that organizations can use that provide different aspects of a successful contingent labour management program.

  • Independent Contractor Engagement Specialists (ICES) work with organizations to manage independent contractors — including high-rate, project-based SOW (Statement of Work) consultants — by acting as an Agent or Employer of Record (EOR) for IRS purposes. ICES will assess the eligibility of a potential contractor for 1099 status. If they are found ineligible, ICES will hire the worker as their own W-2 employee, allowing him/her to work for the client on subcontract. For those that are eligible, ICES will act as the “Agent of Record,” simplifying the process for their clients.[2]
  • Vendor Management Systems, or VMS, are technology solutions that provide visibility into how many contractors a company is using, for how long, and for what. These technology solutions provide visibility into the cost of the overall contingent labour program. The basic systems handle everything from requisition to off-boarding, including hiring approvals and processing time sheets and invoices.[3]
  • An MSP (Managed Service Provider) is an out­sourced service provider who is responsible for procuring and managing contingent workforce needs according to client requirements. MSPs may or may not offer a Vendor Management System (VMS) of their own but they normally combine a VMS technology offering into the programs they run for clients.[4]

All of these third parties can be used in combination or separately. Aberdeen research has found that although all types of third parties are used by best in class organizations, a VMS was the most commonly employed third party by best in class enterprises.[5] Top performing companies were 33% more likely to employ an MSP program than other companies.[6] Best in class organizations were 60% more likely to employ ICEs than other companies, and ICEs have historically shown to increase contract worker compliance by nearly 80%.[7]

For more information about how your organization can benefit from a third party, and to find out more about VMS, MSP, or ICES, Click here or contact:

Christina Fabugais
Marketing Manager
Contingent Workforce Solutions Inc.
Direct Phone:  416-642-9077
Toll Free:  1-866-837-8630 x9077
Email:  christina.fabugais@cwsolutions.ca

[1] Dwyer, Christopher J. Contingent Labour Management: Strategies for managing the complexities of the Contingent Labour Umbrella. Aberdeen Group. June 2010

[2] The ROI in Enterprise Contract Talent Management. The Human Capital Institute. Sept 2009

[3] Muson, Howard. Treating Contingent Workers as a Strategic Resource. The Conference Board: Trusted Insights for Business Worldwide. Sept 2010

[4] The ROI in Enterprise Contract Talent Management. The Human Capital Institute. Sept 2009

[5] Dwyer, Christopher J. Contingent Labour Management: Strategies for managing the complexities of the Contingent Labour Umbrella. Aberdeen Group. June 2010

[6] Dwyer, Christopher J. Contingent Labour Management: Strategies for managing the complexities of the Contingent Labour Umbrella. Aberdeen Group. June 2010

[7] Dwyer, Christopher J. Contingent Labour Management: Strategies for managing the complexities of the Contingent Labour Umbrella. Aberdeen Group. June 2010

Contract placements create an annuity stream that gives you a stable and consistently growing income stream.  With generally less work per placement i.e. sourcing, number of interviews, etc. you are able build a headcount of workers that pay out an hourly/monthly margin.  This is because contract placements last 3-6 months and often renew longer. During this time, when you place additional contractors on 3-6+ month assignments the margin paid out on an hourly/monthly basis grows with the headcount you have billing.  This annuity stream is in addition to your full time placements fees.  In many cases the consistent monthly income from contract margin will become the income you will count on with the full time placements becoming the “gravy” that is a nice addition to your monthly income.

The figure below depicts the placement fee amounts received in a 12 month period.



Fast Facts

  • 25% of the North American workforce is some type of contingent labour.
  • Between 1997 and 2009 contract employment increased by over 300% despite the economic downturn.
  • Only 30% of contract recruitment is client sourced

There has been plenty of evidence to indicate that the workforce in Canada and America is shifting to a larger portion of contract and temporary workers. However, the contract workforce is actually growing globally, and many foreign workforces are now made up of a significantly higher portion of contract workers.

The Telegraph recently reported that the number of contract workers in South Korea has almost doubled since 2002, and now currently accounts for about a third of the entire workforce. This trend is evident all across Asian markets, from Shanghai and Singapore.

Similarly, the Australian Taxation Office, 4.1 million workers are considered contract workers. The number of contract workers has dropped in some industries in the UK; however it has risen in others. The uncertain economy has prevented organizations in some industries in the UK from hiring contract workers. However, having a portion of the overall workforce as contingent has allowed organizations in the UK to remain agile and adjust their workforce according to the economy and industry demands.

This information proves that organizations are increasingly seeing the benefits of employing contract and temporary workers. The benefits are not only apparent in Canada and the US, but also in other foreign economies.

As the contract workforce grows, organizations will face increasing managerial demands from their contract workforce. There are many complex laws around employing contract and temporary workers, and organizations need to ensure that they compliant with these laws. One way in which employers can ensure this is to implement an MSP program.

For more information about how your organization can benefit from an MSP program, click here, or contact:

Christina Fabugais
Marketing Manager
Contingent Workforce Solutions Inc.
Direct Phone:  416-642-9077
Toll Free:  1-866-837-8630 x9077
Email:  christina.fabugais@cwsolutions.ca

US News reported that since the end of the recession, 54% of new jobs in the USA have been temp work. This statistic comes from the Bureau of Labor Statistics, which also indicated that roughly one in every 50 Americans held a temporary or contingent position as of the end of October.

While you may think that these trends are reflective of the uncertain economy, and that employers are hiring temporary labour because they are unsure that they will have the resources to hire full time staff, you may not be seeing the whole picture. The uncertainty in the economy is certainly driving employers to hire temporary or contract workers; however many employers are beginning to see that their contingent workforce allows them to be agile in the marketplace. They can hire highly skilled workers for specific projects, and when the project is over, they are not forced to find other tasks and roles for these individuals. US News reported that a survey issued by the consulting firm McKinsey 58% of employers said that they plan to hire more “part-time, contract, and temporary workers” over the next five years.

Labour market experts are also saying that a fundamental shift is taking place in the workforce, as temporary and contract workers can now be found across all industries and job functions. Before, temporary and contract labour was primarily limited to manufacturing, construction, clerical and other relatively low paid job functions. However, now contract workers can be found in Information Technology, Engineering, Accounting, Health Care and many other industries.

People are turning to contract work for various reasons. Some people have been laid off, and find that temporary and contract work is the best way to gain income while searching for full time work, and many are finding that contract work often leads to full time positions at those companies. Many find that they prefer the freedom and flexibility of contract work. They are able to choose when and how much they work, and they are able to be their own boss. Still others have found that they would like to work after retirement; however they want to be able to choose their own projects and how much they work. Contract work provides the perfect balance for those looking to work after retirement.

Employers that traditionally had 100% full time core workforce are now looking to migrate to an 80% full time, 20% contingent core workforce. The 20% are usually perpetual contractors, with no expectation to move these people back to full time. This gives employers the flexibility to adjust to changing business demands. However, employers need to be wary of the legal and tax risks that come with employing contract workers, especially on a long-term basis. The laws around contingent workers are complex, and many organizations do not have the necessary resources or competencies to manage these workers in house. For that reason, many employers are also using an MSP provider in order to mitigate risk and save money.

For more information about how your organization can employ contract workers and benefit from an MSP, click here or contact:

Christina Fabugais
Marketing Manager
Contingent Workforce Solutions Inc.
Direct Phone:  416-642-9077
Toll Free:  1-866-837-8630 x9077
Email:  christina.fabugais@cwsolutions.ca

Companies need to make strategic decisions to outsource functions of their business that are not part of their core competencies. One such function is Contingent Workforce management; managing this function is a extremely complex, and organizations rarely have the capabilities to do it effectively. Deciding whether to outsource or internally manage contingent labour is highly dependent on the specific organization’s capabilities; however, outsourcing is often a better option.

When should you manage internally? If your organization has a strong talent acquisition function, cooperation between HR and procurement, cooperation between HR and other lines of business, and strong organizational leadership, then managing contingent labour internally is something your organization should consider.

To manage its contingent labour in an efficient and cost effective way, it is important that your organization possess all of these attributes, and not merely a few. Contingent labour often accounts for organizations largest single line item cost, and internally managed contingent labour programs are also often run in an ad-hoc, inefficient manner, and so organizations need to carefully examine their capabilities before deciding to manage internally.

If your organization does not possess the necessary attributes, an externally managed Contingent Labour Program, or MSP, is the best option. An MSP provider has the skills and knowledge to ensure compliance with the tax and employment law, which mitigates your risk.

To find out more about how your organization can benefit from an MSP program, click here or contact:

Christina Fabugais
Marketing Manager
Contingent Workforce Solutions Inc.
Direct Phone:  416-642-9077
Toll Free:  1-866-837-8630 x9077
Email:  christina.fabugais@cwsolutions.ca

It’s time that HR became part of the overall business strategy. In 2009 an Aberdeen study found that 60% of executives believed that the current state of the economy would increase the importance their organizations placed on Human Capital Management. In a time when business results are of utmost importance, and companies are increasingly seeking efficiencies, human resources can be the difference between success and failure.

Many companies are willing to admit that their most important resource is their people, but few are willing to put this belief in practice and fully integrate their Human Resources strategy with their business strategy. Aberdeen found that 54% of Best-in-Class organizations had aligned employee goals and development activities with business priorities in 2008. This amounts to only a small percentage of all companies; however it displays that aligning the human element with business goals results in overall success.

The good news is that this is changing. The 2009 Aberdeen HR Executive’s agenda report found that 75% of executives surveyed indicated that HR had become more or significantly more strategic over a two year period.

By the same study, Aberdeen found that that economic instability and uncertainty posed by the economic downturn were their biggest pressures for best in class HR executives. In order to overcome these pressures, HR executives need to align their Human capital management priorities with the overall business goals. The study found that Best-in-Class organizations implemented programs that aligned the workforce with organizational objectives. In order to do this, they must collaborate with business managers to understand business success criteria.

HR needs to integrate with business managers in order to determine the best HR strategy in order to have the necessary resources for strong business results. This includes full time hires, and contract and temporary workers. Contract and temporary workers are often highly skilled and can be useful to an organization when specific skills are needed for a particular project, but these skills will not be needed in the long term. During difficult economic times, this is one of the most effective ways for an organization to gain the necessary skills without compromising costs.

HR is one of the most important departments in the organization, because HR provides the human capital that the business rests upon. HR needs to be integrated into the overall business strategy so that businesses can acquire the full time and contract staff that they need.

For more information about how to implement an MSP as part of your Human Resources strategy, click here or contact:

Christina Fabugais
Marketing Manager
Contingent Workforce Solutions Inc.
Direct Phone:  416-642-9077
Toll Free:  1-866-837-8630 x9077
Email:  christina.fabugais@cwsolutions.ca

Contingent Workforce Solutions (CWS) is pleased to announce that it has been chosen as a GTA finalist in the Deloitte’s 50 Best Managed Companies. We are honoured to receive this recognition only three years after our company’s inception, and we are grateful to be listed among the other successful finalists.

Canada’s 50 Best Managed Companies continues to be the market of excellence for Canadian-owned and managed companies.  Now in its 19th year, this is one of Canada’s premier business awards. It celebrates companies that demonstrate vision, passion and achievement in their daily business[1].

CWS is thankful to all of its employees for working hard over the past three years and bringing CWS the success it has achieved. Congratulations to the other Deloitte 50 Best Managed Companies finalists and good luck with phase two of the award selection process.

[1] Deloitte 50 Best Managed Companies. http://www.deloitte.com/view/en_CA/ca/insights/multimedia/podcasts/e086ac37004b6210VgnVCM200000bb42f00aRCRD.htm

Attend any recruitment or Human Resources conference and you’ll know that these industries are filled with mind boggling industry jargon. It can be overwhelming to try to understand all of it. One term that is particularly confusing is “co-employment”; however organizations face huge risks by not understanding this concept and taking the necessary steps to ensure they are protected against it.

Co-employment occurs when two or more legally separated employers share potential or actual employer responsibilities with mutual employees between the two organizations. It means that the two companies jointly employ the worker.

While this situation can be intentional, employers do not want co-employment situations when they are hiring contract workers. Employers do not want to be responsible for employment responsibilities and liability for their contingent workforce.  However, while employers may think that their agreement outlines that the contract worker is self-employed, the CRA may actually find that a co-employment arrangement actually exists.

What happens if the CRA does find that your organization has a co-employment arrangement with your contingent workforce? The classic example of the consequences of co-employment is a case in which Microsoft had to pay $97 million to a group of temporary workers that were deemed employees. Because these people were deemed employees, they were therefore entitled to benefits and additional pay, and Microsoft had to pay these workers what they were owed, along with a hefty fine. Other organizations could be faced with similar penalties if the CRA finds that their contract workers are actually employees.

This is a huge risk that companies need to address. Co-employment sounds like another industry buzz-word, but employers cannot afford to ignore or misunderstand the consequences.  The CRA has recently begun to increase its investigation into co-employment and contingent worker classification, and so you need to make sure that your organization is compliant with employment laws in order to mitigate your risk.

For more information about how you can mitigate your risk against co-employment, visit the CWS website or contact:

Christina Fabugais
Contingent Workforce Solutions Inc.
Direct Phone:  416-642-9077
Toll Free:  1-866-837-8630 x9077
Email:  christina.fabugais@cwsolutions.ca

Staffing Industry Review recently published an article entitled “Don’t Fight Your MSP” that outlined the benefits that one supplier saw by embracing an MSP. The staffing firm profiled in the article was able to grow from a local company into a national company.

Many small to mid-size staffing agencies start to feel comfortable once they have created a lasting relationship with a local division of a fortune 500 company. However, many Fortune 500 companies, and other mid-size companies, are now implementing larger, organization-wide MSP programs that consolidate the hiring process.

This is a scary proposition for a small to midsize staffing firm. With an MSP, staffing agencies lose their sales relationships with managers, they need to deal with MSP fees, audits, and controls around margins. Many of these firms choose to fight the MSP by continuing to deal with organizations through back channels. While this may work in the short-term, it could be suicide in the long term.

With a properly managed program, the customer will know which suppliers are using the program to drive business and which are dodging the program by providing ad-hoc resumes hoping that one will stand out. Suppliers that use the later method risk being dropped altogether, while those that use the former actually stand to increase their business.

An MSP can appear to be a barrier to staffing firms, but if they embrace the program, they stand to gain business opportunities on a national and even international level.

For more information about how you can create an effective partnership with an MSP provider, click here.