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Contingent Workforce

Numbers in Favor of a Growing Contingent Workforce

 

Recently the Hardvard Business Review posted a blog that proved the case for the growth of contingent laborers.  The post entitled “Independent Work May Be Inevitable” highlighted some staggering statistics that are sure to convince even the most cynical criticizers.

  • Approximately 43 million people, or roughly 35%-40% of the private workforce in the U.S., are currently doing some type of contingent work; this number is expected to grow to 65-70 million within the decade
  • Of those who went independent in 2012, 57% chose to
  • Millennials (Gen Y), ages 21-32, for example, 40% say they’re likely to choose independence of their own accord
  • 58% of Boomers (ages 50-66), are choosing independence
  • Gen X (33-49) is the most likely to choose independence — 68% of those who have gone indie are there by choice rather than the result of job scarcity or loss

 

To view the original post visit: http://bit.ly/XiTzHB

 

 

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Jeff Nugent of Contingent Workforce Solutions to speak at The Conference Board of Canada’s Human Capital Risk Management Conference

Jeff Nugent, the Founder & Managing Director of Contingent Workforce Solutions, will be speaking at the Conference Board of Canada’s Human Capital Risk Management Conference on April 25,2012. Jeff’s session will focus on the topic of Managing and Mitigating the Risks of Contingent Workers.

Contingent workers—freelancers, contractors, consultants—offer many benefits, including flexibility, reduced costs, and access to specific, hard to find skills. While most organizations can cite these benefits, few are fully aware of or effectively manage the risks involved. In fact, many contingent workers are used to mitigate the risks of increasing retirements, without realizing the new risks they present.

Jeff Nugent will share his insights as a leading practitioner in the rapidly growing contingent workforce industry. He will discuss how you can take a more strategic approach to your contingent workforce, and manage the risks and maximize the return on this increasingly essential resource.

Also, as an expert in contract workforce management and tax and employment legislation Jeff will highlight the benefits of using simple 3rd contract workforce engagement models that will help employers gain visibility, ensure compliance with internal policy and external employment and tax law all while streamlining the process, mitigating risk and saving employers a ton of money.

Jeff’s session will take place on April 25, 2012 at 1:45 PM

To view the full agenda  for this event click here.

About Contingent Workforce Solutions
Contingent Workforce Solutions (CWS) is a business process management and advisory company that focuses on providing innovative contract and temporary labour management solutions to clients across North America and Europe. Not owned by a staffing firm, CWS enables employers to engage, administer and pay their contract workforce in an efficient and risk free manner.  As industry thought leaders we provide comprehensive advisory, vendor program management, and professional independent contractor administration and payrolling services that enable employers to get the most out of their contract and temporary workforce.  At Contingent Workforce Solutions we are changing the way people work™.

www.contingentworkforcesolutions.com

For more information contact directly:

Christina Fabugais
Sales & Marketing Manager
Phone: 1-866-837-8630 Ex. 9077
Email: christina.fabugais@cwsolutions.ca

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Contingent Workforce Solutions’ Jeff Nugent Joins HR.com’s Advisory Board

Mississauga, ON, April 10, 2012 –  Contingent Workforce Solutions (CWS) announced that Jeff Nugent, CWS’ President & Managing Director, has been appointed  as a member of  HR.com’s Contract Workforce and Talent Exchange advisory board. Jeff begins his term in April 2012.

HR.com, the largest social network and online community of HR executives, provides access to shared knowledge on best practices, trends and industry news to assist HR Professionals and Suppliers in developing their most important asset – their people. The 9 member advisory board works in coordination with the Institute for Human Resources (IHR) to help identify industry experts to join the HR.com faculty as well as guide the strategy, direction, online certification,  and virtual events offered by the Contract Workforce and Talent Exchange, one of 20 specialized IHR programs.

Jeff is a thought leader within the contract and temporary workforce management industry.  With over 17 years of experience, Jeff has worked with countless top employers in developing and implementing Contingent Workforce Management processes and technology tools that enable employers to take a holistic approach to strategically managing their contract workforce as part of their overall talent pool.  Under his leadership, CWS has been awarded the #1 Ranking in Profit Magazine’s Hot 50 fastest growing companies in 2011, was recognized as one of Canada’s Most Engaged Workplaces by Achievers, and was a finalist in Deloitte’s 50 Best Managed Companies.  Prior to CWS, Jeff was Vice President of Business Development & Strategic Solutions at one of Canada’s largest IT staffing firms, and held progressive positions with companies such as UPS, Lexmark, Union Gas, and Open Text.

“I’m pleased that Jeff Nugent has joined our board,” commented Board Director Jim Ware. “Jeff has been a welcome and active participant in the Contract Workforce and Talent Exchange’s webinars and virtual events and is a leader within this growing industry.  We look forward to Jeff’s fresh perspective on how we can grow and improve our learning sessions and certification programs in the contract workforce vertical.”

About Contingent Workforce Solutions
Contingent Workforce Solutions (CWS) is a business process management and advisory company that focuses on providing innovative contract and temporary labour management solutions to clients across North America and Europe. Not owned by a staffing firm, CWS enables employers to engage, administer and pay their contract workforce in an efficient and risk free manner.  As industry thought leaders we provide comprehensive advisory, vendor program management, and professional independent contractor administration and payrolling services that enable employers to get the most out of their contract and temporary workforce.  At Contingent Workforce Solutions we are changing the way people work™. (Visit: www.contingentworkforcesolutions.com)

About HR.com
HR.com is a virtual company that believes in HR education and networking. As the largest social network and online community of over 200,000 HR executives, HR.com connects HR professionals and suppliers with easy access to shared knowledge on best practices, industry news, webcasts, and online certification to help them develop their most important asset – the people.  Meet, network, share and learn. (Visit www.hr.com)

About The Institute for Human Resources (www.instituteforhumanresources.com)
IHR focuses on education, and career development in the HR profession. IHR currently covers 20 key HR verticals ranging from Contract Workforce and Talent Exchanges, Workforce Planning and Analytics, Developing Organizational Leadership Capabilities, Quality of Hire, Integrated Talent Management to Employee Wellness and others. Each program provides a full list of education, virtual events and accredited certification courses for a 12 -18 month period. Education, training and certification credits are available with “authorized partners” as well as with HR.com educational webcasts and award-winning virtual events.

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Staffing Agencies doing Independent Contractor Classification, Administration & Payrolling – A House of Cards Ready to FALL (and take down clients with them).

Armed with more education Clients are demystifying the contract recruitment market and figuring out that they DO NOT always have to use a staffing firm to find contract workers. With the advent of the internet, social media and other corporate Talent Acquisition tools clients are finding it easy to recruit their own contingent workers. This is Saving Corporate Organizations Millions in Staffing Agency Fees/Margin (the Difference between the Pay Rate and the Bill Rate).

As a response, staffing agencies, finding themselves under pressure to maintain market share and revenue levels are offering clients contract administration and payrolling services for workers that the client finds themselves. Under this service the staffing agencies offers a very low fee/margin to “administer or payroll” the contractual relationship with the contract workers on a flow through basis.

Many times staffing agencies use this technique as a way to fill their databases with quality candidates that corporate clients have spent significant time and effort recruiting. With the hopes of increasing market share of full margin recruited contract workers many staffing firms bid the administration fee they charge for payrolling flow through contract workers down to an UNSUSTAINABLE level.

With the staffing agencies having a higher OVERHEAD for sales, administration and management the original thought of using payrolling as a strategic advantage is now becoming a DEBT that these staffing agencies cannot afford. As more Managed Service Providers (MSPs) and clients consolidate more payrolling through the staffing agencies that bid the lowest price, the risk of these agencies becoming INSOLVENT becomes greater.

Worse many these staffing agencies have stopped doing the due diligence on proof of required government registrations that properly classify the worker’s employment status. Without this the staffing agencies are putting the workers and the employers in Danger.

Why would they do this? It’s simple. Administering and payrolling contract workers at low margins do not make them any money.

With examples like Deloitte, the Banks and the Telecoms etc. starting to recruit more of their own contract workers directly without the assistance of external recruiters, staffing agencies offering low margin payrolling are having financial difficulties making ends meet.

Will this be the industry’s next Chimes Bankruptcy Debacle???

It will be interesting to watch as these mismanaged “HOUSES OF CARDS” begin to fall.

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Ted Weyn of HCM Works and Jeff Nugent of Contingent Workforce Solutions to Present a FREE Webinar on Demystifying the Marketing on Vendor Neutrality – January 30, 2012 at 3:00 PM EST

In this 60 minute presentation, Ted Weyn of HCM Works and Jeff Nugent of Contingent Workforce Solutions, will introduce the audience to the concept of Vendor Neutrality.  Although this issue is not new, Neutrality is emerging as a hot topic among Corporate HR and Procurement professionals since the lines between program management vendors and staffing vendors are blurring as the Contingent Workforce Management (CWM) industry evolves.  This presentation will focus on the History & Evolution of CWM Managed Service Providers (MSPs), the different program structures and various pricing options.  The session will also empower attendees with the knowledge on how program structures and how vendor neutrality affects your organization’s CWM program over the short, mid and long term.  Ted and Jeff will also uncover the truths and myths behind what it means to be neutral and provide logical methods to ensure that all stake holders objectives are met in order to achieve success.

Date: January 30, 2012
Time: 3-4 PM EST
Price: FREE!!!

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Registration Instructions:

To register visit: http://www.hr.com/en?t=/contentManager/onStory&s=t23D1ljBn8iCuaPpPZl&StoryID=1307043839383

Click Register Now – It’s Free!

Fill out your account details

You will be prompted to select the type of account you would like to register for. To sign up for the FREE account select No Thanks.

Once you have successfully completed these steps you will be sent an email with an activation link.

Clicking on this link will activate your account and direct you to the website homepage.

Under Webcasts & Events in the top navigation bar select Virtual Conferences > Upcoming Virtual Conferences.

Click on the first event: Contract Workforce & Talent Exchange Virtual Conference

Click Enter Event.

Click Auditorium to enter the Webcast Auditorium.

Click the 10/13/2011 date tab.

Scroll down the 12:30-1:30 pm session and click the title: Building a Best of Breed Contingent Workforce Management Strategy

Click Attend Webcast.

A confirmation email will automatically be sent to you with details on how to join the webcast.

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For More Information 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

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What are Third Parties, and How do they Help Manage Contingent Labour?

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

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Contract Labour: The New Normal in the Workforce

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

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When Should You Use an MSP?

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

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Integrate HR with Your Overall Business Strategy to Improve Business Results

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

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Co-Employment: What it Means for Your Organization

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

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