Invent

Staffing


Why Add Contract Placements to Your Staffing Business?

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

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Contingent Workforce Growing in North America and Foreign Markets

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

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Jeff Nugent to Discuss "Integrating the Contingent Workforce into the overall Talent Mix" At 2011 Recruitment Innovation Summit

On October 26, Jeff Nugent of Contingent Workforce Solutions will discuss “Integrating the Contingent Workforce into the overall Talent Mix” at the 2011 Recruitment Innovation Summit.

This session takes a holistic view of guiding Human Resource leaders through strategically integrating independent contractors into their talent mix. From developing a centralized contract talent acquisition program to ensuring standardized contract worker vetting and engagement models, Jeff Nugent will discuss industry leading practices that will demonstrate how Human Resource professionals can gain control of their contract workforce. By having visibility into this growing segment of the workforce employers can eliminate employment and tax law risks, streamline the process and save tons of money on contract worker spend and staffing agency fees.

For more information about the Recruitment Innovation Summit, Click here.

For more information about how Contingent Workforce Solutions can help your business, Click here.

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The Importance of VMS and Contingent Workforce Analytics

The most expensive and most complex resource of any business is its people. Many factors affect human performance, and, as a result, the human dimension is generally considered difficult to measure in terms of efficiency and improvement. With visibility into their workers’ performance, however, companies can better manage their entire workflow process.

Companies often have very little insight into their contract employees; a segment of the human dimension that poses high risk with employment and tax law and usually accounts for organizations’ largest single line expense. Contingent workers currently account for approximately 25% of the workforce, and this number is expected to increase. Companies need to effectively manage this aspect of their human resources in order to succeed in today’s changing employment market. Workforce analytics give companies visibility into their contract workforce, allowing them to better manage workflow, productivity, and compliance.

A Vendor Management System (VMS) can provide companies with the workforce analytics that provide companies with insight into their contract workforce across the entire organization. With greater insight, companies can determine who is doing what, and how well they are doing it. This allows organizations to allocate resources, motivate workers, and better understand human-resource related costs.

There are four key components to an effective Workforce analytics program. These components are:

  • Interactive – Workforce Analytics must be used as a living tool with dynamic data that integrates with historical data, including exceptions and outliers.
  • Intelligent – Analytics programs should be predictive and provide enough context to not only answer questions, but also raise them.
  • Actionable – The data must generate realistic recommendations that guide management decisions toward cost savings and risk mitigation.
  • Motivational – Workforce Analysis should go beyond mere mandates and inspire employees to have a stake in best practices.[1]

Successful businesses always look forward and adjust their strategies to match the changing market. Implementing a VMS and a workforce analytics program is one way that companies can adapt and better manage their most complex and most important resource: their people.

[1] Leeby, Doug. Workforce Analytics: How to Define, Measure and Drive Productivity in Today’s Organization. http://www.sig.org/i4a/pages/index.cfm?pageid=5748

For more information about how you can benefit from a Vendor Management System, contact Christina Fabugais about SimplicityVMS

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

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Contract Work Rising, HR departments Need to Develop New Talent Management Strategies

Volatility in the economy drives companies to hire more contract workers, and this is a trend that has become apparent in the last few years. Recent news of the world economy slowing further will only cause this trend to increase. Companies need to consider their contingent workforce as part of their total talent strategy, because they can no longer afford to treat permanent and contract workers separately.

While the downturn in the economy has driven the increase in contingent labour, many workers are also choosing contract labour as an alternative to permanent work. Contract Labour gives individuals the freedom to determine their own work schedules, be their own boss, and pursue work that they find challenging and rewarding. For many, this is enticing.

While the increase in contract labour allows companies to be more agile and better cope with specific needs, it also presents management challenges. Companies need insight into their contract workforce so that they can manage costs, ensure compliance with employment and tax laws, and be sure they continue to hire quality performers.

Human Resources Executive Online recently published an article detailing how companies need to better manage their contract labour. The article also described how “In organizations where contract labor isn’t managed by HR, there likely will be some resistance to change”. However, the benefits of properly managing contract labour need to be emphasized. The article gave some advice about influencing key people to consider a different management approach, including:

  • Illustrate why it is important for HR to have control of all talent, whether that is due to demographic shifts or volume-hiring needs and to ensure workforce planning efforts align with business requirements.
  • Communicate the risk and rewards of not centralizing the contract workforce and how worker misclassification and improper budget alignment can be costly.
  • To ease the transition and get buy-in from stakeholders, help participants visualize the end result and how processes can come together to make using contract labor successful.
  • Make the connection between how optimizing all human potential — employees and contractors — can impact customer experience, sales and other business outcomes.
  • Take the time to update roles and responsibilities to gain visibility into how many contract workers are filling job descriptions that are actually full time jobs[1].

Today, contract labour is unavoidable. Workers are increasingly finding that contract work suits their lifestyle and turbulent economic times require companies to look for alternative staffing strategies. It is important that key people recognize the need to revamp their company’s HR department to meet today’s needs.

For more information about how we can help you better manage your Contract Labour, click here

[1] Orler, Elain. Human Resources Exectutive Online. http://www.hreonline.com/HRE/story.jsp?storyId=533340887

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2011 Recruitment Innovation Summit

Building out on the success of last year’s event, the Recruiter Networking Group (RNG) will be holding the 5th annual Recruitment Innovation Summit in Toronto.

The Recruitment Innovation Summit will focus on “what’s new” in recruitment, and will bring together leading Canadian Recruitment Experts and Innovators to share best practices and to network. Sessions will include: keynote addresses, expert panels and interactive learning streams. New this year will be the 2011 Recruitment Innovation Awards.

Register now for the most anticipated recruitment event of the year!

To become a sponsor of this unique event Click Here

Save the Date: October 26th-27th, 2011

Testimonials

“I attended with my full Talent Acquisition Management team. The topics were insightful and helped us measure
our success against others in the Corporate Recruiting space in Toronto. It was great to engage with other Recruiting Leaders to share and learn from one another.”
Marianne Crann, Director, Talent Strategy & Acquisition, Rogers Communications Inc.

“I have been to this Summit both as a speaker and as an attendee. Each year I find the topics relevant, insightful and impactful when it comes to effectively managing the recruitment function at Sun Life Financial.”
Paul Russ, Director, Talent Acquisition, Sun Life Financial

To read more testimonials Click Here

Use the Promotion code: RIS2011 to receive $200 off of the regular price.

Register here

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Facing the Newest Challenge in Talent Sourcing: Retaining Baby Boom Generation

It may seem unlikely in today’s economic climate, but a war for top talent is looming. The recession has given companies the false sense that good people are abundant; however this is will quickly change as the largest segment of the workforce, the baby-boomers, begin to retire en masse. Profit Magazine recently published an article entitled “The Incredible Disappearing Workforce” which details the struggle companies are facing, and will continue to face, with finding suitable replacements for their retiring employees.

Profit Magazine states that “the boomer wave is so big that no combination of measures can replace all of the retiring workers”[1], which indicates that companies need to get resourceful in their search and retention strategies for top talent. One way to do this is through contract work. Many older boomers have indicated that they are eager to return to work; however they are not eager to return to 60-hour work weeks, having employees report to them, and moving up the corporate ladder[2]. Instead, they want to work as individual contributors[3]. Contract work provides the perfect opportunity for retired or soon-to-retire to do this. The statistics already show that this trend is occurring, and it will continue to increase in the coming years[4].

Companies need to prepare themselves for uncertain labour conditions, and, as contract labour continues to rise with this trend, companies will require assistance with managing their contract labour. Aberdeen Group’s comprehensive study of Contingent Labour Management indicates that 50% of enterprises need to better manage all facets of contingent labour[5].

Already, best-in-class companies are 35% more likely than industry average companies to use a Managed Service Provider solution for their contract workforce needs, and 63% of best-in-class companies are using a Vendor Management System[6]. This trend will likely continue as organizations hire more contract baby boomers.

In order to remain competitive when top talent is difficult to find, organizations need to be resourceful when recruiting and retaining experienced workers. Using a Managed Service Provider that focuses on managing contingent workers allows companies to develop and implement strong alumni and retiree programs, and keep sought after knowledge and experience for longer.

[1] McElgunn, Jim. The Incredible Disappearing Workforce. Profit Magazine. Oct 2011

[2] McElgunn, Jim. The Incredible Disappearing Workforce. Profit Magazine. Oct 2011

[3] McElgunn, Jim. The Incredible Disappearing Workforce. Profit Magazine. Oct 2011

[4] Orler, Elain. Managing Contingent Labour. Human Resources Executive Online. Sept 2 2011. http://www.hreonline.com/HRE/story.jsp?storyId=533340887

[5] Dwyer, Christopher, J. Contingent Labor Management: Strategies for Managing the Complexities of the Contingent Labor Umbrella. Aberdeen Group. June 2010

[6] Dwyer, Christopher, J. Contingent Labor Management: Strategies for Managing the Complexities of the Contingent Labor Umbrella. Aberdeen Group. June 2010

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Temporary & Contract Staffing on the Rise

Remember when everyone kept talking about the recession and the strain it put on our economy? Well, although people are STILL talking about it, at least now it is in the context of a steady road to recovery. Not to say that we are out of the wood-work just yet, but it seems that employers are beginning to hire again which is great news for both our economy and our nation’s morale. At the forefront of employment growth is temporary and contract labour. As discussed in previous CWS Blog posts, temporary and contingent labour is a great way for organizations to employ the resources they need in an efficient and cost effective manner. So it should be no surprise, that those in the temporary staffing realm are reaping the benefits of this much anticipated, and much talked about, economic recovery.

In a recent article by Staffing Industry Analyst, Benchmarks: Temp Staffing Revenue,stated that temp/contract staffing revenue increased by 12% in 2010 from 2009 totalling approximately $80 billion. The research projects that by 2012, the temporary/contract market will make up $97.3 billion.

Other temporary/contract staffing facts:

  • 27%: Growth in staffing of industrial jobs in 2010, the most growth of any temporary and contract staffing segment.
  • The strongest performing of the professional segments were IT and engineering, with each growing 13% in 2010.
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    Baker’s Dozen: Top RPO Firms Listed

    Who’s the top RPO? There are 13 of them, according to the Baker’s Dozen list in the latest issue of HRO Today magazine.

    At the top, and placing first in the “Quality of Service” category for the third time in a row, is SourceRight Solutions. Formerly part of Spherion and now owned by SFN Group, Inc., SourceRight has a global reach with 900 of its own or network partner offices around the world.

    Besides getting high grades from its customers for its service, the company also scored near the top for the breadth of the services it offers and for the size of its deals. According to SourceRight, it made more than 50,000 hires last year and can provide every level of RPO and vendor management service.

    Second on the list and very close to SourceRight is AdeccoRPO. Barely 4 percent in the overall scores separate the two companies. Indeed, Adecco has risen from 11th on the list two years ago to seventh last year and now is within just eight points of claiming the top quality-of-service spot.

    In third place is Alexander Mann Solutions, a London-headquartered firm that is most active outside the U.S. It has major offices in Hong Kong and Melbourne. The firm, whose breadth of service ranked it highest of the 13 RPOs on the list, does business in 60 countries with a staff of 1,000.

    Next up is TheRightThing, an Ohio RPO that also owns AIRS, giving it a training arm and the AIRS technology to complement its full-service recruitment outsourcing business. With 190,000 hires last year, TheRightThing has the most placements of the firms on the list that shared their metrics.

    Rounding out the top is Pinstripe. Its rise has been nothing if meteoric. Barely five years old, Pinstripe first made the Baker’s Dozen list two years ago. Now making its third appearance, the Wisconsin firm missed claiming the fourth spot by a hair. It offers the full-range of RPO services and placed almost 40,000 workers in 2009.

    The rest of the thirteen, in order are: Kenexa, PeopleScout, KellyOCG, AON RPO, Manpower Business Solutions, Futurestep, Talent2, and Hudson.

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    Meet the Tempreneur Uncertainties in the employment market have given rise to a new and growing job classification: the "tempreneur," an entrepreneur-temp hybrid

    By Lynn Taylor

    Published: Bloomberg Businessweek

    In the recent past, a part-time job was primarily a stepping-stone to full-time work with all the associated benefits.

    In the last decade, however, many employees began viewing project stints as a refreshing departure from the capriciousness of Corporate America. They witnessed employers’ revolving-door approach to staffing—and consequently ratcheted down their own loyalties, changing jobs more frequently.

    Now with the recession easing, 2010 may officially mark the start of the decade of a much less committed relationship between employer and employee. Owing to the disappearance of job security, the desire for greater independence, and the emphasis many baby boomers place on smelling the roses, more senior professionals are becoming what I call “tempreneurs.”

    Tempreneurs are managers who seek a temporary schedule that makes it unnecessary to put all of their eggs in one corporate basket. They are independent contractors with an entrepreneurial spirit. When employment reaches respectable levels once again, these project consultants may have to be cajoled into working full time.

    So what does this mean for establishing and maintaining a corporate culture of continuity, cohesiveness, and productivity? From a leadership standpoint, it seems imperative that businesses maintain a core of employees, but react to external and global influences with some agility to remain profitable.

    CONTINGENT WORKERS

    Technology has made it feasible and economical to work with virtual teams. LinkedIn has enabled the lightning-speed assembly of teams and supply chains. Employers, if they’re wise, don’t want the peaks and valleys of hiring and firing. It’s bad for business, not to mention customer loyalty.

    All these factors contribute to greater reliance on contingent workers—and in many cases, the tempreneur. Firms are now adopting a variety of strategies to organize and manage contingent workers. They have to become adept at leveraging the talents of tempreneurs, yet treat them as valued team members.

    Ultimately, perhaps both sides are getting what they asked for. And as is the case with any two entities that negotiate terms of a working relationship, both sides will have to compromise.

    A tempreneur is not driven by a necessity to make ends meet between full-time jobs; it’s a personal career choice. Temporary workers go from project to project, usually on-site. Entrepreneurs, on the other hand, have made a career decision to work for themselves, most often off-site. Tempreneurs constitute a new and improved hybrid of the temp worker and entrepreneur. This is a stronger, wiser, more resilient employee.

    While they are different from most workers of prior decades, tempreneurs do cross over in certain instances. For example, tempreneurs must collaborate and work on a mutually agreeable schedule with the client, much as consultants do. The differences?

    • Tempreneurs are more senior than the average temporary worker.

    • Most temps require much more supervision than do tempreneurs.

    • Consultants are slightly more senior than tempreneurs (many work directly with CEOs), and they leave much of the execution to the client.

    • Since tempreneurs are not as senior as consultants, they can more affordably fill the voids in staffing.

    • Tempreneurs make it easier for their clients to contend with business ebbs and flows.

    The trend toward “tempreneurship” began in earnest in 2001, during the dot-com bust. As the last decade unfolded, project consulting became “the great escape.”

    Today’s contingent-worker labor pool is made up of many categories: temporary workers, independent contractors or freelancers, outsourced employees, part-timers, and consultants. When companies are in the full hiring mode again, there will likely be budgeting for long-term use of these contingent workers like never before. It’s easy to forget that employers, too, were traumatized by the recession. They suffered the decimation of their bottom line and payrolls, leading to a desire for a paradigm shift to more flexibility.

    LONG-TERM APPEAL

    With the focus on greater competitiveness and cost-containment, including real estate, travel expenses, and changes in project peaks and valleys, not to mention fixed payroll expenses, the tempreneur has long-term appeal. Further supporting this trend is the rise of entrepreneurship. Many startups are underfunded, making the tempreneur option more desirable, the proverbial best of both worlds.

    Now factor in more sophisticated technology, providing a “facsimile digital community” for those working off-site. Video conferencing is bridging the gap and facilitating a greater person-to-person connection. Social media sites such as Facebook and LinkedIn create a sense of community formerly found only in a physical office. And the proliferation of cellular networks, smartphones, and air cards makes mobile offices more mainstream. Plus, employees can socialize without in-person watercooler chats and happy hours.

    Clearly, regular full-time employees will never vanish. And there are regulations that your HR department will help you comply with when hiring and classifying workers as contract employees. But 2010 marks a unique time when the U.S. workforce and management face each other with a challenging shift in the relationship they once had.

    It can be for the better. Start by understanding that each side must first set a foundation of goals and expectations, with an eye toward mutual gain and trust that’s more than “temporary.”

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