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Global Daily News

  • List of largest industrial staffing firms includes 40 companies; revenue totals $24.1 billion

    The 40 largest US industrial staffing firms — those with $100 million or more in revenue — generated $24.1 billion in US industrial staffing revenue during 2017, according to a new list released by Staffing Industry Analysts.Together, the firms represented 72% of the $33.6 billion industrial staffing market in the US. It’s the largest staffing segment, in terms of revenue.In addition, the report listed the 40 largest firms by revenue and market share. And the five largest industrial staffing providers in the US are: EmployBridge Holding Co.: $2.60 billion, 8% market share Express Employment Professionals: $2.59 billion, 8% market share TrueBlue: $2.26 billion, 7% market share Aerotek (Allegis Group): $2.07 billion, 6% market share Randstad: $1.87 billion, 6% market share The report also noted seven firms that grew to more than $100 million in US industrial staffing revenue, appearing in this year’s report but not on last year’s: CorTech, Hire Dynamics, Impellam Group, Premier Employee Solutions, PrideStaff, Snelling Staffing and SURESTAFF.Corporate members of Staffing Industry Analysts can download the full report will all 40 firms listed. […]

  • US economic growth moves ahead at ‘solid pace’: The Conference Board

    The Conference Board’s US Leading Economic Index rose 0.6% in July to a reading of 110.7 (2016 = 100), following a 0.5% increase in June, and a 0.1% increase in May.“The US LEI increased in July, suggesting the US economy will continue expanding at a solid pace for the remainder of this year,” said Ataman Ozyildirim, director of business cycles and growth research at The Conference Board. “The strengths among the components of the leading index were very widespread, with unemployment claims, the financial components and the ISM New Orders Index making the largest positive contributions.&rdquo […]

  • House lawmakers ask labor secretary for update to joint-employer rule (Bloomberg BNA)

    Bloomberg BNA reports Reps. Bradley Byrne, R-Ala., and Henry Cuellar, D-Texas, recently asked Labor Secretary Alex Acosta to issue a new regulation updating joint employer liability under the Fair Labor Standards Act, according to a letter obtained by Bloomberg Law. The lawmakers — along with groups such as the International Franchise Association and HR Policy Association — want the department to limit the circumstances in which one business can be considered a joint employer of another’s workers. […]

  • Hawaii posts lowest jobless rate in July; Alaska is highest

    Hawaii posted the lowest unemployment rate among all states in July at 2.1%, the US Bureau of Labor Statistics reported. North Dakota and Iowa were next, both at 2.6% on a seasonally adjusted basis, followed by New Hampshire at 2.7%.Alaska recorded the highest jobless rate among all states at 6.9% in July.The BLS reported unemployment rates fell in July in 11 states; the largest were 0.2 percentage-point decreases in Alaska, Georgia, New Mexico, New York and South Carolina.Two states had month-over-month rate increases: Louisiana of 0.2 percentage point and Maine of 0.1 percentage point. […]

  • New York Attorney General sues three employment agency operators

    New York Attorney General Barbara Underwood filed a lawsuit against three employment agency operators for allegedly conducting deceptive business practices that targeted unemployed and financially vulnerable individuals looking for low-wage cleaning and maintenance jobs.The lawsuit alleges the three operators — Jose Ortiz of New Jersey; Maritza Quinones of Pennsylvania; and Johanna Miranda of the Bronx — falsely advertised cleaning and maintenance jobs that purportedly paid $13.50 to $29.00 an hour and charged upfront fees of between $140 and $499 for the employment opportunities that did not exist. Ortiz and Quinones operated Empire Services in the South Bronx from June 2015 through December 2015, according to the Attorney General’s office. Ortiz and Miranda operated Empire Safety Services from midtown Manhattan and the South Bronx from June 2017 through November 2017. Ortiz and Miranda operated Global Training Services in the South Bronx from October 2017 through January 2018 and have been operating National Safety Training Services from Jamaica, Queens, since February 2018.Applicants were also allegedly told that to secure a job they had to pay upfront fees for an Occupational Safety and Health Administration training course, an OSHA course completion certificate and an OSHA license, according to the office. However, there is no New York State or federal requirement that office cleaners and maintenance workers be OSHA certified.The Attorney General’s lawsuit seeks a court order enjoining Ortiz, Quinones and Miranda from engaging in fraudulent conduct; restitution for complainants; and more than $300,000 in fines and penalties. […]

  • Netherlands – Growth in permanent jobs outpaces flexible jobs in Q2, ABU finds

    In the second quarter of 2018, the number of employees with a permanent contract rose faster than the number of those in flexible jobs, according to the latest Flex Barometer from the Dutch Federation of Private Employment Agencies (ABU). The barometer showed that in the second quarter, the number of employees with a permanent employment relationship was 159,000 higher than a year earlier, which represents a growth of 3.1%. The number of employees with a flexible employment relationship increased by 3,000 (0.2%) in the same period.ABU also found that the share of self-employed people also grew again in the second quarter. The number rose by 2.2% compared to the same quarter of 2017Within the flexible workers group, the proportion of temporary employees with the prospect of a permanent contract grew the most, at 55,000 (16.7%) in the second quarter when compared to the same period last year. With the same flexible workers group, ABU found that the number of employees with a temporary contract of less than one year declined by 14.7%. Overall, the share of temporary workers within the flexible employees group remained stable at 14% when compared to last year. In total, 291,000 temporary employees were active in the second quarter of this year. […]

  • France – Unemployment rate falls 0.3% in Q2, fixed-term and temp employment fall slightly

    France’s unemployment rate stood at 9.2% in the second quarter of 2018. Over the year, the unemployment rate decreased by 0.3%, according to data from INSEE (National Institute of Statistics and Economic Studies).INSEE’s Q2 data also covered fixed-term and temporary employment, showing a decrease of 0.1% when compared to the same period last year.The employment rate of the population aged 15-64 years stood at 65.8% in Q2 2018, its highest level since the early 1980s. It increased by 0.4%, year-on-year.Permanent employment rate for people aged 15 to 64 stood at 49.3% in Q2 2018. It increased by 0.4% over a year. Full-time employment rate remained at 53.9% in Q2 2018, 0.6%higher than its Q2 2017 level. Part-time employment rate stood at 12.0%, stable from last year.INSEE also showed that 5.8% of the employed persons were underemployed, defined as those who have a part-time job and wish to work more. The 5.8% figure was a decrease of 0.2% when compared to last year.Last week, INSEE published data on temporary employment, showing an increase of 54,600 temporary jobs in the second quarter, a 7.2% increase over the year. […]

  • UK – Number of EU nationals working in the UK sees biggest drop since 1997

    The number of EU nationals employed in the UK between April and June 2018 stood at 2.28 million, a decline of 86,000 when compared to a year earlier and the largest annual fall since records began in 1997, according to data published earlier this week by the Office of National Statistics.The ONS broke down its data on employed EU nationals in the UK and found that the fall was driven by workers from the eight East European countries that joined the EU in 2004.The eight East European countries, known as the A8, are: Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia.The number of people working in the UK from the A8 countries fell by 117,000 for the period of April to June 2018 when compared to last year, also a record decline.In contrast, the number of Romanian and Bulgarian nationals working in the UK has continued to increase reaching a record high of 391,000 in April to June 2018. Romania and Bulgaria joined the EU in 2007.Recruitment & Employment Confederation (REC) chief executive, Neil Carberry commented, “For UK business to continue to flourish it’s critical that there is a comprehensive mobility and migration deal with the EU post-Brexit, so firms have the capacity to invest and grow here in the UK.”At the same time, ONS showed that there were 28.76 million UK nationals working in the UK, 332,000 more than for a year earlier. Furthermore, there were 1.27 million non-EU nationals working in the UK, 74,000 more than for a year earlier.Prime Minister Theresa May has pledged to reduce total net migration to the tens of thousands, and industries such as farming, food and hospitality are already reporting labour shortages. […]

  • UK – Google Jobs UK announces partnership with CV-Library

    UK-based job board CV-Library announced that it has partnered with Google on the company’s job search service ‘Google Jobs’.Last month, Google launched its job search service in the UK. The artificial intelligence job search tool shows job postings from across the web, whether they're on websites run by businesses, or job sites, such as CV-Library.CV-Library’s partnership means that those who search for jobs on Google will see vacancies advertised by CV-Library clients, as soon as they’re posted.The new job search experience is now live in the UK, and follows last year’s launch of the jobs service in the US.“We’re extremely excited to be a part of the launch of this new jobs search experience in the UK,” Lee Biggins, founder and managing director of CV-Library, said. “As a business, we’re passionate about connecting great employers with top talent and this development will certainly strengthen our position in doing so.”Google has previously stated that its launch in the UK builds on the commitment the company made last year to “help 100,000 people in the U.K. find a job or grow in their career by 2020.”Google Jobs UK already shows job postings from sites such as Reed, Gumtree, Guardian Jobs, Haymarket and Totaljobs.com.Despite the partnerships with job boards, many question whether Google will, at some stage, decide to cut them out altogether and deal directly with employers and jobseekers. […]

  • Australia – Ashley Services revenue up 5.7%, labour hire growth offsets decline in training division, EBITDA and net profit show recovery

    Australian training and labour hire firm Ashley Services (ASH: ASX) reported revenue from continuing operations for the full year ended 1 July 2018 of AUD 332.8 million (USD 241.8 million), an increase of 5.7% compared to the previous year.Growth in the Ashley Services’ Labour Hire division offset a decline in the group’s Training division, which was impacted by the decision to restructure this division approximately a year ago. (AUD millions) FY 2018 FY 2017 Change FY 2018 (USD millions) Revenue 332.8 314.7 5.7% 241.8 EBITDA 8.0 -5.0 N/A 5.8 Net Profit After Tax (NPAT) 4.8 -5.4 N/A 3.5 Ross Shrimpton, Managing Director, commented, “2018 represents a pleasing return to full year profitability and validates our strategic repositioning of Ashley Services back in March 2017 as a labour hire company with a smaller and more focused, complementary Training division.”“The 2018 result is primarily due to the solid performance of our Labour Hire division, with Action Workforce and Concept Engineering offsetting the decline in our Training division,” Shrimpton said. “Top line growth for Labour Hire was strong, in large part driven by impressive growth in our Concept Engineering brand, although Action Workforce played a role here also.”The company operates two primary divisions: Labour Hire and Training. Revenue is broken down as follows. (AUD millions) FY 2018 FY 2017 Change FY 2018 (USD millions) Labour Hire 326.1 289.2 12.7% 236.8 Training 6.7 25.5 -73.7% 4.8 Total Revenue 332.8 314.7 5.7% 241.8 The group’s Labour Hire division is made up of Action Workforce (blue-collar labour hire), Concept Engineering (technical labour hire) and Blackadder Recruitment (white-collar recruitment).Action Workforce revenue grew by 7.9% year on year, while Concept Engineering grew by 57.7%. Ashley Services said Blackadder Recruitment contracted slightly at both the top and bottom line, delivering a modest profit for the year.“The business has been restructured and refocused to more closely align with our Concept Engineering business and we anticipate this should see a return to better levels of performance,” the group stated.Shrimpton commented, “Aside from the top line strength, cost control in our Labour Hire division has also played an important role, with overheads growing at a slower rate than our strong revenue growth, delivering improved profitability in the Labour Hire division due to this improved leveraging of our cost base as well as the increase in mix of our higher margin Concept business.”Ashley Services announced in late 2016 that it would scale back on its Training Division. Ashley stated that the Training Division will focus on training out existing government-funded students and will operate with a significantly reduced scope with an increased emphasis on a fee-for-service basis.The group said its Training division emerged from FY18 with a “strong Western Australian operation, far improved operations in Queensland, and a strong, highly performing compliance function.”Both Western Australia and Queensland profitable operations were offset by the group’s continued investment in compliance and the cost of rebuilding its Victorian training operations.“To date the ramp up in Victoria has been slower than initially hoped and we are continuing to explore options to reshape this business to return it to a profit, which will also serve as a further opportunity to leverage our compliance cost base,” the group stated.Shrimpton commented further, “In terms of our Training division I am pleased to report that Western Australia has performed well across the year, while Queensland closed the year in much better shape. Our Victoria operations are still finding their way after being awarded a contract for calendar 2018 and we are working hard to get the right qualifications on scope to allow this operation to make a positive contribution again.”In trading today Ashley Services Group shares closed at AUD 0.255 (USD 0.19), down 8.51% on the day and 15.00% below its 52-week high of AUD 0.300 (USD 0.22), set on 27 July 2018. Based on its current share price the company has a market value of AUD 33.83 million (USD 24.6 million). […]

  • South Korea – Number of temporary employees down 2.1% in July, unemployment up 0.3%

    The number of temporary employees in South Korea stood at 5.00 million in July 2018, a decrease of 2.1% when compared to 5.11 million in the same period last year, according to data from Statistics Korea.At the same time, South Korea’s seasonally adjusted jobless rate fell by 0.3% in July to 3.8%. The number of unemployed persons totaled 1.03 million, which increased by 81,000 or 8.4% year-on-year.South Korea’s labour force participation rate stood at 63.6% in July, down 0.2% year-on-year.Meanwhile, the number of employed persons totaled 27.08 million in July, which went up 5,000 or 0.0%, year-on-year.According to Xinhua, July’s employment increase was the lowest on-year increase since January 2010 when the South Korean economy was under the influence of the 1998 foreign exchange crisis.President Moon Jae-in, who took office in May last year, said his top policy priority would be placed on job creation, but it had yet to take effect.In May, parliament passed an extra budget plan worth USD 3.5 billion to help create jobs especially among youths. […]

  • Australia – Employer groups tell inquiry that underpayment of workers is not “wage theft” (The Guardian)

    The Guardian reports that some of Australia’s largest employer groups have rejected suggestions that the underpayment of workers amounts to “wage theft”, telling a Queensland parliamentary inquiry that the term "wage theft" exaggerates the problem. It follows last week’s story on lawyers and unions calling for Queensland to enact the country’s toughest laws criminalising wage theft. The public hearings began yesterday, with a view to criminalising wage theft in Queensland. Submissions to the inquiry have described how wage theft is “rampant”. However, industry groups argued that underpayment was not necessarily theft. One of them, the Australian Industry Group said criminalising underpayments “would represent a major unnecessary and unwarranted change to the industrial relations system and added that “The term ‘wage theft’ is inappropriate. It risks inappropriately branding employers who mistakenly underpay their employees as criminals.” The Housing Industry Association said the concept of wage theft “has been greatly exaggerated by implying that all underpayment of wages is theft”. The inquiry will continue to hear testimony this week from workers who have experienced wage theft, including underpayment, and those who were not paid entitlements or superannuation, and who were unable to recoup money owed. […]

  • Singapore – Uber plans major recruitment drive despite having sold its Southeast Asia business (Tech Crunch)

    US-based human cloud firm Uber is planning on more than doubling its staff in Singapore despite having exited the market after it sold its Southeast Asia business earlier this year to rival Grab, reports Tech Crunch. Uber will not be bringing its ride-hailing app back in Singapore or anywhere else in Southeast Asia, however the company has contacted headhunting and recruitment firms to help fill as many as 75 vacancies, according to Tech Crunch. The new hires will take Uber’s headcount in Singapore to well over 100 employees. The plan is for the Singapore-based employees to provide services such as HR, accounting, admin, marketing and PR across Uber APAC, which includes Hong Kong, Taiwan, Japan, Korea, Australia and India. Singapore was chosen as the city already had existing Uber staff. An Uber spokesperson acknowledged that the company is in the process of hiring in Singapore, but declined to provide further details. […]

Latest Research

  • Largest Finance Accounting Staffing Firms in the United States: 2018 Update

    Key Findings We estimate that 11 firms generated at least $50 million in US finance/accounting temporary staffing revenue in 2017. Added together, these firms generated $4.1 billion in such revenue, accounting for 53% of the market, by our estimates. The complete list of 11 firms can be found starting on page three of this report In this market share report, we have ranked companies in order of revenue size, according to industry custom, but this ranking should not be taken to imply that a firm with a higher rank provides better service or more value to its shareholders. Staffing firms varied in degree of financial transparency, and even when forthcoming with information, in some cases data provided was adjusted for greater accuracy and consistency. Therefore, for all firms in this report, revenue shown should be considered an estimation by Staffing Industry Analysts.  Market share percentages in this report were calculated by dividing each company’s revenue figure by our estimate of $7.8 billion for the US finance/accounting temporary staffing market in 2017. Overall, we believe that this list is accurate and can be used appropriately to get a “big picture” reading of the US finance/accounting temporary staffing industry landscape. However, as transparency and availability of information from staffing companies can vary from one year to the next, this year’s estimates may not be comparable to those of previous years in all cases. For that reason, we did not display prior year revenue estimates in this report. One firm is included in this year’s ranking that did not appear in last year’s report: VACO. Please select the following link to download the full report: Largest Finance Accounting Staffing Firms in the US 20180816 - You do not have permission to view this object. […]

  • Gross Margin and Bill Rate Trends

    This report lists gross margin for 16 publicly traded staffing companies that do business in the United States. Among these 16 companies, 2017 gross margin ranged from 15.7% to 41.1%, with an average of 25.3%. Unless stated otherwise, gross margin was based on the entire company’s business; companies with more direct hire business were likely to have higher gross margins. Only seven of the 16 companies reported their greatest annual gross margin after 2008, over the period tracked in our table (2004-2017) on page 4. Only four companies reported their greatest gross margin after 2010. One reason annual gross margins have not fully returned to pre-recession levels (2007) is that the direct hire market (unlike the temporary staffing market) has still not recovered to pre-recession levels. However, there has been improvement in recent years. 2017 represents the fourth consecutive year of average gross margin expansion for publicly held staffing companies, after three years of contraction from 2011-2013. This growth trajectory has remained intact through 1H18 with average gross margin expanding by approximately 10 bps y/y. Based on findings from our Staffing Industry Benchmarking Consortium (SIBC) survey, the aggregate gross margin for professional temporary staffing has expanded 660bps over our 7-year tracking period, reaching a high in our 1H17 survey of 25.9%. This is in stark contrast to its commercial counterpart, which expanded just 180bps over the same period to 16.3%. Contributing factors to this  bifurcation include demand for professional staffing generally outpacing commercial staffing and a mix shift within professional staffing, where higher margin segments, such as healthcare and marketing/creative, have outpaced the broader group. There has been a slight convergence in professional and commercial margins more recently however, from a peak differential of 10.6% in 2H15 to 9.4% in 2H17, our most recent survey. Click below to download the full report: Gross Margin and Bill Rate Trends August 20180816 - You do not have permission to view this object. […]

  • Staffing Firm Use of Process Automation

    Key Findings:Human cloud/online staffing Fourteen percent -- one in seven -- of staffing firms are either “currently partnering with a human cloud service” (5%) or “currently own or have invested in such a service” (9%). Forty-eight percent of staffing firms said they were “aware of such services, but not interested in pursuing.” Another 30% were “considering building, acquiring, or partnering over the next 2 years.” Only 9% are not aware of such services. Those staffing firms invested in the human cloud typically reported investments to be small, in a mid-range of $300,000 to $1 million, representing between 20% and 100% ownership of the respective human cloud companies, and generating between “ Process automation Although the share of traditional staffing firms involved in human cloud services is still limited, most have been automating elements of the staffing process, particularly on the worker side. Across all the individual worker functions queried, a median 53% of staffing firms reported automation; by contrast, across buyer functions a median 26% reported automation. A comparison of functions automated in 2018 vs. 2017 showed only a slight increase for the industry as a whole, but large staffing firms were notable for greater increases in automation activity. There was no consensus that automation would reduce internal staff jobs in the long run, as many thought business expansion would offset automation-related job cuts. To access the complete report, please select the link below: North America Staffing Company Survey 2018 Human cloud online staffing, and use of 20180814 - You do not have permission to view this object. […]

  • Workforce Mix Modeling

    Executive SummaryOrganizations have a wider choice in determining how to get work done than ever before – from employed workers to the various forms of contingent labor; freelance, temporary (via an agency or not), independent contractor and SOW consultant. Workforce Mix Modeling will help you to source the right worker - at the right time - at the right cost - in the right location - with the lowest risk.As organizations continue to explore opportunities to optimize the make-up of their workforce, a bottom-up framework of modeling job title-level decision-making can provide insights as to whether an organization is getting the most from its workforce without assuming unnecessary costs or risks. Considering the relative newness of some worker types, it is not surprising that workforce mix optimization is still taking shape as both art and science. Regardless of current levels, many companies are projecting contingent workforce growth. Therefore, modeling efforts must account for as many priority factors as are practical, for what is most easily measurable (e.g. cost) may not necessarily be what is most important in the end. Workforce mix modeling is a beginning step in making trade-offs and decisions around the optimum way to get work done in your organization. Program owners need to consider both straightforward factors such as cost and softer factors such as learning curve, position volatility, intellectual property risks, customer interactions, etc. Taking the time to model workforce mix from the bottom up can yield significant payoffs and getting the most from one’s workforce is a critical success factor for most companies. But such an undertaking requires careful forethought and consideration if the exercise is to be completed in a timely and accurate manner. Undoubtedly, many recipients are likely to see this as additional work and will look upon such an exercise with suspicion, potentially tainting the validity of their input. Whether these concerns are reasonable or not, managing such perceptions should be taken seriously. Bottom-up planning makes a lot of sense for high-volume roles in an organization where there is a clear choice between contingent and permanent hire based on the workforce mix action plan and other strategic considerations relating to the talent segmentation, corporate priorities and labor market availability.To download the report, please select the link below:  Workforce Mix Modeling 20180809 - You do not have permission to view this object. […]

  • Office Clerical Staffing in the UK

    This report provides an overview of the UK Office Clerical staffing market.The broad outlook for the UK office clerical staffing industry is mostly negative due to technology advancement and computerisation.Nevertheless, some higher-level roles are creating recruiting and retention challenges.This report includes a ranking of the largest Office Clerical staffing providers in the UK by revenue.It also includes a definition of the sector, a profile of the UK Office Clerical staffing market and future trends and analytics.This report should be read in conjunction with our Largest Staffing Firms in the UK and Most Attractive Staffing Sectors in the UK report.To download the full report, click below: UK Office Clerical 20180816 - You do not have permission to view this object. […]

  • UK Staffing Firm Process Automation

    Key Findings:Human cloud/online staffing Thirteen percent -- nearly one in seven -- of staffing firms reported they are either “currently partnering with a human cloud service” (3%) or “currently own or have invested in such a service” (10%). Another 59% said they “considering building, acquiring, or partnering over the next two years.” Twenty-four percent are “aware of such services, but not interested in pursuing.” Only 3% of staffing firms were not aware of such services. Process automation Although the share of traditional staffing firms involved in human cloud services is still limited, most have been automating elements of the staffing process. Across all the individual worker functions queried, a median 28% of staffing firms reported automation; across buyer functions a median 29% reported automation. To access the complete report, please select the link below: UK Staffing Company Survey 2018 Human cloud online staffing, and use of 20180814 - You do not have permission to view this object. […]

  • Europe Staffing Firm Process Automation

    Key Findings:Human cloud/online staffing Roughly a third of staffing firms reported they are either “currently partnering with a human cloud service” (6%) or “currently own or have invested in such a service” (27%). Another 24% were “considering building, acquiring, or partnering over the next 2 years.” Thirty-six percent of staffing firms said they were “aware of such services, but not interested in pursuing.” Only 6% are not aware of such services. Process automation Although the share of traditional staffing firms involved in human cloud services is still limited, most have been automating elements of the staffing process. Across all the individual worker functions queried, a median 31% of staffing firms reported automation; across buyer functions a median 29% reported automation. To access the complete report, please select the link below: Europe Staffing Company Survey 2018 Human cloud online staffing, and use of 20180814 - You do not have permission to view this object. […]

  • Workforce Mix Modelling

    Executive SummaryOrganizations have a wider choice in determining how to get work done than ever before – from employed workers to the various forms of contingent labor; freelance, temporary (via an agency or not), independent contractor and SOW consultant. Workforce Mix Modeling will help you to source the right worker - at the right time - at the right cost - in the right location - with the lowest risk.As organizations continue to explore opportunities to optimize the make-up of their workforce, a bottom-up framework of modeling job title-level decision-making can provide insights as to whether an organization is getting the most from its workforce without assuming unnecessary costs or risks. Considering the relative newness of some worker types, it is not surprising that workforce mix optimization is still taking shape as both art and science. Regardless of current levels, many companies are projecting contingent workforce growth. Therefore, modeling efforts must account for as many priority factors as are practical, for what is most easily measurable (e.g. cost) may not necessarily be what is most important in the end. Workforce mix modeling is a beginning step in making trade-offs and decisions around the optimum way to get work done in your organization. Program owners need to consider both straightforward factors such as cost and softer factors such as learning curve, position volatility, intellectual property risks, customer interactions, etc. Taking the time to model workforce mix from the bottom up can yield significant payoffs and getting the most from one’s workforce is a critical success factor for most companies. But such an undertaking requires careful forethought and consideration if the exercise is to be completed in a timely and accurate manner. Undoubtedly, many recipients are likely to see this as additional work and will look upon such an exercise with suspicion, potentially tainting the validity of their input. Whether these concerns are reasonable or not, managing such perceptions should be taken seriously. Bottom-up planning makes a lot of sense for high-volume roles in an organization where there is a clear choice between contingent and permanent hire based on the workforce mix action plan and other strategic considerations relating to the talent segmentation, corporate priorities and labor market availability.To download the full report, please select the following link:  Workforce Mix Modeling 20180809 - You do not have permission to view this object. […]

  • Workforce Mix Modeling

    Executive SummaryOrganizations have a wider choice in determining how to get work done than ever before – from employed workers to the various forms of contingent labor; freelance, temporary (via an agency or not), independent contractor and SOW consultant. Workforce Mix Modeling will help you to source the right worker - at the right time - at the right cost - in the right location - with the lowest risk.As organizations continue to explore opportunities to optimize the make-up of their workforce, a bottom-up framework of modeling job title-level decision-making can provide insights as to whether an organization is getting the most from its workforce without assuming unnecessary costs or risks. Considering the relative newness of some worker types, it is not surprising that workforce mix optimization is still taking shape as both art and science. Regardless of current levels, many companies are projecting contingent workforce growth. Therefore, modeling efforts must account for as many priority factors as are practical, for what is most easily measurable (e.g. cost) may not necessarily be what is most important in the end. Workforce mix modeling is a beginning step in making trade-offs and decisions around the optimum way to get work done in your organization. Program owners need to consider both straightforward factors such as cost and softer factors such as learning curve, position volatility, intellectual property risks, customer interactions, etc. Taking the time to model workforce mix from the bottom up can yield significant payoffs and getting the most from one’s workforce is a critical success factor for most companies. But such an undertaking requires careful forethought and consideration if the exercise is to be completed in a timely and accurate manner. Undoubtedly, many recipients are likely to see this as additional work and will look upon such an exercise with suspicion, potentially tainting the validity of their input. Whether these concerns are reasonable or not, managing such perceptions should be taken seriously. Bottom-up planning makes a lot of sense for high-volume roles in an organization where there is a clear choice between contingent and permanent hire based on the workforce mix action plan and other strategic considerations relating to the talent segmentation, corporate priorities and labor market availability.To download the complete report, please select the following link: Workforce Mix Modeling 20180809 - You do not have permission to view this object. […]

  • Building an Effective Staffing Website

    • Your website provides you with an opportunity to showcase your business on a relatively equal basis to your competitors. With the right approach, there is no reason why smaller staffing firms can’t develop a very effective online presence to rival their larger peers.• Displaying, searching and applying for jobs has to be the core functionality for any staffing website. Those that get this wrong are simply wasting the opportunities available to them from having a presence on the Internet. Google for Jobs is a total game changer for online recruitment and no staffing websites can afford to ignore it.• Staffing firms where relations between the heads of marketing and IT are poor will struggle to develop an effective website strategy.• Putting information on a website once you have purchased the domain and found somewhere to host your content is free so economy of information is not a virtue.• Search Engine Optimisation is mostly about maintaining your website in a consistent fashion and using some basic principles to ensure visibility is continually maximised. Many SEO initiatives fail because the effort put in at the beginning is not followed through on a day-to-day basis.• Gone are the days when websites existed in isolated splendour and many staffing firms will integrate their website with their front and/or back office, as well as other systems. There are clear efficiencies to be gained from creating such smooth workflows.• Given anticipated growth in website traffic from mobile users, the smart approach today is to design and optimize your website for mobile devices first and only then adapt for the desktop.• A very recent addendum to the job application process is the use of recruitment chatbots. Over the past 12 months we have seen the launch of a number of chatbots that can automate a large portion of the recruitment process and ease administrative burdens for staffing firms.• The world is going through a new wave of automation and recruitment is a prime area for disruption. The evolution of Web 3.0 built on new technologies is heralding yet another period of upheaval.To download a copy of the report, click blow: Building an Effective Staffing Website 20180807 - You do not have permission to view this object. […]

  • APAC Financial Calendar 2018/2019

    See how your competitors or suppliers are faring. Get a spreadsheet you can upload into Outlook. Remember most of the events listed will be covered in the Daily News.The spreadsheet below is formatted to be uploaded into the Outlook Calendar.  Save the file to your desktop without opening it  Open Outlook if necessary Create a new calendar (right click on the existing calendar icon) in the folder view. Go to File – Open & Export – Import/Export Select Import from another program or file. Select Comma Separated Values (DOS) Select the file to import from your desktop Allow duplicates to be created Select the new calendar created in step three. Hit the finish button. The instructions are for Outlook 2013.To download the spreadsheet, click below: Financial Calendar APAC 20180725 - You do not have permission to view this object. If you have any updates, changes or new information, or a problem with the process above please don’t hesitate to contact me via the email address to the right. […]

  • Asia Pacific Legal Update Q2 2018

    In this report, we round up the legal developments affecting the workforce solutions ecosystem across the Asia Pacific region in Q2 2018:Australia: Minimum Wage Increase 1 July 2018; South Australia Postpones Labour Hire Licensing Scheme; New Long Service Leave and Portable Benefits for Victoria Employees Hong Kong: Amended Rules on Employment AgenciesJapan: Government Passes Reform on Overtime and Atypical Working ConditionsNew Zealand: Labour Hire Contractors Found to be Employees of the End-UserPhilippines: Bill Proposes Limiting Fixed-Term Employment and Labour-Only SubcontractingSingapore: Employment Act Changes from 1 July 2018; Tripartite Standard on Contracting with Self-Employed Legal Disclaimer: This update is provided solely for the purposes of information, and should not be considered legal advice. It is always recommended to seek the advice of qualified legal counsel before taking action.To download a pdf copy of this update click below: AsiaPacific_LegalUpdate_Q2_20180716 - You do not have permission to view this object. Australia 1. Minimum Wage Increase 1 July 2018On 1 June 2018, the Fair Work Commission increased the minimum wage by 3.5 percent or AUD 24.30 (USD 18.11) per week. The new weekly minimum wage will be AUD 719.20 per week (USD 536.23) or AUD 18.93 per hour (USD 14.11). The changes will come into effect on 1 July 2018. 2. South Australia Postpones Labour Hire Licensing SchemeThe new labour hire licensing law in South Australia commenced on 1 March 2018 and requires all providers to apply for a licence before 31 August 2018 to be compliant with the new scheme. However, the State Government received submissions from stakeholders raising various issues in relation to the labour hire licensing scheme. To enable proper consideration of the submissions received and to allow sufficient time for the issues raised to be appropriately addressed, the Government has advised that the Consumer and Business Services (CBS) department will not enforce the licensing requirements prior to 1 February 2019. To obtain a licence in South Australia, businesses must show that they are fit and proper to be a licence holder; and have sufficient financial resources to carry on the business properly under the licence. In addition to the application fee, businesses must pay an annual fee of AUD 1,200 (USD 895).The maximum penalty for a business providing or engaging in unlicensed labour hire services is AUD 400,000 (USD 300,000). Penalties may also apply where businesses attempt to enter into arrangements designed to circumvent the obligations; or provide officials with false or misleading information about their contracting arrangements.Labour hire businesses in South Australia are advised to postpone seeking a licence until further information is available from CBS.Herbert Smith Freehills provides an update on some of the other developments in Australia’s labour hire licensing laws. 3. New Long Service Leave and Portable Benefits for Victoria EmployeesOn 8 May 2018 the Victorian Parliament passed the Long Service Leave Bill 2017 (Vic) which will commence by 1 November 2018.The Long Service Leave Act 2018 (Vic) will allow employees to apply to take long service leave after seven years’ service. Any period of paid parental leave, and up to 12 months of unpaid parental leave, will count towards an employee’s length of continuous service, and no amount of parental leave will break continuity of service. However, the rate at which long service leave accrues under the new Act will not change.These changes will impact all employees in Victoria, unless they are specifically excluded from the operation of the Act. The changes will apply to any requests to take long service leave after the commencement of the Act (being no later than 1 November 2018).In addition, the Victorian Government introduced the Long Service Benefits Portability Bill 2018 (Vic) on 27 March 2018. The Bill passed the Legislative Assembly and was debated in the Legislative Council on 9 May 2018. The proposed commencement date is 1 April 2019.The Bill seeks to provide long service leave entitlements to workers in the contract cleaning, community services and securities industries, who perform essentially the same role under various contracts after working for seven years, irrespective of the number of employers that the individual works for over that time.Employers in these industries will be required to register themselves and their employees and contractors with a new Portable Long Service Benefits Authority, which will manage the scheme. Employers will pay a levy based on the ‘ordinary pay’ of each employee to finance the payment of entitlements.Herbert Smith Freehills provides further information on these developments. Hong Kong Amended Rules on Employment AgenciesOn 9 February 2018, the government amended Part 12 of the Employment Ordinance on Employment Agencies and the Employment Agency Regulations. The amendments increase the maximum penalty for overcharging commission from job-seekers and for operating an unlicensed employment agency from HKD 50,000 (USD 6,370) to HKD 350,000 (USD 44,590) and imprisonment for three years. The offence of overcharging is not only limited to the licensee, but also includes the recruitment agency’s associates (including any director, manager, or employee of a licensee).The amendment introduces new grounds for the Commissioner for Labour to refuse an issuance or renewal, or to revoke a licence where the licensee has been non-compliant with the Code of Practice for Employment Agencies. Japan Government Passes Reform on Overtime and Atypical Working ConditionsThe Japanese government has passed a Bill for Legislation for Promotion of Work Style Reform. the Ministry of Health, Labour and Welfare will prepare the draft legislation. Some of the key provisions are as follows: Limits on Overtime: In principle, overtime will be limited to 45 hours per month and 360 hours per year. Even in special circumstances where certain exceptions apply, overtime must be less than 100 hours a month, the monthly overtime average over multiple months may not exceed 80 hours, and annual overtime must not exceed 720 hours. Establishing a Sophisticated Professional System: This system would exempt individuals engaged in specialised work from regulations on working hours, and would strengthen measures for the protection of employee health. For example, this would provide employees with at least 104 days of holiday.  Securing Fair Working Conditions Regardless of Employment Type: This will aim to further eliminate some of the “unreasonable” differences of benefits offered in the terms and conditions of regular employees and those of part-time employees, fixed-term employees, and dispatched employees. On this last proposal, two recent cases illustrate the disparity that often exists between regular employees and these atypical workers. On 1 June 2018, the Supreme Court ruled that Article 20 of Japan’s Labour Contract Law prohibits irrational or unreasonable discrimination based on employment status, i.e., against those on fixed-term rather than permanent employment contracts. Article 20 does not require equal treatment but prohibits irrational disparity that is not related to the type of work, the level of responsibility or other reasonable circumstances.It is anticipated that some provisions of the legislation will be effective from 1 April 2019. New Zealand  Labour Hire Contractors Found to be Employees of the End-UserIn Prasad v LSG Sky Chefs New Zealand Limited, the Auckland Employment Court addressed a claim that two workers engaged as independent contractors through a labour hire agency were actually employed by the end-user company.The Court concluded that the workers were employed by the end-user, on the basis that there was non-existent or unclear contractual documentation about the relationship between the parties, there was a significant degree of control by the end-user company over the workers, and the work was for an indefinite period. In deciding this issue, the Court looked at the “real nature” of the relationship between the workers and end-user company and how this operated in practice. The Court concluded that the contracts were poorly drafted, and the workers were “steam-rolled into signing a document which they had no real understanding of”. The Court also found that the relationship was more analogous with an employer-employee relationship than independent contractors. For example, the workers worked solely for the end-user company, had little control over when, how or what work they did, wore the uniforms of the end-user company, and complied with the end-user’s practice of filling out time sheets. The Court compared the workers with employees directly employed by the end-user company, and found little distinction between the two in practice.The Court, in its judgement stated: “A labour-hire agreement does not represent an impenetrable shield to a claim that the “host” is engaging the worker under a contract of service. Much will depend on the facts of the individual case and an analysis of the real nature of the relationship, including how it operated in practice. That is, of course, nothing more than a simple statement of the way in which s 6 [Employment Relations Act 2000] is intended by the Legislature to operate.”In line with the current trend in other countries, the New Zealand Employment Court took a “substance over form” approach in this decision and demonstrated that workers will not automatically be considered independent contractors because of the label given to them. Instead, this depends on the merits of each case and will be highly factual. This decision also emphasises the importance of ensuring an unambiguous and properly drafted agreement is in place between the workers and the agency employer, to clearly document the agreement between all the parties. Philippines Bill Proposes Limiting Fixed-Term Employment and Labour-Only SubcontractingEarlier this year the House of Representatives approved a bill that would amend the existing Labour Code to ban fixed-term contracts aimed at stopping the abuse of workers’ rights. House Bill 6908, entitled "An Act Strengthening the Security of Tenure of Workers, Amending for the Purpose Presidential Decree No. 442, as amended, otherwise known as the Labour Code of the Philippines" would also restrict the use of labour-only subcontracting. The bill is yet to be approved by the Senate.If passed into law, the measure would ban the use of fixed-term contracts to end a practice known as “endo” or “end-of-contract”. This is where an employer hires an employee on successive five-month contracts to bypass the law which deems employment to be regular after six months’ probation. Fixed-term employment would be prohibited, except in the cases of employing overseas Filipino workers, workers on probation, temporary replacements of permanent employees who are absent, seasonal workers and workers engaged for a specific project to be determined by the employer upon hiring.It provides that the rights and benefits of such fixed-term employees shall be on a par with regular employees. A probationary employee who has rendered at least one month of service would be entitled to a termination payment of 1/2 month's salary.Among the key provisions of HB 6908 is a prohibition on labour-only subcontracting under Article 106 of the Labor Code. This is defined as being the provision of labour by a contractor when any of the following is present: the contractor does not have substantial capital or investment in the form of tools, equipment, machineries, work premises etc.; the contractor has no control over the workers' methods and means of accomplishing their work; the contractor's workers are performing activities which are directly related to the principal business of the employer. The legal framework for this already exists but has not been fully implemented before now.In addition, the bill would require all persons or entities operating as job contractors to obtain a license from the Department of Labour and Employment. The amendments would also impose heavier penalties on employers who violate their workers' right to security of tenure: PHP 30,000 (USD 600) for a person or entity operating as a job contractor without a license, as long as the person or entity does not commit other violations in the code; A fine of PHP 30,000 (USD 600) for those unlicensed contractors who practice labour-only contracting per employee, with the fine not exceeding PHP 5 million (USD 93,250). The person or entity shall also be barred from applying for future licenses; A PHP 30,000 (USD 600) fine per employee for licensed contractors practicing labour-only contracting. Their license will also be revoked; A PHP 30,000 (USD 600) fine per employee for persons or entities that engages fixed-term employees, with the fine not exceeding PHP 5 million (USD 93,250). The measure would deem illegal dismissal "without just or authorized cause or without observance of procedural due process." A worker is entitled to reinstatement pending appeal and should not lose existing seniority rights and privileges, benefits, back wages, and the like.It has been said that a ban on fixed-term contracts to cure the abuse of these contracts by employers is like “curing a headache by lopping off the head”. There is resistance from employers and some have argued there should be better enforcement of existing rules. The bill is yet to be passed by the Senate so it is unclear whether this measure will be passed in its proposed form. If it is, employers and staffing agencies should take legal advice as to the impact of these two provisions on existing and future staffing arrangements. Singapore 1. Employment Act Changes from 1 July 2018Singapore’s Employment Act (“EA”) has undergone its first comprehensive review since 2012 providing a significant overhaul to Singapore’s employment law landscape.The key changes include: Widening the scope of the EA to apply to all employees regardless of salary levels. It is expected the EA will offer protection to professionals, managers and executives who have not previously been covered giving rights to paid sick leave, overtime and other benefits. An increase in the salary cap for non-workmen i.e. white-collar workers, from SGD 2,500 (USD 1,835) to SGD 2,600 (USD 1,910). This will mean more workers are entitled to protection over hours of work and rest days. An extension of the right to annual leave to all employees. Extending the Fair Consideration Framework (i.e. guidelines governing the fair consideration of Singaporeans for all job opportunities) which applies to all companies in Singapore. At present, employers with more than 25 employees and jobs which pay a fixed salary of more than SGD 12,000 (USD 8,816) per month are exempt from the framework. With effect from 1 July 2018, the Fair Consideration Framework will apply to all employers with at least 10 workers and for jobs paying less than SGD 15,000 (USD 11,000) per month. Increase in minimum qualifying salary for S Pass holders (mid-level skilled foreigners) – There will be an increase in the minimum qualifying monthly salary for S Pass Holders from SGD 2,200 (USD 1,616) to SGD 2,400 (USD 1,763) in two (2) phases: increase to SGD 2,300 (USD 1,690) (effective 1 January 2019) increase to SGD 2,400 (effective 1 January 2020). The majority of these changes are expected to come into force on 1 April 2019. 2. Tripartite Standard on Contracting with Self-EmployedIn February 2018, the Tripartite Workgroup (TWG), formed in 2017 to identify common challenges faced by self-employed persons (SEPs) and develop recommendations to address these challenges, submitted its report to the Government. As a result of its recommendations a Tripartite Standard on Contracting with Self-Employed Persons has been developed.SEPs refer to persons who operate their own trade or business. Those who do not employ any paid workers and are not contributing family members are also known as “own account workers”, “freelancers” or “independent contractors”.The Tripartite Standard is aimed at providing a non-binding set of guidelines or best practices for businesses to engage SEPs or freelance services. For example, specific key terms of engagement are to be agreed with any SEPs and set out in writing before any production or services are delivered.Businesses that adopt the Tripartite Standard can use its logomark in their corporate and marketing collateral to distinguish themselves and allow SEPs to easily identify service-buyers and intermediaries that follow best practice. Legal Disclaimer: This update is provided solely for the purposes of information, and should not be considered legal advice. It is always recommended to seek the advice of qualified legal counsel before taking action. […]