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Global Daily News

  • Lyft announces $1 billion funding round led by Google investment fund

    Human cloud, ride-sharing firm announced in a blog post that it received $1 billion in a funding round led by CaptialG, an investment fund formed by Alphabet, the parent of Google. The investment brings Lyft’s post-money valuation to $11 billion.The deal calls for CapitalG Partner David Lawee to join Lyft’s board. Lawee was formerly Google’s VP of corporate development.“2017 has been an important year for the Lyft community,” according to the company. “Earlier this month, we completed our 500 millionth ride and our service is now available to 95% of the US population — up from 54% at the beginning of the year.&rdquo […]

  • Staffing 360 revenue rises 9% in Q3 but net loss increases

    Staffing 360 Solutions Inc. (NASD: STAF), in a pre-release of earnings, reported revenue rose approximately 9% to $50 million in its fiscal third quarter ended Sept. 30. This includes $6 million from acquisitions.Gross margins increased to 18.5% from 18.3%, but net loss increased. Full results are expected in mid-November.Two acquisitions completed in September — CBS Butler Holdings Limited in the UK and firstPRO Georgia in the US — are included in these results for only a few weeks. The full impact of these acquisitions will be reflected in the fiscal fourth quarter of 2017.Staffing 360 expects net loss attributable to common stock to be approximately $5.3 million for the third quarter, up from $900,000 in the year-ago period. This includes $5.6 million of noncash charges relating to the refinancing of the balance sheet as well as depreciation and amortization of intangible assets, and approximately $900,000 of acquisition-related and other non-recurring expenses.“The third quarter was a transformational period in the history of Staffing 360 Solutions,” said Executive Chairman Brendan Flood. “We completed two acquisitions, bringing our annualized revenues to $265 million and materially refinanced our balance sheet, improving our working capital position and ability to generate positive operating cash flow. More importantly, our trailing 12 months’ pro-forma adjusted EBITDA is now $11 million, up from $5.4 million in the comparable trailing 12 months of 2016.&rdquo […]

  • Canadian staffing index posts moderate year-over-year growth in September

    The Canadian staffing index, which measures staffing activity in Canada, fell 4% in September from August to a reading of 109. However, on a year-over-year basis, the index was up 1% in September.September 2017 had one fewer working day than September 2016.“The September index value has grown year over year despite a decrease in working days,” said Maxim Kupfer, research associate at Staffing Industry Analysts. “This suggests moderate year-over-year growth in volume for the industry.”Staffing Industry Analysts produces the index on behalf of the Association of Canadian Search, Employment and Staffing Services. […]

  • Staffing software firm Avionté names new CEO

    Avionté, a provider of front- and back-office software to the staffing industry, appointed former Thomson Reuters executive Karl Florida as CEO.“After an extensive effort, we were thrilled to find Karl, who brings a customer-first mindset and a focus on building great teams,” said Kevin Frick, co-chairman of the board. “Over and over, we heard about Karl’s focus on finding new ways to delight his customers. As we think about what the future holds for Avionté, our customers and our team, it is clear that Karl is a perfect fit.”Florida succeeds John Long, the company’s co-founder and previous CEO. Long will take on the role of co-chairman, remaining on the board and maintaining equity in the company.“I am excited about this new venture for Avionté and am extremely pleased to have Karl Florida on board, as I have confidence he will prove to be an excellent leader for this team,” Long said. “My passion has always been on the customer and this transition will allow me to tap into my desire to be a true ambassador for our customers.”Florida comes to Avionté after spending 12 years at Thomson Reuters in a variety of executive leadership roles. He most recently served as managing director of a $900 million revenue portfolio of information, software and services for small law firms, as well as president of the $250 million company FindLaw, a marketing services business.Prior to Thomson Reuters, Florida co-founded Return Path, an email delivery assurance service. Florida also led product management for e-commerce applications at Netscape Communications and invested in software companies for private equity firm General Atlantic Partners.Eagan, Minn.-based Avionté provides front- and back-office staffing software solutions throughout the US and Canada. The company launched its product in 2005 and now services more than 500 customers and 14,000 users, processing more than $5.5 billion in payroll across its systems annually. […]

  • UK – Companies, government must act to fight skills shortages, declines in productivity, REC report says

    Employers and policymakers must act now to combat the rising skills shortages and declines in productivity, the Recruitment & Employment Confederation said in an announcement Thursday. And it listed a series of recommendations to tackle the concerns.The announcement came as the REC released its “The future of jobs” report, the result of its “Future of jobs commission” that had met over the course of the past six months."With the world of work undergoing seismic changes, we need to do more to support people on their journey from school to retirement,” said Esther McVey MP, former employment minister and chair of the REC’s Future of jobs commission.“In particular, helping individuals develop the skills they need to capitalise on new opportunities must involve greater collaboration between business and schools,” McVey said. “With the pace of change, there will be turbulent times ahead, but we want this report to fuel the debate about what the future world of work could and should look like.”The REC listed recommendations from the report that include: Employers should engage with schools, colleges and universities to provide practical advice to help better prepare young people. Employers must be more creative with their recruitment procedures, offering flexible work as a standard and removing barriers for under-represented groups (eg by using collaborative hiring or name-blind recruitment). Government should create a new employment and skills advisory committee to review data and take evidence to help plan for investment in training and immigration policy. Policymakers must ensure that all people can progress, for example by making the apprenticeship levy into a broader training levy that benefits all workers. The government and business need to find new ways of measuring the success of the UK jobs market, including progress on inclusion, social mobility, pay gaps and productivity. “We rightly celebrate the fact that the UK labour market has remained both resilient and agile,” said REC Chief Executive Kevin Green. “But in order to retain that competitive advantage, business and government need to work collaboratively to implement some radical changes. By 2025 we want good work to be the norm, where businesses champion diversity and inclusion and invest in training and skills development for all staff, no matter what kind of contract they are on. We need to foster a labour market where anyone can both find work and progress within work, irrespective of their background.”The report was produced in association with Brookson, which provides accounting services for contractors and self-employed individuals.“The most valuable asset that this country possesses is its people, and the way that people want to work, and the work that they will do, is changing,” Brookson Chief Executive Martin Hesketh said. “Creating the right work environment for people is of critical economic and social importance, and the recommendations that this commission has produced are aimed at delivering this.&rdquo […]

  • UK – Staffing 360 revenue rises 9% in Q3 but net loss increases

    Staffing 360 Solutions Inc., a staffing provider with operations in the UK and US, in a pre-release of earnings reported revenue rose approximately 9% to US$50 million (£37.3 million) in its fiscal third quarter ended Sept. 30. This includes US$6 million (£4.5 million) from acquisitions.Gross profit grew 11% to reach €9 million and the gross margin increased to 18.5% from 18.3%. Adjusted EBITDA is expected to be $2 million, a 25% increase over $1.7 million in the fiscal third quarter of 2016.Staffing 360 expects net loss attributable to common stock to be approximately US$5.3 million (£4.0 million) for the third quarter, up from US$900,000 (£671,530) in the year-ago period. This includes US$5.6 million (£4.2 million) of noncash charges relating to the refinancing of the balance sheet as well as depreciation and amortization of intangible assets, and approximately US$900,000 (£671,530) of acquisition-related and other nonrecurring expenses.Full results are expected in mid-November.Two acquisitions completed in September — CBS Butler Holdings Limited in the UK and firstPRO Georgia in the US — are included in these results for only a few weeks. The full impact of these acquisitions will be reflected in the fiscal fourth quarter of 2017.“The third quarter was a transformational period in the history of Staffing 360 Solutions,” said Executive Chairman Brendan Flood. “We completed two acquisitions, bringing our annualized revenues to $265 million and materially refinanced our balance sheet, improving our working capital position and ability to generate positive operating cash flow.&rdquo […]

  • UK – Prime People expects half-year profit to fall 10%

    UK-based recruiter Prime People (PRP: AIM) reported that it expects profit before tax to fall 10% for the six months ended 30 September compared to the same period in the prior year, according to the company. Group net fee income is broadly in line with the same period in the prior year.The group’s UK business posted a “modest increase” in net fee income year over year, in line with its expectations. However, international business activity tightened in the first half compared with the same period in the prior year but still contributed to profit.Full results are expected Nov. 9. […]

  • Europe and Central Asia – World Bank says 2.2% GDP growth strongest since 2011, but tech and flexible employment among challenges

    Europe and Central Asia’s economic growth is underway, but the World Bank in a new report warns of challenges with flexible employment contracts, technology and handling of immigration.Annual GDP growth in Europe and Central Asia will reach 2.2% this year, the strongest growth in the region since 2011, according to the World Bank’s latest regional economic update report. Stronger industrial production and exports have lifted most countries in the region out of recession, and unemployment rates have dipped below pre-crisis levels.“Growth is returning to the region, which is certainly good news,” said Hans Timmer, World Bank chief economist for Europe and Central Asia. “At the same time, however, new technologies that provide new growth opportunities are bringing about more flexible labor contracts and more uncertainty. This has increased anxiety among people. And recent concerns over the influx of refugees can be seen as a manifestation of the heightened anxiety.”Technologies are impacting distribution of wealth; many workers are struggling to adjust to the new demands for digital skills, according to the report.It also says the number of full-time, traditional jobs have declined as a share of total employment. Flexible contracts have become the dominant employment arrangement for younger workers. And while flexible contracts can increase the efficiency of companies and individuals, they are also creating new forms of inequality and insecurity.In addition, the region has seen a share increase in numbers of refugees and asylum seekers — to 6.4 million in 2016 from 3.7 million in 2014. Migration plays an important role in meeting demand for labor and also promotes transfer of knowledge, according to the report. But countries must pursue policies to fully take advantage of the benefits of immigration, and reforms should aim to help both migrants and nonimmigrants cope with rapid technological change and increased labor market flexibility. […]

  • Japan – Job seekers prefer personal networking over social media, Hays survey finds

    Job seekers in Japan prefer job boards and personal networking over social media, according to a survey by Hays plc.The survey found 40% of job seekers in Japan rely on online job boards, and 35% use personal networking. But only 25% use social media for job hunting.“Japan has among the world’s highest internet connection speeds making ‘job shopping’ online easier than in many countries, but it’s interesting to see that personal networks still rank above virtual networks when it comes to job hunting,” said Marc Burrage, managing director of Hays in Japan.“Job boards are a great way to get an overview of what roles and skills are in demand, but personal networks offer a way to hear about a job before it’s advertised as well as to learn about the work culture of an employer from someone with inside knowledge,” Burrage said.However, he also said “recruitment consultants should be part of a candidate’s personal networking efforts as they can offer insights on both, market trends and what opportunities are coming to the market. They are also able to share tips about what employers are looking for in their next hire.”In comparison, the company reported half of the candidates polled in Hong Kong, Mainland China and Malaysia nominated job boards as their preferred job hunting option while in Singapore, the figure was 45%. Personal networking was the second most favoured option for job hunters in Malaysia (39%), Hong Kong (34%), Mainland China (32%) and Singapore (31%).Malaysia had the lowest proportion of job hunters that use social media at 11%. In Singapore, 24% of respondents reported using social media to job hunt while in Mainland China and Hong Kong, the figures were 18% and 16% respectively. […]

  • Asia Pacific – Contracting jobs in financial services fall by 3%, but rise over year, Morgan McKinley reports

    The number of contracting jobs in the financial services sector in the Asia Pacific region fell by 3% in the third quarter when compared with the second; however, the number rose 21% on a year-over-year basis, according to the “APAC Employment Monitor Q3 2017” by recruitment firm Morgan McKinley.Contracting jobs’ year-over-year surge suggests a shift in the region with contractors — once considered a less desirable form of employment — increasingly being embraced by Asia Pacific employers, according to the report.Meanwhile, reported direct-hire financial services jobs also fell by 9% in the third quarter compared with the second. But these jobs rose 6% on a year-over-year basis.By country: Singapore — There was a 12% increase in financial services jobs in the third quarter from the second, and the number of candidates increased by 30%. It was the only country to experience a quarter-over-quarter increase in jobs. A new visa regimen intended to localize the workforce may have impacted the numbers with restrictions on foreign job seekers spreading anxiety throughout the country’s ex-pat population. Japan — The number of financial services jobs fell by 5% quarter-over-quarter, and the number of candidates rose by 18%. Mainland China — Financial services jobs fell by 21% quarter-over-quarter, and there was a 21% decrease in candidates. A perceived failure by China to meet deregulation needs of the financial services sector has created a culture of caution between industry and the country, and the lack of trust has led many Western companies to hold off setting up shop, according to the report. Australia — Financial services jobs fell by 22% quarter-over-quarter, and there was a 26% decrease in candidates. Hong Kong — Financial services jobs fell by 8% quarter-over-quarter, and there was a 4% decrease in candidates. […]

  • Australia – Fake nurse employed by agency gets four-year jail sentence (9News)

    A man has been sentenced to four years jail in the Northern Territory Supreme Court for falsely claiming to be a registered nurse and working at Royal Darwin Hospital, 9News reported. Nicholas Crawford was employed by Darwin recruitment agency Health Care Australia, after lying on his resume about his qualifications and work history. He pleaded guilty to ten offences including obtaining benefit by deception, false entry in a register, uttering, aggravated assault and supply of schedule two drug. […]

  • New Zealand – Recruitment exec says country needs immigrants to ease skills shortage (Radio New Zealand)

    Simon Bennett, chief executive of New Zealand-based recruitment firm AWF Madison, told Radio New Zealand that his firm has more demand for skilled workers than can be trained and immigration is still needed to ease the skills shortage. “We know in Auckland there's big demand. We would love to take a 10- or 15-year view into getting more people into construction and civil trades, and aspire to some of these careers,” Bennett said. […]

Latest Research

  • Job Board Market Report: 2017 Update

    Job boards are a collection of websites and phone applications that offer employers the ability to advertise local, national and/or international job postings. Staffing Industry Analysts has formally defined six different business models in this segment: standard job boards, job aggregators, online classifieds, social media job sites, community sites and programmatic job advertising/job distributors. We estimate global job board revenue grew 9% in constant currency in 2016, reaching USD 12.4 billion. The three largest firms (Recruit, Linkedin, and Seek) control over half of the market. Overall job board revenue growth belies a challenging and competitive environment, particularly for traditional job boards (still the predominant model), as basic job board functionalities have become commoditized and new business models and websites have captured market share. Job board brands have responded in a number of ways, from focusing on specific niches, to investing in or acquiring various talent acquisition technologies to expanding services beyond basic job postings and resume search. In late 2016, Google launched a job search product that directly competes with market leader Indeed, with the stated goal of partnering with job boards and staffing firms. In February 2017, Facebook also launched the ability to post and apply for jobs directly via their platform, and in September announced a partnership with ZipRecruiter to get more job postings on the site. Two notable acquisitions were Microsoft’s acquisition of Linkedin for $26.2 billion and Randstad’s takeover of Monster for $429 million, both closing in 4Q16. Unless otherwise stated, all revenue in this report is in USD.  The report is available below: Job Board Market Report 2017 Update - You do not have permission to view this object. […]

  • Global Staffing Forecast Oct 2017

    Key Findings SIA projects global staffing revenue growth to accelerate from 5% in 2016 to 6% in 2017 as real GDP growth is projected to accelerate from 3.2% to 3.6%. We forecast the 6% trend to continue through 2018. Our global staffing market growth estimates and projections are on a constant currency basis. The projected acceleration of global growth to 6% this year is partly driven by improving trends in some of the major continental European markets, such as Italy and France, helping to offset weakening trends in the UK. Growth in the US, the world’s largest staffing market, is expected to remain flat at 3%. We expect slight acceleration in Japan, the second largest market, from growth of 6% in 2016 to 7% in 2017. For 2018, we project double-digit revenue growth in six of the fifteen largest staffing markets: China (16%), Italy (15%), France (11%), South Africa (11%), India (10%) and Sweden (10%). We forecast no growth in the UK, the only one of the fifteen largest markets not expected to grow next year. We estimate that in 2016, the staffing industry generated 429 billion US dollars (USD) of revenue worldwide (388 billion Euro). Three countries (US, Japan, UK) made up a majority of revenue. The full report can be downloaded by clicking the link below. Global Staffing Industry Forecast October 2017 20171019 - You do not have permission to view this object. […]

  • MSP Market Part 3: Differentiators

    The purpose of this report is to highlight where demonstrated differentiation exists across providers, not to confirm the relative quality or depth of all MSP related services by providers.  Each MSP provider was evaluated against criteria using a unique rating scale (see next page) to assess capability and maturity in the areas of differentiation. On a high level, maturity in capability was evaluated as a combination of: Client Evidence: through case study evidence and level of adoption by clients Quality of Process: level of standardization, process completeness, tools, metrics and methodologies to support the service combined with service development announcements and/or roadmaps Level of provider experience: the size and capability of the service delivery team combined with the length of time the organization has been delivering the service criteria. This reflects, not only core MSP services commonly offered across the market, but also complementary services that enable programs to broaden and solutions to be varied. Complementary criteria selected were those that best supported the areas that buyers indicated were of greatest interest to explore within 2 years as indicated in SIA’s 2017 Buyers Survey. This included interest in alternative supplier management strategies (refer to diagram to the right). As such, the boxed categories in the diagram, were given a greater emphasis when selecting criteria for differentiation, than those not highlighted.The maturity of service provision is evaluated geographically. The providers ability to scale and support different size programs is also assessed. Note that a review of client satisfaction through reference checking and cost to deliver were not part of the process and, as such, these scores do not take these into account.Further, in 2017 SIA introduced a greater level of objectivity by incorporating the voice of the end-customer.  The purpose is to enable client feedback of the provider quality and service of programs to incorporate client satisfaction into provider differentiation. This can show potential clients how the leading providers compare looking at client perception of the value of provider offerings. To support the process, a questionnaire was used based on 26 questions, some which allowed open answers and commentary. The questionnaire was expected to take 30 minutes to complete and could be completed by interview or by online survey. Key questions in the questionnaire related to: Scope of services used Satisfaction with services Benefits and the effectiveness in achieving the benefits Ability of the provider to support your needs How are you looking to drive service enhancement? Service culture and strength of partnership A minimum of three client organizations were required to respond to quality for inclusion in this report. Individual responses were treated in confidence, however, aggregated results were shared with providers.  The questionnaires were completed by client references between the months of April and the beginning of October 2017. A total of 11 MSP providers submitted sufficient information to qualify for inclusion in this report. We believe this report is the most comprehensive on the MSP market with the greatest coverage of providers and depth of analysis.  Further, SIA are constantly working to encourage new participants to join. The 2017 MSP participants included: Agile•1 Allegis Global Solutions (a division of Allegis Group, including Aerotek MSP business) Broadleaf GRI (Geometric Results) Hays iSymphony KellyOCG (a division of Kelly Services) Metaprocure Pontoon Strategic Staffing Solutions TAPFIN (a division of ManpowerGroup) Click the link below to download the report: MSP Market Developments - Part 3 20171013 - You do not have permission to view this object. […]

  • Staffing Execs Rank Management Priorities

    Key Findings: Respondents were asked: “With respect to your company please rank the following, from most emphasized by your management (1) to least emphasized by your management (5). Alignment of strategy and operations Commitment to growth Driving sales and recruiting performance Excellence in internal talent management High performance culture” The priority most emphasized by management, as indicated by its earning the most favorable average score (2.5), was “driving sales and recruiting performance.” Fifty-five percent of respondents gave this a priority ranking either of #1 or #2. Only 10% gave it the lowest rank, #5. Three other priorities -- “commitment to growth,” “high performance culture,” and “alignment of strategy and operations” -- earned fairly comparable scores of 2.9, 3.0, and 3.2, respectively. The priority earning the least favorable average emphasis score (3.4) was “excellence in internal talent management.” Priority ranking was compared both within staffing firm demographics -- primary segment, firm size, and firm age, as well as by job title of respondents. In general, there was remarkably little variance in priority ranking by any of these groupings. To access the complete report, please select the link below: North America Staffing Company Survey 2017 Management priorities 20171012 - You do not have permission to view this object. […]

  • Staffing Firm Use of Process Automation

    Key Findings:Human cloud/online staffing Twenty-six percent-- one in four -- of staffing firms are either “currently partnering with such a service” (13%) or “currently own or have invested in such a service” (13%). Another 38% were “considering building, acquiring, or partnering over the next 2 years.” Thirty-two percent said they were “aware of such services, but not interested in pursuing.” Only 4% of staffing firms were not aware of such services. Process automation The share of processing functions so far website and app enabled is still limited. The median percentage reporting automation across selected processes was 24% for the worker side and 25% for the buyer side. However, three processes on the worker side were nearly universally automated: “view available jobs” (88%), “submit resume document,” (87%), and “apply for available jobs” (84%). 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: Europe Staffing Company Survey 2017 Human cloud online staffing, and use of automation in traditional staffing 20171013 - You do not have permission to view this object. […]

  • Job Board Market Report: 2017 Update

    Job boards are a collection of websites and phone applications that offer employers the ability to advertise local, national and/or international job postings. Staffing Industry Analysts has formally defined six different business models in this segment: standard job boards, job aggregators, online classifieds, social media job sites, community sites and programmatic job advertising/job distributors. We estimate global job board revenue grew 9% in constant currency in 2016, reaching USD 12.4 billion. The three largest firms (Recruit, Linkedin, and Seek) control over half of the market. Overall job board revenue growth belies a challenging and competitive environment, particularly for traditional job boards (still the predominant model), as basic job board functionalities have become commoditized and new business models and websites have captured market share. Job board brands have responded in a number of ways, from focusing on specific niches, to investing in or acquiring various talent acquisition technologies to expanding services beyond basic job postings and resume search. In late 2016, Google launched a job search product that directly competes with market leader Indeed, with the stated goal of partnering with job boards and staffing firms. In February 2017, Facebook also launched the ability to post and apply for jobs directly via their platform, and in September announced a partnership with ZipRecruiter to get more job postings on the site. Two notable acquisitions were Microsoft’s acquisition of Linkedin for $26.2 billion and Randstad’s takeover of Monster for $429 million, both closing in 4Q16. Unless otherwise stated, all revenue in this report is in USD.  The report is available below: Job Board Market Report 2017 Update - You do not have permission to view this object. […]

  • Global Staffing Forecast Oct 2017

    Key Findings SIA projects global staffing revenue growth to accelerate from 5% in 2016 to 6% in 2017 as real GDP growth is projected to accelerate from 3.2% to 3.6%. We forecast the 6% trend to continue through 2018. Our global staffing market growth estimates and projections are on a constant currency basis. The projected acceleration of global growth to 6% this year is partly driven by improving trends in some of the major continental European markets, such as Italy and France, helping to offset weakening trends in the UK. Growth in the US, the world’s largest staffing market, is expected to remain flat at 3%. We expect slight acceleration in Japan, the second largest market, from growth of 6% in 2016 to 7% in 2017. For 2018, we project double-digit revenue growth in six of the fifteen largest staffing markets: China (16%), Italy (15%), France (11%), South Africa (11%), India (10%) and Sweden (10%). We forecast no growth in the UK, the only one of the fifteen largest markets not expected to grow next year. We estimate that in 2016, the staffing industry generated 429 billion US dollars (USD) of revenue worldwide (388 billion Euro). Three countries (US, Japan, UK) made up a majority of revenue. The full report can be downloaded by clicking the link below: Global Staffing Industry Forecast October 2017 20171019 - You do not have permission to view this object. […]

  • Staffing Firm Service Guarantees

    Key Findings: Staffing firms were asked whether they offered their clients a service guarantee, and if so the time limit on that guarantee. Just over a third of staffing firms (37%) offered “a complete money-back guarantee;” another 39% did not offer a guarantee at all; and the remaining 24% offered some other type of guarantee and/or a guarantee only under specific circumstances. Among those respondents who said their firm offered a money-back guarantee, all had a time limit on the guarantee. The most common time limit, selected by forty-two percent of respondents, was “Within 1 week.” Sixteen percent said their guarantee had a time limit in the range of three to six weeks; 19% had a guarantee within 12 weeks; and 23% said their time limit was more than 12 weeks. To access the complete report, please select the link below: Europe Staffing Company Survey 2017 Staffing firm service guarantees 201718 - You do not have permission to view this object. […]

  • Asia Pacific Q3 Legal Update 2017

    In this report we round up the legal developments making the headlines in the Asia Pacific region in Q3 2017:Australia: Queensland parliament passes Labour Hire Licensing Act 2017; Labour hire licensing schemes proposed in other states; Senate passes law to protect vulnerable workers; FWC proposes right for casuals to convert to permanent status; Modern slavery laws announced.  Singapore:Tripartite Standards for fixed term contract employees.Vietnam: Guidelines for online work permit system use published; Significant changes to the Labour Code expected. 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_Q3_LegalUpdate_20171020 - You do not have permission to view this object.   Australia Queensland parliament passes Labour Hire Licensing Act 2017The Labour Hire Licensing Act has been passed by Queensland Parliament, introducing a mandatory licensing regime for the labour hire industry. The new regime is expected to commence in 2018. Labour hire providers will have 60 days from the commencement of the legislation to apply for a licence.The new regime will apply broadly to ‘providers’ of ‘labour hire services’ and to entities entering into arrangements with those providers. The Act makes provision for regulations to be made to provide further clarification on the scope of the regime to ensure that it does not capture unintended classes of providers or workers. However, in the absence of such regulations, it appears that internal labour hire and many other arrangements not typically considered ‘labour hire’ will require licensing.To obtain a labour hire licence, an organisation must pass a fit and proper person test, which seeks to establish that the provider can provide labour hire services in compliance with all relevant laws, and that their business is financially viable, with regular reporting requirements imposed on the licence holder. A failure of a labour hire business to hold a licence or enter into arrangements with unlicensed labour hire provider will attract penalties: the maximum penalty for individuals is 1,034 penalty units (AUD 126,044.60 or USD 98,000) or 3 years imprisonment, and for corporations, a penalty of 3,000 penalty units (AUD 365,700 or USD 287,000). If a person advertises or hold outs that they provide or are willing to provide labour hire services unless they hold a valid licence they will face a maximum penalty of 200 penalty units (AUD24,380 or USD19,200).A labour hire licensing website will be published to provide information about the scheme and employment rights and obligations for labour hire providers, users of labour hire and workers. Labour hire providers will also be able to apply for a licence and provide their reports online. Users of labour hire and workers will be able search a register of licensed labour hire providers so that they can verify that they are dealing with legitimate businesses. Complaints or concerns about a labour hire provider or labour hire arrangement can also be lodged through the website or by directly contacting the labour hire licensing compliance unit.Labour hire providers in Queensland should prepare to apply for a licence once the system is in operation. The labour hire provider will need to provide information, such as financial accounts, to prove that the business is financially viable, and evidence that, for the five years prior, the business has complied with the Work Health and Safety Act 2011 (Qld) and the Workers Compensation and Rehabilitation Act 2003 (Qld), and is able to comply with those Acts on an ongoing basis. Obtaining the necessary advice and collating documentation in advance will assist businesses in meeting the proposed 60-day deadline for applying. Labour hire licensing schemes proposed in other statesThe South Australian government recently tabled the Labour Hire Licensing Bill 2017 (SA) (SA Bill). The proposed SA Bill closely mirrors the Queensland scheme but has a few key differences, including: Higher penalties for non-compliance, being AUD 140,000 or imprisonment for five years in the case of a person and AUD 400,000 in the case of a company. It also imposes a further burden on clients if they are aware or ought to have been aware that the supply of a person is an avoidance arrangement; Licenses are ongoing until cancelled or suspended, which removes some of the administrative burden; An annual fee and reporting obligation will be required; Limiting the types of entities that may object to a license application; The "fit and proper person test" is slightly less subjective but includes more extensive provisions for when a person is not a fit and proper person; Grants more extensive powers for imposing or varying conditions on licenses. The Victorian government has now announced it will introduce draft legislation later this year. Whilst the extensive Victorian labour hire inquiry only recommended a licensing scheme in three sectors where evidence of exploitation was found to occur, being the cleaning, horticulture and meat industries, the Victorian government has announced a broad universal scheme. Key elements of the proposed scheme include an independent statutory authority being established, a "fit and proper person test" and licensed providers being listed on a public register.Other states conducting labour hire inquiries or proposing licensing schemes are Australian Capital Territory and New South Wales.Any business that provides or utilises labour hire in Queensland, South Australia and soon Victoria should review their businesses in preparation of the new laws or risk substantial penalties. Staffing businesses should review: Whether you have or will have operations or do business in Queensland, South Australia and Victoria The composition of your workforce (i.e. the number of workers you engage, the types of engagements used and the location of those workers) The annual turnover of the business Any past non-compliance with workplace laws Which nominated officers or executive officers will be required to meet the "fit and proper person test" (and whether they will in fact meet such a test) The capability of systems to comply with regular reporting requirements. Businesses that use labour hire arrangements in these states should consider seeking assurance in contractual arrangements that labour hire providers they engage are properly licensed. Senate passes law to protect vulnerable workersOn 14 September 2017, the Fair Work Amendment (Protecting Vulnerable Workers) Act 2017 (“the Act”) received Royal Assent and commenced the following day.The Act amends the Fair Work Act 2009 to increase maximum civil penalties for certain serious contraventions of the Act; hold franchisors and holding companies responsible for certain contraventions of the Act by their franchisees or subsidiaries where they knew or ought reasonably to have known of the contraventions and failed to take reasonable steps to prevent them; clarify the prohibition on employers unreasonably requiring their employees to make payments in relation to the performance of work; provide the Fair Work Ombudsman (FWO) with evidence-gathering powers similar to those available to corporate regulators such as the Australian Securities and Investment Commission and the Australian Competition and Consumer Commission; and prohibit the hindering or obstructing of the FWO and or an inspector in the performance or his or her functions or powers, or the giving of false or misleading information or documents.From 15 September 2017, employers can face: a penalty of up AUD 630,000 (approx. USD 500,000) (or AUD 126,000 (USD 98,000) for an individual) for a ‘serious contravention’ of a civil remedy provision; and a penalty of up to AUD 63,000 (USD 50,000) (or AUD 12,600 (USD9,800) for an individual) for failing to give payslips or keep appropriate records – even if the breach was inadvertent. And from 27 October 2017, franchisors and holding companies (and their officers) will be liable for a range of different contraventions by their franchisees and subsidiaries in certain circumstances.Employers should take legal advice on the implications of this Act, even if you are not a franchisor or holding company. FWC proposes right for casuals to convert to permanent statusIn its four-yearly review of the modern awards, a full bench of the Fair Work Commission has decided that it is necessary that modern awards contain a provision by which casual employees may elect to convert to full-time or part-time employment, subject to specified criteria and restrictions.The modern awards objective requires the Commission to ensure that “…modern awards, together with the National Employment Standards, provide a fair and relevant minimum safety net of terms and conditions…”.The Commission did not go as far as to find that the clause should deem casual employees to have become permanent employees after an identified period. Instead, the Commission has proposed a draft clause and sought further submissions from interested parties that allows casual employees to elect to convert to full or part time employment but only following a qualifying period of 12 months and subject to other rules and restrictions.The draft model casual conversion provision developed for 85 modern awards which do not currently contain a provision of this nature has the following features: a qualifying period of 12 calendar months; a qualifying criterion that the casual employee has over the qualifying period worked a pattern of hours on an ongoing basis which, without significant adjustment, could continue to be performed in accordance with the full-time or part-time employment provisions of the relevant award; the employer must provide all casual employees (whether they become eligible for conversion or not) with a copy of the casual conversion clause within the first 12 months after their initial engagement; and a conversion may be refused on the grounds that it would require a significant adjustment to the casual employee’s hours of work to accommodate them in full-time or part-time employment in accordance with the terms of the applicable modern award, or it is known or reasonably foreseeable that the casual employee’s position will cease to exist, or the employee’s hours of work will significantly change or be reduced within the next 12 months, or on other reasonable grounds based on facts which are known or reasonably foreseeable. Employers will need to take note of a casual employee's right to elect to convert to full or part time employment, subject to satisfying the relevant criteria, once the clauses are inserted into all modern awards. Modern slavery laws announcedOn 16 August 2017, the Australian Government announced that it proposes to introduce a modern slavery in supply chains reporting requirement for large businesses. Similar to legislation in other countries, such as the UK, businesses will be required to report on their actions to address modern slavery in both their own operations and their supply chains. It is anticipated that 2,000 businesses will be impacted.The legislation will apply to organisations headquartered in Australia or which have part of their operations in Australia, with AUD 100 million (USD 78,428,000) total annual revenue.Affected organisations will be required to publish a Modern Slavery Statement annually on their website, in which they must report against four criteria: the entity's structure, its operations and its supply chains; the modern slavery risks present in the entity's operations and supply chains; the entity's policies and process to address modern slavery in its operations and supply chains, and their effectiveness; and the entity's due diligence processes relating to modern slavery in its operations and supply chains and their effectiveness. Reporting will need to extend beyond first-tier suppliers. The Government intends to introduce legislation in the first half of 2018. Singapore Tripartite Standards for fixed term contract employeesOn 31 July 2017, the Tripartite Alliance issued the first in a series of five Tripartite Standards, the Tripartite Standard on Employment of Term Contract Employees (First Standard).The Tripartite Standards have been developed in response to the growing reliance on fixed term contract employees (also referred to as ‘term contract employees’) and the impact for such employees in relation to employment benefits that can sometimes follow from being engaged on this basis. The Tripartite Standards encourage fair and progressive labour practices in certain areas. The remaining four standards are expected to be put into place over the next few months.Employers that have signed the Tripartite Standards can use the relevant Tripartite Standards logomarks in their job advertisements and marketing collaterals, and their names will be listed on "Organisations That Have Adopted The Tripartite Standards" page of a dedicated website. Vietnam Guidelines for online work permit system use publishedVietnam has released Circular No. 23 on the recently introduced online work permit application system. The guidelines set out the online process for each type of application and clarifies that online submission is optional, not mandatory; applications may continue to be submitted manually.Vietnamese companies applying for foreign-labour demand applications, work permit applications and renewals, and work permit exemption requests may use the online system from 2 October 2017. Online work permit applications will be processed within five business days (compared with seven for manually submitted applications). Renewals and exemptions will be processed within three business days. Foreign-labour demand applications will be processed within 12 business days. Significant changes to the Labour Code expectedThe draft revised Labour Code (Code) was originally expected to be placed on the agenda for approval by the National Assembly during its April-May 2017 meeting session. However, this has been postponed so that further studies can be conducted before finalization.As the latest draft version was in November 2016, there are likely to be significant changes in the next version of the Code, which may include: Automatic conversion of short-term labour contracts: The current Code provides for the automatic conversion of definite term contracts into an indefinite term contract where an employee continues to work for an employer after the contract has expired and there has been no new contract signed within 30 days of the expiry. Under the proposed changes, definite term contracts that have expired and not been renewed within 30 days will automatically be renewed for the same term as the original contract, and the contract will only be converted into an indefinite term contract if there is a failure to renew the definite contract a second time. Unilateral termination: The current Code allows employees to terminate an indefinite term contract without cause subject to 45 days’ notice. For other types of contracts, termination without cause will not be possible. Under the proposed changes, employees may be able to terminate other types of labour contracts, subject to 5, 30 or 45 days’ notice, depending on the type of contract. Though the current Code still does not permit employers to terminate without cause, the proposed change introduces the possibility of unilateral termination, only where an employee is found to have provided false personal information. Transfer of employees: Under the current Code, the existing employer is not required to give employees notice of transfer. However, the draft Code proposes that in the case of a merger, acquisition, consolidation, split or transfer of ownership, the existing employer must notify employees at least 15 days in advance, and will then be responsible for formulating a post-transaction labour usage plan. Salary and payment: Salary will be redefined as “base salary, bonus, and allowances” as opposed to “salary, allowances and other additional amounts”. This will affect the calculation of an employee’s social insurance contributions, as it will now take into account salary and allowances. Although the new definition of ‘salary’ may still be unclear as to which amounts will be included, the draft Code will require employers to present clear information each time salary payments are made, including method of payment, base salary, bonus and allowances, overtime compensation, and deductible amounts for social insurance contributions. Overtime hours: Currently, overtime hours may not exceed 50% of an employee’s regular working hours in a day, 30 hours in a month or 200 hours in a year, except in special circumstances. In the proposed changes, the maximum overtime working hours will be increased to 600 hours per year. Protection of female employees: The current Code permits female employees to be transferred to lighter work during pregnancy from the 7th month, or have their shift reduced by one working hour every day, with entitlement to full payment of salary. Under the proposed changes, where the employee is pregnant or raising a child under 12 months of age, employers must transfer the employee to another role if the existing job endangers her health. A female employee will also be entitled to the right to suspend her contract with a medical certificate. Increase in retirement age: The draft Code also includes an increase in the retirement age for women from 55 to 60 years, and for men from 60 years to 62 years. As most of the changes appear to be in favour of employees, the outcome of whether the proposed changes to the Code will be accepted will be of interest to employers. AsiaPacific_Q3_LegalUpdate_20171020 - You do not have permission to view this object. […]

  • Job Board Market Report: 2017 Update

    Job boards are a collection of websites and phone applications that offer employers the ability to advertise local, national and/or international job postings. Staffing Industry Analysts has formally defined six different business models in this segment: standard job boards, job aggregators, online classifieds, social media job sites, community sites and programmatic job advertising/job distributors. We estimate global job board revenue grew 9% in constant currency in 2016, reaching USD 12.4 billion. The three largest firms (Recruit, Linkedin, and Seek) control over half of the market. Overall job board revenue growth belies a challenging and competitive environment, particularly for traditional job boards (still the predominant model), as basic job board functionalities have become commoditized and new business models and websites have captured market share. Job board brands have responded in a number of ways, from focusing on specific niches, to investing in or acquiring various talent acquisition technologies to expanding services beyond basic job postings and resume search. In late 2016, Google launched a job search product that directly competes with market leader Indeed, with the stated goal of partnering with job boards and staffing firms. In February 2017, Facebook also launched the ability to post and apply for jobs directly via their platform, and in September announced a partnership with ZipRecruiter to get more job postings on the site. Two notable acquisitions were Microsoft’s acquisition of Linkedin for $26.2 billion and Randstad’s takeover of Monster for $429 million, both closing in 4Q16. Unless otherwise stated, all revenue in this report is in USD.  The report is available below: Job Board Market Report 2017 Update - You do not have permission to view this object. […]

  • Global Staffing Forecast Oct 2017

    Key Findings SIA projects global staffing revenue growth to accelerate from 5% in 2016 to 6% in 2017 as real GDP growth is projected to accelerate from 3.2% to 3.6%. We forecast the 6% trend to continue through 2018. Our global staffing market growth estimates and projections are on a constant currency basis. The projected acceleration of global growth to 6% this year is partly driven by improving trends in some of the major continental European markets, such as Italy and France, helping to offset weakening trends in the UK. Growth in the US, the world’s largest staffing market, is expected to remain flat at 3%. We expect slight acceleration in Japan, the second largest market, from growth of 6% in 2016 to 7% in 2017. For 2018, we project double-digit revenue growth in six of the fifteen largest staffing markets: China (16%), Italy (15%), France (11%), South Africa (11%), India (10%) and Sweden (10%). We forecast no growth in the UK, the only one of the fifteen largest markets not expected to grow next year. We estimate that in 2016, the staffing industry generated 429 billion US dollars (USD) of revenue worldwide (388 billion Euro). Three countries (US, Japan, UK) made up a majority of revenue. The full report can be downloaded by clicking the link below:  Global Staffing Industry Forecast October 2017 20171019 - You do not have permission to view this object. […]

  • MSP Market Part 3: Differentiators

    The purpose of this report is to highlight where demonstrated differentiation exists across providers, not to confirm the relative quality or depth of all MSP related services by providers.  Each MSP provider was evaluated against criteria using a unique rating scale (see next page) to assess capability and maturity in the areas of differentiation. On a high level, maturity in capability was evaluated as a combination of: Client Evidence: through case study evidence and level of adoption by clients Quality of Process: level of standardization, process completeness, tools, metrics and methodologies to support the service combined with service development announcements and/or roadmaps Level of provider experience: the size and capability of the service delivery team combined with the length of time the organization has been delivering the service criteria. This reflects, not only core MSP services commonly offered across the market, but also complementary services that enable programs to broaden and solutions to be varied. Complementary criteria selected were those that best supported the areas that buyers indicated were of greatest interest to explore within 2 years as indicated in SIA’s 2017 Buyers Survey. This included interest in alternative supplier management strategies (refer to diagram to the right). As such, the boxed categories in the diagram, were given a greater emphasis when selecting criteria for differentiation, than those not highlighted.The maturity of service provision is evaluated geographically. The providers ability to scale and support different size programs is also assessed. Note that a review of client satisfaction through reference checking and cost to deliver were not part of the process and, as such, these scores do not take these into account.Further, in 2017 SIA introduced a greater level of objectivity by incorporating the voice of the end-customer. The purpose is to enable client feedback of the provider quality and service of programs to incorporate client satisfaction into provider differentiation. This can show potential clients how the leading providers compare looking at client perception of the value of provider offerings. To support the process, a questionnaire was used based on 26 questions, some which allowed open answers and commentary. The questionnaire was expected to take 30 minutes to complete and could be completed by interview or by online survey. Key questions in the questionnaire related to: Scope of services used Satisfaction with services Benefits and the effectiveness in achieving the benefits Ability of the provider to support your needs How are you looking to drive service enhancement? Service culture and strength of partnership A minimum of three client organizations were required to respond to quality for inclusion in this report. Individual responses were treated in confidence, however, aggregated results were shared with providers.  The questionnaires were completed by client references between the months of April and the beginning of October 2017.A total of 11 MSP providers submitted sufficient information to qualify for inclusion in this report. We believe this report is the most comprehensive on the MSP market with the greatest coverage of providers and depth of analysis.  Further, SIA are constantly working to encourage new participants to join. The 2017 MSP participants included: Agile•1 Allegis Global Solutions (a division of Allegis Group, including Aerotek MSP business) Broadleaf GRI (Geometric Results) Hays iSymphony KellyOCG (a division of Kelly Services) Metaprocure Pontoon Strategic Staffing Solutions TAPFIN (a division of ManpowerGroup) Click the link below to download the report: MSP Market Developments - Part 3 20171013 - You do not have permission to view this object. […]