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Global Daily News

  • Talent shortage constrains IT job growth in July, edges up just 0.06%: TechServe Alliance

    The number of IT jobs in the US edged up 0.06% in July from June to a total of more than 5.3 million, the TechServe Alliance announced Wednesday. Despite strong demand for talent in high-demand IT skill sets, IT job growth continues to underperform the overall job market due to an acute talent shortage, according to the group, which serves as the national trade association of the IT and engineering staffing and solution industry.“It is beyond frustrating to see a large number of opportunities, but not the qualified people to fill these positions,” TechServe Alliance CEO Mark Roberts said. “The administration’s restrictive immigration policies are encouraging IT work that would otherwise be performed in the US to be pushed offshore.”On a year-over-year basis, IT employment rose by 0.73% in July, an increase of 38,600 IT workers.The TechServe Alliance also measures engineering employment, which rose by 0.21% in July from June. Engineering employment increased 2.41% on a year-over-year basis, an increase of 61,300 engineering workers.Separately, a survey of IT hiring decision-makers by Robert Half Technology found that 95% admitted to making a bad hire, and 38% acknowledged it was due to a skills-based issue — meaning the new hire was unable to do the job as expected. Interpersonal issues at 29% and poor corporate culture fit at 28% also contributed to hiring mistakes, according to the survey. Robert Half Technology’s report is based on a survey of more than 2,500 senior managers in 26 major US markets. […]

  • Millennial nurses more driven to seek leadership roles, further education: AMN

    Millennial nurses are more driven to seek leadership roles, higher degrees, and professional development than nurses from other generations, according to a millennial nurse survey released Wednesday by AMN Healthcare Services Inc. (NYSE: AHS).The report compares the views of millennial nurses (ages 19-36) to those of Generation X (ages 37-53) and baby boomer nurses (ages 54-71) regarding their expectations about their work environments and career futures.The research also found the improving economy might prompt 17% of millennials to look for a new nursing job — more than the 15% of Gen Xers and 10% of baby boomers who said the same. And 10% of millennials said they would work as a travel nurse, compared to 6% Gen Xers and 5% of baby boomers.Nearly 40% of millennial RNs surveyed said they plan to pursue a master’s degree in the next three years, while another 11% said they would seek a PhD. These responses were significantly higher than those of other generations.The report also found 36% of millennial nurses said they were significantly interested in leadership roles, compared to 27% of Gen Xers and 10% of baby boomers.Millennial nurses were also more optimistic toward leadership than their older counterparts. When responding to positive statements about their leaders, across categories including how much they trust their leaders and whether leaders care about their career development, millennial nurses more often answered “agree” or “strongly agree” than did Gen Xers and baby boomers.“Millennial nurses are changing the healthcare workforce in ways that could further improve patient care and help healthcare organizations,” Marcia Faller, chief clinical officer at AMN Healthcare, said. “This survey demonstrates the high ambition of this generation of nurses and provides better understanding about how healthcare leaders can fully engage these high-achieving healthcare professionals.”Data for the “Survey of Millennial Nurses: A Dynamic Influence on the Profession” are derived from the AMN Healthcare 2017 Survey of Registered Nurses, which was completed by 3,347 registered nurses. The survey questionnaires were sent out in March and April 2017. […]

  • Canada sees modest job growth in July, ‘leisure and hospitality’ jobs lead gain: ADP

    Employment in Canada rose by 11,600 jobs in July from June, according to the ADP Canada National Employment Report. Additionally, results from June were revised upward to a gain of 22,000 jobs from the previously reported loss of 10,500 jobs.“We saw moderate job growth for the month of July,” said Ahu Yildirmaz, VP and co-head of the ADP Research Institute. “The growth is due to an uptick in hiring in leisure and hospitality and solid improvements in healthcare and professional and business services. However, the industries closely tied to trade struggled with widespread losses.”In the goods-producing sector, construction jobs rose by 4,700 while manufacturing jobs decreased by 2,100 and natural resources and mining jobs decreased by 3,600.Leisure and hospitality jobs led gains in the service-providing sector, up by 10,800, followed by gains of 4,400 in professional/business services jobs and 3,000 in the education and healthcare segment.On the flip side, information jobs fell by 3,800 — followed by trade/transportation and utilities jobs, down by 1,200.The ADP Research Institute produces the report in close collaboration with Moody’s Analytics Inc. Derived from actual ADP payroll data, the report measures the change in total nonfarm payroll employment each month on a seasonally adjusted basis. […]

  • US jobless claims average rises, but robust economy helps labor market weather trade storm

    The US four-week moving average of initial claims for unemployment insurance rose to 215,500 last week, up 1,000 from the previous week’s average, the US Department of Labor reported. The previous week’s average was revised upward by 250.The four-week moving average smooths the volatility of the week-to-week numbers. Total initial claims for unemployment insurance for the week ended Aug. 11 fell to 212,000, down 2,000 from the previous week’s level, which was revised up by 1,000.Economists polled by Reuters had forecast claims rising to 215,000 in the latest week. Economists say a robust economy is helping the labor market weather the trade storm, Reuters reported. Companies are also reporting difficulties finding qualified workers, with the labor market viewed as being near or at full employment. […]

  • Mexico’s economy contracts in Q2, jobs fall for first time since 2009 (Federal Reserve Bank of Dallas)

    Mexico’s economy contracted at an annualized rate of 0.4% in the second quarter following the first-quarter’s growth of 4.6%, according to a Mexico Economic Update released Wednesday by the Federal Reserve Bank of Dallas. Recent data, including data on jobs, was relatively weak. Employment in the Mexican formal sector — jobs with government benefits and pensions — fell at an annualized rate of 1.4% in June. It was the first month since the 2009 recession that job growth was negative. However, the number of jobs was up 4.0% year over year. The report also noted that retail sales surged, and the peso gained strength against the dollar. […]

  • World – Staffing 360 revenue up 42% in Q2 with acquisitions, but falls on organic basis

    Staffing 360 Solutions Inc. (NASD: STAF), a staffing provider operating in the US and UK, reported second-quarter revenue rose 41.8%, which includes $20.1 million from acquisitions completed in September 2017; the June 2018 acquisition Clement May, completed in June 2018; and $400,000 from favorable foreign currency translation.Revenue also reflects a $1.6 million decline driven by PeopleServe and an organic decline of $1.4 million from the remaining core business. (USD thousands) Q2 2018 Q2 2017 % change Revenue 59,727 42,117 41.8% Gross profit 11,882 7,924 49.9% Gross margin  19.9% 18.8% N/A  Net loss (1,844) (432) N/A Staffing 360 operates in three segments: Commercial Staffing US, Professional Staffing US and Professional Staffing UK. Revenue by segment was broken down as follows. (USD thousands) Q2 2018 Q2 2017 % change Commercial Staffing US 23,549 23,308 1.0% Professional Staffing US 14,066 12,232 15.0% Professional Staffing UK 22,112 6,577 70.2% Staffing 360 acquired US-based PeopleServe in 2014 but divested the IT staffing firm on 6 June 2018, for a total consideration of $1.5 million, net of $567,000 that was remitted back to the buyer on July 31. The company recorded a gain of $238,000 from the sale of the business.  Net loss increased to $1.8 million from a net loss of $432,000 in the year-ago quarter, which the company attributed mainly to higher acquisition, capital-raising and noncash expenses; and legal expense settlement income of $600,000 in last year’s second quarter.Gross margin improved to 19.9% from 18.8% in the prior-year period. This reflects improvement in Staffing 360’s underlying temporary contractor revenue, coupled with the acquisition of two higher-margin businesses. This was partly offset by lower savings from workers’ compensation insurance versus the savings realized in the corresponding period in 2017.“We experienced an increase in the number of temporary contractors deployed and a higher number of temporary contractor hours billed; while at the same time saw strength in the permanent placement business,” said Chairman and CEO Brendan Flood.Shares in Staffing 360 rose 10.21% to $2.59 as of 1:18 p.m. Eastern time. The company had a market cap of $11.02 million.In trading yesterday, Staffing 360 Solutions shares closed at $2.26, down 3.83% on the day and 98.25% above the 52 week low of $1.14 set on 20 June 2018. Based on its current share price the company has a market value of $10.00 million. […]

  • Spain – Overtime hours increase 9.8% in 2017, the highest since 2009, according to Randstad

    Spanish employees worked nearly 147 million overtime hours in 2017, an increase of 9.8% compared to the previous year, and the highest figure since 2009, according to data from Randstad Spain.Randstad added that the volume of overtime is directly related to the number of employed as well as the workload. Randstad also analysed the growth of the number of extra hours performed by each employee. The highest figure (9.3 overtime hours by each employee) was in 2008. The figure then reduced by more than two hours the following year (7.2) and registered the lowest figure in 2013 (6). Since then, the extra hours paid increased for four consecutive years until reaching the current 7.8 hours per worker in 2017."The use of extra hours as a tool to solve the peaks of activity is effective, but only in a timely manner,” Luis Pérez, Director of Institutional Relations at Randstad, said. “A prolonged increase in the working hours of employees has a negative impact on the productivity and performance of work teams, in addition to exponentially increasing the risk of sick leave.”"The current labour market offers various forms of flexibility to adapt to the changing needs of companies, such as part-time contracts or fixed-term contracts, which make it possible to solve any work peaks," Perez said. […]

  • UK – Recruiter awarded £17k over unfair dismissal (People Management)

    A recruiter who resigned after refusing to accept a pay cut was awarded £17,000 for unfair constructive dismissal at an employment tribunal, reports People Management. The recruiter, named as C Decker, worked for Extra Personnel Logistics, a Liverpool-based recruitment agency, since 2008. Decker initially worked 40 hours a week but this was reduced to 32 in 2015. In February 2017, he was asked by the company’s managing director if he would reduce his working hours to 16, blaming the agency’s loss of two contracts and a quiet period in the wider industry. Under the proposed change, Decker would have lost £205 a week. Decker proposed that he would be willing to cut his hours to 24 if his day rate was increased from £102.97 to £110.00. The company then offered a different contract which Decker refused and he was handed his resignation in June 2017. The tribunal ruled “that a reduction of this magnitude was a serious matter for Decker” and that his employer “had fundamentally breached” his employment contract. It added the enforced reduction in Decker’s hours and the consequential loss in pay were the reasons he resigned.“Imposing a significant cut in pay without an employee’s consent will amount to a fundamental breach of contract, even if the employer had good reason for wanting to do this” said Fiona Coombe, SIA Director of Legal and Regulatory Research. “In a case where an employee is not willing to agree to the change in their terms, the employer must follow a fair consultation process and if necessary proceed to a dismissal on notice with an offer to re-engage on the new terms”. […]

  • Italy – Temporary workers protest in front of Gi Group office over backpay (Il Tirreno)

    A group of approximately 15 temporary workers staged a protest last week in front of the Lucca office of Italian staffing firm Gi Group, reports Il Tirreno. The protesters said they have been waiting for a year to receive back pay owed to them. The temporary workers were originally sent by Gi Group to work at Texsus, an Italian multilayer solutions firm for the Hygienic, Medical, and Industrial market. A number of trade unions then found differences in pay for the temporary workers at Texsus and the other employees of the company. In some cases, the difference was up to a hundred euros less per month. Gi Group then recognised the problem in pay and asked for an official check to their calculation of the amount owed to the temporary workers. However, unions requested that Gi Group immediately pay the workers and talks between Gi Group and the unions seem to have stalled since. […]

  • Australia – Unemployment falls to lowest level since 2012, gender pay gap at lowest rate in 20 years

    The seasonally-adjusted jobless rate in Australia fell to 5.3% in July, down 0.3% from the same period last year, and the lowest level seen since 2012, according to data from the Australian Bureau of Statistics.Data from the Bureau also showed that the total number of unemployed persons in July 2018 stood at 706,000, down by 3.4% when compared to the same period last year.Meanwhile, the number of employed persons stood at 12.57 million, up 2.4% when compared to the same period last year. The labour participation rate increased by 0.3% to 65.5% during the same period.Separately, the Workplace Gender Equality Agency reported today that the national gender pay gap stood at 14.6%, a 20-year low. The data comes ahead of Equal Pay Day in Australia on 31 August 2018.The agency calculated the national gender pay gap as 14.6% for full-time employees, a difference of AUD 244.80 (USD 178.02) per week. This means that to earn the same pay rate as men, women must work an additional 62 days.Libby Lyons, Director of the Workplace Gender Equality Agency, commented, “This great result is recognition of the work employers have done in addressing issues such as pay equity. By collecting and analysing data, employers know where their gender equality hotspots are and can take action to improve them.”“However, we cannot become complacent as there is still much work to do. All employers need to continue to ensure their employees are paid equitably. Do a pay gap analysis,” Lyons said. “Report the results to the executive and board. Pay gaps close when leaders see the numbers.&rdquo […]

  • New Zealand – Labour market in June quarter remains stable while women’s employment rate reaches record high

    New Zealand’s labour market remained stable during the June 2018 quarter, with the unemployment rate remaining close to the nine-year low (4.4%) seen last quarter, according to the latest Labour Market scorecard from the Ministry of Business Innovation and Employment.The scorecard also found that the employment rate for women (62.8%), was the highest-ever rate on record. The unemployment rate for women (4.7%) in the June quarter was also the lowest rate for women since the December 2008 quarter.Overall, the employment rate stood at 67.7%, unchanged from the previous quarter and the second-highest rate since the scorecard series began in 1986. During the June quarter, there were 2.63 million people in employment, an increase of 0.5% when compared to the previous quarter. This increase in employment was driven by growth in employment for women (up 14,000) while employment for men fell slightly (down 1,000).The unemployment rate stood at 4.5%, up 0.1% from the previous quarter. This slight increase follows five consecutive quarters of declines in the unemployment rate.Meanwhile, labour supply (defined as seasonally adjusted, total labour force/working age (15+) population) decreased in the June quarter with the labour participation rate falling to 70.9% in the June 2018 quarter (down 0.1%).The report also suggested that labour quality has improved, with the Ministry pointing to the proportion of people in the workforce with a bachelor’s degree having increased to 27.3% during the quarter.The Ministry’s data also found that workplace performance has improved with the proportion of people in skilled employment rising to 63.3% in the year to March 2018. […]

  • India – Employees see median salary growth of 10-15% this year, TeamLease finds

    The median salary of employees in corporate India recorded increases of 10% to 15% in 2017-18, according to a report from TeamLease.The report, ‘Jobs & Salaries Primer Report (FY 2017-2018), provides an overview of the unified salaries across temporary and permanent hiring markets, found that the reported salary growth was at a minimum of 10% and a maximum of 15%."The salary growth we have all been looking forward too is now happening in our country," said Rituparna Chakraborty, Co-Founder & Executive Vice President, TeamLease Services.According to the report, across 17 sectors and nine cities, nine sectors have indicated double digit growth, while seven cities have also shown positive outlook towards salary growth.The E-commerce sector in Bangalore (maximum salary growth at 15.3%) and educational services sector in Mumbai (maximum 14.5%) exhibited the maximum salary growth across sectors.“India has come a long way from pay actions based on gut-decisions during the early 2000s, to analytically linking salaries to skills and performance during the 2010s, to handsomely rewarding sought-after skills in FY 2017-18,” Chakraborty said.The top paying sectors that offer greater than 13% salary growth are e-commerce & tech startups, educational services, healthcare & pharmaceuticals, IT, media & entertainment, power & energy, retail and telecommunications.Meanwhile, the bottom paying sectors (those who offer less than 13% salary rise), are agriculture and agrochemicals, automobile & allied, BPO, construction & real estate, hospitality, industrial manufacturing & allied. […]

  • Singapore – Finance jobseekers becoming increasingly impatient with recruitment process, Robert Half finds

    New survey data from recruitment firm Robert Half Singapore found that jobseekers within Singapore’s financial sectors are becoming increasingly impatient during the recruitment process.The survey of 150 CFOs found that the majority, or 67%, say candidates have become more unwilling to wait to find out if they got the job compared to 12 months ago. Even after accepting a position, 88% are willing to quit within the first month if the job doesn’t match their expectations.When asked why finance candidates have become more unwilling to wait to find out if they got the job, more than half (54%) of CFOs cited a change of attitude in job applicants – which is indicative of the power balance shift towards candidates in a skills-short market. Other reasons include an increase in counteroffers (46%), an increase in jobs available for finance candidates (45%), an increase in the number of interview rounds (41%) and an increase in the total duration of the hiring process (20%).Robert Half said the survey data results are firm indicators that Singaporean employers need to streamline their hiring process and make a decision fast once they have found a suitable candidate in order to secure the best talent for the role.Matthieu Imbert-Bouchard, Managing Director of Robert Half Singapore, commented, “We’re witnessing candidate attitudes towards the recruitment changing as a result of the supply/demand imbalance within Singapore’s job market, particularly within the financial sectors where it’s becoming increasingly challenging to source qualified professionals.“Oftentimes, jobseekers receive multiple job offers, which puts them in a much more favourable position when interviewing for a role,” Imbert-Bouchard said. “Consequently, top candidates are unlikely to wait around if they haven’t received a timely response before accepting an offer elsewhere, highlighting the need for employers to act fast once they have found a match – otherwise they risk losing their preferred candidate to the competition.”“In order to attract and retain the best candidate for the job, businesses need to streamline the recruitment process and provide an engaging experience at every stage – from initial contact through onboarding and beyond,” Imbert-Bouchard said. […]

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. […]