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  • Temporary Worker Survey 2018: Full Report

    Key Findings: The 2018 Temporary Worker Survey represents Staffing Industry Analysts’ seventh survey of the temporary worker population. A few key observations from the report: One in eight temporary workers are also using human cloud for employment. Altogether, 12.6% of temporary workers receive at least some income from either consumer-related (e.g., Uber, Handyman.com, etc.) or business-related human cloud services (e.g., UpWork, Guru, etc.). That usage may seem low, but it’s up from 9.2% in 2017, and further growth is likely inasmuch as awareness is sure to increase and the percent considering using these services is larger than those using them currently. Website and app demos key to getting temps to use them. Roughly a quarter of temporary workers are barely aware of staffing firm websites and apps, and many more get little use out of them. Awareness and perception of usefulness improves markedly with demos. The website/app feature temporary workers most want but don’t have: the ability to rate clients. More than three-quarters of temporary workers prefer full-time work. Their primary reason for choosing temporary work is as a method of either finding a permanent job or supplementing income while looking for a permanent job. That said, most would nonetheless take temporary work again; only 11% ruled out another temporary assignment altogether. What drives temp satisfaction. The factors that had the largest impact on temp satisfaction with respect to staffing firms were: trustworthiness of the agency, relationship with recruiter, responsiveness, and quality of assignments. The factors that had the largest impact on temp satisfaction with respect to clients were: being treated with same respect/friendliness as regular employees, quality of job orientation, and clarity of responsibilities and goals. Temporary worker demographics. The most male-dominated temporary jobs are: architect/engineer, IT programmer/engineer, and production/manufacturing. The most female-dominated occupations are: healthcare practitioner/worker, office/admin worker, and artist/designer. Temporaries varied little in age distribution across occupations. Temp work experience statistics. While weekly hours worked was generally reported to be 40 hours, in three occupations -- artist/designer, healthcare practitioner/worker, and sales & related -- a quarter of workers reported shorter hours. In two additional occupations -- architect/engineer and production/manufacturing worker -- a quarter of respondents reported working more than 40 hours per week. In almost every occupation for which there was adequate respondent participation, a quarter of temporary worker assignments were reported to be more than 52 weeks; among architects and IT programmers, more than half of temporary worker assignments are more than 52 weeks. To access the complete report, please select the link below: Temporary Worker Survey 2018 & Cumulative Index to 2012-2017 Surveys 20180611 - You do not have permission to view this object. […]

  • Temp Demographics And Work Experience Data

    Key Findings: Gender and age. The most male-dominated temporary jobs are: architect/engineer, IT programmer/engineer, and production/manufacturing. The most female-dominated occupations are: healthcare practitioner/worker, office/admin worker, and artist/designer. Temporaries varied little in age distribution across occupations. Number of agencies. Temporary workers typically sign up with just one agency; in almost all demographic sub-groups, that was the dominant answer. Weekly hours worked. In almost all sub-groups, temporary workers reported a workweek in the range of 40 hours. However, in three occupations -- artist/designer, healthcare practitioner/worker, and sales & related -- the 25th percentile was lower, at 30 hours, 24 hours, and 16 hours, respectively. In two additional occupations -- architect/engineer and production/manufacturing worker -- a quarter of respondents reported working more than 40 hours per week. Assignment length. Remarkably, in almost every occupation for which there was adequate respondent participation, a quarter of temporary worker assignments were reported to be more than 52 weeks; among architects and IT programmers, more than half of temporary worker assignments are more than 52 weeks. Assignment payroll (pay x assignment length) varies widely, and not strictly as a matter of skill level. For instance, median payroll from a healthcare assignment is not much more than that of an office/clerical assignment (reflecting shorter assignment lengths in healthcare), but the median IT assignment payroll is five time as much as either. Temp career. For the most part, temporary work seems to be a short-term experience, of about two to four years. However, for about a quarter of temporary workers this type of work seems to be a significant part of their working career if not their principle livelihood; in the top quartile, the typical number of years working as a temp is eight to eleven, and the number of assignments is typically five to eight. Compensation appears to be a key driver of how many years a worker is likely to keep taking temporary jobs. To access the complete report, please select the link below: Temporary Worker Survey 2018 Temporary worker demographics and work experience statistics 20180609 - You do not have permission to view this object. […]

  • The Human Cloud Landscape: 2018 Update

    The “human cloud” is an emerging group of technology companies that connect workers to (typically contingent) work through a website or some other digital platform. SIA has defined three human cloud business models: online staffing, crowdsourcing and online work services. In 2017, firms processed $82.4 billion in spend associated with the human cloud on a global basis. Human cloud companies that primarily sell to consumers (B2C), such as Uber, Lyft, Handy, Ele.me or Instacart, accounted for the vast majority of human cloud spend, generating $76.0 billion in spend, by our estimates. Human cloud companies selling primarily to businesses (B2B) generated $6.4 billion. Total global human cloud revenue grew approximately 65% in 2017, driven primarily by the B2C segment, which makes up more than 90% of human cloud spend. The B2B segment of the human cloud grew 19% year-over-year, by our estimates. Most B2B human cloud companies, while clearly internet technology companies, are also talent suppliers. Seeming hybrid models, such as just-in-time staffing, have thinned the line between online staffing and traditional temporary staffing. Furthermore, some consulting firms and traditional staffing firms have built their own human cloud applications. Small to medium-sized businesses continue to comprise the majority of demand in the B2B segment, though interest and adoption at large, enterprise clients is outpacing that of smaller firms, a favourable sign for B2B-focused firms. Recently, some vendor management systems (enterprise tech for managing staffing suppliers and procure temporary workers) have built integrations with human cloud vendors as part of their offering. Also, a new “breed” of online staffing, the “direct sourcing” platform, has emerged as an alternative to marketplace-driven online staffing models. In this report we refer to “independent workers”, “contingent workers”, “freelancers”, and “talent”, which, in the context of this report, are terms all used to describe the same thing: individuals who complete work through human cloud platforms, regardless of their tax classification. Unless noted otherwise, all currency in this report is presented in US dollars. The full report is available below:  Human Cloud Landscape 2018 Update - You do not have permission to view this object. […]

  • What Kind Of Work Do Temps Really Want?

    Key Findings: More than three-quarters of temporary workers reported that they prefer full-time work. Six percent of temporary workers said they ideally want temporary work through a staffing agency. The remaining 16% prefer freelancing, part-time, running their own business, consulting, temporary assignments directly through an employer, or gig work. Two groups notable for relatively strong interest in temporary agency work were healthcare temporary workers, among whom 25% said it was their preferred form of employment, and workers 56 and older, among whom 15% said it was their preferred employment. A related 2016 temporary worker survey found that the majority of temporary workers surveyed – 58% – stated that their primary reason for choosing temporary work was as a method of finding a permanent job. Another 12% chose temporary work to supplement income while looking for a permanent job. Eleven percent chose temping as a way to learn new skills or get work experience, 9% chose it to supplement income while not looking for a permanent position, and the remaining 9% chose to be a temporary worker for a variety of other reasons. Although temporary workers do not typically see temporary work as their ideal form of employment, nearly two-thirds -- 61% -- said they would be open to another temporary assignment at the end of their current assignment. Another 28% said they might be open to another assignment. Only 11% ruled out another temporary assignment altogether. Note: the top-level results reported here reflect the demographics of the survey sample, which may or may not precisely reflect the general temporary worker population. Survey response differences by pay, age, and occupation are noted throughout the report, and overall demographics are given on page 11. To access the complete report, please select the link below: Temporary Worker Survey 2018 What kind of work do temporary workers really want Why do they temp 20180604 - You do not have permission to view this object. […]

  • Largest Staffing Firms in Sweden 2018

    This report provides our latest estimate of the size of the Swedish staffing market and ranks the largest staffing firms by revenue. The market is dominated by Manpower, with a market share of 15%.  Randstad is the second largest staffing firm in the Swedish market (12% of market share), followed by Adecco (9%). Together, these firms account for 36% of the market.  Further market consolidation analysis can be found on page three of the report. We have ranked companies by revenue, 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. To download a copy of the report, click below: Largest Staffing Firms in Sweden - You do not have permission to view this object. […]

  • Engineering Staffing in the UK

    • The report provides an overview of the UK engineering staffing market. It includes a definition of the sector (p.4), a profile of the UK engineering staffing market in terms of job postings and in-demand skills (pp.5-8).Engineering staffing demand drivers and inhibitors are studied (pp.9-16) as well as wage data and the number of engineering enterprises by region (pp.18-19).• The outlook for the UK engineering staffing industry includes a fairly balanced mix of countervailing positive and negative indicators. Important demand drivers remain intact in the form of engineering technologies with significant runway for enterprise adoption, including the development what is termed ‘industry 4.0’ (p.12). High-level engineering talent is in short supply, creating recruiting challenges but simultaneously enhancing the value of staffing services, both in the form of permanent hiring and in providing contract labour to fill the gap in interim hiring needs.• Business confidence in the sector, however, continues to be adversely affected by ongoing uncertainty of the outcome of Brexit negotiations. With trade and immigration arrangements still to be decided and finalised, some multinationals are postponing both large infrastructure project investments and hiring (p.11).• This report should be read in conjunction with our ‘Largest Engineering Staffing Firms in the UK’ report.To download this report, please click on the link below. Engineering Staffing in the UK 20180615 - You do not have permission to view this object. […]

  • Largest Engineering Staffing Firms in the UK

    The UK engineering staffing market continued to grow in 2017 with market revenue increasing by 2%. We estimate that 7 firms generated at least 100 million in engineering staffing revenue in UK in 2017. The five largest firms control approximately a third of the market. Please note that we have ranked companies by revenue but this ranking should not be taken to imply that a firm with a higher rank provides a better service or more value to its shareholders.   To download this report, please click on the link below. Largest Engineering Staffing Firms in the UK 20180615 - You do not have permission to view this object. […]

  • The Human Cloud Landscape: 2018 Update

    The “human cloud” is an emerging group of technology companies that connect workers to (typically contingent) work through a website or some other digital platform. SIA has defined three human cloud business models: online staffing, crowdsourcing and online work services. In 2017, firms processed $82.4 billion in spend associated with the human cloud on a global basis. Human cloud companies that primarily sell to consumers (B2C), such as Uber, Lyft, Handy, Ele.me or Instacart, accounted for the vast majority of human cloud spend, generating $76.0 billion in spend, by our estimates. Human cloud companies selling primarily to businesses (B2B) generated $6.4 billion. Total global human cloud revenue grew approximately 65% in 2017, driven primarily by the B2C segment, which makes up more than 90% of human cloud spend. The B2B segment of the human cloud grew 19% year-over-year, by our estimates. Most B2B human cloud companies, while clearly internet technology companies, are also talent suppliers. Seeming hybrid models, such as just-in-time staffing, have thinned the line between online staffing and traditional temporary staffing. Furthermore, some consulting firms and traditional staffing firms have built their own human cloud applications. Small to medium-sized businesses continue to comprise the majority of demand in the B2B segment, though interest and adoption at large, enterprise clients is outpacing that of smaller firms, a favourable sign for B2B-focused firms. Recently, some vendor management systems (enterprise tech for managing staffing suppliers and procure temporary workers) have built integrations with human cloud vendors as part of their offering. Also, a new “breed” of online staffing, the “direct sourcing” platform, has emerged as an alternative to marketplace-driven online staffing models. In this report we refer to “independent workers”, “contingent workers”, “freelancers”, and “talent”, which, in the context of this report, are terms all used to describe the same thing: individuals who complete work through human cloud platforms, regardless of their tax classification. Unless noted otherwise, all currency in this report is presented in US dollars. The full report is available below: Human Cloud Landscape 2018 Update - You do not have permission to view this object. […]

  • The Human Cloud Landscape: 2018 Update

    The “human cloud” is an emerging group of technology companies that connect workers to (typically contingent) work through a website or some other digital platform. SIA has defined three human cloud business models: online staffing, crowdsourcing and online work services. In 2017, firms processed $82.4 billion in spend associated with the human cloud on a global basis. Human cloud companies that primarily sell to consumers (B2C), such as Uber, Lyft, Handy, Ele.me or Instacart, accounted for the vast majority of human cloud spend, generating $76.0 billion in spend, by our estimates. Human cloud companies selling primarily to businesses (B2B) generated $6.4 billion. Total global human cloud revenue grew approximately 65% in 2017, driven primarily by the B2C segment, which makes up more than 90% of human cloud spend. The B2B segment of the human cloud grew 19% year-over-year, by our estimates. Most B2B human cloud companies, while clearly internet technology companies, are also talent suppliers. Seeming hybrid models, such as just-in-time staffing, have thinned the line between online staffing and traditional temporary staffing. Furthermore, some consulting firms and traditional staffing firms have built their own human cloud applications. Small to medium-sized businesses continue to comprise the majority of demand in the B2B segment, though interest and adoption at large, enterprise clients is outpacing that of smaller firms, a favourable sign for B2B-focused firms. Recently, some vendor management systems (enterprise tech for managing staffing suppliers and procure temporary workers) have built integrations with human cloud vendors as part of their offering. Also, a new “breed” of online staffing, the “direct sourcing” platform, has emerged as an alternative to marketplace-driven online staffing models. In this report we refer to “independent workers”, “contingent workers”, “freelancers”, and “talent”, which, in the context of this report, are terms all used to describe the same thing: individuals who complete work through human cloud platforms, regardless of their tax classification. Unless noted otherwise, all currency in this report is presented in US dollars. The full report is available below:  Human Cloud Landscape 2018 Update - You do not have permission to view this object. […]

  • Global Staffing Forecast May 2018

    Key Findings We estimate that in 2017, the staffing industry generated USD 461 billion of revenue worldwide (EUR 409 billion). Three countries (US, Japan, UK) made up a majority of revenue. 90% of staffing revenue was made up by temporary staffing. SIA projects global staffing revenue to continue to grow by 7% this year. This robust growth is driven by double-digit growth in Japan, strength in several markets in continental Europe, and the continued surge in China and India as their economies develop. We forecast growth to decelerate slightly to 6% next year. Our global staffing market growth estimates and projections are on a constant-currency basis. While a generally healthy economic backdrop (3.9% global GDP growth projected for this year) is one factor driving the robust growth in the staffing market, the regulatory backdrop is important as well. Some countries such as Germany have been dealing with a tightening of labor regulations. Others, such as Italy, have benefited from labor reform. Another driver of growth has been that some countries with relatively low penetration rates have room to grow and are primed to do so at a time when there is increasing acceptance of staffing among clients in several markets. The full report can be downloaded by clicking the link below:  Global Staffing Industry Forecast May 2018 20180531 - You do not have permission to view this object. […]

  • GDPR: Frequently Asked Questions

    The General Data Protection Regulation (GDPR) is effective 25 May 2018. The information provided in this report draws on guidance from the UK’s Information Commissioner’s Office and other sources to provide clarification on some of the key themes of the GDPR including its’ scope, definitions, lawful processing and transparency requirements. It should be read in conjunction with our report, Implementing GDPR: A Guide, published on our website.SCOPE  Q.1 Is a business email address ‘personal data’? Q.2 Does the GDPR only apply to workers’ personal data?            Q.3 If we anonymise the data, does this take us outside the scope of GDPR?         Q.4 If we are reporting on our contingency workforce where their names would be linked to the bill rate is this considered processing personal data?Q.5 If an MSP located outside of the EU is processing and viewing data about workers employed in the EU, is there an issue?    Q.6 Will the EU be able to enforce fines against a company that sells goods and services to EU citizens from a country outside the EU?  DEFINITIONS     Q.7 Can you explain joint controllers and joint processors?            LAWFUL PROCESSING    Q.8 Can an executive search firm rely on the lawful basis of legitimate interest to call an individual using their personal details on LinkedIn?          Q.9 If we have a legitimate interest to process information, does the person also need to provide consent?            Q.10 If the same worker is submitted by two different suppliers, one who has spoken to the candidate before submitting their details and one who hasn’t, do we as the recipient of this data have an obligation to report this as a breach of GDPR? Will we be liable to compensate the worker or pay a fine?            Q.11 Should an agency or a client have a standard consent form for each explicit job?       TRANSPARENCYQ.12 Is it necessary to have a privacy policy and to communicate it to my entire database of EU resident business contacts?  Q.13 If an employer receives the details of a candidate or worker from an agency, does the employer need to tell the individual that they have their data and obtain their explicit consent before processing?To download a pdf copy of the report, click below: GDPR_FAQs_05302018 - You do not have permission to view this object. This report 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 acting on the information contained in this update. Q.1 Is a business email address ‘personal data’?Yes. A business email address that comprises the name of an individual or other detail by which that individual can be identified is ‘personal data’ under the GDPR.The GDPR defines ‘personal data’ as any information relating to an identifiable person who can be directly or indirectly identified by reference to an identifier. An identifier will include an identification number, location data and an online identifier (e.g. IP address) as well as factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that person, in addition to their name. Q.2 Does the GDPR only apply to workers’ personal data?No. The GDPR is not just applicable to individuals in an employment context but applies to any identified or identifiable natural person, known as a ‘data subject’ who is “in the European Union” (Article 3.2). This suggests that it applies to anyone who is a European citizen, or resident within the borders of the European Union at the time of processing of their personal data.It does not apply to legal persons i.e. corporate entities, so a company email address such as admin@ or info@ is not personal data and the company has no rights under the GDPR. Q.3 If we anonymise the data, does this take us outside the scope of GDPR?Yes, provided the individual can no longer be identified directly or indirectly. Anonymisation is the process of turning data into a form which does not identify individuals and where identification is not likely to take place. This allows for a much wider use of the information as it is no longer ‘personal data’.However, anonymisation should not be confused with pseudonymisation, which is the process of distinguishing individuals in a dataset by using a unique identifier which does not reveal their ‘real’ identity without reference to other data.If there is a risk of anonymised data being combined with other data, allowing the individual to be identified, then the data does not cease to be ‘personal data’ and the GDPR must be complied with.For further information, read Anonymisation: Managing Data Protection Risk Code of Practice published by the UK’s Information Commissioner’s Office (ICO). Q.4 If we are reporting on our contingent workforce where their names would be linked to the bill rate is this considered processing personal data?Yes, if individual workers can be identified from the data, this will constitute ‘personal data’. Q.5 If an MSP located outside of the EU is processing and viewing data about workers employed in the EU, is there an issue?Article 3(1) of the GDPR states that it applies to the processing of personal data in the context of “the activities of an establishment of a controller or a processor in the EU” (for an explanation of ‘controller’ and ‘processor’ see Q.7 below), regardless of whether the processing takes place in the EU or not. ‘Establishment’ is not defined as such but the Recitals explain that it “implies the effective and real exercise of activity through stable arrangements. The legal form of such arrangements, whether through a branch or a subsidiary with a legal personality, is not the determining factor”.According to Taylor Wessing, the European Court of Justice (CJEU) gave the term ‘establishment’ a very broad interpretation in a case involving Google Spain and the Weltimmo case. It looked at what constituted an establishment for the purposes of allowing regulators to enforce in their own Member State. In Weltimmo, the CJEU followed the judgment in Google Spain in giving a very broad interpretation to the scope of the Directive and to what constitutes an ‘establishment’. The bar for claiming that you are not subject to local Member State data protection law is very high if you do business there under current data protection law.So, if an MSP (a processor) located outside the EU, is processing data relating to or on behalf of a client (a controller) doing business in the EU, the MSP must comply with the GDPR. Q.6 Will the EU be able to enforce fines against a company that sells goods and services to EU citizens from a country outside the EU?In theory, yes; but in practice, it may be a little more difficult depending on the country in which the company is located.In addition to Article 3(1) mentioned in Q.5, Article 3(2) of the GDPR applies to the processing of personal data by organisations without an establishment in the EU, where the processing activities relate to:(a) the offering of goods or services, irrespective of whether a payment is required, to data subjects in the EU; or(b) the monitoring of data subjects’ behaviour which takes place within the EU.GDPR applies to, for example, a retailer that allows EU citizens to purchase goods in Euros or other European currency on its website; or a job board that advertises roles that EU citizens can apply for via the site.Article 50 GDPR requires the European Commission and the supervisory authorities of the 28 member states to “take appropriate steps” to develop international co-operation mechanisms to facilitate effective enforcement of legislation for the protection of personal data. It also envisages providing international mutual assistance through notification, investigation and the exchange of information with other countries.For U.S. companies that have a physical presence (establishment) in the EU, the GDPR can be enforced directly against them by EU member state supervisory authorities. Such organisations are required to appoint a representative within the EU who will act as the point of contact for the supervisory authority. If they do not comply with the GDPR, they may be subject to civil remedies such as compensation, fines and penalties, with the maximum fine that a supervisory authority can impose being €20 million or 4% of global turnover, whichever is the greater. For individual data subjects who make successful claims for compensation, it will be possible to enforce a court judgement for a specific sum in those jurisdictions that have entered into a convention or regulation agreeing to enforce foreign judgements, although the process is by no means straightforward.But in respect of any organisation that does not have assets within the EU, supervisory authorities will have to rely on the principles of international law to enforce penalties or orders imposed on overseas entities, or enter into mutual co-operation agreements with foreign regulators. Q.7 Can you explain joint controllers and joint processors?A ‘controller’ determines the purposes and means of processing personal data. A ‘processor’ is responsible for processing personal data on behalf of a controller. This means that the controller is the person that decides to collect, use, store and delete data; while the processor may carry out one of more of these activities on behalf of the controller.In the context of recruitment, it is likely that the recruitment firm will be the data controller in relation to the collection and transmission of personal data relating to a candidate, such as a CV, and that a client employer will be a processor on receipt of the CV and other identifiable information. However, some end user employers may consider they are the controller because they instruct the recruiter to send suitable applicants for employment with them. It is possible for there to be joint controllers where two or more organisations jointly determine the purposes and means of processing and in such cases, there may be joint liability for data breaches.In a complex supply chain, where there are several entities including an umbrella company employer, a staffing firm and intermediaries such as an MSP (managed service provider) or payroll provider as well as the client employer it may be necessary to map the data flows. In this way it is possible to identify which party is responsible for determining the purpose and means of each of the processing activities in relation to the worker’s personal data at different points in the lifecycle of an assignment. In such situations, the parties in the supply chain may be a controller in respect of one or more processing activities, and a processor in respect of others.The GDPR places direct obligations on data processors for the first time at EU-wide level. In addition, data subjects can enforce their rights directly against data processors and introduces an enforcement regime which lays a non-compliant data processor open to sanctions, including significant fines.A processor may only process personal data in accordance with the controller's instructions as set out in a data sharing agreement or contractual documentation describing the relationship between the two. Notwithstanding the obligations placed on the processor, controllers are ultimately responsible for ensuring that personal data is processed in accordance with the GDPR.  Unless a controller can demonstrate that it is “not in any way responsible for the event giving rise to the damage” it will be fully liable to compensate a data subject for any damage caused by non-compliant processing.Generally, the GDPR treats the data controller as the principal party for responsibilities such as collecting consent, handling a withdrawal of consent, enabling a data subject’s right to access, etc. For example, a data subject who wishes to revoke consent for his or her personal data to be processed will contact the data controller, even if such data lives on servers belonging to the data processor. The data controller, upon receiving this request, would then proceed to request the data processor remove the revoked data from their servers.Data controllers may only appoint data processors that can show they are compliant with the GDPR. To do this, the intended processor must provide sufficient guarantees that they will implement appropriate technical and organisational measures to ensure processing meets the requirements of the GDPR.Processors have an obligation to: maintain a written record of processing activities carried out on behalf of each controller; designate a data protection officer where required; appoint a representative (when not established in the EU) in certain circumstances; and notify the controller on becoming aware of a personal data breach without undue delay.Before a data processor can sub-contract processing to a third party, the data controller must give written consent. For example, if an MSP intends to use a third party non-proprietary VMS to manage contingent worker sourcing on behalf of a client, they must first obtain the consent of the client. Q.8 Can an executive search firm rely on the lawful basis of legitimate interest to call an individual using their personal details on LinkedIn?Viewing the contact details of a prospective candidate on a public platform or website does not constitute ‘processing’; but using that data does. The term ‘processing’ is very broad. It essentially means anything that is done to, or with, personal data (including simply collecting, storing or deleting the data).Therefore, the firm must have a legal basis for using that data. One of the permissible bases under the GDPR is that the person processing the data has a legitimate interest and that the processing is necessary for the purposes of that interest, except where such interests are overridden by the rights and freedom of the data subject to the protection of their personal data.The UK’s Information Commissioner’s Office provides some useful guidance with a three-part test to determine whether there is a legitimate interest for processing that data. They also advise keeping a record of the legitimate interest assessment and the outcome. There is no standard format for this, but it’s important to record the decision-making process and to justify the outcome. Q.9 If we have a legitimate interest to process information, does the person also need to provide consent?Consent is one lawful basis for processing, but there are alternatives. You must always choose the lawful basis that most closely reflects the true nature of your relationship with the individual and the purpose of the processing. If you can justify your legitimate interest in carrying out the basic processing activities then you may not need consent. If you would still process the personal data without consent, asking for consent is misleading.If you are using special category data, e.g. data about a person’s race, religion, health, sex or sexual orientation, you may to need to seek explicit consent to legitimise the processing, unless one of the other specific conditions in Article 9(2) applies. One such condition is that the processing is necessary for the purposes of carrying out obligations of the controller or exercising specific rights of the data subject in the context of employment law or social security law.You are also likely to need consent under e-privacy laws for many types of marketing calls and marketing messages, website cookies or other online tracking methods, or to install apps or other software on people’s devices. These rules are currently found in the Privacy and Electronic Communications Regulations 2003 (PECR) which are due to be replaced in 2018. Q.10 If the same worker is submitted by two different suppliers, one who has spoken to the candidate before submitting their details and one who hasn’t, do we as the recipient of this data have an obligation to report this as a breach of GDPR? Will we be liable to compensate the worker or pay a fine?The answer to this question is not straightforward. The first issue is whether a staffing firm is required by the GDPR to obtain the explicit consent of a candidate before sending their personal data in the form of a CV to a prospective employer.Under the GDPR, a person may only process personal data if they have a lawful basis for the processing. Of the six lawful bases listed in the GDPR, and set out below, only the first three are likely to be relevant in the context of recruitment. It is not necessary to have more than one legal basis, but the basis used to justify the processing must be the most appropriate for that activity: Consent: the individual has given clear, unambiguous, informed consent for you to process their personal data for a specific purpose. Contract: the processing is necessary for a contract you have with the individual, or because they have asked you to take specific steps before entering into a contract. Legitimate interests: the processing is necessary for the legitimate interests of your business or the legitimate interests of a third party, unless there is a good reason to protect the individual’s personal data which overrides those legitimate interests. (This cannot apply if you are a public authority processing data to perform your official tasks.) Legal obligation: the processing is necessary to comply with a common law or statutory obligation. Vital interests: the processing is necessary to protect someone’s life. Public task: the processing is necessary for you to perform a task in the public interest or for your official functions, and the task or function has a clear basis in law. A staffing business will have a legitimate business interest in sending CVs to a client to fill a placement. They may also be able to rely on the fact that the processing is necessary to perform the contract with the job-seeker to find them employment. If they can rely on either basis, then strictly speaking they do not need explicit consent.However, to rely on either of these lawful bases, the processing must be necessary for the purposes of the business interest or the contract, and that purpose must not be overridden by the rights and freedom of the data subject to have their personal data protected.In a case of a candidate seeking employment, there is a strong argument for saying that the rights of the candidate to choose their career and targeting their search for employment to companies that they would wish to work for, overrides the legitimate business interest of the staffing firm, or indeed the client.If the staffing firm relies on the contract with the individual, to find them work, as the legal basis for sending out their CV, then it would be logical to say that the terms of that contract, either explicit or implied, would only allow the staffing firm to send the candidate’s CV to those clients the candidate has agreed to. If the candidate has explicitly said “send my CV to any employer you [staffing firm] think appropriate” then it is not necessary for the staffing firm to get explicit consent before sending out the CV to a prospective employer. However, this is rarely the case, and in the absence of a blanket consent in writing from the candidate, as part of the contract they sign with a staffing firm, then it is likely a staffing firm will need to get the explicit consent of the candidate before sending out their CV to an employer.In any event, if the staffing firm is disclosing sensitive or special categories of data then they will need explicit consent (see q.9 above).The second part of this question is whether the recipient of a CV that was sent without the explicit consent of the individual has a duty to report this; and/or will be liable for a fine or compensating the individual for a breach of the GDPR.The GDPR introduces a duty on all organisations to report certain types of personal data breach to the relevant supervisory authority. If the breach is likely to result in a high risk of adversely affecting individuals’ rights and freedoms, they must also inform those individuals without undue delay.A personal data breach means a breach of security leading to the accidental or unlawful destruction, loss, alteration, unauthorised disclosure of, or access to, personal data. In assessing risk to rights and freedoms, it’s important to focus on the potential negative consequences of the breach for individuals. If the sending of a CV to an employer without the explicit consent of the individual is likely to significantly affect that individual’s ability to get or keep a job, for example when it is incorrectly sent to their current employer, then it may be a reportable breach, but if it is no more than a mere annoyance there is no duty to report it.Similarly, while there may be a breach on the part of the staffing firm, in that they did not have a valid lawful basis for sending the CV, any penalty or compensation is likely to be owed by the staffing firm as the data controller, and not the recipient employer, who will be a data processor. As such, the employer may owe a duty to the controller to inform then on becoming aware of the breach, but there is no wider duty to report it to the supervisory authority or the individual.The other issue arising from this scenario is the age-old question of which staffing firm is entitled to the fee: the one who got the consent of the individual, or the first to send the CV. The answer is neither, but the agency whose introduction led to the engagement, under the ‘effective cause’ rule. Relevant factors in determining which agency was the ‘effective cause’ leading to the employment will be the terms and conditions, whether the employer asked the agency to arrange an interview or undertake other activities in the recruitment process in relation to that candidate. Sometimes both agencies are entitled to the full fee, where the client has failed to notify one or other that they do not want to accept the terms of that agency’s introduction. Q.11 Should an agency or a client have a standard consent form for each explicit job?Following on from the answer to question 10, the agency should obtain the explicit consent of a candidate before sending their CV to an employer, unless the individual has expressly confirmed in writing that the staffing agency has their authority or consent to send their CV to any prospective employer they consider to be suitable; and the agency is justifying their actions on the lawful basis of performing the contract terms they have with that individual.If the agency’s lawful basis for sending a candidate’s CV to a client is that they have their consent to doing so, then such consent must be “freely given, specific, informed and [an] unambiguous indication of the data subject’s wishes by which he or she, by a statement or clear affirmative action, signifies agreement to the processing of personal data relating to him or her”. In this case it may not be necessary to have a standard form but it is necessary to keep a record of emails or phone calls in which consent is asked for and obtained. Q.12 Is it necessary to have a privacy policy and to communicate it to my entire database of EU resident business contacts?Individuals have the right to be informed about the collection and use of their personal data. This is a key transparency requirement under the GDPR.You must provide individuals with information including: the purposes for processing their personal data, the retention periods for that personal data, and who it will be shared with. It must be given to the individual at the time their data is collected, or if it is obtained from another source, you must provide individuals with privacy information within a reasonable period of obtaining the data and no later than one month. This will be the case whether you are an employer receiving CVs from a staffing agency, an agency using contact details on a publicly available source such as LinkedIn, or a business that buys a database of contacts from a third party.You can meet this requirement by putting the information on your website, but you must make individuals aware of it and give them an easy way to access it. If you plan to use personal data for any new purposes, you must update your privacy information and proactively bring any changes to people’s attention. Q.13 If an employer receives the details of a candidate or worker from an agency, does the employer need to tell the individual that they have their data and obtain their explicit consent before processing?Anyone receiving personal data has a duty to inform the data subject that they have their data - see the answer to Q.12 above. However, it is probably not necessary to obtain their explicit consent as a prospective employer has a legitimate business interest in processing their data for the purposes of assessing suitability for employment.If the employer uses that data for any other purpose for which there is no lawful basis, for example marketing goods or services to them as a consumer when they have not expressed an interest in receiving such information, then the employer will need to get their explicit consent. […]

  • The Vietnamese Market

    Vietnam’s labor force is large around 54 million people, with a 94% literacy rate, inexpensive, and young with nearly 66 percent of the population is under 40. While the Vietnamese staffing market is thriving and will grow 13% in 2018 from roughly USD 140 million in 2017 according to our forecasts. There are three interlocking elements to the sector - recruitment, subleasing and labour export, which are covered below.RecruitmentThe market was liberalised in 2014 when the Government issued a decree regulating the conditions and procedures for employment service activities in Vietnam (No. 52/2014 / ND-CP) . This replaced Decree No. 19/2005/ND-CP as amended and supplemented by Decree No. 71/2008/ND-CP. These rules apply to enterprises providing employment services, their employees and branches of their companies.The services covered include: Introducing jobs to employee, as well as supplying and recruiting employees at the requests of employers. Including enterprises which are granted permits to send Vietnamese labourers to work abroad Advise employers and employees, including advice to labourers on the selection of jobs, training level, learning institutions that are compatible with their capacity and demands, examination skills, job-generating and job-searching in and out of the country, as well as advice to employers in respect of recruiting, managing and developing their workforce. Collecting, analysing, forecasting and providing labour market information Conducting job-search skills training and vocational training in accordance with law Implementing programs and projects on employment. There are three main conditions for being granted employment permit: Having a stable head office for three years (36 months) or more With at least three qualified employees of college level or higher, who have full civil act capacity and have clear backgrounds. Plus a deposit of VND 300 million ($13,215) at the commercial bank where the enterprise maintains its main trading account. After receiving a completed and valid application, the provincial-level People's Committees for Municipal Labour, War Invalids and Social Affairs Services will grant the licence. These last for a maximum duration of 5 years (60 months), followed by five more years for each subsequent extension.According to Tran Le Luu Phuong and Manfred Otto of Duane Morris LLP writing in 2014, the Decree provides more detailed guidelines and creates more favourable conditions for the employment service sector in Vietnam in general. This has proved true, although these authors fears that foreign companies would be restricted does not seem to have come about.A list of some of the major providers in Hồ Chí Minh is attached below. Vietnamese Firms 20180524 - You do not have permission to view this object. Subleasing labourSeparately from the rules above, under Article 53 of the new Labour Code that came into force in 2013, a tripartite relationship can be put in place. This allows for an employee, recruited by a company licensed to carry out labour subleasing (the staffing company), to work for another company (the subleasing company). This relationship is shown in the diagram below. Article 54 of the Labour Code sets out the legal requirements to carry out labour leasing. The staffing firm must pay a VND 2 billion ($88,000) escrow a. The aim of which is to secure the staffing company’s obligation to pay wages to subleased employees. The Minister of Labour, War Invalids and Social Affairs then has the authority to grant a license which is valid for a maximum period of 36 months (Articles 12 and 13 of Decree 55/2013/ND-CP). One of the most notable aspect of the law is that it restricts subleasing outsourcing services to only 17 job categories, including: Interpreters, translators, and stenographers Administrative assistants Receptionists Tour guides Sales support staff Project support staff Programmers of production machine systems Manufacturers/installers of broadcasting and telecommunications equipment Staff that operate, inspect, and/or repair construction machinery or electrical systems in manufacturing Cleaning and sanitation staff for buildings and factories Document editors Bodyguards and security guards Staff for marketing and customer care via telephone Financial and tax consultants Automotive mechanics Industrial scanners/drafters and interior decorators Drivers This list has caused the staffing industry considerable difficulties, and there are efforts in place to try to get it expanded.For a staffing company established as a joint-venture between an overseas company and a local company, Clause 3, Article 6 of Decree 55 imposes the following conditions. The overseas company must be a company specialising in the business of labour sublease; with capital and total asset value of at least VND 10 billion ($438,500). It must have at least five years’ experience in providing labour sublease services. In addition it must have a certificate granted by an authority in its home country proving that it and the representative of its contributed capital portion in the joint venture have not breached the law of the country of origin or the law of the related country.Further rules include that the term of any labour sublease must not exceed 12 months. A labour sublease contract must not contain provisions on the rights and interests of the employee which are less favourable than those provided in the labour contract which the staffing company has signed with the employee concerned. In addition, if a company subleases labour without having been granted a license, it can be fined of between VND100 million and VND150 million ($4,385 -6,578).There are now roughly 130 subleasing providers shown in the list below mainly in Vietnam’s industrial areas of Hanoi, Ho Chi Minh City, Dong Nai, Binh Duong, and Can Tho provinces. ManpowerGroup announced in 2015 that it was the First Global Workforce Solutions Company to obtain such a licence.To download the list of providers (in Vietnamese), please click below: Vietnamese Subleasing List 20180523 - You do not have permission to view this object. Labour ExportersLast year the Ministry of Labor, Invalids and Social Affairs drew-up a scheme to export high-skilled labour. Official statistics showed that Vietnam had around 1.1 million unemployed workers, accounting for 2.3% of the workforce. Around one-third of them were college graduates. In particular, the Ministry aimed to send health workers to Japan and German, IT, electronics, telecom, biology and agriculture specialists to Japan. Mechanical engineers to South Korea, or some European and Middle Eastern countries. As well as opening new markets for Vietnamese labour such as Slovakia, the Czech Republic and Israel.The department said more than 126,000 Vietnamese were sent overseas for guest work in 2016, 26% up 9% year-on-year. Taiwan, the biggest importer of Vietnamese labour, took on 68,000 workers, followed by Japan with nearly 40,000 people. 2016 was the third consecutive year that Vietnam had sent more than 100,000 workers overseas.The Vietnam Association of Manpower Supply (VAMAS) is the trade body for those 130 Vietnamese companies licensed to send Vietnamese workers overseas on a contractual basis. Its' goal is “to expand the scale and improve the quality of the manpower supply activities of the members and to protect the members’ legal rights and interests”. A full list of these providers can be found here.MSP & VMSAccording to Tapfin, the MSP cannot hold supplier contracts on the client’s behalf. Labour outsourcing or subleasing services must be contracted by the outsourcing service provider and the user company. Therefore, we can say that the country operates an “agency model” rather than a “principal model”. Where the MSP stands to one side and does not stand in the contract chain; to understand more about this approach, see our MSP Model Overview report.We do not have any information about VMS in Vietnam, although some companies have job ads which specify that the candidate must be able to assure a good vendor management system in place. […]