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Global Daily News

  • GDP growth decelerates in new Q1 estimate

    US real gross domestic product grew at an annual rate of just 0.7% in the first quarter, according to the “advance” estimate of GDP growth released today by the US Commerce Department. In the fourth quarter of 2016, real GDP increased 2.1%.Bloomberg reported the US economy expanded at the slowest pace in three years as weak auto sales and lower home-heating bills dragged down consumer spending, offsetting a pickup in investment led by housing and oil drilling. Real GDP fell short of the median forecast of economists surveyed by Bloomberg, which called for a 1% gain.“GDP growth made a sluggish start to 2017, led by weak consumer spending, which saw its smallest quarterly growth since the end of 2009,” Brian Schaitkin, senior economist at The Conference Board, said in a statement. “First quarters, on a seasonally adjusted basis, have been weak in recent years and 2017 has been no exception. A cold winter can lead to delays in construction activities. A warm one, as was the case this year, can produce lower utility bills. Sky high consumer confidence and rising wages suggest that spending should bounce back quickly during the rest of the year, driving the economy to overall growth of around 2% in 2017, in line with long-term trends.&rdquo […]

  • OSHA launches campaign to protect young workers

    Workers under age 25 are twice as likely to end up in the emergency room as those 25 and older, according to the federal Occupational Safety and Health Administration’s new campaign aimed at protecting young workers. Every nine minutes a US teen worker gets hurt on the job, and 335 young workers were killed 2013.Using the slogan, “Young Workers - You have rights!,” OSHA’s campaign features a website with resources for employers as well as young workers and parents and educators.Many young workers are also temporary workers and host employers must treat temporary workers as they treat existing workers, especially including adequate training to young temporary workers, according to OSHA. Temporary staffing agencies and host employers share control over the employee, and are therefore jointly responsible for the temp employee's safety and health.OSHA outlined employer responsibilities for young workers: Understand and comply with the relevant federal and state child labor laws. For example, these laws prohibit youth from working certain hours and from performing dangerous/hazardous work. Ensure that young workers receive training to recognize hazards and are competent in safe work practices. Training should be in a language and vocabulary that workers can understand and should include prevention of fires, accidents and violent situations and what to do if injured. Implement a mentoring or buddy system for new young workers. Have an adult or experienced young worker answer questions and help the new young worker learn the ropes of a new job. Encourage young workers to ask questions about tasks or procedures that are unclear or not understood. Tell them whom to ask. Remember that young workers are not just “little adults.” You must be mindful of the unique aspects of communicating with young workers. Ensure that equipment operated by young workers is both legal and safe for them to use. Employers should label equipment that young workers are not allowed to operate. Tell young workers what to do if they are injured on the job. […]

  • Senate confirms Acosta as labor secretary

    The US Senate comfirmed Alexander Acosta as labor secretary yesterday by a vote of 60-38. Acosta is a former US attorney and most recently served as Dean of Florida International University Law School.Acosta had been endorsed by several union and takes over after the department had gone without a secretary for three months, The New York Times reported.Acosta told the Senate Committee on Health, Education, Labor and Pensions during his confirmation hearing that he had reservations about key Obama-era labor regulations, Reuters reported.He expressed reservations about an Obama administration rule issued last year that more than doubled the salary ceiling under which employees would be eligible for overtime pay, from $23,660 to $47,476 a year. The rule, which extended overtime pay to more than 4 million salaried workers, was blocked by a federal judge in November.Acosta has served in three Presidentially appointed, Senate-confirmed positions, including as a member of the National Labor Relations Board. He was the first Hispanic to hold the rank of assistant attorney general and went on to serve as the United States Attorney for the Southern District of Florida. Since 2013, Acosta has also served as Chairman of U.S. Century Bank, the largest domestically owned Hispanic community bank in Florida. […]

  • Walker Business

    Walker Business & Staffing Services Inc., a temporary staffing company serving western New York and Northwest Penn., acquired the assets of Staffing Plus Inc.Staffing Plus was a $1.5 million agency working with more than 50 temporary employees in Olean, NY, and Bradford, Penn. The deal will close Monday and expands Walker’s customer base in those areas.“Nothing will change except the name of the company on employee’s paycheck,” said owner and President Voni Walker. “All current clients and temporary workers at each location will continue as normal.”Lara Ericson, staffing coordinator of Staffing Plus, will remain with Walker Business Staffing in the same capacity.Terms of the transaction were not disclosed. “One of the owners was ill and passed away, so they gave me a price which was fair because he knew we would take care of his clients like he did,” Walker said. “We were friendly competitors for the past 25 years.”Walker Business & Staffing Services is a 25-year-old agency with more than $3.5 million in annual revenue and 120-plus temporary employees. It is headquartered in Wellsville, NY, with additional offices in Olean, NY, and Bradford, Penn. The company serves a variety of segments but specifically targets labor, light industrial and office/clerical. It makes some direct placements although the great majority of its business is temporary placement. “Prior to 2016, there were only three staffing agencies with physical presences within the Wellsville, Olean, New York, and Bradford, Pennsylvania areas: Walker, Staffing Plus, and MM Temps,” Walker said.  “Adecco was in and out of the Olean and Bradford markets but we always remained and kept our established clientele.&rdquo […]

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    • Japan – SMS Co Ltd full year revenue up 21%

      Japanese healthcare services provider SMS Co Ltd (2175: JP) reported revenue today for the year ending 31 March 2017 of JPY 23.0 billion (USD 206.8 million), an increase of 20.9% compared to the same period last year. (JPY millions) FY 2017 FY 2016 Change FY 2017 (USD millions) Revenue 23,054 19,069 20.9% 206.8 Operating Income 3,646 2,756 32.3% 32.7 Net Income 2,801 2,265 23.6% 25.1 After the acquisition of MIMS, SMS has become the largest information provider for healthcare professionals in Asia excluding Japan. The company also operates a number of websites specialising in services for older people. The company also operates recruitment and job board websites for healthcare professionals specifically looking to work in older people services and it also provides a variety of recruiting agent services for paramedical workers.SMS Co Ltd also published its forecast for the year ending March 2018 of JPY 27.8 billion (USD 249.4 million).In trading today, SMS Co Ltd shares closed at JPY 2,967.00 (USD 26.6), up 0.54% on the day and 3.51% below its 52-week high of JPY 3,075 (USD 27.5) set on 14 October 2016. Based on its current share price the company has a market value of JPY 128.02 billion (USD 1.14 billion). […]

    • Japan – JAC Recruitment reports Q1 revenue up 17%

      Japanese staffing firm JAC Recruitment (2124: TYO) reported revenue during the first quarter ending 31 March 2017 of JPY 3.8 billion (USD 34.3 million), an increase of 17% compared to last year. (JPY millions) Q1 2017 Q1 2016 Change Q1 2017 (USD millions) Revenue 3,831 3,274 17.0% 34.3 Operating Income 1,397 1,186 17.8% 12.5 Net Income 976 799 22.1% 8.7 JAC Recruitment provides recruitment services to local enterprises and multinationals in Japan, the United Kingdom, and rest of Asia.  The company conducts recruitment of skilled permanent employees ranging from assistant level personnel to executives and various specialists. It also offers Japanese speaking and multilingual specialists, as well as online job listing services.JAC Recruitment also forecasted revenue of JPY 16.41 billion (USD 147.2 million) for the year ending December 2017.In trading today, JAC Recruitment Co Ltd closed at JPY 1,711 (USD 15.35), down 1.21% on the day and 12.30% below its 52-week high of JPY 1,951 (USD 17.50), set on 5 April 2017. Based on its current share price the company has a market value of JPY 71.52 billion (USD 641.8 million). […]

    • Japan – Quick Co reports full year revenue growth of 16%

      Japanese staffing firm Quick Co. Ltd (4318: JP) reported revenue for the full year ending 31 March 2017 of JPY 14.6 billion (USD 130.7 million), an increase of 16.6% compared to the previous year. (JPY millions) FY 2017 FY 2016 Change Q1 2017 (USD millions) Revenue 14,578 12,498 16.6% 130.7 Operating Income 1,998 1,687 18.4% 17.9 Net Income 1,391 1,170 18.8% 12.4 Quick Co. Ltd provides recruitment advertising and dispatch (temporary staffing) services in Japan with overseas offices in the US, Vietnam and Mexico.The company also forecasted revenue for the year ending March 2018 of JPY 16.10 billion (USD 144.4 million). In trading today, Quick Co. Ltd set a new 52-week high during today's trading session when it reached JPY 1,285.00 (USD 11.52). Over this period, the share price is up 57.09%. Shares closed at JPY 1,252 (USD 11.23), down 1.57% on the day. Based on its current share price the company has a market value of JPY 24.29 billion (USD 217.9 million). […]

    • Singapore – Q1 unemployment rate increases to 2.3%, Minister says unemployment could rise further

      The overall unemployment rate in Singapore increased to 2.3% in the first quarter of 2017, up by 0.1% compared to the previous quarter, according to the latest Labour Market Advance Release First Quarter 2017 report released by the Ministry of Manpower.The data also shows that the seasonally adjusted unemployment rate in March 2017 remained unchanged among residents (3.2%) and citizens (3.5%), compared to December 2016.Total employment declined by 8,500 in 1Q 2017, after growth of 2,300 in the previous quarter. The decline was mainly due to a decrease in Work Permit Holders in Marine and Construction, which continue to experience weakness.“Our Singapore economy is in transition,” Minister for Manpower Lim Swee Say said. “GDP growth has slowed to about 2% in the past two years from an average of 4.5% previously. Retrenchment is on the rise, and resident unemployment rate has increased to 3% last year after holding steady at about 2.8 % since 2012. This is not a first. It has happened before in the past 20 years such as the Asian Financial Crisis in 1997, dotcom crash in 2001, SARS outbreak in 2003 and the Global Financial Crisis in 2009.”“However, this time, it is different. Our economy is still growing, not shrinking. The rise in unemployment is more gradual and remains below the previous peaks of more than 5% during SARS and more than 4% during the Global Financial Crisis. Even so, the challenges we face today are no less daunting. The transition this time is less cyclical, but more structural. Some sectors are still under stress and unemployment could rise further,” Say said.Following an increase in the previous quarter, redundancies declined from 5,440 in 4Q 2016 to 4,800 in 1Q 2017. Lower redundancies were seen in Manufacturing, with increases in Construction and Services. MOM states that with some sectors continuing to experience cyclical weakness, and as businesses continue to restructure, redundancies are expected to remain elevated.MOM’s priority remains to support displaced or at-risk individuals through its different programmes. Workers are encouraged to tap on these programmes to find new jobs, or to re-skill themselves to remain in employment or take up new careers. For more on the Singapore labour force, click here. […]

    Latest Research

    • Temporary Worker Satisfaction Drivers

      Key Findings: Over 5,000 North American temporary workers from 38 staffing firms responded to the question “How likely is it that you would recommend your primary staffing supplier/agency to a friend or colleague?” The net promoter score (NPS) based on these responses was 44%, comparable to scores measured in five previous surveys. Separately, eight individual satisfaction factors regarding agency performance were also measured. These were correlated with NPS to determine its biggest drivers. The factors that had the largest impact on NPS were: trustworthiness of the agency, responsiveness,  relationship with recruiter, and quality of assignments. It’s noteworthy that these factors were also the ones temps most credited their staffing firms with achieving. It seems staffing firms are rationally prioritizing temporary worker interests. Temporary workers were also asked to suggest improvements in their staffing firm. Suggestions typically concerned communication, pay and benefits, and website issues. As noted in the 2016 survey, differences in comments by those who scored their firm a “10” and those who scored their firm a “0” were also suggestive of what matters to temporary workers. Among temporary workers giving their agency a “10,” common reasons cited included: outstanding customer service, fast problem resolution, high satisfaction with their placement, and the agency’s ability to find new jobs for them as previous ones ended. Among temporary workers giving their agency a “0,” common reasons cited included: poor problem resolution, poor communication including in some cases the inability of agency staff to speak clearly in English, and/or general disorganization and incompetence. Note: Some self-selection bias may be present, as participating firms were incented to participate in the survey in part with the goal of being selected as a “best staffing firm to work for.” Mitigating the possibility of such bias is that most firms also participated with the intention of simply learning more about how their firm was perceived. To access the complete report, please select the link below: Temporary Worker Survey 2017 Satisfaction with staffing agencies (or lack thereof), and what drives it 20170428 - You do not have permission to view this object. […]

    • Sources of US Temp Healthcare Coverage

      Key Findings: Note: This report provides updated data on temporary worker use of healthcare exchange insurance. The additional data provided on other forms of insurance is from the previous year’s survey. Healthcare exchange coverage is popular among US temporary workers. Thirty-six percent said they currently have healthcare insurance from a state or federal exchange, and another 17% expected to have such insurance within two years. In terms of broad patterns: younger, less well paid, and less skilled workers are somewhat more likely to choose exchange insurance than are older, more highly paid, and more highly skilled workers. As reported in the 2016 Temporary Worker Survey…  Eighty-one percent of temporary workers were offered healthcare benefits by their respective staffing agencies. However, roughly two-thirds of temporary workers already had coverage from another source (e.g., spouse, healthcare exchange, veterans benefits, etc.), and a majority accordingly did not sign up for coverage offered by their staffing firm. Independent healthcare coverage is the main source of healthcare benefits for both commercial and professional temporary workers. Only 19% of commercial temps signed up for healthcare coverage from their staffing firm, vs. 38% for professional temps. Twenty-one percent of commercial temporary workers and 9% of professional temporary workers remain uninsured. This is, however, roughly half the level of two years ago, when 40% of commercial temporary workers and 20% of professional temporary workers were without coverage. To access the complete report, please select the link below: Temporary Worker Survey 2017 Sources of healthcare coverage 20170427 - You do not have permission to view this object. […]

    • Why Temps Quit Assignments Early

      Key Findings: This report is based on responses to the following survey question: If you have ever quit an assignment early, what was the reason you did so? Felt ostracized, no one paid much attention to me Not the job I was told it would be Lack of training, just thrown into it Pay/benefits not delivered as promised Commute longer/more difficult than expected Another employer offered me a better job Unpleasant work environment/didn’t like manager or coworkers I have never quit an assignment early Other (please specify) Thirty-one percent of temporary worker respondents said they had quit an assignment early. Quit rates do not seem to vary much from this overall result as a function of temporary worker demographics -- in terms of occupations, age groups, and pay groups. The most common reasons for quitting an assignment early were: being offered a better job by another employer, finding that the nature of the job and/or pay or benefits was not as described, and dissatisfaction with the circumstances of the job in terms of how they were treated. To access the complete report, please select the link below: Temporary Worker Survey 2017 Why temporary workers quit assignments early 20170424 - You do not have permission to view this object. […]

    • MSP Market Developments: Part 1

      This report identifies vendors who are actively investing and developing their MSP services. In addition, this report has identified the development of MSP service offerings in the market. Key findings include: Unsurprisingly, compliance and cost savings continue to be key drivers for managing MSP programs. As technology and technology integrations become more important in supporting business adoption and process efficiencies, MSP vendors are beginning to drive technology preferences and leadership in building technology ecosystems and data warehouses to drive more value and benchmark visibility across the client base. To support small/mid-market organizations, MSP mid-market specific services are being developed as well as talent pool consortiums. For example:  MetaProcure has started a talent consortium for the education sector. Solvus is supporting individual government entities in Belgium in a similar way. As sourcing hard to find talent and retention become a greater challenge, contingent worker satisfaction surveys are an active SLA or KPI for some MSPs to support driving continuous improvement programs that relate to the contingent worker experience. MSP’s traditionally utilized procurement skills to support the sourcing aspects and vendor management aspects of the staffing supply chain. More recently, additional skill sets are enhancing MSP teams. For instance, recruitment and HR capability which relies on understanding talent quality and retention is invested in for the purposes of direct sourcing, and in particular Contingent RPO models. IT skills and change management skills are also being invested in to support the implementations and roll outs of programs. IT skills are being invested in to support the migration of staff augmentation consultants to SOW consultants. The greatest proportion of contingent workers in the MSP market by occupational category is IT. MSP’s are also investing in knowledge of IT as well as outsourcing procurement to enhance SOW selection and evaluation capability and services. MSP organizations are increasingly building specialisms and expanding delivery centers and best practices around different models. Providers are recognizing that services procurement is perceived by buyers as a specialist skill and they are accordingly investing in building specific services center of excellence teams. The buying cycle is more complicated as services contracts typically involve more risk for a party, the contracts are often longer, commercial assumptions are more complicated, there are more stakeholders as the service involves operations as well as transition, service specifications and responsibilities including associated SLA’s,  exit arrangements as well as the project transformation or transition all make contract for services typically more complicated by nature if compared to a project or transformation of the same functional and geographic scope. Supplier services are not limited to the management of staffing suppliers and MSPs continue to explore the value of online staffing through FMS platforms as well as worker tracking solutions. US based MSP vendors are showing the greatest evidence of an uptake in FMS services being embedded in an MSP supply base. MSP providers are continuing to invest in delivery centers. The most active developments in 2016 relate to increasing investments in Eastern Europe and India. Example vendors include Resource Solutions and Hays who invested in India and Poland respectively. Of the vendors researched, 65% also offer RPO solutions as a complementary offering and a selection of clients are being supported with an RPO and Contingent RPO blended offering. Over the last year, a number of organizations have performed a reorganization and merged the MSP and RPO practices under a single leader to support greater synergies and total talent offerings. Approximately 30% of MSP vendors also offer proprietary VMS technology and continue to develop products to support a technology-led MSP service. Some have built-in SLA’s to support service reporting. While most of these providers also partner with best-of-breed VMS technologies, the ability to offer proprietary technology can create an advantage. This is mainly as it can better support continuous improvement when you own the process as well as the technology. If you accept the premise that change management only happens effectively when combining people, process and technology, process improvement is less effective where the provider does not have as close an influence on the technology roadmap. MSP providers who are using third party VMS technology are risk of managing manual work arounds to support processes where there are technology gaps. Once a proprietary technology is embedded in a client, it becomes harder for a buyer to swap out such vendors. Clearly it is in the provider interest to offer both technology and service as client retention is positively impacted, however, for this same reason, there will always be a group of buyers who prefer to keep VMS provision through a third party.  Some enterprises look to procure MSP services with the longer-term vision that they can internally manage the program at a future date. In 2016, Allegis Global Solutions, Agile•1, and KellyOCG are leveraging their traditional MSP service expertise to assist enterprises implement internally managed programs using the vendor best practices. The appetite for this type of offering is evidenced in some recent case studies below. SIA recognizes three distinct evolutionary waves of MSP services: Wave 1.0: Sourcing Leveraging Scale Wave 2.0: Sourcing through Vendor Neutral Models Wave 3.0: Sourcing for Work (Emerging) Click the link below to download the report:  MSP Market Developments - Part 1 20170424 - You do not have permission to view this object. […]

    • APAC/LatAm/MEA Listed Staffing 1Q16 Financial Results

      Key Findings: This is an update of a selection of publicly traded recruitment firms in Australia, China, Japan, New Zealand and South Africa with the most recently updated financial information as of the first quarter. First-quarter revenue rose at the largest firms. Tokyo-based Recruit Co. Ltd. Reported revenue rose 22.2% for the full year, while revenue rose at Japan-based Temp Holding by 15.3% in the first quarter ended 30 June 2016. Revenue at Programmed Maintenance Services fell by -1.0% for the first half ended 30 September 2016; however, the company had acquired fellow Australia-based staffing firm Skilled Group. Tables of income and revenue performance can be found on the following pages. Revenue may reflect net sales only in some instances. In addition, revenue includes all revenue of a particular firms even if they have revenue from the Americas or Europe or in other business lines. Where possible, hyperlinks to Staffing Industry Analysts’ news coverage of the results have been provided. This list includes staffing companies and firms directly related to the workforce solutions ecosystem. To access the full report, click below: ROW PPT Q12016 DR - You do not have permission to view this object. […]

    • APAC/LatAm/MEA Listed Staffing 4Q15 Financial Results

      Key Findings: This is an update of a selection of publicly traded recruitment firms in Australia, China, Japan, New Zealand and South Africa with the most recently updated financial information as of the fourth quarter. Fourth-quarter revenue rose at the largest firms. Tokyo-based Recruit Co. Ltd. Reported revenue rose 21.8% in the first nine months of the year, while revenue rose at Japan-based Temp Holding by 28.8% in the nine months ended 31 December 2015. Revenue at Programmed Maintenance Services fell by -1.0% for the first half ended 30 September 2015; however, the company had acquired fellow Australia-based staffing firm Skilled Group. Tables of income and revenue performance can be found on the following pages. Revenue may reflect net sales only in some instances. In addition, revenue includes all revenue of a particular firms even if they have revenue from the Americas or Europe or in other business lines. Where possible, hyperlinks to Staffing Industry Analysts’ news coverage of the results have been provided. This list includes staffing companies and firms directly related to the workforce solutions ecosystem. To access the full report, click below: ROW PPT Danny Q415 - You do not have permission to view this object. […]

    • UK Professional Recruitment Trends March/April 2017

      Placements growth—both perm and temp placements up in Engineering and both down in Social work. Vacancies trends—both perm and temp vacancies up in Engineering and Social work while both down in IT. Salary growth increased in all major sectors – Finance, Social care, IT, Marketing, Engineering and Sales. To download a copy of the report, please click on the link below: ProRecruitmentTrends_Mar_Apr_2017 - You do not have permission to view this object. […]

    • MSP Market Developments: Part 1

      This report identifies vendors who are actively investing and developing their MSP services. In addition, this report has identified the development of MSP service offerings in the market. Key findings include: Unsurprisingly, compliance and cost savings continue to be key drivers for managing MSP programs. As technology and technology integrations become more important in supporting business adoption and process efficiencies, MSP vendors are beginning to drive technology preferences and leadership in building technology ecosystems and data warehouses to drive more value and benchmark visibility across the client base. To support small/mid-market organizations, MSP mid-market specific services are being developed as well as talent pool consortiums. For example:  MetaProcure has started a talent consortium for the education sector. Solvus is supporting individual government entities in Belgium in a similar way. As sourcing hard to find talent and retention become a greater challenge, contingent worker satisfaction surveys are an active SLA or KPI for some MSPs to support driving continuous improvement programs that relate to the contingent worker experience. MSP’s traditionally utilised procurement skills to support the sourcing aspects and vendor management aspects of the staffing supply chain. More recently, additional skill sets are enhancing MSP teams. For instance, recruitment and HR capability which relies on understanding talent quality and retention is invested in for the purposes of direct sourcing, and in particular Contingent RPO models. IT skills and change management skills are also being invested in to support the implementations and roll outs of programs. IT skills are being invested in to support the migration of staff augmentation consultants to SOW consultants. The greatest proportion of contingent workers in the MSP market by occupational category is IT. MSP’s are also investing in knowledge of IT as well as outsourcing procurement to enhance SOW selection and evaluation capability and services. MSP organizations are increasingly building specialisms and expanding delivery centers and best practices around different models. Providers are recognizing that services procurement is perceived by buyers as a specialist skill and they are accordingly investing in building specific services center of excellence teams. The buying cycle is more complicated as services contracts typically involve more risk for a party, the contracts are often longer, commercial assumptions are more complicated, there are more stakeholders as the service involves operations as well as transition, service specifications and responsibilities including associated SLA’s,  exit arrangements as well as the project transformation or transition all make contract for services typically more complicated by nature if compared to a project or transformation of the same functional and geographic scope. Supplier services are not limited to the management of staffing suppliers and MSPs continue to explore the value of online staffing through FMS platforms as well as worker tracking solutions. US based MSP vendors are showing the greatest evidence of an uptake in FMS services being embedded in an MSP supply base. MSP providers are continuing to invest in delivery centers. The most active developments in 2016 relate to increasing investments in Eastern Europe and India. Example vendors include Resource Solutions and Hays who invested in India and Poland respectively. Of the vendors researched, 65% also offer RPO solutions as a complementary offering and a selection of clients are being supported with an RPO and Contingent RPO blended offering. Over the last year, a number of organizations have performed a reorganization and merged the MSP and RPO practices under a single leader to support greater synergies and total talent offerings. Approximately 30% of MSP vendors also offer proprietary VMS technology and continue to develop products to support a technology-led MSP service. Some have built-in SLA’s to support service reporting. While most of these providers also partner with best-of-breed VMS technologies, the ability to offer proprietary technology can create an advantage. This is mainly as it can better support continuous improvement when you own the process as well as the technology. If you accept the premise that change management only happens effectively when combining people, process and technology, process improvement is less effective where the provider does not have as close an influence on the technology roadmap. MSP providers who are using third party VMS technology are risk of managing manual work arounds to support processes where there are technology gaps. Once a proprietary technology is embedded in a client, it becomes harder for a buyer to swap out such vendors. Clearly it is in the provider interest to offer both technology and service as client retention is positively impacted, however, for this same reason, there will always be a group of buyers who prefer to keep VMS provision through a third party.  Some enterprises look to procure MSP services with the longer-term vision that they can internally manage the program at a future date. In 2016, Allegis Global Solutions, Agile•1, and KellyOCG are leveraging their traditional MSP service expertise to assist enterprises implement internally managed programs using the vendor best practices. The appetite for this type of offering is evidenced in some recent case studies below. SIA recognizes three distinct evolutionary waves of MSP services: Wave 1.0: Sourcing Leveraging Scale Wave 2.0: Sourcing through Vendor Neutral Models Wave 3.0: Sourcing for Work (Emerging) Click the link below to download the report: MSP Market Developments - Part 1 20170424 - You do not have permission to view this object. […]

    • Singapore Overview

      Introduction Singapore is a small, but wealthy city-state with an open and trade-driven economy. At the end of 2016, there were 3,673,100 employed persons, with 2,280,100 locals and 1,393,000 foreigners the majority of whom are unskilled or semi-skilled workers. Although local employment growth (+11,200) was higher than in 2015 (+700), it has slowed significantly from levels seen in the earlier part of this decade. In 2016 foreign employment contracted for the first time since the 2009 recession, continuing a downtrend since 2011. Singapore’s Ministry of Manpower (MOM) announced a ruling in September 2013, requiring employers to consider Singaporeans fairly, before hiring skilled professional foreigners. Median income growth moderated for Singaporeans in 2016 after strong growth in 2015, while labour productivity rose. The structure of the labour Force is shown on page 9, broken down between contract workers who account for 9% of the resident workforce, own account workers /independent contacts 8% of the resident workforce and part-time workers. The report includes commentary about the market from some of the main players and a forecast from the Ministry of Manpower, which suggests labour demand will remain modest. To download the full report, please click below: Singapore Overview 20170425 - You do not have permission to view this object. […]

    • MSP Market Developments: Part 1

      This report identifies vendors who are actively investing and developing their MSP services. In addition, this report has identified the development of MSP service offerings in the market. Key findings include: Unsurprisingly, compliance and cost savings continue to be key drivers for managing MSP programs. As technology and technology integrations become more important in supporting business adoption and process efficiencies, MSP vendors are beginning to drive technology preferences and leadership in building technology ecosystems and data warehouses to drive more value and benchmark visibility across the client base. To support small/mid-market organizations, MSP mid-market specific services are being developed as well as talent pool consortiums. For example:  MetaProcure has started a talent consortium for the education sector. Solvus is supporting individual government entities in Belgium in a similar way. As sourcing hard to find talent and retention become a greater challenge, contingent worker satisfaction surveys are an active SLA or KPI for some MSPs to support driving continuous improvement programs that relate to the contingent worker experience. MSP’s traditionally utilised procurement skills to support the sourcing aspects and vendor management aspects of the staffing supply chain. More recently, additional skill sets are enhancing MSP teams. For instance, recruitment and HR capability which relies on understanding talent quality and retention is invested in for the purposes of direct sourcing, and in particular Contingent RPO models. IT skills and change management skills are also being invested in to support the implementations and roll outs of programs. IT skills are being invested in to support the migration of staff augmentation consultants to SOW consultants. The greatest proportion of contingent workers in the MSP market by occupational category is IT. MSP’s are also investing in knowledge of IT as well as outsourcing procurement to enhance SOW selection and evaluation capability and services. MSP organizations are increasingly building specialisms and expanding delivery centers and best practices around different models. Providers are recognizing that services procurement is perceived by buyers as a specialist skill and they are accordingly investing in building specific services center of excellence teams. The buying cycle is more complicated as services contracts typically involve more risk for a party, the contracts are often longer, commercial assumptions are more complicated, there are more stakeholders as the service involves operations as well as transition, service specifications and responsibilities including associated SLA’s,  exit arrangements as well as the project transformation or transition all make contract for services typically more complicated by nature if compared to a project or transformation of the same functional and geographic scope. Supplier services are not limited to the management of staffing suppliers and MSPs continue to explore the value of online staffing through FMS platforms as well as worker tracking solutions. US based MSP vendors are showing the greatest evidence of an uptake in FMS services being embedded in an MSP supply base. MSP providers are continuing to invest in delivery centers. The most active developments in 2016 relate to increasing investments in Eastern Europe and India. Example vendors include Resource Solutions and Hays who invested in India and Poland respectively. Of the vendors researched, 65% also offer RPO solutions as a complementary offering and a selection of clients are being supported with an RPO and Contingent RPO blended offering. Over the last year, a number of organizations have performed a reorganization and merged the MSP and RPO practices under a single leader to support greater synergies and total talent offerings. Approximately 30% of MSP vendors also offer proprietary VMS technology and continue to develop products to support a technology-led MSP service. Some have built-in SLA’s to support service reporting. While most of these providers also partner with best-of-breed VMS technologies, the ability to offer proprietary technology can create an advantage. This is mainly as it can better support continuous improvement when you own the process as well as the technology. If you accept the premise that change management only happens effectively when combining people, process and technology, process improvement is less effective where the provider does not have as close an influence on the technology roadmap. MSP providers who are using third party VMS technology are risk of managing manual work arounds to support processes where there are technology gaps. Once a proprietary technology is embedded in a client, it becomes harder for a buyer to swap out such vendors. Clearly it is in the provider interest to offer both technology and service as client retention is positively impacted, however, for this same reason, there will always be a group of buyers who prefer to keep VMS provision through a third party.  Some enterprises look to procure MSP services with the longer-term vision that they can internally manage the program at a future date. In 2016, Allegis Global Solutions, Agile•1, and KellyOCG are leveraging their traditional MSP service expertise to assist enterprises implement internally managed programs using the vendor best practices. The appetite for this type of offering is evidenced in some recent case studies covered in this report. SIA recognizes three distinct evolutionary waves of MSP services: Wave 1.0: Sourcing Leveraging Scale Wave 2.0: Sourcing through Vendor Neutral Models Wave 3.0: Sourcing for Work (Emerging) Click the link below to download the report: MSP Market Developments - Part 1 20170424 - You do not have permission to view this object. […]

    • Asia Pacific Legal Update Q1 2017

      Australia Labour hire agencies and hosts concurrent health and safety duties Incapability to perform role is a valid reason for dismissal New data privacy breach notification law Hong Kong           Code of Practice and portal for employment agenciesSingapore Bill enacts improved rights for older workers Employment pass exemption period is extended     South Korea           Court orders damages against worker dispatch agency and host employerTaiwan            Five-day working week established in lawAustralia 1.      Labour hire agencies and hosts concurrent health and safety dutiesUnder work health and safety laws, host organisations have a duty to ensure the health and safety of all workers while at work, so far as is reasonably practicable. This includes any labour hire workers at their workplace.Labour hire agencies are also obligated to ensure the health and safety of workers during their placement with host organisations so far as is reasonably practicable. This involves the elimination of or, if this is not reasonably practicable, the minimisation of risks to health and safety that a labour hire worker may encounter during their placement.A crucial part of ensuring that concurrent duty holders meet their safety obligations is the need for parties to consult. Section 46 of the Work Health and Safety Act 2011 (Cth) (the Act) sets out that all duty holders who have safety obligations around the same matter must consult, cooperate and coordinate so far as is reasonably practicable to ensure their concurrent obligations are met.This duty was highlighted in the recent decision of Boland v Trainee and Apprentice Placement Service Inc. [2016] SAIRC 14 where a group training provider entered a guilty plea for failing to consult with a host employer. It was found that the defendant did not adequately consult with the host employer, resulting in a failure to adequately audit, the host's safety measures, on-site. The defendant was, therefore, unable to satisfy that the host undertook risk assessments and implemented necessary control measures for work undertaken by the defendant's apprentice. As such, the defendant was not able to confirm that its apprentices were working in line with safe work practices.This was the first prosecution in Australia for a failure to consult under the Act and is likely to result in more attention being placed on the requirement for duty holders to liaise with each other, particularly in cases involving labour hire or group training relationships.Another recent case, Boland v Big Mars Pty Ltd [2016] SAIRC 11 highlights the serious consequences that can occur when a labour hire organisation misunderstands its duties and leaves all health and safety considerations to a host.In this case, a labour hire worker was assigned to work at an abattoir run by a host company in November 2013. The worker was performing duties for the host by sterilising meat hooks when he fell into a chemical bath and suffered burns to 32% of his body. It was found that a major contributing factor to the incident was the worker's inability to read or speak English to the required standard. This meant he was unable to understand the host's safety instructions regarding the duties he was assigned.Following the incident, the labour hire company, Big Mars Pty Ltd, was prosecuted for failing to provide a safe system of work and failing to provide information, instruction, training and supervision to the worker.Big Mars did not meet its safety obligations as a labour hire provider as it failed to have any policies in place regarding risk management. Instead, it left these considerations to the host company. This was evident given Big Mars did not audit the host's safety procedures or the work areas where its labour hire workers were placed. If an audit had been undertaken, Big Mars would have become aware that there were communication issues for workers who did not understand English, which led to the host's safety instructions being ineffective.Big Mars had a duty to take all reasonably practicable steps to ensure that risks to safety were controlled. This included satisfying the duty to provide appropriate safety instructions that the worker could understand.These decisions highlight the need for labour hire and group training providers to ensure they are compliant with their safety obligations under the Act and do not rely too heavily on host organisations to ensure the safety of workers.Before placing a worker with a host, it is generally a requirement that a labour hire agency should (subject to what is reasonably practicable in the circumstances): exercise due diligence by reviewing the host's safety record before agreeing to the placement of a worker set out each party's safety responsibilities in writing, so expectations are clear provide workers with a general safety induction, covering consultation methods (so workers are aware of who to contact if they have safety concerns during their placement) audit workplaces for any risks to work health and safety verify that the host will provide site-specific and task-specific inductions, safety training and personal protective equipment gather information about the work to be performed and any associated risks as well as consult with the host to ensure safety controls are in place to eliminate or, if this is not reasonably practicable, minimise safety risks, and ensure that consultation with the host is ongoing. If the above steps are taken (and documented so compliance can be easily demonstrated), then labour hire and group training providers should be in a good position to ensure they have met their safety obligations under work health and safety legislation. 2.      Incapability to perform role is a valid reason for dismissalIn the recent case of Donald Pettifer v MODEC Management Services Pty Ltd [2016] FWCFB 5243, MODEC, a labour hire company provided labour to a third party under a labour hire arrangement. Following a ‘near-miss’ incident, the third party company exercised its right under the labour hire arrangement to direct MODEC to remove the employee from the site. While MODEC did not agree that the employee’s conduct warranted this action, it complied with its contractual obligations.MODEC subsequently attempted to find an alternative role for the employee but was unable to find an appropriate position. At this stage, MODEC terminated the employee’s employment on the basis that he was excluded from the site under MODEC’s contractual arrangements with the third party and therefore could not perform the inherent requirements of his role. The employee argued he was unfairly dismissed by MODEC.A Full Bench of the Fair Work Commission rejected the employee’s argument that he was dismissed because of his conduct. The Full Bench instead found the dismissal occurred because the employee did not have the capacity to perform the duties which he was engaged to perform and he could not be redeployed elsewhere. This was because, having been prohibited from returning to the site, the employee was incapable of performing the inherent functions of his role.The Full Bench held there was a valid reason for dismissal and the dismissal was not harsh, unjust or unreasonable in the circumstances.While this case establishes that in some circumstances a host employer can exercise its contractual rights such that the labour hire employer may validly dismiss its employee, the employee’s labour hire or actual employer must still ensure the contractual arrangements do in fact provide a valid reason and must otherwise treat its employees fairly. 3.      New data privacy breach notification lawAustralia has passed the Privacy Amendment (Notifiable Data Breaches) Bill 2016. It will introduce mandatory breach reporting obligations for organisations caught by Australia's Privacy Act 1988, which will include many foreign businesses which operate in Australia or process the personal data of Australian data subjects.Eligible data breaches which are reasonably likely to result in serious harm to any of the affected data subjects must be reported to both the Australian Privacy Commissioner and the relevant data subjects.  The amending Act does not define ‘serious harm’ but does list relevant matters to assessing whether serious harm is likely, including the kind of information, the sensitivity of the information, the security protections in place, the type of person or people who obtained the information and the nature of the harm. Applying these considerations, notification is more likely to be required in relation to a targeted hack to obtain consumer password data, rather than where an encrypted list of staff names and titles was accidentally emailed to a director of the company.Notably, the amending Act does not mention the number of individuals affected by a data breach as being relevant to the assessment of whether serious harm is likely. In other words, harm to one individual can be enough.The Bill was passed on 13 February 2017 and is now awaiting Royal Assent.  The amendments which are set to be enacted by the new legislation are set out in Schedule 1 and will commence on 22 February 2018.As with many other requirements under the Privacy Act, serious and repeated breaches will be subject to enforcement action including civil penalty orders of up to AUD1.8 million (USD1,274,720) for companies and AUD360,000 (USD254,943) for individuals.Herbert Smith Freehills provides further detail of the Bill’s amendments to the Privacy Act.Hong KongCode of Practice and portal for employment agenciesOn 13 January 2017, the Labour Department promulgated the Code of Practice (CoP) for Employment Agencies (EAs) with a view to promoting the professionalism and service quality of the industry.The CoP highlights the salient legislative requirements, notably those under the Employment Ordinance (EO) (Cap. 57), the Employment Agency Regulations (Cap. 57A), the Immigration Ordinance (Cap. 115) and the Personal Data (Privacy) Ordinance (Cap. 486), that EA operators must follow. It also sets out the minimum standards which the Commissioner for Labour expects of EA licensees, some of which are particularly relevant to EAs engaging in the placement of foreign domestic helpers. These include, for example, maintaining transparency in business operations, drawing up service agreements with job seekers and with employers, provision of payment receipts and avoiding involvement in financial affairs of job seekers.​A spokesman for the Labour Department said, "The Employment Agencies Administration of the Labour Department will closely monitor EAs' compliance with the CoP and will conduct regular inspections of EAs. It may issue warning letters to EAs for rectification of irregularities detected, including but not limited to failing to meet the statutory requirements and/or standards set out in the CoP."​​The spokesman added, "EA operators should comply with the statutory requirements and standards set out in the CoP, which is one of the important factors that the Commissioner will take into account when assessing if the licensee is a fit and proper person to operate an EA under section 53(1)(c)(v) of the EO."Chief Executive Leung Chun-ying, head of the government in Hong Kong, in a policy address in January 2017 said that the Labour Department plans to introduce an amendment bill this year to complement the newly promulgated Code of Practice for Employment Agencies. If passed, the amendment will provide the legal basis for enforcing the code, which is legally non-binding. The department also plans to impose heavier penalties on employment agencies that overcharge jobseekers or operate without a licence, Leung said.​The LD also launched the dedicated Employment Agencies Portal (www.eaa.labour.gov.hk), which is a one-stop platform to assist the public, including employers and job seekers, to gain access to information relating to regulation of EAs in Hong Kong. The Portal enables the public to check if an EA has a valid licence and contains useful reference materials and publications, including the CoP.​Singapore 1.      Bill enacts improved rights for older workersOn 9 January 2017, the Parliament of Singapore passed the Retirement and Re-employment (Amendment) Bill 2016 (Bill). The Bill abolished employers' right to reduce the salary of workers who reach the age of 60 and introduced a provision which exempts employers from having to either re-employ an eligible employee or offer an Employment Assistance Payment to such an employee where the employee secures employment with another employer. The Minister for Manpower has also announced that the re-employment age will be increased from 65 to 67 in a bid to improve the employment outcomes of Singapore's senior workers.Under the Retirement and Re-employment (Amendment) Act (Cap 274A) (Act) as it was before the Bill was enacted, employers were entitled to reduce the salary of their employees by up to 10% when they attained the age of 60. These provisions were inserted into the Act in 2012 to make senior workers, many of whom enjoyed the benefit of rigid seniority-based remuneration, more attractive to employers. However, as 98% of employers did not make use of these provisions, they were 'no longer relevant' and are removed from the Act with the enactment of the Bill.The Act also provides that the Minister for Manpower may prescribe the re-employment age. Before the enactment of the Bill, the prescribed re-employment age stood at 65. The Minister has announced that the re-employment age will be increased to 67, the highest age prescribed under the Act. This means that employers now have an obligation to re-employ workers aged between 65 and 67 in addition to their existing obligation to re-employ workers aged between 62 and 65.However, the Bill introduces an exemption to the obligation to re-employ eligible employees. Previously, where an eligible employee reached the re-employment age, the employer was under an obligation to either re-employ the employee or to provide the employee with a one-off payment known as the Employee Assistance Payment, equivalent to three months' salary.The Bill provides employers with an additional option. Where the eligible employee secures employment with another employer before leaving their current employer, their current employer's obligation to re-employ or pay the EAP is discharged. This is a useful option for an employer that cannot find a suitable internal position for its senior employees but is able to offer them positions in a sister company or a subsidiary.These changes will take effect on 1 July 2017.Employers should prepare for the changes by considering the types of roles that could be filled by their senior employees who wish to continue working beyond the retirement age. Employers are also advised to review their existing remuneration practices and policies to see whether they currently reduce the wages of their employees when they turn 60, a practice that will become unlawful in July this year. 2.      Employment pass exemption period is extendedEffective 12 April 2017, the Ministry of Manpower (MOM) has lengthened the maximum period that foreign nationals may perform work pass exempt activities in Singapore from 60 days to 90 days. The duration of the stay permitted is calculated per calendar year and may be used consecutively or cumulatively. For example, a foreign national is now able to make three visits of 30 days to Singapore in a year to perform Work Pass Exempt activities. These include attending company meetings, conferences, training courses and seminars, attending exhibitions as a trade visitor, providing specialised services in the opening of new business operations, etc. The MOM website has a complete list of permissible activities.To be exempt a foreign national must: Be engaged to perform the Work Pass Exempt activity before entering Singapore. Note: This does not guarantee entry into Singapore. Eligibility to enter will be assessed at immigration checkpoints. Have a valid Short-Term Visit Pass (STVP) issued by the Immigration & Checkpoints Authority (ICA) of Singapore that allows the foreign national to stay during the activity. Notify MOM of his/her intention to work in an exempted activity after entering Singapore, and before starting the activity. It is an offence to start work without letting MOM know. Comply with other specific legal requirements in Singapore (e.g. registration requirements to practise in Singapore for selected professions). To notify MOM of his/her work pass exempt activity after arriving in Singapore and obtaining a Short Term Visit Pass at immigration and before starting the activity the foreign national must, notify MOM by submitting an e-notification.Note: It is an offence to carry out work pass exempt activities without first notifying MOM.South KoreaCourt orders damages against worker dispatch agency and host employerFor the first time, a Korean court has approved the imposition of punitive damages against both a worker-dispatch agency and the company using the dispatched workers, for discrimination prohibited under the Dispatched Worker Protection Act (the "DWPA") (Case No. 2015Guhap70416 (Seoul Admin. Ct. 18 November 2016).Under the DWPA, both a worker-dispatch agency and the company using its workers are prohibited from subjecting the dispatched workers to discriminatory treatment. For wilful or repeated violations of the anti-discrimination rule, the Labour Relations Commission ("LRC") can impose damages of up to three times the actual damages suffered, as a punitive measure.However, in past cases involving discriminatory payment of wages to dispatched workers, the worker-dispatch agency alone has more often been held liable.The punitive-damages system was adopted in September 2014 by amendments to the Protection of Fixed-Term and Part-Time Employees Act and the DWPA, and it applies to unjustified discrimination against fixed-term, part-time, or dispatched workers. But this case is the first instance when its application has been approved by a court.The Seoul Administrative Court (the "Administrative Court"), on appeal from a ruling by the Central Labour Relations Commission (the "CLRS"), was considering a claim brought by dispatch workers who had received lower bonus compensation compared to regular employees of the user company. In addition, they had not been compensated for unused annual leave.The CLRS found that there had been discriminatory treatment against the dispatched workers, and it held both the worker-dispatch agency and the using company jointly liable and ordered them to pay the dispatched workers double damages.The Administrative Court agreed that the dispatched workers had been subject to discriminatory treatment due to differential payment of bonuses. And the Administrative Court further upheld the CLRS's decision that both the using company and the worker-dispatch agency were jointly liable for double damages.However, the Administrative Court found that other Labour Standards Act violations, such as failure to compensate for unused annual leave, did not constitute discriminatory treatment prohibited by the DWPA. Asa a result, the user company could not be held liable because the worker-dispatch agency, as the legal employer, is solely responsible for compliance with those requirements.Companies that use dispatched workers should carefully assess whether there is any risk of discrimination claims arising from the workers as these can lead to liability for damages which may substantially exceed the workers' claim.Taiwan Five-day working week established in lawTaiwan's legislature, the Legislative Yuan, passed amendments to the Labour Standards Acts (the "LSA") later promulgated by the President to take effect on January 1, 2017.The key points of the amendments are: implementation of a five-day working week; a sharp increase of wage for working on a rest day; reduction of national holidays; increase of days of annual leave; method of arranging annual leave and payment for unused annual leave; rest time between shifts; employers' obligation to provide information on wage calculation; protection of whistleblowers’/workers' right to file complaints; and raising fines for violations of the LSA. The amendments have a significant impact on employers' costs and arrangement of human resources.  Employers must consider their working arrangements and make changes to comply with the amendments.  Lee and Li Attorneys at Law provide further details of the amendments.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_Q1_20170420 - You do not have permission to view this object. 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    • Looking for respondents for Human Cloud and Digital Work Intermediary Survey

      Staffing Industry Analysts is pleased to announce the launch of its 2017 Global Human Cloud and Digital Work Intermediary Survey. This survey of online/digital work intermediaries (“human cloud firms”) will be used as part of a global study undertaken by Staffing Industry Analysts to be published mid-2017. With the exception of company name, headquarters (state and region), website and business model description, all questions on the survey are confidential at the company level, and will only be shared in aggregate.The human cloud is an emerging set of work intermediation models that enable work arrangements of various kinds to be established and completed (including payment of workers) entirely through a digital/online platform. Staffing Industry Analysts has defined three types of human cloud platform models: Crowdsourcing, online work services and online staffing platforms, and companies with any such offerings are encouraged to participate in the study.The deadline for the survey is April 28, 2017. Please download the spreadsheet below, and send the completed survey to dfrancis@staffingindustry.com.  2017HumanCloudAndDigitalWorkIntermediaryGlobalSurvey-StaffingIndustryAnalysts_170418.xlsx 35.66 kB […]