The Staffing Edge Blog

Focus on your core business. We’ll take care of the rest.

Chelsea Henry

Chelsea Henry is the team leader of risk management at The Staffing Edge. Chelsea’s passion for working closely with others in a challenging but rewarding environment is what makes her an important asset to our members. Chelsea has over 10 years of customer service experience—five years specifically dealing with risk management in the staffing industry—and is JHSC certified. Through research, Chelsea helps keep members up to date on current legislation involving employer’s rights, and deals with their day-to-day challenges with labour laws. Outside of work, she enjoys spending time with her family, DIY projects, and photography.
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Recent Posts

What Contract Staffing Firms Must Know about Statutory Holiday Pay

Posted by Chelsea Henry

|

Dec 13, 2017 9:00:00 AM

What Contract Staffing Firms Must Know about Statutory Holiday Pay--.jpgContract staffing firms have it made right now, as workforce flexibility is desired by both clients and candidates. But before you can see steady growth as the go-to source for contract staffing, you must ensure payroll compliance is up to par. If you’re not careful, you could find your firm stuck in a pattern of “one step forward two steps back” with the CRA.

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A good example of what can trip up your compliance is statutory holiday pay. Independent contractors are governed according to a different set of rules than employees are when it comes to public holidays, and Canada has quite a few of them. And with different holidays recognized in different provinces, you’ll want to be sure you have the rules straight before you’re blindsided.

Check out our roundup of what contract staffing firms must know about statutory holiday pay.

Proper Classification Determines Holiday Pay

First off, you need to be aware of the fact that independent contractors, being self-employed, aren’t paid statutory holiday pay. An independent contractor can work holiday pay into their pricing for their contracts, but their clients don’t have to pay because they aren’t on their payroll. This situation can turn murky fast, however, if you’ve misclassified your independent contractor. 

Make sure you use CRA’s four-point test (control, ownership of tools, business risk, and integration of activities) to make sure you’re dealing with independent contractors, not employees. According to the CRA, independent contractors might still be considered employees even if they’ve agreed to contracts, submit invoices, and use their own tools. If you fail the four-point test, then the onus is on your firm to pay them any statutory holiday pay earned. 

Misclassification, whether willful or accidental, comes with legal consequences, in addition to liability to pay holiday wages. But what exactly would you have to pay your contractors if they did prove to be misclassified?

Qualifications for Typical Statutory Holiday Pay

For an employee, public holiday wages are based on their regular wages earned plus vacation pay, payable within four weeks before the workweek in which the public holiday occurred. This amount divided by 20 is the employee’s entitlement. An employee must meet certain qualifications to earn this entitlement, however. 

To qualify for stat pay, an employee must follow the “Last and First Rule.” The rule states an employee must complete their last shift scheduled before and after a public holiday. If the employee fails to do work one of these days or both, they don’t qualify for stat pay. 

Two notable exceptions to this rule include when an employer agreed to let an employee take the day off prior to the public holiday and when employees worked their scheduled shifts before and after a public holiday but were on vacation, leave, or laid off. In some cases, an employee will be entitled even if they fail to work the first or last day before the holiday but have a proven reason for the time off.

Avoid Compliance Woes with a Back Office Solutions Provider

What you need to keep in mind regarding all the above is that if your independent contractors are misclassified and you fail to pay their statutory holiday pay, that amounts to wage theft. Your contract staffing firm’s reputation is at stake. Your resources could inevitable dwindle due to any fines imposed by the Ministry of Labour or CRA.

Your contract staffing firm has major potential to unlock a lucrative revenue stream in Canada’s ongoing gig economy. Your potential growth may be stunted, however, if you fail to properly classify your workers. Consider engaging compliance experts who have decades of experience in keeping pace with Canadian business legislation. You’ll be saving your business’ reputation and ensuring your skilled contractors are served fairly!

Unlock a Lucrative Revenue  Stream With Contract Staffing

Topics: Payroll

How Are Employers Liable for Independent Contractors?

Posted by Chelsea Henry

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Dec 4, 2017 9:00:00 AM

HowAreEmployersLiableforIndependentContractors.jpgCanada’s current job market relies on independent contractors. Such work is even expanding to sectors that were thought to be accepting only of full-time employees, like the medical field. This is good news for new staffing firms looking to unlock a lucrative revenue stream with contract staffing.

If you are looking to place independent contractors, however, you’ll need to ensure you have a solid grasp of Canada’s employment standards. As of 2018, Ontario is planning to put stricter penalties in effect regarding misclassification of employees as independent contractors.

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With the above in mind, we’ve put together a short primer on how employers are liable for independent contractors. Read on for the most impactful notes to account for.

Willful Misclassification

Although there are instances where employees are misclassified as independent contractors, the 2018 employment standards seek to address employers who willfully misclassify employees. Some employers see benefits in willful misclassification, including (but not limited to) not having to provide benefits and employment insurance and contractors being responsible for their own tools and taxes.

Misclassification is against the law in Canada, whether accidental or willful, however. And with the proposed changes to Ontario’s employment and labour laws, those who cannot prove their independent contractors aren’t employees will be subject to prosecution, public disclosure if convicted, and steep fines.

Employee Vs. Independent Contractor

There’s no need to fret over misclassification if you’re clear on the differences between what constitutes an employee and an independent contractor. According to Ontario’s government, the key defining characteristics of an independent contractor are:

  • Near or full responsibility for their tools and equipment
  • Workers are responsible for their profit/loss as they are in business for themselves
  • Worker determines how and where the contract is completed
  • Worker has the ability to subcontract for part of the work
  • The business can terminate the contract with the workers but can’t discipline them

If the contractor-employee boundaries are crossed, you can be held liable for independent contractors regarding taxes (if unpaid), wrongful dismissal, benefits, and more.

To avoid disputes regarding independent contractors, your firm must be vigilant about compliance.

How Back Office Experts Prevent Legal Trouble

Another noteworthy detail of Ontario’s changes to its laws about misclassification is that companies are now advised against using dependent contractors as an intermediary category of workers. There have been legal disputes in the past regarding this grey area, with one couple suing for wrongful dismissal resulting in $125,000 paid out.

You know more than anyone as the head of a staffing firm how much it costs to run such a business. You must account for the costs of payroll, government remittances, and administration duties. Compliance is perhaps the most time consuming of admin duties, with the proposed changes to Ontario employment laws being just one example.

Outsourcing compliance to a back office solutions provider goes a long way towards helping you stay compliant with legislative changes. While you are liable for independent contractors and responsible for staying up to date on legislation, a back office solutions provider can advise you and update you the moment there’s a new change.


Things You Need to Know When Starting a Temp Staffing Agency

Topics: Worker Classification

Eliminate Temp Agency Issues with These 3 Tips

Posted by Chelsea Henry

|

Nov 22, 2017 9:00:00 AM

EliminateTempAgencyIssueswithThese5Tips.jpg

There’s no better time to be in the temp recruitment industry. The gig economy is booming in Canada, and for the millennial generation (the largest percentage of the current workforce) workplace flexibility is considered the norm. But there’s a catch, as you might’ve noticed—competition is fierce in the staffing industry and only the best agencies can compete with the big staffing firms.

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Streamlining your daily operations is vital if you want to maximize your resources and (by extension) expand your profit margins. Here are three tips that will help you eliminate temp agency issues.

1. Invest in Recruitment-Focused Software

We know you might find this first tip a tall order when you’re just starting out as a temp agency. However, keeping up with more established agencies (whether big or small) will be impossible without the right technology. Investing in proprietary software that’s focused on the day-to-day admin issues of your agency is about ensuring your recruiters can optimize their performance levels.

Without technology, your recruiters will miss out on talent because they won’t be able to engage with candidates fast enough due to red tape and inefficiencies in the recruiting process.

A good applicant tracking system, with client relationship management and payroll features, is vital to steadily improving your staff performance levels. Invest in recruitment software that streamlines your daily operations.

2. Engage Canadian Compliance Experts

This tip is useful for both foreign and Canadian agencies in the staffing industry. A tricky aspect of running a successful temp agency lies in being vigilant about compliance with Canadian business laws. Your agency’s profits can disappear if you’re uncompliant. Whether it’s due to a simple matter of overtime regulations or something more complex as employee misclassification, you could face not only thousands of dollars in monetary fines but prosecution as well.

Engaging compliance experts can save your agency in the long run. They’ll keep your agency compliant, so you can keep your profits.

3. Find Pre-Emptive Financing Options

We don’t need to overstate the importance of your agency’s financing. Having said that, we do think pre-emptive measures for financing have been understated to new agencies. Being competitive isn’t just about speed and efficiency, it’s also about protecting your investments.

Your clients will have varying payment schedules to yours—they may not pay you for your services in time for you to make payroll. Others may not pay at all. You need to be able to ensure these incidents don’t affect payroll.

A back office solutions provider can offer you payroll financing to help you avoid payroll issues. It will purchase your invoices and give you cash upfront so you can pay your workers on time, every time. When you don’t have to fret over whether you’ll be able to pay your workers on time, you can focus on your core business.

We hope you consider these three tips. They’ll eliminate a host of common obstacles that can make running a temp agency difficult.


Unlock a Lucrative Revenue  Stream With Contract Staffing

Topics: contract staffing

Fall Is Here: Is Your Staffing Agency Ready to Hire New Grads?

Posted by Chelsea Henry

|

Oct 25, 2017 9:00:00 AM

Fall Is Here Is Your Staffing Agency Ready to Hire New Grads--.jpgWe all love our rags to riches stories in the recruiting industry, but have you ever considered how strange it is that we don’t apply the insights we garner from these stories into our hiring practices? For instance, Jobvite’s 2016 Recruiter Nation Report revealed that 67 percent of the 1,600 recruiting and HR professionals surveyed still hire for previous job experience. Coming in at a close second to that statistic, however, was cultural fit.

Download our free guide on everything you need to know about starting a  successful staffing firm.

Chances are high that your staffing agency, especially if new, is one that prefers to hire for experience. That’s understandable considering there might be a higher probability that candidates with previous experience in the niche you’re hiring for can hit the ground running. Hiring only experienced candidates, however, can limit your staffing agency’s capacity to offer uniquely adaptable new talent.

With fall convocation having come and gone, there’s a wealth of new talent in the form of new grads you could be tapping into! Read on for why hiring passionate millennials could be your key to offering one-of-a-kind candidates to your clients.

Top-Tier Degrees Don’t Always Mean Experience

The trouble with focusing on just the traditional checklist of criteria for promising candidates (previous experience at esteemed companies, relevant academic credentials, matching keywords, etc.) is that it excludes a diverse range of candidates. Many new grads these days, by default of being young millennials, won’t have years of experience at many companies, let alone companies with storied reputations. 

There are many new grads who, by nature of having to apply their technical skills in a concentrated way for the past four or five academic years, possess valuable practical experience. They’ve also had to apply these technical skills in creative ways, meaning new grads come fully equipped with expert problem-solving skills as well. 

When you deem new grads too risky for your staffing agency, you could also end up in the position of hiring candidates who do have many years of experience but who are sorely unprepared for today’s workforce, which emphasizes reinvention and adaptability. That’s why cultural fit was rated so highly by those surveyed by Jobvite.

New Grads Improve an Organization’s Thought Diversity

Hiring new grads is also a good way for you to bring a fresh perspective to your staffing agency and its clients. In recent years, thought diversity has become an important aspect of hiring because it’s this type of diversity that fuels innovation. New grads have an advantage in having less previous experience in this regard because their opinions aren’t clouded by values instilled in them by several organizations. 

Coupling thought diversity together with their practical problem solving, new grads can illuminate inventive solutions for their employers. They also share unconventional insights that, while shaking up the status quo, can reinvent an organization’s processes in ways that can boost productivity and success. 

Your staffing agency can and will benefit from increasing its data-driven recruitment to hire more diversely.

Attract and Capture the Millennial Market

Your agency has a lot to gain by boosting its efforts in online marketing, which improves your brand’s attractiveness, by extension. Millennial jobseekers are tech savvy, but they are also mobile jobseekers, meaning your website should be designed to be responsive to smartphone and tablet screen layouts. And we’d be remiss if we didn’t advise you to be active on social media platforms, where many millennials are displaying their expertise and communicating with fellow millennial professionals.

Employing industry-specific recruiting software, which has an applicant tracking system, also marks your agency as a successful one in a new grad candidate’s eyes. Not only can you locate millennial candidates more quickly, but you’ll be able to efficiently hire for their skills, not just previous experience.

We hope you take stock of what new grads can offer your agency and its clients, and consider how the right tools can help you tap into this workforce this fall.

Unlock a Lucrative Revenue  Stream With Contract Staffing

Topics: Staffing Agency

3 Ways to Elevate Your Staffing Agency

Posted by Chelsea Henry

|

Oct 2, 2017 11:00:00 AM

3 Ways to Elevate Your Staffing Agency--.jpgSo, you’ve started a staffing agency, but despite what you’ve likely heard about Canada’s gig economy and the rising need of staffing services you aren’t seeing much growth yet. The reason for this is simple: competition is fierce in 2017 and is projected to grow in the following year. 

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Opening a staffing firm these days is only the beginning. There are some firms that have been in the business for decades, and although you might have a key niche you’re catering to, you still need to elevate your status to gain a steady network of clients. And depending on your niche, say IT and computer technology for example, you’ll need to work hard to be able to compete with the big staffing firms. 

Need some tips to jumpstart your course to becoming a sought-after staffing agency? Check out three key strategies below for elevating your staffing agency.

1. Use Staffing Agency Software

There’s been a lot of talk this year about how much of the staffing industry has “gone digital.” Yes, not even the most people-driven industries can avoid digital transformation. If your staffing agency doesn’t begin to digitize its recruiting process, it will be falling behind on one of the most vital trends of the industry. 

There are significant advantages to using staffing agency software. Such software allows your agency to do things like employ algorithms for applicant pre-screening and rediscovery for its database. Not to mention how much easier it becomes to manage client relationships and ensure their needs have been met with your candidates in real time. Staffing agency software alleviates the burden of your back office administration, and optimizes how your staff completes their everyday tasks. 

Digitization might be tricky to deal with at times, but not if you have the right tools to implement it. An interconnected system that can roll all your essential admin duties into one—applicant tracking, client relationship management, and financial reporting—will streamline your agency.

2. Build Your Employer’s Online Brand

Your employer’s brand is another critical strategy for elevating your staffing agency, because it’s about how potential clients perceive you. Your reputation in the staffing industry will precede you, especially considering most of your clients will be researching your agency online before they decide to engage with you. 

Investing in your inbound/online marketing, which utilizes a combination of online tools like blogs, social media sites, and search engine optimization, is the key to an attractive brand. Most clients nowadays are tech savvy and want to have assurance that even as a new agency you know your staffing niche well. 

Using online marketing techniques lets your clients know that you’re forward-thinking, trustworthy, and respected amongst your peers. Social media sites like Twitter, LinkedIn, and Facebook can be leveraged to communicate with other staffing agencies, learn about the state of the industry, and disseminate your knowledge and experience of your agency’s niche.

3. Obtain a Back Office Solutions Provider

Elevating your staffing agency isn’t just about a flashy front end, it’s about how efficient your back end operations are, too. Day-to-day administration can take quite a toll on time and resources. You need to account for your payroll structures, government compliance (which is subject to ministry inspection blitzes year-round), remittances and general bookkeeping to name just a few.

That’s why you should obtain a proficient back office solutions provider. There are providers, like The Staffing Edge, who specialize in staffing agency administration. And what’s more, their experts can implement all-in-one staffing agency software that streamlines all your major tasks. Having a back office solutions provider is a real boon in today’s evolving business landscape, because they expand the capabilities of your customer service.

Implement these three tips and watch as your staffing agency’s brand starts to expand.

A CEO’s Guide: Online Marketing for Staffing Firms

Topics: Staffing Agency

The Typical Day of a Successful Temporary Staffing Agency Owner

Posted by Chelsea Henry

|

Sep 15, 2017 9:00:00 AM

The Typical Day of a Successful Temporary Staffing Agency Owner--.jpgA lot of people might assume in the current Canadian gig economy that a staffing agency, once successfully launched, runs itself. As years go by more and more daily processes of staffing agencies are automated, after all, and one might think there’s not much to do but profit as an agency owner. We’re here to put those kinds of misconceptions to rest.

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This blog’s dedicated towards staffing industry hopefuls who have plans to become a successful temporary staffing agency owner, and those already on their way. If you’re curious about what it takes to run a staffing agency and what challenges you’ll need to meet head on, then keep reading.

Keeping Customer Service Competitive

Any given morning for a successful temporary staffing agency owner involves ensuring customer service is excellent. Your clients and candidates expect only the best from you because of your consistent track record.

The staffing industry is all about improving the ways people network to find jobs and people to fill those jobs. To provide great customer service, you must have a team of recruiters who are passionate about networking and filling job orders to the letter for clients.

Having access to versatile proprietary software for applicant tracking and client relationship management (CRM) as an owner gives you and your staff the tools you need to always exceed client expectations. Such software can streamline daily tasks and even track your company and staff’s performance levels, so you know where improvements can be made.

Running an Optimal Back Office

Speaking of performance levels, a successful temporary staffing agency never neglects its administration responsibilities. Every day the owner of a staffing agency must check in with its back office to see that payroll, HR, and compliance with Canadian business laws are in order. While your front office is the core of your recruitment business, if you don’t take care of back office solutions, your efficacy (a key attractor for clients and candidates) suffers. 

Having great proprietary software with a financial reporting system that catches clerical errors is one thing. But if you truly want to optimize the back end of your staffing agency, you’ll have outsourced your compliance and legal matters to experts with decades of experience. Admin experts will help wrangle the mountains of paperwork your agency generates with ease, allowing your front-end staff to focus on their recruiting specialties. 

A successful owner knows that they should be 100 percent compliant with things like employment standards and health and safety measures year-round. Especially since Canada’s employment standards and business laws are always evolving.

Implementing Bleeding Edge of Industry News

To maximize your staffing agency’s budget and talent you need to not only keep current with industry news, but implement practices from that news. Reading global reports on the key metrics (like client retention per year and number of candidates placed) and technology to improve your employer brand isn’t enough. A successful staffing industry owner learns of these key metrics and then proceeds to update their proprietary software with them.

One typical day in the life of a temporary staffing agency owner is all about properly managing your staff, ensuring that your admin is taken care of, and employing bleeding edge strategies for productivity. That means you must be present always to offer your advice staff, help vet candidates who enter your applicant tracking system, and keep up relations with your admin experts.

Your vigilance will be rewarded with an amazing attraction rate for clients and a constantly growing database of candidates, with both parties having complete faith in your employer brand. If all the above sounds doable to you as a newcomer to the industry, don’t be surprised if someday you find yourself competing with the big staffing agencies on a national level!

Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Staffing Agency

What Are the Advantages of Using Staffing Agency Software?

Posted by Chelsea Henry

|

Aug 23, 2017 9:00:00 AM

What Are the Advantages of Using Staffing Agency Software--.jpgPerhaps you’ve heard of how there’s software out there tailored to suit the needs of a staffing agency like yours. And most likely if you have heard of such software, you’re probably hoping that there’s a “cure-all” technology sales solution. Your staffing agency could surely benefit from some extra help in the administrative department.

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Employing staffing agency software isn’t just about streamlining your business; it’s also about ensuring continuous growth. Are you curious about the advantages of using proprietary software for your staffing business? Then read on for benefits that will improve your staffing agency.

Optimize Your Efficiency

There’s nothing worse than knowing technology is holding you back from being truly productive. You could have the best recruiters with the best recruiting strategies on deck and even a good network of passive candidates, but all that will count for naught if the system you use in daily operations is inefficient.

When you have software that’s got a stellar CRM system, which bundles together major admin tasks like tracking and managing candidates and their pertinent information, do the same for clients and measure company productivity analytics. At its core, a staffing agency is chiefly concerned with optimal customer service.

Proprietary software helps you hone in on your business goals by reducing administrative hassles. Software that has both CRM and applicant tracking also improves your agency’s performance with customized settings that help you determine which candidates make the best matches for your clients.

Reduce Margin for Human Error

While we’re sure that you’re doing your utmost to keep all the paperwork straight in your business, there’s always room for human error. Sometimes there are bound to be mistakes that slip through in paperwork for complicated matters like taxation and remittances.

The problem with human error, however, when your running staffing firm is that some mistakes, such as noncompliance, can cause serious issues for your business. This is especially true if you’re a foreign company learning about the Canadian legal system and how it impacts your expansion. The last thing you want on your agency’s hands is accidental fraud due to a clerical error. What’s more, you’ll want to make sure all your staff payroll matters are handled accurately.

Proprietary software automates data entry and ensures that financial matters are kept consistent. The right software can also check against its database and point out errors like double entries.

Become a Competitive and Specialized Agency

Staffing industry-specific software for admin ultimately saves you more time and balances out your overhead costs. All the usual distractions of admin are cutback, leaving you able to focus on the tasks that matter the most such as finding your niche in the staffing business and becoming the go-to business for said niche.

The right software empowers you to build your client relationships, properly represent and match your candidates, and keep up to date with the latest information that enters your company’s system. All these aspects combined make your agency more specialized in its services and enables you to compete with the big staffing firms out there!

Sounds good? If so there’s software available such as Stafftrak that can handle applicant tracking, CRM, and financial reporting. Stafftrak’s award-winning software can link to your website and you can access it from mobile devices, making online registration and job posting for your agency a breeze.

The bottom line is this: having robust software on your side means you’re free to go take on the gig economy and find real success with your business.

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Topics: Staffing Agency

7 Traits the Best Canadian Staffing Firms Have in Common

Posted by Chelsea Henry

|

Jun 30, 2017 9:00:00 AM

7 Traits the Best Canadian Staffing Firms Have in Common--.jpgDo you know what it takes to excel in the Canadian staffing industry? The best Canadian staffing firms have their processes down to a science, but it’s not too late for your agency to catch up. No matter the size of your staffing firm, you can compete with the top dogs, but you’ll need to possess these seven traits.

Download our free guide on everything you need to know about starting a  successful staffing firm.

1. A Niche

While a broad service offering may seem like a good idea, the best Canadian staffing firms offer a particular set of skills in a specific industry. When they focus on one niche, they develop expertise that they otherwise would have been unable to attain working in various industries. They know all the ins and outs of the industry which will make them the desirable choice for anyone looking to hire in that field.

2. They Maintain Strong Relationships

Building and maintain relationships are essential in the staffing industry. The best Canadian staffing firms will not only have great relationships with their clients, but also with their potential candidates. 

It’s important to keep in contact with your candidates, even if they do not currently fit the bill for any of your position openings. Certain candidates may be eligible for future positions, and forming a strong relationship now will make them more likely to consider working with your staffing agency for future opportunities.

3. Back Office Support

The best Canadian staffing firms know that in order to excel in their core business, they need support from another company. Outsourcing your payroll and HR tasks to a back office support provider can offer you Canadian expertise while also helping you comply with all necessary regulations.

Your financing will be under control so that you can dedicate your time to what really counts—staffing.

4. A Foolproof Hiring Process

As a staffing agency, your business lies in the hands of your hiring process—the best firms will have foolproof processes.

There are multiple steps in the hiring process, starting with advertising and sourcing, you’ll then need to move into the recruitment phase. Once you’ve found a suitable candidate, you’ll move to the interview phase, and finally to contract negotiations. You must be capable of seeing a candidate through the whole process in order to boast a foolproof hiring process like the best Canadians staffing agencies.

5. Exceptional Customer Service        

Along the same lines as maintaining strong relationships, exceptional customer service can help set the worst Canadian staffing firms apart from the best. When you provide customer service that is friendly and helpful at the same time, people will be more responsive to your calls and staffing proposals.

Your staffing will benefit greatly, as people will be more inclined to deal with a company that makes them feel valued as an individual through direct and enjoyable communication.

6. Advanced Technology   

Advanced technology shows which Canadian staffing agencies are up to current standards. Staffing technology can not only make your recruitment process easier and more efficient, but organize your entire communication system into one convenient location.

Applicant tracking systems and client relationship management will allow your company to track orders, clients, and candidates like the pros.

Staffing systems can also allow you to access your technology from your mobile phone, so that even when you’re not at the office, you’ll be able to do your work from anywhere at anytime.

7. Offer Both Temp and Perm Staffing Solutions   

Offering service for both temporary and permanent staffing solutions gives top staffing firms more options to work with. This allows for a larger candidate pool and more opportunities for current clients to benefit from.

It will also open the door to new clients, who may have the need for both permanent and temporary staff. This way, they’ll be able to work with one company instead of two, keeping their staffing more organized and efficient.

Things You Need to Know When Starting a Temp Staffing Agency

Topics: Staffing Agency

Here Are the Differences Between Canadian Staffing & American Staffing

Posted by Chelsea Henry

|

Jun 16, 2017 9:00:00 AM

Here Are the Difference Between Canadian Staffing & American Staffing--.jpgAsk any Canadian and they’ll be quick to tell you all the ways they’re different from their American neighbours. Although our two countries are similar in many ways, each maintains a unique identity which is not to be mistaken for the other.

Download our free guide on everything you need to know about starting a  successful staffing firm.

This is especially relevant when it comes to the American and Canadian staffing industries.  While many staffing agencies don’t know the differences, the employment markets are not all the same. It’s crucial information that could severely impact your business further down the line. If you’re considering operating staffing services in both countries, it’s important to know the facts upfront.

The best way to stay up-to-date on the Canadian-American staffing industries is to look for information from a back office supplier who can keep you updated on the following:

Legislature                       

Legislature is forever evolving and it’s important to keep up with the changes is government policy. With the Canadian and American governments working as two individual units, the legalities surrounding one country’s staffing industry does not impact the other.

Canadian staffing agencies must abide by the Public Service Employment Act, which outlines all the necessary rules and regulations pertaining to employment in Canada.

Market Size

Over the past year, the global staffing market generated over $428 billion USD. The main players in the global staffing market are Japan, the United Kingdom, and the United States. Currently, Canada is not considered one of the global leaders in the staffing industry. However, that doesn’t mean that the staffing needs in Canada are not important. This just means that the revenue generated by the Canadian staffing industry does not measure up to the other three global leaders.

Although the American and Canadian staffing industries differ in their market size, each individual country has its own unemployment rate and job vacancy challenges to deal with.

Demand

When comparing the populations of Canada and America, 35.85 million and 321.4 million respectively, it’s obvious that the American staffing industry is likely to be much larger, based on population size alone. Of these populations, a significant number of people are unemployed—6.5 percent of Canadians and 4.7 percent of Americans. Yet, there are more than 5.8 million jobs available in the United States, and a job vacancy rate of 2.5 percent in Canada. So if there’s so many jobs available, why are people still unemployed?

Often companies can’t find the right employees to fill their vacancies, or they’re not using the proper techniques to attract a qualified candidate base. This is where staffing industries come into play. In both countries, there is demand for employees and unemployed individuals. While the market sizes differ, the United States currently has a lower unemployment rate with higher demand, whereas Canadas has less demand and a higher unemployment rate.

Industries

In both countries, commercial positions (including industrial and office-clerical and administration) represent the majority of all staffing efforts across the country. However, the demand for commercial workers in the United States was slightly higher than in Canada. In America, 65 percent of staffing positions were in the commercial sector, compared to 50 percent in the Canadian market. American demand for commercial workers is therefore drastically higher than the demand in Canada.

With only half of Canadian staffing needs being directed towards commercial workers, this means that the demand in other industries is higher in Canada than it is in the Unites States. As an example, IT staffing and engineering represent 39 percent of the Canadian staffing needs, compared to only 13 percent in the United States.

In addition, finance/accountants represent five percent of the Canadian staffing industry, and is not even a notable figure in the American industry. These statistics just go to show you that industry demand for staffing employees varies greatly between the two countries. 

Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Staffing Industry

How to Avoid Temp Staffing Payroll Mistakes

Posted by Chelsea Henry

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Jun 2, 2017 9:00:00 AM

How-to-Avoid-Temp-Staffing-Payroll-Mistakes.jpgPayroll can be complex and time consuming, but mistake scan result in serious consequences. Time sheets can be tricky to maintain and keep track of, while miscalculated taxes and pay miscalculations can be damaging to your business reputation. When hours and wages vary among staff, it’s important to keep organized and on top of payroll. 

Temp staffing payroll is different from permanent staffing, presenting different issues to deal with and the possibility of different mistakes made. Keep reading to learn how to avoid payroll mistakes for temp staffing.

Have Proper Financing

Staffing firms can invest in payroll financing specific to this sector. Payroll financing for temp staffing ensures adequate cash flow so you’re always able to pay your temporary employees. A lender finances your slow-paying invoices for immediate cash, giving you the funds to cover payroll expenses and other costs. 

Firms submit clients’ invoices with a copy of the time sheets. The financing company will advance a percentage of the invoice and deposit the funds to you. Once the client pays the invoice, the remaining amount is then deposited by the financer. 

With financing, you can always ensure your temp workers are paid without missing a pay period. This keeps employees happy and your business reputation sound. Payroll financing gives your firm the financial security of having the necessary capital to meet obligations, plus flexibility for your firm to grow.

Hire an In-House Pro

Another option to avoid payroll mistakes is to hire an in-house payroll clerk who is specifically dedicated to managing temp staffing payroll. Hiring on-hand staff means you’ll have a person with specific training and dedication to the position, along with immediate availability to expertise at your fingertips.

You won’t have to worry about you spending time on payroll or wonder if you’re calculating it properly. 

An in-house clerk comes with the knowledge and skill to ensure temp staff are paid correctly and on time. Having a payroll clerk on staff will give you the ability to quickly deal with any issues that arise or discrepancy in payroll. 

With a payroll clerk easy to reach, you take the workload off your plate to get back to your agency’s main duties. A payroll clerk handles the compliance issues and other related matters to ensure accuracy and reliability. Hiring a dedicated employee to handle this aspect saves you time, and relieves some in-house pressure of doing it yourself.

Outsource!

The final option is to remove this department entirely from an in-house capacity, and get more done by outsourcing to a back office provider.

Experts take care of the payroll process and administration, from ROEs and T4 forms to tax deductions and remittances. They’ll handle your temp staffing payroll tasks with expertise and ease, giving you a chance to relax and focus on recruiting and customer service.

A back office provider dedicated to the staffing industry fully understands the unique needs and challenges of your firm to deal with any issues associated with temp payroll staffing. Back office providers create a partnership of understanding and communication, making it easier to manage temp responsibilities. Cost effective, accurate, and efficient, these providers have the experience to guarantee your temp staffing payroll is error-free and in line with government standards.

You’ll always comply with the current payroll and tax regulations to avoid penalties from non compliance and mistakes, and you’ll save on time and the expense of employing in-house staff. Maintain astrong business reputation and avoid the government’s bad side by working with a back office provider to verify your temp staffing payroll meets all the right marks.

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Topics: Payroll

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