The Staffing Edge Blog

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

Mai Dowdie

Mai Dowdie, an expert in customer service, is the team lead of the member relations department at The Staffing Edge. Prior to working at The Staffing Edge, Mai worked as a recruiting consultant for VPI Inc, Kelly Services, and Elite Plus Temporaries. With 15 years of experience working in the staffing industry, Mai brings a wealth of knowledge to her role. Each day, she provides the resources and tools to help our members grow and become successful partners, through training, problem solving, and technical support. Mai enjoys a good night out singing karaoke, art, and home improvement projects.
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Recent Posts

6 Staffing Industry Trends You Can’t Afford to Ignore

Posted by Mai Dowdie

|

Nov 17, 2017 9:00:00 AM

6StaffingIndustryTrendsYouCan_tAffordtoIgnore.jpg

You must keep up to date with industry trends in order to keep up with the competition and improve your business operations.

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That’s why we’ve gathered a list of our top six staffing industry trends that can shrink your profit margins if you remain unaware of them. Read on for trends that will help elevate your staffing firm to new levels in 2018!

1. The Gig Economy Is the New Normal

While we’re sure you’re at least aware of how much the gig economy has become a hot topic in recent years (it’s part of why the staffing industry is thriving after all), the term is no longer a buzzword. The gig economy is now considered the status quo for the North American job market Many workers prefer the workplace flexibility of contract work to the traditional nine-to-five position. Business owners too benefit from greater worker flexibility.

To stay competitive, include contract staffing in your range of services.

2. Online Marketing

Online marketing for staffing firms is vital now, with nearly all clients and candidates investing a fair amount of time researching agencies online before engaging them. With effective online marketing, you can attract clients and candidates to your agency.  

Without online marketing, on the other hand, your staffing firm will face a steep challenge in making the initial connection with clients and candidates. How will you get noticed? It’s worthwhile to invest in a holistic online marketing strategy.

3. Mobile Recruiting

This trend is about widening your window of opportunity to capture more talent. A Pew Research Center study identified a whopping 94 percent of job seekers have browsed or researched positions via their smartphones!

What does this mean for those in the staffing industry? Your website and job ads must be mobile friendly. Don’t miss out on such a large percentage of candidates.

4. Involved Social Recruiting

This trend is one that your firm will follow naturally if your online marketing is on point. When you set up your firm’s Twitter or LinkedIn accounts, for example, don’t just devote those platforms solely to promoting job opportunities. Use social media to communicate your employer brand and expertise.

Social recruiting can land you top talent. By staying engaged and showcasing your knowledge, you attract culturally fit candidates.

5. Making Diversity a Priority

Your staffing firm must account for several types of diversity moving forward. We already know from Mckinsey’s 2015 research that gender, racial, and ethnic diversity helps companies boost performance. But have you considered age and thought diversity?

Moving forward, your firm will need to become even more unbiased in its recruitment process to ensure you don’t overlook promising candidates due to arbitrary factors. Companies are striving to gain unique talent by increasing their diversity, and your firm can be the one to provide such talent.

6. Automating Time-Consuming Admin

Often, managing back office administration is the biggest hurdle for staffing firms. That’s why the trend of automating administrative tasks with all-in-one recruitment software has become so important.

Automating data entry, applicant tracking, client relationship management, and financial reporting frees up your firm to focus on your core business. 


A CEO’s Guide: Online Marketing for Staffing Firms

Topics: Staffing Industry

What Staffing Firm Responsibilities Can I Outsource to a Back Office Solutions Provider?

Posted by Mai Dowdie

|

Oct 23, 2017 9:00:00 AM

What Staffing Firm Responsibilities Can I Outsource to a Back Office Solutions Provider--.jpgHaving the ambition and a clear plan for what kind of staffing firm you want to run is all well and good. But do you have your bases covered regarding your administration responsibilities? Often, new staffing firms falter in their performance levels because their owners have neglected or underestimated how much paperwork and compliance is involved.

If you want your staffing firm to be capable of growing to compete with the big staffing firms, you need to ensure all your back office responsibilities are met head-on. Fortunately, you can outsource major responsibilities to an expert back office solutions provider. Curious as to which major responsibilities you can outsource? Read on then.

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

Financing

When you’re starting out with your staffing firm, there’s going to be several pay structures to keep straight. You not only must concern yourself with payroll for your staff and placed candidates, you need to make sure you have a backup plan for instances when your clients’ pay schedules don’t line up with your own. 

A back office solutions provider can set you up with payroll financing to ensure you can always pay your staff and candidates. Your payroll worries will be laid to rest with payroll financing.

Compliance

Staying compliant with all of Canada’s workforce laws is a tall order for new staffing firms, especially if you are a branch of a foreign company. Canadian business laws are evolving all the time. 

Some labour laws to keep on top of include minimum wage, benefits, paid leaves, and misclassification. 

Outsourcing your compliance to a back office provider will be one of the most proactive moves you can make. Back office providers have experts who specialize in employment law. They’ll ensure you meet your compliance obligations on an ongoing basis.

HR and Client Administration

The amount of data and paperwork your staffing firm will generate for all your employees, candidates, and clients will be astounding to you. The more your database grows, the more streamlining there will need to be for everyday data entry and application intake. This is one more significant responsibility that outsourcing can help with.

A back office provider can offer you access to proprietary software for your front office and back office admin. Back office experts can implement this software to allow you to input and update applications in real time, as well as track candidates and their success in their placements. You can even track your firm’s overall productivity and performance levels in order to actively make improvements with up-to-date analytics.

Think of your back office as the backbone of your staffing firm. Without proper solutions in place to bolster your financing, compliance, and general administration, your ability to focus on the core of your business decreases. The more you have to fixate on the back end of your business, the more your front end suffers. Outsourcing key responsibilities to back office providers unburdens you and allows you to develop a sustainable niche.

Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Back Office Service Provider

How Can Contract Staffing Solutions Benefit Your Business?

Posted by Mai Dowdie

|

Oct 20, 2017 9:00:00 AM

How Can Contract Staffing Solutions Benefit Your Business--.jpgAs the staffing industry moves towards the end of 2017, it’s becoming increasingly apparent that staffing firms that can offer diverse staffing services to their target market have an edge on their competition.

Between the rapid shift towards temporary and contract work in Canada and the evolving needs of companies that once preferred to hire mostly for permanent positions, your staffing firm has a bright opportunity for growth if it can offer contract staffing services. 

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For many young staffing firms, dispelling the myths of contract staffing is still quite a task. Perhaps the strongest myth of contract staffing is that it will only result in more administrative woes. But if you have the right tools to handle the financing, government compliance, and HR responsibilities of contract staffing, there’s really nothing to hold back your firm. 

Read below to find out more about how contract staffing solutions can benefit your business.

Balance Your Back-End Books with Your Front-End Operations

One of the biggest concerns about offering contract staffing in addition to your permanent staffing services is that it means more precarious financing. While it’s true that payroll, government taxes and remittances, and running credit checks can be a tough act to juggle altogether, there are contract staffing solutions that address all these important tasks. 

Back office providers can improve your contract staffing firm’s financing process in several ways. Their experts have years of experience in offering payroll financing options like running advance credit checks on your clients, customizing a payroll schedule and system for your firm’s needs, and handling your taxes and remittances. You can even outsource the general administration tasks like creating and delivering invoices for your staff, candidates, and clientele.

When you don’t have to worry about whether you’re making critical clerical errors in your books, you will be able to focus on your core business. Your staff members should be worried about building genuine relationships within your target market and connecting them with the candidates they’re looking for.

Banish Fears of Worker Misclassification

In recent months, there’s been a lot of talk about the proposed changes to Ontario’s employment and labour laws. One of the changes that has been creating the most unease among staffing firms is the government’s crackdown on the misclassification of workers. 

Previously, some staffing agencies and businesses alike took advantage of a loophole where willful misclassification of employees as independent contractors allowed them to keep employees in precarious positions with poor wages and no benefits. Due to this situation, penalties for misclassification have become more stringent, including heavy fines, prosecution, and public disclosure of the crime if proven guilty. 

Although it’s understandable that new staffing firms don’t want to rock the boat regarding misclassification, there are contract staffing solutions for this matter as well! Back office providers have compliance experts specializing in CRA legislation and its confusing jargon. This translates into one more burden lifted from your firm’s front end.

All-in-One Administration Software

A final reservation you might have about going ahead and offering contract staffing is all the extra paperwork and data you must contend with. Again, this worry is more than understandable, since there is a lot of paperwork involved in taking on another type of staffing service. But there’s no issue if you can streamline your HR administration along with your financing and compliance duties!

Back office providers have proprietary software that’s been designed as an all-in-one system that manages financial reporting, client management, and applicant tracking. When you enlist the help of their back office experts, they will implement this software to optimize your staff’s daily tasks. Taking on new contract candidates and matching them with clients will be easier than ever.

Seek the aid of contract staffing solutions and see how fast your firm’s efficiency will grow. Soon your business will be able to compete with the big firms!

Unlock a Lucrative Revenue  Stream With Contract Staffing

Topics: contract staffing

How Back Office Support Boosts Post-Summer Productivity

Posted by Mai Dowdie

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Sep 22, 2017 9:00:00 AM

How Back Office Support Boosts Post-Summer Productivity.jpgStaffing agencies are in the thick of it during their post-summer slumps. Companies aren’t as in need of temp workers during this period because a lot of their permanent employees are back from vacation, many student candidates have returned to their full-time studies, and there aren’t too many projects on the horizon (yet) that require extra hands on deck.

But there’s no need to despair about your staffing agency’s post-summer productivity. There are still ways to keep to your employer brand attractive and growing during fall season. Take your back office administration for example—is it running as smoothly as you’d like it to be? Chances are, if you’re a relatively green staffing agency, it isn’t optimal.

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That’s why you need to work on obtaining back office support. If you’re curious about how exactly back office support can help your new temp agency compete with the big staffing firms, keep reading.

Reduce Your Compliance Headaches

To start off with, you might have noticed that one of the largest responsibilities your back office carries is the constant need to stay up-to-date with Canadian compliance. Business legislation, regulations, and employment standards are shifting and changing even right now as you read this. As of the end of last May, the Ontario has proposed updates to the old Employment Standards Act and the Labour Relations Act as well.

There are strict monetary and legal penalties for failing Canadian compliance, whether it’s regarding government remittances, classification of employees, or establishing a Canadian administrative entity with employer of record services. When you engage a back office support team, you can access expert advisement on compliance matters at any time.

Such a team can not only provide guidance, but act as an extension of your current customer services staff. You can rest easy knowing that the intricate paperwork involved in staying compliant is taken care of, making more time for your front-end to focus on generating more client leads for fall.

Tighten up Your Book Keeping

The summer season demands many payroll obligations, even for a new staffing agency that’s getting into the swing of the industry’s rhythm throughout the business year. During the summer, you might have noticed that with multiple clients there came multiple different pay schedules that you had to measure against your own.

When you have seamless back office support, you can easily ensure that your payroll structure accommodates both your candidates and your agency. Back office teams can customize your branded invoices, make sure they’re delivered on time, and inquire about the status quo of accounts. They can also offer receivables insurance for when your client defaults on a payment, and ensure your remittances and taxes are squared up.

With all your financing in order and even less paperwork to deal with, your post-summer productivity will soar. Your front-end should really be fixated on the core of your business: landing talented candidates and placing them successfully with new clients.

Access to Streamlined Staffing Agency Software

The more efficiently you can run your back office, even in a slow period like the beginning of fall, the better your agency’s reputation becomes. Your salespeople should be able to go about their daily tasks without worrying about possibly doing double-duty for administration.

One last way your back office support can maximize the efficiency of your administration is by implementing staffing agency software that’s designed specifically for the industry. Back office experts have developed software like Stafftrak, which rolls an applicant tracking system, a client relationship management system, and a financial reporting system all into one suite.

Maximizing your efficiency of everyday tasks also maximizes your budget, meaning your staffing agency becomes a contender, no matter how new or established. So, invest in your post-summer productivity.

Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Back Office

Have You Considered These 7 Staffing Industry Trends

Posted by Mai Dowdie

|

Sep 8, 2017 9:00:00 AM

Have You Considered These 7 Staffing Industry Trends---1.jpgThe staffing industry has evolved quite a bit since the start of 2017. As technology continues to disrupt fundamental business practices, the traditional recruiting process has been transforming.

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Since LinkedIn’s Global Recruiting Trends Report has identified that 56 percent of all recruiters expect hiring volume to increase throughout 2017, being on top of current staffing industry trends is important. Knowledge of these trends is especially important if you’re the owner of a newer staffing firm, as your future growth is impacted by how effectively you utilize significant trends.

With the above in mind, check out these seven staffing industry trends you should consider when making plans to improve your firm’s performance levels.

1. Your External Employer Brand’s Perception Is Key

What candidates and clients can find out about your firm before they engage directly with you and your recruiters matters. Nowadays, online marketing takes precedence over traditional marketing tactics like cold calls, flyer ads, and lunch meetings with prospective clients.

Make sure that your website is mobile friendly, and any content for your blog or social media are optimized with keywords for search engines.

2. Data-Driven Recruiting Software Improves Your Best Practices

Staffing firm-specific software, which includes features like an applicant tracking system (ATS) with integrated Client Relationship Management (CRM), allows your firm to improve your recruitment process holistically. 

Staffing firm software streamlines your recruiters’ daily tasks like pre-screening candidate resumes, and uses performance metrics to compare past successes against current productivity levels.

3. Diverse Hiring Improves Success

Data-driven recruiting is also important for reducing human bias in recruiting, so that your pre-screening and job description writing process don’t cut out diverse and skilled candidates. Your clients, who have realized the power of hiring, are also seeking after diverse candidates.

McKinsey has discovered in fact that businesses that are diverse in gender outperform non-diverse gender companies by 15 percent and ethnically diverse companies outperform by 35 percent! In other words, your firm should aim to hire employees and candidates diversely moving forward.

4. Skills Matter More than Degrees

As mentioned in the third trend, part of hiring diversely is about emphasizing skills. This strategy is also impacting the eligibility of all candidates applying to staffing firms in 2017. Staffing firms up until now have hired candidates based on their relevant postsecondary training and certifications, but are shifting towards searching for highly skilled passive talent.

5. Financial Administration Becomes More Complex

New staffing firms have a lot of overhead and rigid budget issues. For example, legislative changes to things like minimum wage and noncompliant business practices make financial administration even trickier.

Your staffing firm will need to make payroll and compliance solutions a priority.

6. Outsourcing Your Admin to Experts

Firms are looking towards solutions like outsourcing their back office duties to experts to ensure their budget is watertight and compliance is in shipshape. Providers like The Staffing Edge have been in the back office solutions business for years, and have acclaimed all-in-one software like StaffTrak that they can implement to help with ATS, CRM, and accurate financial reporting. 

This trend is one that’s very impactful to your new staffing firm’s daily operations.  Outsourcing admin helps you keep on top of several trends already mentioned tied to increasing productivity.

7. Optimize Your Employee Experience

The last of these staffing industry trends is about tying the threads of all the other trends together. Your recruiters and candidates are the lifeblood of your business in the staffing industry and there’s been a revelation in recent years about this fact.

From keeping your employer brand strong and ensuring you’re placing the best candidates, to attracting more diverse and passive talent, making the recruitment process about what your employees and candidates want is crucial.

We hope this roundup of staffing industry trends has been informative and that you consider implementing them in your recruitment strategy.

Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Staffing Industry

5 Staffing Firm Budget Tips for Growth

Posted by Mai Dowdie

|

Aug 18, 2017 9:00:00 AM

5 Staffing Firm Budget Tips for Growth--.jpgThere’s an interesting dynamic going on in the staffing firm industry as we move toward the second half of 2017. According to LinkedIn’s Global Recruiting Trends Report for 2017, staffing firms are finding that their budgets are increasing as their competition for the same talent market increases. This is hopeful yet challenging news for firms focused on keeping up with the competition.

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Fortunately for you we have five tips for how to optimize your budget so that you continue to grow your new business at a good clip. Read on to build a solid strategy for remaining competitive in the staffing industry!

1. Effective Branding Is Everything

Having the capability to communicate your staffing firm’s brand to a target audience is key to landing more skilled candidates faster. LinkedIn’s report noted that of the 2,000 search and staffing leaders they surveyed if their budget wasn’t an issue, 53% of them would invest in branding. Interestingly enough, other wish list items for staffing leaders are tie-ins for effective branding, with 39% wanting to invest in new technology and 38% wanting better sourcing tools.

Branding doesn’t have to be a pain for your budget, however. What you need to keep in mind when prioritizing your firm’s branding is how to work social media into your recruitment process.

Social media allows firms to create an ongoing dialogue between your recruiters, candidate base and potential business partners. Remember that branding is an ongoing investment and you’ll attract more of your target audience.

2. Automating the Smaller Tasks Cuts Back on Costs

A lot of the tasks in your daily operations prevent your recruiters from focusing on the core of your business: sourcing candidates. Even though firms typically expand their budgets in the New Year, recruitment teams still struggle with balancing admin tasks. Some examples include: data entry (both in bookkeeping and client relationship management systems), screening thousands of resumes, and ensuring compliance with Canadian business laws.

When you have automated solutions for your back office, your recruiters can spend more time devoting their expertise towards building client relationships and placing them according to their skills. There’s nothing more dangerous than sacrificing the satisfaction of candidates placed at companies for the sake of speed.

Automated back office solutions also save you on costs attributed to human error and bias, allowing you to auto-fill forms correctly and prescreen candidates according to specific requirements.

3. Maximize the Potential of Data-Driven Recruiting

The abovementioned statistic about staffing leaders wanting to invest big time in new technology shows that there is great growth potential in data-driven recruitment. While we don’t want to be overly reliant on selecting candidates through software alone, we can garner a lot of insight on how to streamline the recruiting process through analytics.

Some key metrics your staffing firm should keep an eye on are: candidates per hire (by recruiter and by HR manager), candidate quality by sourcing channel, and quality of pre-and post-hires.

4. Adopt a Client-Centric Placement Process

As a newer firm, it’s even more vital that you prove your mettle to your clients who need placements. Home in on what your clients want, both with your metrics and by recruiting with their specific projects and goals in mind.

Don’t forget that your business has the luxury of being able to spend most its time sourcing candidates with specific skillsets. That’s the power of staffing firms—you can specialize in niche recruiting and become go-to experts for that niche.

5. Cultivate Sustainable Contractor Talent Pool

Keep in mind that a successful firm should also consider unlocking a lucrative revenue stream with contract staffing as well. Develop rewarding experiences for skilled contractors, including generous pay and flex schedules for placements.

Your firm has a lot of tools at its disposal for growth. Utilize them wisely and you’ll see major growth in the years to come!

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Topics: Staffing Agency

How to Keep on Top of the Latest Staffing Industry Trends

Posted by Mai Dowdie

|

Aug 7, 2017 9:00:00 AM

How to Keep on Top of the Latest Staffing Industry Trends.jpgLinkedIn’s Global Recruiting Trends for 2017 emphasized quality of hire amongst its top five takeaways. In the coming year, the staffing industry will need to become even more innovative at sourcing candidates to stay competitive. And for those who are just starting their temp staffing agency this year, you’ll want to know key strategies to hit the ground running inside and out.

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So how can you maximize your recruiting process’ potential? You have to stay on top of the staffing industry’s latest trends. Such trends allow you talk the talk and walk the walk when you’re aiming to compete with the big staffing firms.

So, are you curious about the best methods for staying current with industry trends? Read on o learn a few of the significant ways you and your staff can become recruiting experts from the get go down below.

LinkedIn Reports

Each year, LinkedIn releases for businesses a free to download report that is based off thousands of staffing leaders they’ve surveyed from the staffing industry.

These reports cover everything from how staffing firms evolve their recruiting tactics, key benchmarks and metrics for the year, budget breakdowns, and even future predictions of where staffing trends are heading.

These reports are invaluable to new staffing firms who are looking to gain their footing and leverage key trends (i.e. performance analytics and automation) to grow fast. You should study LinkedIn reports for their key insights, and let the major findings regarding recruiting tactics inform your techniques to grow your firm.

Social Media

Social media is a multipurpose tool for staffing firms both old and new. Staffing firms that succeed at working social media into their recruitment process find that their business brand is much stronger. And moving into 2018, a robust brand is a must-have for the staffing industry, which stresses attracting a bigger target audience.

But social media platforms like LinkedIn, Twitter, and sometimes the business side of Facebook can offer real-time updates from industry professionals. You can observe latest trends as they emerge. Your marketing staff’s efforts should include building a presence on these platforms as well, showing your expertise and passion for the industry by engaging with other professionals in the online community.

As a way to connect with people and build relationships, social media is the perfect way to network and grow your candidate pool and client base organically. Take advantage of the platform as an ideal way to spread awareness of your brand and even drum up passive candidates (those skilled yet often hesitant to sign on to a staffing firm).

Implement Back Office Solutions

Lastly, you should consider how better technology can help you keep on top of latest trends. Employing efficient administrative technology streamlines the everyday tasks that bog down the recruiting process. When you don’t have to stress so much about data entry, payroll, compliance with ever-changing business laws and HR management, you have a lot more time to devote towards furthering recruiter expertise.

Outsourcing your back office solutions to those who have years of experience in admin and finance is another way you can tighten up your daily operations. Don’t underestimate how much your front end will gain in time, resources, and efficiency when you’re relieved from repetitive administrative duties.

The more you optimize your daily operations, the more you can optimize your business plan to include effective marketing and research into latest trends. Make sure you don’t take staffing industry trends too lightly, as they can help steer your staffing firm towards greater growth.

Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Staffing Industry

Why American Companies Expanding into Canada Would be Wise to Use an EOR Service

Posted by Mai Dowdie

|

Jul 21, 2017 4:45:00 PM

Why American Companies Expanding into Canada Would be Wise to Use an EOR Service--.jpgAmerican companies are often taken in by Canada’s steadily growing economy and loyal consumer base, but what foreign businesses soon discover is that expansion into Canada isn’t as easy they thought. However, this is where an Employer of Record (EOR) service can help.

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

Just like Professional Employer Organization (PEO) firms in America, an EOR can guide businesses by taking full responsibility for not only taxation but all employment standards requirements including health and safety, both federally and across all provinces.

Not convinced? Here are a few more reasons why American companies expanding into Canada would be wise to use an EOR service.

An EOR Can Help American Companies Navigate Canadian Laws and Regulations

First and foremost, American companies have to deal with a completely different set of laws and regulations that govern how they manage and pay their employees.

In Canada, the Canada Revenue Agency (CRA) has the following laws and regulations in place that govern the employment relationship:

  • the Canada Labour Code;
  • the Canadian Human Rights Act;
  • the Employment Equity Act;
  • the Personal Information Protection and Electronic Documents Act; and
  • the Employment Insurance Act.

Deciphering these Canadian protocols can be an arduous and time-consuming task, but an EOR can help businesses navigate labour codes and adhere to Canadian compliance guidelines. A foreign company looking to expand into Canada would do well to employ an established EOR service to help them access the Canadian market.

At their core, EORs provide unparalleled peace of mind, taking care of the general complexities of a business expansion into the Canadian marketplace. With the help of an EOR, businesses can focus on their core product, reward their employees, and provide the best service that they can to the newfound Canadian market.

An EOR Can Help Manage Canadian Employees

Payroll is a basic business function that has slight differences in Canada in comparison to other countries. An EOR service can make sure that your company complies with CRA regulations. Additionally, Canada has no national minimum wage, as rates vary depending on the province or territory. Furthermore, the minimum wage rates in the provinces and territories are adjusted periodically.

Did you know that all Canadian employees are also entitled to nine paid holidays per year (ie: New Year’s Day, Victoria Day, Canada Day, and Christmas Day)? In addition, after one year of employment, employees are entitled to two weeks of paid vacation each year and after six years of employment, that amount increase to three weeks of paid vacation! An EOR can manage all these payroll-related bonuses that Americans may not understand.

EORs can also help you manage your new Canadian workforce with HR administration services. This is of particular value when it comes to unfortunate cases of termination since there is no “at will” employment in Canada and every province has strict rules when it comes to notice of termination or pay in lieu of. Moreover, EORs can make sure all your employees are properly classified to safeguard against future trouble.

Additionally, an EOR service can help companies that choose to move particular employees across the border. All foreign workers must comply with immigration laws and have a valid work permit in Canada. Furthermore, newly arrived foreign workers may be ineligible for public health insurance for a period after arrival.

An EOR Can Help Business Understand the Canadian Market

Canada is home to an economic marketplace and discerning consumer base that is markedly different from America. An EOR service, like the Staffing Edge’s partner organization the Payroll Edge, offers American companies seamless expansion into the Canadian market, without the daunting task of understanding and undertaking foreign employment compliance. In doing so, American businesses can focus on their core product and the future success of their Canadian expansion.

Competing with the BIG multi-national agencies?

Topics: Worker Classification

To What Extent Are Employers Liable for Independent Contractors?

Posted by Mai Dowdie

|

Jun 23, 2017 9:00:00 AM

To What Extent Are Employers Liable for Independent Contractors---1.jpgWith 13.4 percent of the entire Canadian workforce being classified as temporary employees, it is evident that businesses understand the benefits of hiring independent contractors. If you’re curious as to how independent contractors can benefit your business, keep in mind that independent contractors can help you unlock a lucrative revenue stream.

If contract employees have piqued your interest, you’ll want to know how this will affect your business legally—are employers liable for independent contractors? It’s an important piece of information you’ll want to know if your business is hiring independent contracts. Staying informed on this topic could just save you from a lawsuit later down the line.

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

What Is an Independent Contractor?

The first step to being informed if employers are liable for independent contractors is to know exactly what an independent contractor is. First and foremost, independent contractors are not employees.

An independent contractor is an individual who provides your business with goods or services under a contractual or verbal agreement.

How Do Independent Contractor Vary from Employees?

If your business uses the services of both independent contractors and employees, you’ll need to know the differences between the two. The Canadian Revenue Agency (CRA) has cracked down on employers using independent contractors, and have created a detailed publication which outlines the differences between independent contractors and employees.

There are four key points to determine the status of a worker:

  1. If someone has control of their work schedule—when and where work gets done, they are an independent contractor. This line sometimes gets blurred when companies try and control their independent contractors. To avoid any confusion, take a step back and allow your independent contractors to work at their own pace.
  2. Tool ownership. Contractors are required to supply all their own tools. If tools are being provided to your independent contractors, you’ll want to stop as this can classify them as employees. They will also be in charge of all maintenance required on their own tools.
  3. Profit/Loss. If there is a chance of loss or profit, this is an independent contractor.
  4. Someone who has multiple clients, and don’t focus all their professional efforts on one company is less likely to be integrated into the company and more likely to be an independent contractor.

Knowing the difference between these two types of workers is important. Since companies do not pay for benefits, EI, and other expenses for contract workers, misclassifying employees has become a serious problem. Misclassifying your employees is a violation of Canadian law and could land you in some seriously hot water.

Are Employers Liable for Independent Contractors?

If you have been asking yourself “are employers liable for independent contractors?” the answer is yes, yes they are. In some cases, employers are contractually liable for the actions of their independent contractors, even though contract workers are not full-time employees of the company. If employers subject their independent contractors to unsafe working conditions, they can be held criminally responsible for these actions.

The best way to prevent accidents that you can be held accountable for is to invest in training that will help protect contract workers. If you can prove that your company took all necessary precautions to prevent an accident, your defense will be stronger should a lawsuit ensue.

What to Do If You Need More Help

We understand that this can be an extremely challenging concept to understand, and rules and regulations are forever changing. If you still need assistance understanding the specifics when it comes to independent contractors, you should consider seeking the advice and expertise of a back office solutions provider. They can help you understand the current legalities surrounding independent contractors, and keep you informed as changes to Canadian policies continue to evolve.

Unlock a Lucrative Revenue  Stream With Contract Staffing

Topics: contract staffing

Why You Should Outsource Payroll for Your Temporary Workforce

Posted by Mai Dowdie

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May 26, 2017 9:00:00 AM

Why-You-Should-Outsource-Payroll-for-Your-Temporary-Workforce.jpgStaffing firms have a number of responsibilities, and the more services your firm offers means more administrative legwork. With permanent and temporary staffing requiring slightly different methods of paperwork, you might find it easier if someone else takes the reins. Outsourcing payroll for your temporary workforce can be hugely beneficial for your staffing firm. Here’s why.

100% Accuracy

Payroll is risky already, especially with the temporary workforce paid differently than permanent staff. Consider outsourcing to professionals who have the experience and knowledge to handle this and canensure accuracy and compliance in this department. Temporary staffing considers payroll factors differently than permanent staff:tax deductions, paperwork, filing regulations, dividing your temporary workforce between independent contractor or employee–these are just some of the complications involved. 

No firm wants to pay fines and penalties for their tax mistakes and miscalculations, and errors that result in these don’t only harm your firm’s bottom line, they damage your reputation. Candidates looking for temp work won’t be interested in working with a firm that can’t properly manage its daily operations. When you don’t cross every i and dot every t, it hurts your credibility to properly operate a staffing firm. With outsourcing, accuracy is confirmed with full compliance, accurate calculations, and state-of-the-art technology to get the job done right. 

From distributing payments and pay stubs, to calculating deductions and sending remittance reports, a payroll service takes care of it all.Workers skilled in temporary staffing payroll understand the complexity and hurdles involved toensure your temporary workforce ispaid accurately and on time.

Guarantee Compliance

With different rules outlining pay, tax calculations and other parts of the temporary workforce, outsourcing this part of your payroll provides you with someone who understands the unique regulations governing this situation. You may not have the time or resources to research the many laws and legislations involved, or to dedicate employees in-house to look after it. If you do, you may still be uneasy as to whether the regulations are met as required. Outsourced payroll services know which standards apply to the temporary workforce, and understand it so your staffing firm complies withevery applicable rule. 

With all payroll requirements in line with government standards, you can rest easy knowing your agency is error-free. Outsourced payroll services provide objective eyes to spot legal problems you missed or may have been completely unaware of. Simple errors and miscalculations have big consequences, and you don’t want to get your agency into unnecessary trouble. With the help of outsourced payroll services, you can be sure your agency complies with all tax, payroll, and employment law to leave you worry-free.

Focus on Main Tasks

When you’re so busy worrying and working on administering the correct payroll, you may find yourself falling behind on the core business obligations your agency needs to survive. Handling complicated and detailed payroll duties takes time away from the daily responsibilities that make your firm money.

You need to recruit candidates, screen new clients, process applications, and match resumes. When you’re also working on administering temp staff payroll, reading up on the governing legislation, and understanding whether you’re deducting taxes for a contractor or employee, there’s not a lot of time leftover.

While implementing payroll software or hiring an in-house bookkeeper are alternative options, they still have their own extra pieces. Training costs, periodic software updates, bookkeeper supplies, equipment, and unseen sick days–these minor tasks add up.

Get back to building your strategy and marketing with an outsourced payroll service handlingyour temporaryworkforce payroll. When you removethis burden from your firm to trained professionals, you can get back to making your staffing firm the best it can be.

Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Payroll

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