The Staffing Edge Blog

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

Ray Gonder

Recent Posts by Ray Gonder

How You Can Reduce Staffing Agency Admin Costs with Backend Support

Posted by Ray Gonder

|

Aug 22, 2018 9:00:00 AM

How_You_Can_Reduce_Staffing_Agency_Admin_Costs_with_Backend_SupportRunning a staffing agency can be both rewarding and lucrative. It’s also an extremely competitive industry, and the competition between firms has only been heating up as the Canadian economy has continued to grow and unemployment has hovered around its lowest rate in 40 years.

Download "How TSE’s Back Office Support Helped a Staffing Agency Expand  Nationally" Case Study

In these conditions, staffing firms must be operating at maximum efficiency to achieve the results they want—or even to stay afloat. These conditions affect big agencies, startups, and independent recruiters alike. There are many things you can do to help your agency run more efficiently. Lowering costs is one area you’ll likely pinpoint in your efforts. You may even look to backend support to help reduce administration costs.

What is backend support?

Support for the backend of your agency helps you with a variety of administrative tasks, including payroll, financing, bookkeeping, compliance monitoring, and other HR responsibilities.


Administration Tasks Keep a Staffing Agency Running

Administrative tasks are inescapable in virtually every industry, and the staffing industry is no exception to the rule. Admin tasks are ultimately what keep your firm afloat. After all, if you didn’t process payroll, your candidates wouldn’t get paid. Neither would your in-house staff. You likely wouldn’t continue operating for very long.

Other tasks, such as compliance monitoring, can help you avoid legal troubles, which can be costly. Good bookkeeping keeps you in the Canada Revenue Agency’s good books, helping you avoid penalties or audits.

It should be clear why administrative tasks in your back office are so important.


Staffing Agencies Spend Too Much on Admin Costs

Since admin tasks are so vital to an organization, it often seems to make sense that you carry a large amount of overhead on these tasks.

Another reality of staffing firm admin costs is that these tasks are often time-intensive. Payroll may seem straightforward, but it can become quite complex. Compliance must be monitored on a regular basis, as the legal framework is constantly shifting and changing. You may need to review your policies at any time of the year to make sure you’re still compliant.

Spending all this time on admin tasks can really add up. You may feel you have to pay as much as you do, because these tasks need to be completed.


Look for Backend Support to Lower Costs

Most staffing agencies could actually lower their admin costs. They can accomplish this by partnering with a back office solutions provider.

How does this lower costs? First and foremost, the provider is staffed by experts who are highly trained. They carry out these tasks day in, day out, and they use the latest technology to help them do it. All of this means one thing: They can get the job done, and they can get it done faster.

In turn, backend support lowers the costs of administration in your staffing agency.


Getting Things Done Right

The other way backend support can help a staffing agency lower admin costs is by ensuring things are done correctly in the first place. For example, you risk making mistakes if you handle your bookkeeping by yourself. These mistakes could cost you when the CRA decides to audit your books.

Backend support helps you avoid situations like this, so you can be sure you’re operating in compliance with the employment law and regulations.

The right technology and expert staff can lower the number of human-made errors. More accurate, timely reports and remittances are possible when you enlist the help of backend support for your staffing agency.


Is Backend Support Right for You?

In this competitive environment, almost every staffing firm could benefit from backend support. Lowering admin costs and improving efficiency are just two of the many benefits backend support can provide for your business.


how-tse_s-back-office-support-helped-a-staffing-agency-expand-nationally

Topics: Back Office Service Provider

Staffing Firms: 4 Tips to Get Your Clients to Pay Up

Posted by Ray Gonder

|

Aug 8, 2018 9:00:00 AM

Staffing-Firms-4-Tips-to-Get-Your-Clients-to-Pay-Up-compressorThe market for staffing firms is incredibly competitive at the best of times. Right now, the situation in Canada has increased competition among staffing firms. With talent shortages and low unemployment, market competition has been heating up.

Download "How TSE’s Back Office Support Helped a Staffing Agency Expand  Nationally" Case Study

One of the most common challenges facing staffing firms of all sizes is cash flow. Keeping the cash flowing can be quite difficult, especially if your clients keep putting off their bills. While every business has a client or two that presents a problem, staffing firms need the majority of their clients to pay up on time, each and every billing period.

If you’ve been having trouble getting your clients to pay their bills, try some of these tips. They should help you collect on your outstanding invoices.

1. Send Reminders

Do you remind your clients that their bills are due? Depending on the payment period, it may be easy for your clients to forget about invoice due dates. Many staffing firms charge clients with a 30-, 60-, or 90-day payment period. Most of your clients are busy, and the longer the period they have, the more likely it is they’ll forget when the bill is due.

The solution to this is quite simple. You need to send reminders. It’s so easy to send a reminder, yet many businesses don’t and instead rely on the client to remember. A gentle reminder is often all they need.

Today’s technology makes it easier than ever to remind your clients about their bills. You can text or email. Better yet, you can send out automated reminders. Your busy staff don’t need to remember to send out the reminders, and your clients remember to pay their bills.

2. Offer a Discount

This is another way to get your clients to pay their bills on time, every time. All you have to do is offer a small discount or rebate for clients who pay on time or even early.

Many people believe a “punishment” is the best way to get clients to pay on time, so they create late-payment policies. What if someone pays you early or on time? What if you “rewarded” the client for paying you sooner, rather than later?

Your clients will love this policy, and it will get many of them to pay sooner. If the payment period is 90 days, but you offer a discount if the bill is paid before 60 days, you’ll be pleasantly surprised to see many clients pay within 60 days.

Some staffing firm owners wonder if they can really afford to offer a discount. After all, you calculate your charges very carefully. Check the numbers over again, and you may find offering a small discount is better than chasing after late payments.

3. Enforce Your Late-Payment Policy

Most staffing firms create a late-payment policy. They’ll often charge clients interest on overdue payments. Or, at least, they’ll say they will. The terms of payment are usually listed on the invoice, and most include a clause about interest charges.

Have you ever charged interest on your late payments? If not, you could be sending the wrong message to your clients. For the policy to be truly effective, it needs to be enforced consistently.

4. Use Payroll Funding or Factoring

You can sell outstanding invoices to a back office services provider to keep your cash flowing. For a small fee, the provider will take on your outstanding invoices. They’ll give you cash in exchange, and they’ll pay the remainder of the invoice once they’ve collected from the client.

Allowing someone else to chase down late payments frees you up to focus on the tasks you truly need to focus on. With these tips, you can get your clients to pay up sooner.

Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Staffing Agency

Is Your Staffing Agency Leveraging the Gig Economy?

Posted by Ray Gonder

|

Jun 6, 2018 9:00:00 AM

Is-Your-Staffing-Agency-Leveraging-the-Gig-Economy-compressorYou’re probably aware of the rise of the gig economy by now. Not only is the term buzzing everywhere in the business world, the temporary and contract workers that make up the gig economy are fast becoming a global norm. Your staffing agency stands to benefit greatly from the gig economy and its talent in various industries. 

Download "How a Complete Back-End Solution Helped a Staffing Agency Get  Started" Case Study

The key question to ask, however, is whether your staffing agency is leveraging the gig economy. If your answer is “no” or even “not yet,” it’s time to make a change. Leveraging the gig economy can mean the difference between running an agency that struggles to survive and running one that’s sustainable long into the future.

Tapping into the Gig Economy Means Gaining a Talent Pipeline

Let’s say your staffing agency only offers permanent solutions for a specific niche. While this isn’t a bad business situation to be in within the staffing industry, your risk for productivity slowdowns during off-peak seasons is much higher. You also might have a much more limited base of candidates to select from for your clients. 

When you leverage the gig economy, your agency gains a talent pipeline—a vital asset for any agency aiming to become sustainable. Talent pipelining allows your agency to become more attractive to potential clients by giving you the ability to fill work orders quickly and with versatile talent; you’ll have more than enough time to evaluate your talent for cultural fit before the right client comes looking for it from your agency. 

All the above is possible because the gig economy is packed with skilled recent grads and passive candidates seeking more work-life balance or a supplementary income. 

Expand Your Staffing Solutions

With access to the gig economy comes the ability to add contract staffing to your staffing solutions and unlock a lucrative revenue stream. While your niche specialization is what clients will seek you out for, there are more clients you might not be reaching because your staffing solutions are too limited. Especially during the holiday season and the summer, potential clients are seeking skilled contract workers to fill gaps caused by staff on vacation or personal leaves. 

There are other major benefits associated with offering contract staffing as well, one of the chief ones being that you will retain more clients. When your agency becomes known for its productivity and consistently high-performance rate by offering skilled contract workers, you strengthen the bonds with your clientele. Repeat business is excellent for improving your business brand and by extension brand loyalty, which is important to attract today’s brand-conscious clients.

Generate More Revenue

Growth, of course, isn’t all there is to leveraging the gig economy. Your agency also gains the opportunity to reduce its costs when you access temporary and contract talent. Many businesses prefer to hire temporary and contract workers. Being able to offer a flexible solution for your clients’ business demands is important. We’re living in an age where constant digital transformation often leads to businesses needing to scale up or down in an agile manner.

The gig economy can give you a steady flow of candidates in your talent pipeline and enough clients to increase revenue. When you’re able to more than cover the overhead for your staffing agency, you’ll know that your business is able to stay in the industry for the long term.

So, make sure you strongly consider leveraging the gig economy and the benefits it has to offer.

how-tse_s-back-office-support-helped-a-staffing-agency-expand-nationally

Topics: Staffing Industry

How to Improve Your Staffing Agency’s Employer Brand

Posted by Ray Gonder

|

May 23, 2018 9:00:00 AM

How-to-Improve-Your-Staffing-Agencys-Employer-Brand-compressorAs a savvy staffing agency owner in the digital age, you’re probably aware of how important it is to have a strong employer brand. The most compelling employer brands help staffing agencies build a talent pipeline that enables them to stay productive all year long. 

Download a Staffing CEO's Guide to Online Marketing

A recent LinkedIn survey also discovered that a strong employer brand also does wonders for attracting younger demographics. Professionals under 40 years old are 61 percent more likely to consider engaging with your business if they’re attracted by your brand. That means the key to landing more skilled millennials, who make up one of the largest demographics of Canada’s workforce, you need to emphasize your brand. 

Curious about how to improve your staffing agency employer brand so you can reap the many benefits? Read on for a few significant tips you should be implementing in your strategy.

Demonstrate Your Expertise

Authenticity is the name of the game in employer branding, which is why you should invest in building a proficient online marketing strategy. Increase brand awareness by leveraging multiple internet platforms and social media channels. Today’s candidates like to do a fair amount of research on the brands they consider engaging with, and your staffing agency is well-served by demonstrating its niche expertise online. 

Make sure you have at least a website, blog, and relevant social media accounts (LinkedIn, Google+, Twitter, etc.). All content you create for these platforms should spread key insights unique to your agency’s niche, as well as ways to get in touch. 

Ultimately, you want your target candidates to trust you due to the knowledge you impart and the opportunities you have available for them. Employer branding helps you attract not just the best talent but those most aligned with your brand’s key attributes. The result of successful employer branding is a higher chance of a culturally fit recruiting pipeline.

Outsource to Make Time for Employer Branding

If you’re constantly drowning in paperwork, processing payroll, or reading up on the latest legislative changes, you likely won’t have any time to even think about your employer brand. 

If you partner with a back office services provider, you can outsource many tasks that often hinder your recruitment process. Such providers can handle your Canadian compliance matters, your payroll administration, and your HR administration, and even provide all-in-one proprietary software designed to handle applicant tracking, client relationship management, and financial reporting. With your back office taken care of, you can hone your recruiting skills and have the time you need to focus on employer branding.

Pay Your Workers on Time and Treat Them Well

Thanks to the internet, word of mouth can spread fast online. If you’re not paying your workers on time because you’re short on cash, the word will spread. Your employer brand will be damaged. Candidates won’t want to work with your agency.

The best staffing agencies use payroll financing to ensure they always have the cash flow they need for payroll. 

Also make sure to treat your workers well, from the interview all the way to the end of their contract. Others will hear about it if you don’t 

Your employer brand and its values should be present in all aspects of your business. Show your target market your agency is the agency they should work with.

A CEO’s Guide: Online Marketing for Staffing Firms

Topics: Staffing Agency

How to Run a Successful Staffing Agency When You’re on a Budget

Posted by Ray Gonder

|

May 9, 2018 9:00:00 AM

How_to_Run_a_Successful_Staffing_Agency_When_Youre_on_a_BudgetLearning how to run a successful staffing agency means optimizing your cash flow management. It’s also about consistently providing the best talent for your niche market, but you can’t land the best talent if you struggle with payroll. To ensure that you can account for your considerable overhead and have enough cash flow to manage a weekly or bi-weekly payroll schedule, you need to secure your budget.

Download "How TSE’s Back Office Support Helped a Staffing Agency Expand  Nationally" Case Study

If you are still in the early stages of getting your staffing agency off the ground or you’re experiencing a slow season, this is the article for you. We’ve gathered a few of the most significant practices for how to run a successful staffing agency on a budget. Check them out below and get on top of your upside-down cash flow.


Close the Payroll Schedule Gap

A staffing agency, especially when specializing in temp and contract staffing, is a low-margin, high-volume enterprise. You have little room for error when it comes to securing your receivables from clients. You must be able to account for the gap between when clients are able to pay you and when you need to pay your workers.

For instance, let’s say you have a common bi-weekly payroll but your client’s pay schedule is net 60. That situation leaves you with months-long gaps in between receivables, which means you have to find other means to pay your workers on time. You’ll find your overhead funding will start eroding before long, especially if any of your clients default on their payments.

The solution to this is to outsource your accounting and payroll to a back office service provider dedicated to the staffing industry. Such providers understand the demands of running agencies on a tight budget and can offer you vital options like receivables insurance and credit checks on prospective clients.


Stay Current with Your Compliance Administration

Next to managing cash flow, keeping up to date with your compliance responsibilities is crucial for running a successful agency. Canadian employment standards are constantly evolving, changing many variables like wages, vacation pay, overtime, and personal leaves that could affect your profit margins.

Staying on top of compliance also means ensuring that the proper tax deductions and remittances are made to the government. Tax errors mean steep fines and penalties from the CRA, including imprisonment in extreme circumstances. Your agency’s compliance administration affects not just your budget, but your brand reputation, which is vital to your agency’s growth.

The most proficient back office solutions providers will be experts in Canadian compliance and will be able to help you review and update your processes as well as stay on top of ever-changing legislation.


Custom Pay Scheduling and Invoicing

Your pay schedule must be flexible and able to account for your growing roster of temp workers and contractors. You also need to keep on top of invoicing to ensure you’re getting paid on time.

The more time you spend on perfecting your payroll administration and book keeping, the less time you have to devote to your core business.

That’s why you should work with a back office provider that can streamline your administration with custom pay schedules, payroll processing, and invoicing. The truth about how to run a successful staffing agency on a budget is optimizing your back office. Once you can do that, competing with the big staffing firms will be a breeze.


Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Staffing Agency

5 Signs Your Firm Needs a Back Office Provider

Posted by Ray Gonder

|

Mar 21, 2018 9:00:00 AM

5-Signs-Your-Firm-Needs-a-Back-Office-Provider---compressor.jpgIf you’re a successful staffing firm owner looking to potentially reduce your workload, then a back office provider may be just what you need. 

Download a Staffing CEO's Guide to Online Marketing

It can be difficult handing over some critical processes to a third-party provider, but you’re actually gaining the knowledge and expertise of people who know the ins and outs of such administrative functions. 

You may have heard it before, but time really is money, and the less time your firm spends focused on back-end processes, the more you can spend on your core business. By leaving functions like payroll, HR, and compliance to professionals, you can better focus on matching candidates to clients, on strategic marketing plans, and on growing your business. 

Here are five signs your firm needs a back office provider. 

1. You’re Wasting Time on Back-End Processes 

Back office tasks don’t contribute to the net profits of your business and, although they are a vital component of business, they can easily be outsourced to professionals. You’ve likely been handling these tasks on your own since you first decided to start a staffing firm, so letting go is, understandably, hard to do. 

But the benefits of outsourcing these tasks to a back office provider far outweigh the additional cost, and since you would no longer be shouldering that burden, you can focus your efforts of service, profits, and growth. 

2. You’re Tired of Handling Payroll All on Your Own 

Payroll is perhaps the most time-consuming and arduous of all back office tasks. It not only involves keeping track of work hours, but it includes overtime, sick leave, vacation pay, statutory holidays, health benefits, and more. In addition, there are numerous deductions for taxes, CPP, EI, and more. The legislature is strict and ever-evolving, and mistakes are common. Luckily, a back office provider can handle all the administrative tasks, data input, and pay distribution for you. 

3. HR Is a Nightmare 

Human resources-related responsibilities are one of the more sensitive services that you can decide to outsource to a back office provider. Although it comes in many forms, HR, at its core, is about human relationships and the well-being of everyone at your firm. From hiring and layoffs to sexual harassment and health and safety, HR covers numerous functions that all must be handled with respect. 

If you decide to handle HR tasks on your own, then you may very well spend the majority of the day dealing with employee questions, complaints, and personal issues. By entrusting HR services to a back office provider, you’re not only freeing up more time to focus on core business processes, you’re also bringing in an objective, unbiased third party who can resolve situations fairly. 

4. Legal Jargon Confuses You 

Compliance is something that can confuse even the most competent layperson, but staffing firms have it a little tougher since they have to know, understand, and follow hundreds of different regulations. 

From employment laws and payroll tax regulations and human rights, you may suddenly find yourself needing to be an expert in all forms of law. This is especially complicated when you have to somehow decipher a piece of legislature and figure out how it applies to you. In addition, laws are always changing, making keeping up even more of a challenge. Consider passing the challenge on to a professional. 

5. You Can’t Keep up with Technology 

Technology is constantly improving, but can you keep up? 

Many back office programs require specialized training, constant updates, and frequent maintenance. So, it’s important to be aware of the latest software used to manage your clients and applicant. If you outsource tech-related tasks, you won’t have to worry about old versions or inefficient software. Instead, you’ll have that edge over your competition. You’ll always have the latest technology for not only the back office but your core processes as well.

Things You Need to Know When Starting a Temp Staffing Agency

Topics: Back Office Service Provider

Why You Need to Ensure Payroll Compliance for Your Staffing Firm

Posted by Ray Gonder

|

Mar 12, 2018 9:00:00 AM

Why_You_Need_to_Ensure_Payroll_Compliance_for_Your_Staffing_Firm.jpgPayroll compliance should be an imperative for your staffing firm. While your core duties (generating sales, sourcing talent, and so on) are what drive your business, your agency won’t make it very far if your financing is in disarray. Payroll is also how you build trustworthy relationships with your salespeople, talent, and, by extension, the clients your firm’s talent is working for.

Download "10 Things You Need to Know When Starting a Temp Staffing Agency"

When payroll compliance isn’t maintained, you’ll be on the fast track to ruining your staffing firm’s chances for success. That statement might seem hyperbolic, but when you take a hard look at the impacts of non-compliant payroll, everything gets put in perspective.

Read on if you want to know why prioritizing payroll compliance is in your staffing firm’s best interests.


Prompt Payments Boosts Quality of Work

Your salespeople and talent are the keys to expanding your network of clients. Being paid on time every time does wonders for boosting the motivation of your salespeople and talent to produce their best work. Productivity levels will be kept high as well because your talent and salespeople can literally bank on your ability to maintain payroll compliance.

Think about a time in your career when, for whatever reason, you were paid late. After weeks, perhaps even a month’s hard work, being told to wait for your paycheque is both damaging to your self-esteem and your personal finances.

In demanding lines of work like staffing or working as an independent contractor, a late or missing paycheque can crumble trust with an employer. I’m sure you can guess what happens when workers are dissatisfied and untrusting of whether you’re going to pay them what they’re worth. This is why securing financing for your staffing firm is so important.


Avoiding Late or Failed Government Remittances

Non-compliant payroll also impacts your staffing firm from the standpoint of whether you’re able to meet the standards for government remittances. The Canada Revenue Agency (CRA) has zero tolerance for late or failed remittances and it will penalize you with interest for amounts owed. Your staffing firm simply can’t afford to be lax with its payroll deductions (i.e., income tax, CPP, EI) and remittance schedule.

If you find mistakes are being made regularly with regards to proper deductions and remittances, your staffing firm should consider outsourcing its back-office services to experts. Compliance for Canadian staffing firms can be tricky to stay on top of, and regulations are subject to differences across provinces and territories.


Protecting Your Business Brand

These days, it’s not just employees who need to worry about their branding. Employers have experienced a major crackdown in recent years for non-compliant behaviour. While your staffing firm might be struggling to keep up with admin duties, if you become a repeat offender, the Ministry of Labour could penalize your firm in more ways than one.

Labour blitzes to check for non-compliance have become more frequent in recent years, and if your payroll compliance is found to be willfully negligent, you could be prosecuted for it. Wage theft and tax evasion are serious crimes. In most cases, however, your staffing firm (especially if it’s relatively new) might just be trying to get by and save its resources by trying to juggle back-office admin and front-office sales duties.

Back office service providers can take over payroll admin and compliance, so you can focus on competing with the big staffing firms.

Ensuring you payroll is compliant on an ongoing basis helps your firm thrive.


Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Payroll

What Is Considered “Reasonable in the Circumstances” for Proof of Personal Emergency Leave?

Posted by Ray Gonder

|

Feb 28, 2018 9:00:00 AM

What_Is_Considered_Reasonable_in_the_Circumstances_for_Proof_of_Personal_Emergency_Leave.jpgOn January 1st, 2018, Ontario saw some of the new changes from Bill 148 roll out. Among the most significant of these changes were the raising of the general minimum wage and creation of new and/or expanded leaves.

Download "10 Things You Need to Know When Starting a Temp Staffing Agency"

The latter change is particularly note worthy, as it now entitles Ontario employees to 10 personal emergency leave (PEL) days in a calendar year, with the first two being paid equal to the wages earned if an employee wasn’t absent. Previously, the criteria for taking PEL days only applied to employees in workplaces with more than 50 employees and were unpaid for PEL.

The entitlement criteria remain unchanged regarding reasons for PEL: personal illness, injury or medical emergency; death, illness, injury or medical emergency of specified family members; or an urgent matter involving specified family members.

There have been some significant changes made regarding what counts as “reasonable in the circumstances” proof for taking PEL days. Read on to learn how to balance employer and employee rights.


Prohibitions of the New ESA

Under the new ESA, Ontario employers are prohibited from requesting notes or certificates from a qualified health practitioner as PEL evidence. A qualified health practitioner is defined as a physician, registered nurse, or psychologist. Employers are prohibited from asking for information about an employee’s diagnosis or treatment of their medical condition as well.

On the employee side of the PEL prohibitions, if their reasons for claiming a day fall outside of the criteria mentioned above, they don’t qualify for a paid PEL day. Employees must also comply with an employer’s requirements of disclosing the names of relatives and relationships to them, as well as a statement explaining why the absence was necessary due to illness, injury, or medical emergency regarding that relative.

While these amendments might seem like opening the door for more employees to take an increasing number of PEL days, these prohibitions are not as stringent as they first appear.


What Counts as “Reasonable in the Circumstances” Proof?

“Reasonable in the circumstances” proof is tricky for case law to pin down to an exhaustive set of evidence because it’s dependent on unique and individual situations. That’s why the proof is considered on a case-by-case basis, in addition to whether it meets the criteria of the ESA.

Some examples of what can count as proof are as follows:

  • A pharmacist’s note or receipt for over-the-counter medication
  • Copies of parking receipts as proof of a hospital or doctor’s office visit
  • An employee-written statement or attestation on an employer-created form
  • Copy of an obituary accompanied by an employee’s explanation of the relative’s identity to ensure they are specified family members according to the ESA

Although each case for PEL days is unique to the individual, it’s important to keep in mind that the new ESA emphasizes the harmonizing of employer and employee rights. As such, if an employer believes he can better accommodate his employee or satisfy obligations for their return to work, then medical documentation may be requested.


Harmonizing the Rights of Employer and Employee

There are many intricacies in regards to what does and doesn’t count as “reasonable in the circumstances” proof. These amendments have provided even more clarity regarding the importance of staying current with Canadian business legislation and compliance. If you’re looking to start a staffing firm successfully, now’s the best time to engage with back office experts.

Back office experts like The Staffing Edge have decades of knowledge regarding the constant evolution of Canadian compliance. They have award-winning software with functions that can handle the tracking of PEL days.

Make sure you’re prepared to stay on top of what the new ESA requires of your staffing firm. The amendments might seem daunting at the outset, but you have more resources available to you than you might think.


Everything You Need to Know about Starting a Successful Staffing Firm

Topics: The Staffing Industry

How Workforce Compliance Errors Can Cause Major Trouble

Posted by Ray Gonder

|

Feb 21, 2018 9:00:00 AM

How_Workforce_Compliance_Errors_Can_Cause_Major_Trouble.jpgRules are important to businesses all over the world. Without governing regulations, the Canadian marketplace would be in shambles. Rules help to keep companies running fairly and honestly, benefitting both business owners and employees.

Download "10 Things You Need to Know When Starting a Temp Staffing Agency"

With rules come great responsibilities (and even greater penalties). Make sure you understand and follow all workforce compliance regulations. If not, it could mean the end of your business.


WSIB

As a staffing agency, it’s important for you to ensure your clients are abiding by workforce compliance before you begin placing candidates there. One of these areas is in accordance with the Workplace Safety and Insurance Board.

If a candidate you placed is injured on the job and you could’ve identified your client’s WSIB discrepancies ahead of time, you may be held responsible for the injury. To avoid this situation altogether, it’s essential you take the necessary precautions ahead of time to prevent workplace injuries. You can confirm this by:

  1. Clearly identifying the worker’s roles and responsibilities,
  2. Confirming the candidate has the proper training or scheduling necessary orientation and training for them, and
  3. Reviewing your client’s workplace policies and procedures.

It’s crucial that, before you place any candidate, they have thoroughly reviewed their role, the workplace manual and rules, and the workplace harassment, violence, and health and safety policies.


Misclassification

Placing a new candidate, or changing the duties of an existing worker, raises that dreaded question—are they an employee or an independent contractor? Far too few people know the difference between the two, and a workplace compliance mistake of this magnitude (no matter how unknowingly committed), could mean serious trouble for your company.

Misclassification may not seem like a big deal, but it is considered tax fraud and a punishable offence. Since employers are only required to deduct EI, CPP, and tax deductions for employees, some companies try to pass off their employees as independent contractors to avoid paying the requirements and administrative hassles of payroll.

How can you tell the difference between the two kinds of workers? Thankfully, the government has released a four-point system to determine the status of a worker and prevent worker misclassification.

  1. If the employer has control over the project, the worker is an employee.
  2. If the worker stands to make a profit or loss, the worker is an independent contractor.
  3. If the worker has no control over where and when the project is done, the worker is an employee.
  4. If the worker must provide their own tools, the worker is an independent contractor.

Still unsure how to properly classify workers to abide by workforce compliance regulations? This is one mistake you can’t risk making. If you still require further explanation, a back office solutions provider can assist you with your workforce compliance questions.


Diversity

Why is diversity essential in the workplace? Because it’s 2018.

Creating equal opportunities is a fundamental building block in Canada’s identity. In 1995, Canada implemented the Employment Equity Act. This act aims to create equal employment opportunities for four designated groups:

  1. Women,
  2. Visible minorities,
  3. Indigenous Canadians, and
  4. Individuals with disabilities.

In this act, Canadian employers and staffing agencies are responsible for eliminating obstacles that may inhibit these four groups from entering the workforce.

Acts of discrimination in the workplace are strictly prohibited under the Canadian Charter of Rights and Freedoms.

If your business is reported to be disobeying the Employment Equity Act and Canadian Charter of Rights and Freedoms, you will be assigned an employment equity compliance review officer who will perform a compliance audit of your company.

Your company may be fined up to $10,000 for a single workforce compliance violation and up to $50,000 for multiple violations.

These are just some of the examples of how workforce compliance errors can cause you major trouble.


Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Back Office Service Provider

4 Staffing Industry Trends That Will Change the Game in 2018

Posted by Ray Gonder

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Jan 15, 2018 9:00:00 AM

4_Staffing_Industry_Trends_That_Will_Change_the_Game_in_2018.jpgWhether you have years of experience in the staffing industry or you’re planning a new start in 2018, this year is going to be a big one that will impact everyone in the market. As a recruiter, you have the satisfaction of knowing that the work you do every day helps other people live better lives. If you want to continue making a difference in your role, you’ll need to know how to prepare for the upcoming staffing industry trends.

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So, how can you prepare for the staffing industry trends in the new year? Get familiar with these four topics, and prepare your team accordingly.

We know you’ll achieve great things this year!


1. Smaller Candidate Pools

In good news for the Canadian economy, the unemployment rate is lower than it has been in years. In not so good news for the staffing industry, this means finding qualified candidates who aren’t already employed may be more challenging heading into the new year. Individuals in niche industries with sought-after skills and qualifications are likely to be scooped up quickly.

As such, 2018 brings a new importance to maintaining a level of excellent customer service. It is more essential than ever to maintain favourable relationships with your current candidate pool in order to provide you with viable candidate options this year.


2. Increasing Demand

One of the staffing industry trends that has been on a continuous rise since 2011 is the growth of the staffing industry. Each year, we have seen a significant growth in the demand for candidates, and correlatively, the demand for the services of staffing agencies. This is great news for staffing agencies, but it can also pose as a greater challenge, as the candidate pools are becoming smaller, with companies being more specific regarding the specific skills and qualities of their candidates.


3. Higher Wages for Employees and Temp Workers

Due to the smaller candidate pool and increasing demand for workers, job hunters will have more leverage than ever in 2018. Since they are a precious commodity, highly qualified candidates know their worth and will not settle for anything less than they deserve—or it’s onto the next position.

Companies will have to bargain with prospective employees in ways they have never done before. If they are determined to bring skilled individuals on board in 2018, businesses will need to appeal to new employees and temp workers by offering higher wages, better benefits, and exceptional work environments. If companies can’t offer prospective candidates these options, people will seek out better options elsewhere.


4. Keeping up with Social Media

The staffing industry has seen an increase in mobile-focused methods for acquiring new candidates. Digital marketing has opened a new way to communicate with clients and candidates alike. Teens, for example, spend on average up to nine hours on social media per day. As recruiters, this gives you a potential nine-hour time slot every day to reach out to potential candidates.

When you post a job posting on a large board like Indeed or Monster, you may find some qualified candidates, but you will also have to sift through underqualified applications, making your search feel like finding a diamond in the rough. With social media sites like LinkedIn and now Facebook, you can not only post jobs but search through and advertise to individuals that meet very specific criteria.

In 2018, we are excited to see what changes these social media sites will introduce that will make the lives of recruiters that much easier when searching for qualified candidates.


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Topics: Staffing Industry

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