The Staffing Edge Blog

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What Is the Future of Temp Staffing?

Posted by Chelsea Henry

|

Jan 10, 2018 9:00:00 AM

What_Is_the_Future_of_Temp_Staffing.jpgOften, the future is approached with hesitation and fear, especially in the staffing industry. The unknown ways the market may shift can leave both businesses and staffing agencies vulnerable if not prepared.

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Keeping ahead of the trends can be the difference between a successful agency and a failing agency in five years’ time. Below, we predict how the contract staffing industry is expected to change in the foreseeable future. How will these changes impact your business?


Continued Growth

The temp staffing industry in Ontario has maintained continuous growth over the past few years. In 2018, it is expected to continue to grow by three percent. The majority of businesses still consider profitability to be their main priority, so the prospect of saving 30 percent when hiring temp workers over employees is extremely tempting. Because they require no employment insurance, CPP, benefits, or vacation time, independent contractors are significantly more appealing for companies looking to stretch their dollar.

An increase in the demand for temp staff will require staffing agencies to continue to develop their candidate pools to accommodate this increased need.


Perception Shift

The temp staffing industry often gets a bad rap. Whether it’s that temp staffing firms take a cut of temps’ pay cheques or all temps are unskilled, we’ve heard it all. We, however, know this simply isn’t true, and it’s time for the rest of the world to know it as well.

With the continued growth of the staffing industry, more people are becoming aware of the benefits of temporary recruiting and how it can benefit both Canadian workers and businesses.


Increasing Opportunities for Qualified Candidates

As the baby boomer generation reaches the age of retirement, there will be a significant gap in the workforce. Many empty positions will need to be filled. While technology is making more and more positions redundant, there are many jobs that can never be replaced by technology, leaving great opportunities wide open for qualified candidates.

This means staffing agencies will need to potentially alter their hiring processes to appeal more to the millennial demographic, compared to the previous hiring practices of the older generations, in order to attract top-quality candidates.


Focused Industries

In the future, it is predicted that we will see a decrease of temp staffing positions in the private sector and service industry, and an increase in the governmental, healthcare, education, and construction industries. This is where temporary staffing agencies’ niche markets may be affected and could prompt the restructuring of your agency if you’re focused on an industry that is facing decreasing demand.


Continued Importance of On-Demand Placements

In today’s technological age, we want everything instantly. With just the touch of a few buttons, you can order food, catch a taxi, or pay a bill instantly. The same need is transcending the staffing industry.

When companies want to hire employees, they want them now. This means that future temporary staffing positions will need to be filled quickly—the sooner the better. As such, staffing agencies need to find a way to maximize their efficiency and speed up their hiring processes now in order to stay up to speed with the requests of their clients.


Flexibility, Flexibility, Flexibility

It’s so important, we had to say it three times. With all the other changes coming to the temp staffing industry, your agency needs to be extremely flexible to accommodate any and all situations.

A client wants a qualified candidate by the end of the month? Flexibility.

You’re introduced to a new industry you’ve never recruited in before? Flexibility.

It’s all about flexibility. This means expanding out of your comfort zone and trying new procedures in order to meet clients’ needs.


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Topics: contract staffing

7 Temp Staffing Myths and How to Dispel Them

Posted by Chelsea Henry

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Jan 1, 2018 9:00:00 AM

7-Temp-Staffing-Myths-and-How-to-Dispel-Them---compressor.jpgOver the years, the temp staffing industry has developed a fairly unfavourable reputation, even as the market flourishes. With this unjust perception of the staffing market comes a variety of myths that paint the industry in a negative light, but they’re simply untrue.

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If you want to boost your contract staffing agency, here are the myths you need to debunk to convince your clients of the benefits of temporary staff.

1. Temps Are Unqualified

In reality, temp workers are often more qualified than other candidates. Due to the nature of temp staffing, workers have significant experience in multiple workplaces performing a variety of different tasks. Their adaptability and acquired on-the-job skills make them some of the most qualified candidates in any given job search.

2. Temp Agencies Are a Last Resort

Some people believe temp staffing agencies only need to be contacted once their own personal recruitment pool has dried up. Of course, you know this isn’t true.

Working with a temp agency right from the start can save companies money and time. Staffing agencies like yours will already have a selection of candidates with a variety of different experience levels and skills to make the perfect addition to any company. Staffing agencies shouldn’t be the last resort; they should be the first number called at the start of any job search—temporary or otherwise.  

3. Temps Are Unreliable

Temp workers don’t fill temporary positions because they can’t get full-time jobs. Most people hired in temporary staffing positions do so because they enjoy the uniqueness of the positions, the opportunities for onsite learning, great pay, and flexibility.

Their desire to work in the temporary staffing industry has nothing to do with their character or characteristics, but they’re instead driven towards the perks and the benefits of temporary employment, which means they are excited to show up to work.

4. Temps Are Only a Suitable Option for Low-Level Positions

There are temporary staffing opportunities in all levels of the labour industry—you know this, but your clients might not. While there are temporary positions available for entry-level candidates, staffing agencies are always searching for candidates in mid- to senior-level positions as well.

If anything, the candidate pool becomes thinner as the qualifications for a position become more specific, as they would need to be for a senior-level position. In cases like this, your temp staffing agency may just be the best resource for clients to find experienced candidates.

5. Temp Staffing Agencies Are a Waste of Money

How many hours have your clients wasted trying to find suitable candidates for empty positions? The answer: too many. Staffing agencies help companies focus on their primary services, which bring in revenue.

When you think of all the other steps of the recruitment process including advertising, screening, interviewing, and more, temp staffing agencies end up saving companies a ton of valuable time—time that translates into money. So, when you think about it, the ROI spent on a staffing agency pays for itself in the long run when you factor in all the time that would be needed to conduct a proper recruitment process.

6. Temps Can’t Be Hired on Full Time

On the contrary, what better way is there to test out employees before hiring them full time? Hiring an employee as a temp first can ensure they have the necessary skills and are an appropriate match with the company culture.

Explain this to your clients: They wouldn’t buy a car without test driving it first; they should think of their temp workers as a test drive. The best part is if they’re not a perfect fit, it’s on to the next one without any repercussions.

7. Temps Are Impossible to Find in Specialized Industries

There are no industries that are off limits to temp workers. You know this—you might work in a specialized niche industry yourself. If there’s a job to be filled, a competent staffing agency will be able to fill it, no matter the industry. The previously established candidate pools that staffing agencies compile make searches in these niche markets much easier to navigate.

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Topics: contract staffing

8 Benefits of Contract Staffing Your Clients Will Love

Posted by Ray Gonder

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Dec 29, 2017 9:00:00 AM

8_Benefits_of_Contract_Staffing_Your_Clients_Will_Love.jpgYou’ve recently starting offering contract staffing at your agency. Now you need to get clients to use these services.

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Having trouble getting your clients interested in contract workers? Check out these top benefits of contract staffing, so you’ll know how to convince your clients it’s a great solution to their various staffing needs.


1. Added Flexibility

Your clients always want to be able to match their workforces to their staffing needs, without being over- or under-staffed. One of the many benefits of contract staffing is that it allows your clients to maintain optimal staffing levels, adding more staff or reducing the workforce when needed.


2. It’s Cost-Effective

Paying a full-time employee means your clients also have to factor in benefits, time off, bonuses, and any other employee expenses. When they consider that on top of the regular paycheques they have to provide, it just makes sense to go with the no-extra-frills savings that accompany contract staffing.


3. Business Model Diversity

By using contract employees, your clients can adopt a wide variety of projects without having to worry about having enough staff with the right skills. Whether short-term or project-based, they’ll always have access to a variety of individuals who can help complete assignments, whatever they may be.


4. Candidate Quality

Accessing the benefits of contract staffing is one of the best ways to tap into a candidate pool of individuals with very specific skill sets. The majority of contract candidates change roles frequently and easily adapt to new environments. They are motivated individuals who thrive while learning on the job. If your clients are looking for highly skilled and adaptable candidates, contract staffing is the way to go.


5. Short Turnaround Time

When your clients have demanding projects that need immediate attention, they don’t have time to wait for a lengthy turnaround time. With most contract employees available on short notice, they can have highly skilled contract staff in a matter of just a few days.


6. Low Risk

Due to the fact that your clients can send back temporary employees to your agency if they’re not meeting performance expectations, they do not hold the same amount of risk as hiring a full-time employee.


7. Opportunity to Pursue Future Full-Time Commitments

If your clients find a contract employee that exceeds their expectations, they always have the option to offer them a full-time position. Contract staffing, therefore, allows your clients to conduct a trial run and ensure any full-time commitments they’re making are worth the investment ahead of time.


8. Staffing Agencies Make It Easy

Your staffing agency can make contract staffing a breeze by always having a list of qualified candidates on-hand to meet your clients’ needs. Instead of the HR department dedicating hours upon hours on finding the right candidate and having to learn the ins and outs of contractor compliance, you can provide these services instead. Your clients can breathe a sigh of relief and know their contract staffing will be dealt with quickly and diligently.


Unlock a Lucrative Revenue  Stream With Contract Staffing

Topics: contract staffing

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.


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Topics: contract staffing

How to Show Clients Temp Staffing Is Right for Them

Posted by Corinne Camara

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Nov 15, 2017 9:00:00 AM

HowtoShowClientsTempStaffingisRightforThem.jpg

Are you having trouble convincing potential clients that temp staffing is right for them as a hiring solution? We’re here to help you show clients who are on the fence that there are more benefits to temp staffing than they might think.

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Industry-Specific Expertise

If your agency is focused on a staffing niche, you know that your candidate base is made up of talented industry specialists. Temp workers are often industry veterans who are looking to supplement their income or take on new challenges.

Let your clients know your staffing agency can provide them with highly skilled candidates who can hit the ground running after their placements. One of the major advantages of engaging with a niche staffing firm is that you can land talent for specific positions and not worry about spending too much time or resources on training. So, if your client is looking to land candidates for an industry-specific project, temp staffing is ideal.

What Slow Season?

Another great aspect of temp staffing that often gets overlooked is how it reduces the complications of seasonal turnover and employees on leave. When your clients have access to a steady stream of candidates when they need them, their businesses can kiss slow seasons for productivity goodbye!

Be sure to inform clients they will have the ability to supplement their staff whenever the need arises thanks to temporary staffing. As already mentioned, your clients might have special projects they need completed but are lacking in manpower or skilled permanent employees to do so. Clients no longer have to shelve important tasks or stretch their available staff thin with overtime to cover empty positions or complete special projects.

Boost Your Resources

Speaking of overtime, your clients will also be happy to know that temp staffing is often more economical than permanent staffing. When you provide skilled temp workers for your clients, they will have more than enough staff to cover all bases throughout the year, reducing the costs of overtime work.

Explain to your clients that many businesses are choosing to engage with temp staffing firms because it reduces their overhead costs in several ways. With a staffing firm, clients have ready access to candidates who won’t cost them in extra training, who can provide specific talent for only the time needed, and who don’t need benefits packages.

Take what you’ve learned here about how temp workers offer clients an efficient and profitable hiring solution and weave it throughout your online marketing strategy. Your future clients will thank you for offering them such a solution.


Unlock a Lucrative Revenue  Stream With Contract Staffing

Topics: contract staffing

3 Top Industries That Hire Temporary Workers

Posted by Corinne Camara

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Nov 10, 2017 9:00:00 AM

3 Top Industries That Hire Temporary Workers--.jpgAs the owner of a new Canadian staffing agency, you know without a doubt that the country has been shifting to a nation of temporary workers. Since the recession, the Canadian economy has been slowly recovering and the mindset among employers and young workers has shifted as well.

There are now many industries that need temporary workers so they can gain more flexibility for the unpredictable economy as well. As a staffing agency, you’ll want to know which industries are most in need of temporary workers so you can position yourself as a go-to source for their hiring needs.

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If your staffing agency falls into one of the three categories discussed below but doesn’t currently offer temp staffing services, now’s the time to consider offering them.

1. Trades and Industrial

Perhaps out of all the Canadian industries, the trades and industrial sector is most in need of temporary workers. Statistics Canada was quoted in recent years as identifying a growing shortage of 1 million skilled trades workers needed for occupations such as construction, mining, and petroleum by 2020. 

Industrial warehouses are also in need of many temporary workers for seasonal work or for temp-to-permanent positions. If your staffing agency has targeted this niche, it was a smart move to do so. But if you only focus on permanent staffing opportunities, you could be missing out on a huge demographic of clients looking for temporary trade and industrial workers. 

There are many advantages to offering temp staffing, not least of which is offering your target market a broader range of service. If you can provide skilled temporary workers to help clients looking for more flexibility in this particular industry, your staffing agency will see continuous growth for some years to come.

2. Information Technology

This industry is listed second, following trades and industrial, for a very good reason. Despite all the recent grads from computer technology programs across Canada, there simply aren’t enough skilled candidates to fill the demands of the many companies out there with technical needs. This is because, at the rate that technology is transforming and disrupting everyday business operations, there are numerous digitization initiatives and projects that need skilled technology workers of various specializations. 

What’s more, it’s not only businesses within the IT sector that need skilled workers, it’s any business worth its salt. To stay competitive with the demands of digital-age consumers, businesses in practically every industry need a constant stream of technical workers for mobile app projects, data analysis, cybersecurity, web administration, and more. Many businesses also require temp workers because they need a specific project completed or extra manpower for their online help desks during busy seasons. 

Don’t be surprised if offering temp IT workers helps you keep more clients for lengthier periods of time. Moving forward, technology will continue to become more ubiquitous in our society. Temp workers help businesses through their rocky transitions to digitally driven organizations.

3. Office and Administration

Office and administration workers are always going to be needed. While this niche might not be as specialized as the above two in terms of skills, there’s a lot of variety in the skilled temp workers you can offer.

When it comes to the front and back offices, employers see many of their employees go on sick or maternal leave, and there’s always going to be a need for more manpower during vacation seasons like summer. There’s a lot of profit to be made in office and administration staffing because it’s the backbone of a business.

If your staffing agency can offer temporary workers for any of these three industries, you’ll be able to unlock a lucrative revenue stream and grow fast.

Unlock a Lucrative Revenue  Stream With Contract Staffing

Topics: contract staffing

How Can Contract Staffing Solutions Benefit Your Business?

Posted by Mai Dowdie

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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 Temp Staffing Can Help You Retain Clients

Posted by Corinne Camara

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Oct 13, 2017 10:00:00 AM

How Temp Staffing Can Help You Retain Clients--.jpgThere are many myths about the staffing industry, but among one of the stranger ones is the notion that staffing agencies are already on their way out. Since there’s been a growth in the range of different technological innovations in recent years, like natural language processing and chatbots, there’s a general assumption that in the near future staffing agencies will experience larger and larger gaps between their peak sales seasons. This line of thought is labelled a myth for a reason.

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There’s simply too high a demand for temp staffing and skilled temp workers for computers to be able to accurately and efficiently place candidates on their own. There’s also the fact that the key to staffing success is building meaningful human relationships. According to a recent study by the American Staffing Association, 77 percent of job hunters in the past five years prefer human interaction during their searches.

All the above facts point towards a concept you should take advantage of as a new staffing agency owner: offering temp staffing to retain more clients. Unsure of how providing temp workers will help you prevent slow sales periods? Read on then.

Offers More Employee Flexibility

No matter if your staffing agency’s niche is information technology (IT), office and admin, or accounting and finance, there are many companies seeking more varied hiring solutions. Since the gig economy became the new normal, there has been more of a need for temp staffing than ever before.

Permanent positions are less flexible for your potential clients. During vacation seasons, there’s much less manpower if companies lack different types of employees.

Temp workers also offer companies greater flexibility regarding specific tasks or projects that will only last for specific blocks of time. By helping clients achieve employee flexibility throughout the year, your agency retains clients longer.

Capture Millennial and New Grad Talent Market

Flexible work doesn’t just benefit your clients though; it also benefits your candidates, particularly those who are part of a younger demographic. Millennials prefer flexible jobs because they can pick and choose how much they can supplement their income, as well as improve their work-life balance. When your staffing agency offers temp workers, you stand a higher chance of landing millennial and new grad talent. 

Clients (especially in IT) are on the lookout for technically savvy millennial and new grad candidates. Offering a steady stream of millennial and new grad talent to clients boosts retention. These specially trained candidates are part of the highly coveted passive candidate market. Clients will continue to return to your business to access this desirable market. 

Passive candidates are those candidates that, whether industry veterans or adept newcomers, are already employed and are not actively looking for positions. Many of these passive candidates are usually difficult to come by because many aren’t interested or even thinking about changing their positions. But there are passive candidates who would be interested in challenging themselves with new projects, seeking a different work culture, or perhaps wanting different benefits. It’s a difficult market for companies to reach, so your staffing firm can offer real value here.  

Solving the Ongoing Skills Shortage

Being able to offer more diverse types of candidates for your clients boosts your retention because at the end of the day Canada is still experiencing a skills shortage. The upside of the gig economy, as we discussed throughout this blog, is the ability to have flexible work solutions on both the hiring side and the candidate side. But the downside of the gig economy is that there’s no certainty for clients that they’ll have access to the talent they need year-round.

Your staffing agency can mitigate the problem of Canada’s ongoing skills shortage by providing temp workers. Since there’s no guarantee the shortage will let up anytime soon, you’ll likely have more long-term clients in your database, which will help you grow your business.  

Unlock a Lucrative Revenue  Stream With Contract Staffing

Topics: contract staffing

Why Temp Staffing Is the Employment Solution of the Future

Posted by Anna Mastrandrea

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Sep 18, 2017 9:00:00 AM

Why Temp Staffing Is the Employment Solution of the Future--.jpgIt’s only natural that your eyebrows should rise when an industry claims to have future-proof solutions. But in the instance of employment and the Canadian economy for the foreseeable future, the staffing industry isn’t amiss to claim that temp staffing solves a lot of our current employment issues.

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Temp staffing is flexible and there’s plenty of it in our current decade with the rise of the gig economy. There’s been a lot of talk of how the way we approach work in our current economy and demographic makeup has shifted.

All this points towards the major points we have to present about why temp staffing is indeed the employment solution of the future.

Addressing the Ongoing Skills Shortage

Skills shortage—now that’s a term that Canadian candidates and recruiters are sick of hearing in recent years. The resentment is well earned, as the skills shortage is an issue that’s slated to be an ongoing problem.

The skills shortage is a self-perpetuating cycle of businesses lacking an increasing percentage of skilled candidates and the skills gap continuing to widen for new candidates. Provinces like Ontario are bleeding billions of dollars in GDP and tax revenues annually because of this problem.

Temp staffing agencies provide a solution by skillfully networking Canadian top talent that prefer or need contract work with businesses whose HR resources are stretched. Temp recruiters also know how to tap the hidden market of passive talent, to land businesses veteran candidates for their hiring needs!

Lowers Overhead Costs

Hiring more temps for specific projects, busy seasons, or to cover employees on leave lowers costs significantly for businesses. The reason for improved business budgets is due to letting recruiters at successful staffing agencies pool their expertise towards finding multiple candidates for a business’s specific field. Instead of stretching internal HR thin trying to find enough referred employees to fill vacancies, businesses have access to a pool of talent looking sometimes even for multiple contracts! 

The best staffing agencies give 100 percent with all their placements due to a combination of cutting edge proprietary tech for efficiency, knowing their temp niche inside and out, and outsourcing their back office duties to perfect their front end focus. Businesses will find moving forward that partnership with the right staffing agency means no more worries when extra manpower is needed.

Keeps Up with Evolving Demands

Perhaps the most impactful aspect of temp work being on the rise is that businesses look to agencies to help them keep up with their industry demands. For specific industries like IT and various trades, there’s a host of technological developments that have given rise to new trends and standards. And when businesses engage with agencies that know their niche they’ll be able to find employees with coveted skills fast.

Being responsive to industry demands is lucrative for both clients and recruiters offering skilled temporary staff. On the client side, a business will always be able to fulfil market demands as they emerge with candidates that want a steady stream of work in their field of expertise. On the recruitment side, those agencies that are dedicated to consistently filling specific job orders will attract a greater number of clients and candidates in need of matching.

Investing in temporary staff is a mutually beneficial endeavour for clients and recruiters. And for those who’ve been considering starting a staffing agency, there’s no better time to unlock a lucrative revenue stream with contract staffing. Temp staffing is as close to a future proof solution to employment in Canada as we can get, because it evolves along with the gig economy.

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Topics: contract staffing

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.

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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.

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