Concurrent Session: Trends and Opportunities Trends and Opportunities in Payrolling and Independent Contractor Compliance

Transcription

1 TUESDAY 11:45 AM TIMOR SEA Concurrent Session: Trends and Opportunities Trends and Opportunities in Payrolling and Independent Contractor Compliance Moderator: Tony Gregoire, Research Director, North America, Staffing Industry Analysts Panelists: Jeff Phelps, COO, iworkglobal Dana Shaw, President & COO, ICon Professional Services John F. Smith, Managing Director Americas, CXC Global Gene Zaino, President & CEO, MBO Partners Sponsored by:

2 DIGITAL SURVEYS Don t forget to provide feedback Trends and Opportunities in Payrolling and Independent Contractor Compliance Rate this session by accessing the evaluation from your Conference Mobile Community OR tap the ipad screen as you exit.

3 Contractor payrolling what it is and isn t Contractor Payrolling: A service in which a provider is an employer of a contingent worker on an assignment with another company, and is not responsible for recruiting. Temporary Staffing Contractor Payrolling PEO Provider is responsible for recruiting contingent workers Provider is the employer of the contingent worker Provider is not responsible for recruiting Provider can payroll client s entire organization and provide other HR services Business rationale = Source contingent talent to enhance workforce flexibility Minimize employer misclassification risk and contingent worker tax liability Outsource non core activity and take advantage of purchasing power

4 2013 US contractor payrolling spend Participants by 2013 US Contractor Payrolling Spend (USD Millions) PRO Unlimited* KellyOCG ZeroChaos Randstad Sourceright* HireGenics AllSourcePPS Populus Group Synergy Services^ Zempleo MBO Partners ClearPath Impellam Group* ICon CXC Global ICS CW Solutions US Market 2013 Spend 2013/2012 Growth Payrolling $11B 9% Temporary Staffing $103B 4% $0 $200 $400 $600 $800 * 2012 spend reported by PRO Unlimited, Randstad Sourceright and Impellam Group in last year s study ^ US spend reported by Synergy Services includes Puerto Rico.

5 Payrolling growth driven by surge in IC compliance US Market 2013 Spend 2013/2012 Growth Agent of Record (AOR) $1.5B 17% Payrolling $11B 9% Temporary Staffing $103B 4% Typical model in US (alternative models exist) IC evaluation test Assignment is restructured ICEC provider might stay on as AOR and provide ongoing compliance monitoring Engagement is restructured or worker is payrolled by client or payrolling provider Payrolling

6 AOR usually, but not always, part of ICEC service 2013 Mix of ICEC Clients by Provider US Market AllSourcePPS ClearPath CW Solutions CXC Global HireGenics IC Advisor ICon ICS KellyOCG MBO Partners Populus Group Synergy Services ZeroChaos Total 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Agent of Record Not Agent of Record

7 ICEC market: provider spend and skill mix 2013 Providers by US Agent of Record Spend (USD millions) MBO Partners ZeroChaos PRO Unlimited* HireGenics KellyOCG Populus Group ICon Synergy Services^ ClearPath Randstad Sourceright* AllSourcePPS CXC Global CW Solutions IC Advisor ICS Impellam Group* $0 $100 $200 $300 * 2012 spend reported by PRO Unlimited, Randstad Sourceright and Impellam Group in last year s study ^ US spend reported by Synergy Services includes Puerto Rico.

8 ICEC market skill mix 2013 Global Qualified IC Headcount Other Professional, 23% Industrial, 1% Office/Clerical, 1% Clinical/Scientific, 6% Engineering, 18% Finance/Accounting, 8% IT, 39% Healthcare, 3% * 2012 spend reported by PRO Unlimited, Randstad Sourceright and Impellam Group in last year s study ^ US spend reported by Synergy Services includes Puerto Rico.

9 Payrolling or ICEC: which is core to each provider? 2013 US Spend Mix by Participant AllSourcePPS ClearPath CW Solutions CXC Global HireGenics IC Advisor ICon ICS Impellam* KellyOCG MBO Partners Populus Group Pro Unlimited* Randstad* Synergy Services Zempleo ZeroChaos Total 0% 20% 40% 60% 80% 100% * 2012 spend reported by PRO Unlimited, Randstad Sourceright and Impellam Group in prior year s study Payrolling Agent of Record

10 Not all providers restructure engagements Percent of Fails that Provider Restructures MBO Partners CXC Global ICon CW Solutions KellyOCG HireGenics 20% Populus Group 15% ZeroChaos 5% Danbro 3% AllSourcePPS 0% Synergy Services 0% ICS 0% ClearPath Declined to answer IC Advisor Declined to answer 50% 65% 70% 85% 85%

11 Different countries require much different models Typically (but not always) markets to end client Addresses risk of client company Payrolling Employer of record Portable employer of record Independent contractor (1099) IC evaluation & compliance Corp. to corp. Employed Self employed Typically markets to independent workers & recruitment agencies Addresses risk of contractor Umbrella Sole trader Personal Service Company

12 Freelancer management system (FMS) could make internal sourcing easier The FMS supply chain The VMS supply chain Source: SIA: The Rise of FMS

13 DIGITAL SURVEYS Don t forget to provide feedback Trends and Opportunities in Payrolling and Independent Contractor Compliance Rate this session by accessing the evaluation from your Conference Mobile Community OR tap the ipad screen as you exit.

14 TUESDAY 12:45 PM PACIFICA 1 6 Networking Lunch Sponsored by: Gary Hamel Book Signing (Booth #45) Sponsored by: