Remember the day when employers hired and fired all their own workers? Yes, the era preceding the staffing industry as we know it today. Not to be nostalgic, but there are forces at play (primarily government driven) that would like to see the stage for employment reset to “the good old days.”
The government objects to outsourced employment because W-2 employees often receive different treatment, benefits and job security than the contingent workforce counterparts they work side-by- side with. Taxes may or may not be withheld in strict accordance to the laws of the land. Now, no one sets out to offend the sensibilities of the GOVERNMENT, but more and more over in recent times, the government gets offended in the name of worker equality as the spoken reason (and tax collections as the underlying driver).
In today’s staffing industry, the activities of “employment” are usually carved up among multiple companies. One does recruiting, another does payrolling, yet another does account management/master billing. Some contingent staffing companies provide benefits, others do not. Many lack sensitivities to the equality of employment issues between contingent workers and W-2 employees.
PREMIUM CONTENT: U.S. Staffing industry Pulse report
At the first ever contingent staffing industry SIA meeting in Las Vegas in September 2016, the buzz was, “Master distributors and how do we evolve the industry to provide a total comprehensive solution that spans from recruiting, through engagement, through project management, all the way to employment separation and beyond?” A lot of smart people are working on solutions, but solutions are challenging due to having to operate across multiple state lines and in multiple lines of business. A few comprehensive solutions are starting to emerge, but today they are mainly aspirational as opposed to operational.
I think we know where the industry is going. I was amazed at what I learned in Las Vegas. I believe we will soon see solutions that span the entire continuum from recruiting to employment management on par with Fortune 500-type companies. I am anxious to work with those who have the same vision and are willing to partner with others to help drive the industry forward.
If you or someone you know has the same passion and interest, please ask them to join the chorus. Tomorrow may only be a day away, but sometimes it can take years to get there.
MORE: 5 Workplace Trends For 2017 – Talent Acquisition Execs, Are You Ready?
Hi Wayne,
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https://ismartrecruit.com
Thanks!