March 16‐19, 2015Orlando, FL
TUESDAY 11:45 AM TIMOR SEA
Concurrent Session: Trends and OpportunitiesTrends 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:
March 16‐19, 2015Orlando, FL
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Trends and Opportunities in Payrolling and Independent Contractor Compliance
March 16‐19, 2015Orlando, FL
Contractor payrolling…what it is and isn’t
Temporary Staffing
Provider is responsible for recruiting contingentworkers
Business rationale =
Provider is the employer of the contingent worker
Contractor Payrolling PEO
Provider can payroll client’s entire organization and provide other HR services
Outsource non‐core activity and take advantage of purchasing power
Provider is not responsible for recruiting
Minimize employer misclassification risk and contingent worker tax liability
Source contingent talent to enhance workforce flexibility
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.
Source: SIA 2014 Contractor Payrolling and IC Evaluation & Compliance Landscape
March 16‐19, 2015Orlando, FL
2013 US contractor payrolling spend
$0 $200 $400 $600 $800
CW SolutionsICS
CXC GlobalICon
Impellam Group*ClearPath
MBO PartnersZempleo
Synergy Services^Populus GroupAllSourcePPSHireGenics
Randstad Sourceright*ZeroChaosKellyOCG
PRO Unlimited*
Participants by 2013 US Contractor Payrolling Spend (USD Millions)
Source: SIA 2014 Contractor Payrolling and IC Evaluation & Compliance Landscape* 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.
US Market2013Spend
2013/2012Growth
Payrolling $11B 9%
Temporary Staffing $103B 4%
March 16‐19, 2015Orlando, FL
Payrolling growth driven by surge in IC compliance
US Market2013Spend
2013/2012Growth
Agent of Record (AOR) $1.5B 17%Payrolling $11B 9%Temporary Staffing $103B 4%
IC evaluation test
ICEC provider might stay on as AOR and provide ongoing
compliance monitoring
Engagement is restructured or worker is payrolled by
client or payrolling providerAssignment is restructuredPayrolling
Typical model in US(alternative models exist)
Source: SIA 2014 Contractor Payrolling and IC Evaluation & Compliance Landscape
March 16‐19, 2015Orlando, FL
AOR – usually, but not always, part of ICEC service
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
TotalZeroChaos
Synergy ServicesPopulus GroupMBO Partners
KellyOCGICS
IConIC AdvisorHireGenicsCXC Global
CW SolutionsClearPath
AllSourcePPS
Agent of Record Not Agent of Record
2013 Mix of ICEC Clients by Provider – US Market
Source: SIA 2014 Contractor Payrolling and IC Evaluation & Compliance Landscape
March 16‐19, 2015Orlando, FL
ICEC market: provider spend and skill mix
Source: SIA 2014 Contractor Payrolling and IC Evaluation & Compliance Landscape* 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.
$0 $100 $200 $300
Impellam Group*ICS
IC AdvisorCW SolutionsCXC Global
AllSourcePPSRandstad Sourceright*
ClearPathSynergy Services^
IConPopulus Group
KellyOCGHireGenics
PRO Unlimited*ZeroChaos
MBO Partners
2013 Providers by US Agent‐of‐Record Spend (USD millions)
March 16‐19, 2015Orlando, FL
ICEC market skill mix
Source: SIA 2014 Contractor Payrolling and IC Evaluation & Compliance Landscape* 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.
Industrial, 1%Office/Clerical, 1%
Clinical/Scientific, 6%
Engineering, 18%
Finance/Accounting, 8%
Healthcare, 3%IT, 39%
Other Professional,
23%
2013 Global Qualified IC Headcount
March 16‐19, 2015Orlando, FL
Payrolling or ICEC: which is core to each provider?
Source: SIA 2014 Contractor Payrolling and IC Evaluation & Compliance Landscape* 2012 spend reported by PRO Unlimited, Randstad Sourceright and Impellam Group in prior year’s study
2013 US Spend Mix by Participant
0% 20% 40% 60% 80% 100%
TotalZeroChaosZempleo
Synergy ServicesRandstad*
Pro Unlimited*Populus GroupMBO Partners
KellyOCGImpellam*
ICSICon
IC AdvisorHireGenicsCXC Global
CW SolutionsClearPath
AllSourcePPS
Payrolling
Agent of Record
March 16‐19, 2015Orlando, FL
Not all providers restructure engagements
0%0%0%3%5%
15%20%
50%65%
70%85%85%
IC AdvisorClearPath
ICSSynergy Services
AllSourcePPSDanbro
ZeroChaosPopulus Group
HireGenicsKellyOCG
CW SolutionsICon
CXC GlobalMBO Partners
Declined to answerDeclined to answer
Percent of “Fails” that Provider Restructures
Source: SIA 2014 Contractor Payrolling and IC Evaluation & Compliance Landscape
March 16‐19, 2015Orlando, FL
Different countries require much different models
Typically (but not always) Typically markets to markets to end‐client independent workers &
recruitment agencies
Addresses risk of client Addresses risk of contractorcompany
EmployedPayrollingEmployer of record UmbrellaPortable employer of record
Independent contractor (1099) Sole traderIC evaluation & complianceCorp.‐to‐corp. Personal Service Company
Self‐employed
March 16‐19, 2015Orlando, FL
Freelancer management system (FMS) could make internal sourcing easier
Source: SIA: The Rise of FMS
The FMS supply chain
The VMS supply chain
March 16‐19, 2015Orlando, FL
Rate this session by accessing the evaluation from your Conference Mobile Community OR tap the iPad screen as you exit.
DIGITAL SURVEYS
Don’t forget to provide feedback
Trends and Opportunities in Payrolling and Independent Contractor Compliance
March 16‐19, 2015Orlando, FL
TUESDAY 12:45 PM PACIFICA 1‐6
Networking LunchSponsored by:
Gary Hamel Book Signing (Booth #45)Sponsored by: