How do your contractors expose your organisation to financial and reputational risk?
As the demand for contingent workforces increases, organisations are faced with new challenges and risks that are becoming ever more complex. Political and social pressure, along with the potential loss in tax revenue, has seen government and regulatory bodies taking steps to regulate and protect this area across the globe.
Organisations typically have structured processes, HR policies and procedures when engaging permanent workers. However, for contractors, there are minimal or no policies and procedures in place.
Decentralised contingent worker programs often lead to a lack of visibility, different interpretations of associated legislation and an inconsistent experience for the workforce. In recent years, organisations have been exposed to many risks including noncompliant providers, misclassification and data security breaches.
Given the complexities of engaging and managing a diverse contingent workforce, organisations are re-evaluating the tools and processes they use to attract and manage contractors so they can maximise productivity, while minimising compliance challenges and associated risks.
As with any engagement model, unless it in implemented correctly, organisations leave themselves open to a number of regulatory risks that have significant financial, reputational and operational consequences.
CXC assists organisations to engage and manage their evolving contingent workforce arrangements. To do this, we implement the right governance framework for your business and your contingent workforce to ensure you and your workers are not exposed to a range of workforce risks, including tax, insurance, immigration and co-employment.
How we can help
- CXC, not your company, is responsible for all statutory taxes (including payroll tax and super) and insurances for the contractors we engage.
- Our model provides clear accountability for all stages of a contractor’s contract through a single provider, aligned to your HR strategy.
- We are recognised as providing thought leadership expertise in contingent worker risk and compliance, supported by our dedicated team and robust infrastructure.
- CXC mitigates evolving regulatory risks through continually reviewing our governance framework, effectively futureproofing your program in this complex, ever changing environment.
If you’re interested in learning more, we have developed a risk diagnostic tool to help you in assessing your current contractor risk profile. With a few easy questions, this tool will work out what kind of worker you’ve engaged, and whether you have any associated risks around co-employment, labour hire licensing, payroll tax and more.
As one of the world’s leading providers of contingent worker management solutions, CXC is well positioned to optimise all elements of your contingent workforce strategy. With operations in more than 50 countries across five continents and decades of experience, we can assist with every aspect of your program.
If you would like to find out more about how we can help, please contact us here.
Before coming to CXC, one client was having difficulty with manual timesheet systems and a lack of oversight. Their in-house contractors logged hours within the system that only they could view, causing missed payments. Their field contractors had manual timesheets, different to each of their clients, causing inconsistencies.
Through our extensive due diligence process, CXC were able to determine that various contractors were being paid under the minimum wage. This led to a further review of the rate processes, where we discovered this was the case for several contractors.
CXC implemented robust compliance checks and systems to ensure they were not at risk. We have worked with the client to audit their program, make contract amendments and provide education on upcoming legislative changes. The cost-savings from these initiatives has been significant, circumventing unnecessary fines and legal fees.
Click here for the full case study.
“We have been able to better control deals that have been done with line managers, where there was a potential to blur the lines of co-employment – such as paying contractors during holidays. We now have better control and visibility of awards, tenure and rates for our contingent workforce.”
Talent Acquisition Lead, large Australian energy organisation