CXC and Spend Matters – Emerging Contingent Workforce Talent Sourcing Trends

On March 24, 2020 CXC hosted a webinar with Spend Matters to look at some of the emerging trends in talent sourcing locally in the U.S and around the world and how companies are moving towards more direct sourcing models and using online platforms to bring talent to their organization.

COMPLIANT ENGAGEMENT

Once talent is identified, the next step is to engage that talent.  When engaging talent however, there are certain risks involved and with different legislation around the world, it can be a mine field for those engaging the talent.  Using a third party payroll and/or compliance company is recommended.  With the explosion of online talent platforms, a need has been identified for compliance technology, that would streamline the process of worker classification, vetting, right to work and background checks.

WEBINAR REPLAY

We are pleased to make the webinar available for replay. Simply complete the form below to download the webinar.

CXC and Spend Matters Webinar downlaod

QUESTIONS

As promised to all those that registered, we are pleased to provide the questions asked during the webinar, along with our answers to them.  As we were unable to answer all the questions during the webinar, we’re also including the questions that were’t answered.

Q – I would like to know if there is any advice on how to manage a global talent pool and still make sure there is local COMPLIANCE when contingent workers start working.

Ans.   Connor Heaney The first thing to determine is where the talent is going to be providing the services. i.e. where are they going to be engaged? The second thing to consider at the beginning of the project is if the talent pool is going to be based in Europe or coming through an entity that is based in Europe, is the way the talent comes into the platform and if it is GDPR compliant.  E.g.  Are you asking the worker’s consent to come into the platform? Are you asking their consent to hold their data for a prescribed period of time? Three would be to find a local partner whether a payroll or compliance company, to get understanding of your goal and engagement type; E.g. – Your talent is engaged as contracted services or under a W2 agreement. You then need to consider what those contracts look like and who’s going to draft them for you and whether those contracts for services or temporary employment are in compliance with local laws and regulations.  If you do partner with either a talent curation company, or payroll or compliance company, or both one and the same, you need to know if they have a recruitment or labor license to engage that talent on your behalf.  EG Germany requires an AUG labor license to engage talent, Poland requires a recruitment license, as does Ireland.  It’s important that you keep up to date with local laws and regulation.  The pace of regulation change is fast and its impact is deep.

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Q – What is the difference between a public talent pool and a private talent pool

There is a fairly clear definition of a private talent pool, however public talent pools are somewhat ambiguous. A private talent pool, or set of pools, are those pools that are setup, usually using software (although doesn’t have to be), by a specific company.   The pools are populated with workers that most likely have been vetted and are only available to individuals within that company.  The pools are managed by the company and can represent different categories, types of labor, locations and so on.  When someone in the company taps into one of those talent pools, we would call that self-sourcing.

In relation to public talent pools, there is some ambiguity.  Generally speaking, it applies to a pool that typically would be aggregated by a solution provider such as a direct sourcing solution and the pool consists of all of, or many of the workers that different companies may have engaged or which have come to the talent pool company to present themselves as available for work. That tends to be distinguished from an online marketplace, such as Upwork, where anyone can join and any company can tap in so it’s not quite that, it’s a bit more restrictive.

Q – How do you think COVID-19 will impact how organizations are engaging workers around the world?

Ans. John Smith This is a topic that is top of mind for everyone around the world now and you will hear many different things.  Companies are hiring from a range of industries including retail, medical, transportation and medical device manufacturing.  Companies are going to assess what their full-time employee strategy looks like and their contingent workforce strategy.  Even call centers are being impacted, as we discussed on one of our global team calls recently.  We know that governments placing restrictions on their workers and in some countries, they are prohibited from going to work for example India and the Philippines.  This has impacted call centers, resulting in some companies moving their call centers back onshore. Offshoring of work compared to onshoring or nearshoring of work during times of crisis is something that needs to be considered. We expect to see more onshoring during this time.

Q – Can you highlight the countries where CXC have the appropriate licenses to do payroll services?

Ans.  John Smith  CXC has offices and registered businesses in 29 countries. Our registration in 7 European Union countries allows us to provide solutions in many of the other EU countries.  CXC also has partnership in over 35 countries where volumes are smaller and does not warrant CXC establishing a business relationship. (Refer to CXC’s global footprint).

Q. We are currently paying contingent contractors via an online payment service, what risk do we face?

Ans. John Smith  If you’re referring to a service likes of PayPal or a direct wire, the contractor or service you are paying is probably receiving a 100% gross payment. It’s highly likely they are not paying taxes.  If the contractor is ever audited due to regular or excessive PayPal payments the source of the payment can come back to your company and can open you up to audit by state, provincial or federal tax agencies.  Also, your company’s communication / PR department probably will not like the possible negative press you can receive if your problems go public.

Q.  Are employment structures basically the same around the world for workers?

Ans. John Smith  In order to comply with local country laws, employment structures are very country specific. However, you do find regional similarities in Asia and Latin America, where employees are entitled to 13th month salaries and mandatory year-end bonuses.

Q Do workers have to be paid in local currency? 

Ans. Connor Heany This is really a country specific requirement. Our experience shows it’s best to pay a worker in local currency to avoid the possible currency swings.  For workers who do not get paid in a foreign currency, the funds paid will convert when payments reach their bank.

POLL QUESTIONS

As part of the webinar, attendees were asked to participate in two poll questions.  The questions were geared towards contingent worker acquisition strategies in place, if any and how contractor payroll and classification is currently being managed.

POLL Q1

The results show that the majority of companies are now using a hybrid of channels for their contingent worker strategy, with the use of talent pools and cloud platforms increasing.

POLL Q2

More companies are now using outsourced global partners as opposed to previously where payroll and classification was managed internally, if at all.  The clamp down by governments on lost revenue continues, making it necessary for companies to use more structured solutions to engage and manage their contractor workforce.

SPEAKERS

ANDREW KARPIE – SPEND MATTERS NETWORK

Andrew is the Research Director – Workforce & Services Procurement Technology for the Spend Matters GroupHe’s the lead analyst covering contingent workforce procurement technology; the evolution of existing and new intermediaries and the corresponding changes in enterprise sourcing and procurement approaches.

JOHN SMITH – CXC AMERICAS

John leads the business for CXC Americas and this year marks his 10 year anniversary with CXC.  He was responsible for launching the Americas operations in the USA, Canada, Brazil, Mexico and Panama. He has over 20 years’ experience supporting corporations and human capital management organizations with global contingent workforce management solutions.  He has received much recognition as a global compliance specialist and has been honored to present keynotes at conferences across the country.

CONNOR HEANEY – CXC EMEA (EUROPE)

Connor leads the CXC business across EMEA, from our headquarters in Ireland, and is an integral part of the CXC Global Leadership team. His background is in resource and talent management, with significant experience within solutions sales, product development and operational delivery in the UK and wider EMEA.

 

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