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Help Your Clients Avoid Employee Misclassification Risk

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Employment AgreementMisclassifying employees as independent contractors is a very tempting proposition during difficult economic times.

After all, companies can get out of payroll taxes, unemployment, workers’ compensation, paid sick time, vacation and health insurance.  Companies can save substantial amounts of money that can instead be allocated towards other important business needs.

This is probably why the IRS is cracking down on this practice.

Misclassification is not a good idea at all, as it can land companies in a world of trouble with the IRS.  And this is true whether the misclassification was intentional or unintentional.

Recruiting or staffing agencies can ensure their clients stay on the right side of the law in this matter by employing some of the tests the IRS uses to evaluate if workers are functioning as employees.  These tests are designed in part to examine behavioral and functional control, which means they assess whether a company has the right to direct and control an employee’s work and the financial and business aspects of his or her job.  In addition, they will also take a look at the type of relationship a company has with workers, and whether that tends to describe an employee/employer relationship.

Some examples of what is evaluated include:

·         How the business pays the worker

·         The extent to which the worker can realize a profit or incur a loss

·         Whether the business provides the worker with employee-type benefits

Dependent on the outcome of these tests, one option companies can employ to avoid misclassification risk is the development of a contract for temporary employees.  In a general sense, this contract would be designed to limit the control a company has over the worker, while also spelling out the agreed-upon responsibilities of each party.

Other strategies that can help avoid misclassification include labeling any work as a project that can be completed at any time by the contractor, requiring invoices from the contractor for all services, and structuring the contract between the contractor’s business entity (if applicable) and companies.  But again – this is all dependent on the outcomes of tests offered by the IRS.

What will always ring true is that each employment situation is unique with its own challenges and complexities.  And your clients will always look to you as an expert in all employment matters.  This means there will be a certain expectation with your clients that you will be the one that helps to prevent them from any trouble with the IRS.

While some of the options I offer above can be taken into account when consulting your clients, note that employment guidelines can change rapidly.  In other words, the advice you can take from a static post in a dynamic world is this – always stay up to date on the changes – and when the IRS is involved never offer advice today based on what you knew to be right yesterday.

To learn more about how staffing software by Bond US can help ensure your staffing agencies processes remain efficient, in the face of ever-changing employment guidelines, request a free demo.

Big Data Wave Failing To Surface Analysts For Recruiting & Staffing Agencies

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You probably already have a good idea that the amount of candidate information available to your recruiting or staffing agency is growing rapidly.  But the real question is:  who is going to analyze this ‘candidate big data’ and organize it into sensible patterns you can understand?

Unfortunately, while the demand for qualified analysts continues to rise, the talent pools from which your agency is able to find these talented individuals is not seeing corresponding growth.  Business consulting firm McKinsey estimates that by 2018, the United States will have a shortage of between 140,000 and 190,000 people needed to analyze the growing amounts of information.

And in the meantime, candidate big data – and the corresponding risk that you miss placing an ideal candidate with one of your top clients – continues to grow.  So how can you best overcome the odds to find the right data analyst for your agency?

First, you will need to identify whether or not your local talent pool is up to snuff.  And if not, let’s face it, you are just going to have to get creative.  Rather than focusing purely locally, you’ll need to expand your reach into national markets where there is more aggregate talent available.  A few of the current ones include St. Joseph (Missouri), El Paso and Tucson.  Next, you will need to determine whether you are comfortable bringing these employees on remotely (which may involve time zone challenges) – or paying a premium in salary and relocation fees.

Of course, another option is to look for candidates that are more entry level – and more commonly found in most markets.  Just because these candidates don’t have the immediate skills you want right out of the box doesn’t mean they won’t be successful in the job.  Many companies look for skills and experience, only to get burned by someone just looking to get a paycheck.  If you start with motivation and a willingness to learn, you might land on some stronger candidates.

Finally, the last option – which can tie into both of the options above – is to lure candidates away from other companies.  It is here that the staffing and recruiting software you use to fill your client needs can be used to meet the needs of your own agency.  Your recruiting software can help you evaluate the candidates available in your market by helping you more easily search for those that may have reached out to your agency in the past – or those that are describing their skill set with a targeted set of keywords in social networks such as LinkedIn (ie, ‘staffing,’ ‘data,’ ‘analysis,’ etc.)

Big candidate data is essential to your agency’s survival – as is having the team members in place that can help you interpret it accurately.  If you aren’t where you need to be in terms of getting the right team members in place – your agency is not alone – meaning the time for worry is not today.  Today is the time to use the tools you have at your disposal, to think outside the box – and more importantly – to think outside your neighborhood – to find the right analysts that will help you turn candidate big data into the actionable metrics that will help your agency grow.

To learn more about how recruiting and staffing software from Bond US can help your agency achieve its recruiting goals, request a demo.

Facebook Timeline Changes: What Your Staffing or Recruiting Agency Needs To Know

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Just when you thought you had your staffing agency’s Facebook page in perfect order, they went and made you change it.

Whether you are a staffing or recruiting agency, a staffing software or services provider – or any type of firm in between – your company’s Facebook page has likely been upgraded to the new Timeline format.  And you are somewhere on the spectrum of ‘loving’ and ‘adjusting.’

Regardless of where you find yourself, there are some basic truths that are constant:

 

  1. Change is inevitable, especially in social media
  2. With the opportunity that comes with change comes the opportunity for mistake
  3. Social media – and Facebook – remain one of the strongest tools in your staffing arsenal

So how can you ensure you continue to use this tool effectively, maximizing new opportunities and minimizing the type of mistakes that will earn either derision from social-savvy prospects or a firm slap on the wrist from Facebook?

Start by referencing our list of Facebook Timeline mistakes to avoid and opportunities to take advantage of below:

Facebook Timeline Mistakes to Avoid

1. Wrong Size Cover Photo
From now on, you’re limited to one large banner photo across the top of your page.  So you need to consider what type of image best communicates your recruiting or staffing agency’s brand message.

The photo can be a graphic or an actual photograph – as long as it is sized 851 x 315 pixels.  Any other sized image will simply look ‘off.’  For your image, you may want to show a location beauty shot of your firm’s exterior or even repurpose branding elements from your website, as we do on the Bond International Software Facebook page.

 

 

 

 

 

 

 

 

 

2. Wrong Size Profile Photo
Every time you post, you staffing agency or recruiting firm profile picture will appear with your updates, so it’s important to find an image that will still maintain quality in a smaller size — 180 pixels that will scale down automatically to a length and width size of 32 pixels.*

To avoid viewing problems with the smaller size and to give your company instant recognition, consider using your logo as your profile image.

(*Update – per an email I received from Facebook today, the new profile picture will be 160 x 160 pixels and will sit at 23 pixels from the left and 210 pixels from the top of the Page, starting April 26th.)

3. Adding a CTA to Your Cover Photo
Facebook does not allow a call to action on either your cover or profile photo.  Call to actions include but are certainly not limited to:

  • Contact information
  • Price or purchase information
  • Asks for ‘Likes’ or ‘Shares’

Instead, showcase your brand in a way that makes it hard for visitors to resist liking you or being moved to action. See a great example of this below:

 

 

 

 

 

 

 

Facebook Timeline Opportunities:

1. Take Advantage of Content Display Improvements
The Facebook team constantly refers to the site as a story-telling channel.  With expandable photos that can span across your Timeline with just a click, visitors can get a strong visual sense of your company’s unique story.

Complement those stirring images with the compelling and relevant content you’re already featuring and you’ll provide a powerful reason for fans to visit often.

2. Share Company Milestones
Another interesting add-on to the business Timeline is the Milestones feature.  This allows you to showcase the history of your company by posting important events that have occurred over time and to provide your visitors with a multi-pronged illustration of your firm’s effectiveness in placing candidates over the years.

And don’t limit yourself to milestones that have only occurred since Facebook was launched.  Remember, it all starts with the Model T:

 

 

 

 

 

 

 

 

 

 

 

 

To learn more about how your recruiting or staffing agency can best take advantage of the new Facebook Timeline updates, and how our social media enabled recruiting and staffing software can help you integrate candidate information from social profiles, contact us or register for a free demo.