concurrent session: trends and opportunities in payrolling ... · workforce flexibility contractor...

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:


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Trends and Opportunities in Payrolling and Independent Contractor Compliance


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


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%


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)



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



ICEC market: provider spend and skill mix


$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)


ICEC market skill mix


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


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


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



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


Freelancer management system (FMS) could make internal sourcing easier

Source: SIA: The Rise of FMS

The FMS supply chain

The VMS supply chain


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Trends and Opportunities in Payrolling and Independent Contractor Compliance


TUESDAY 12:45 PM PACIFICA 1‐6

Networking LunchSponsored by:

Gary Hamel Book Signing (Booth #45)Sponsored by:

concurrent session: trends and opportunities in payrolling ... · workforce flexibility contractor...

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