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Two in Five Firms Use More Independent Contractors


By: 
Date: April 6 2011

Philadelphia, PA (PRWEB) April 6, 2011
As many as 41% of employers have used more independent contractors over the past two years, according to an online survey of 430 senior human resource executives conducted by Right Management. Right Management is the talent and career management expert within ManpowerGroup®, the global leader in innovative workforce solutions.

Asked if their organizations had seen an increase in the use of independent contractors in the last two years, 41% of respondents said yes and 59% said no.

"Nearly all companies are re-examining their talent management practices in order to align their workforce with their business strategy," Michael Haid, Right Management's Senior Vice President for talent management." This has required a behavioral shift that includes the greater flexibility afforded by independent contractors."

Many of the contractors, Haid acknowledged, eventually become full-time employees. "But just as many prefer their independence and organizations must accommodate the goals of these workers to stay competitive in the marketplace and attract the best and brightest talent available."

The increased use of independent contractors creates legal compliance concerns, cautioned Neil Alexander, Co-chair of the Contingent Workforce Practice Group of Littler Mendelson, a national employment and labor law firm. "Many firms haven't taken precautions to help limit the likelihood that a government auditor or court will determine such workers have been misclassified. Taking the time to design a workforce model in advance can reward productivity, lower overall labor costs, and help avoid findings such workers have been misclassified. The penalties, interest, and uncompensated overtime can add up very quickly."
Survey respondents were also asked if their organization had seen an increase in flexible working practices over the past year. Twenty-three percent said "Yes, a lot" and 54% said "Yes, somewhat." Only 22% said no.

Haid advised that such HR policies and practices are on the increase. "These might be more flexible work hours, telecommuting, or even a greater use of temporary or contingent workers for specific projects or short-term assignments."
Right Management surveyed 430 individuals on March 15, 2011, in partnership with law firm Littler Mendelson.

About Right Management

Right Management (http://www.right.com) is the talent and career management expert within ManpowerGroup®, the global leader in innovative workforce solutions. Right Management helps clients win in the changing world of work by designing and executing workforce solutions that align talent strategy with business strategy. Our expertise spans Talent Assessment, Leader Development, Organizational Effectiveness, Employee Engagement, and Workforce Transition and Outplacement. With offices in over 50 countries, Right Management partners with companies of all sizes. More than 80% of Fortune 500 companies are currently working with us to help them grow talent, reduce costs and accelerate performance.

About Littler Mendelson

With over 800 attorneys in 50 offices, Littler Mendelson is the largest US-based law firm exclusively devoted to representing management in employment and labor law matters.

This press release was distributed through PRWeb by Human Resources Marketer (HR Marketer: http://www.HRmarketer.com) on behalf of the company listed above.



Comments
  • Jill Freeman Compliance for your 1099 (Independent Contractors) is very important to your business currently. The IRS has hired thousands of auditors for this very purpose. They want their income tax revenue! A process whereby you vet your incumbent 1099s to ensure compliance is a laborious task, but much-needed. Then provide a solution for your valuable consultants to become compliant. All incoming 1099 contractors should go through the vetting process too.
    07/12/2011