(Part one of a three-part series. Don’t miss part two and part three.)
It’s clear that the employment world – and by extension, the recruiting industry – is changing. There are numerous factors: technological advancements and recruiting software, generational shifts in the workforce, and reverberations from the Great Recession, along with upward pressure on wages and other labor cost increases. Now we have to add in the complexity of the Affordable Care Act and other emerging employment laws.
Impact On Clients
Companies are being stretched legally and financially on all fronts, but they still have deadlines to meet and projects to complete along with all the other demands of today’s economy. To cope with this, many companies have embraced the blended workforce model in which they maintain a core group of direct hire employees that are supported by a group of contract professionals.
Contractors allow companies to meet deadlines and complete projects. However, companies still need to make sure they comply with IRS guidelines for classifying workers. The IRS and US Department of Labor are pushing an initiative to ensure 1099 independent contractors are not misclassified, and a successful audit can have serious consequences.
What About Recruiters?
It can become overwhelming to stay on top of all these critical issues and still run a successful business. Consequently, in addition to providing candidates, your clients look to you as a resource for industry trends, economic developments, and other changes that impact their business. This means that as a recruiting professional, your role is changing, too.
Many clients rely on recruiters for news about changing laws that will increase their employer burdens, risk, or liability, but they may also turn to recruiters for guidance and solutions regarding staffing problems. If you can provide this valuable service for your clients, you essentially become irreplaceable. This is a win-win for you and your clients.
In part two of this series, we will provide relevant information for recruiters about two looming employment “icebergs” that could sink a client company if they don’t know how to navigate these new waters.