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Global employer-of-record spend could be as high as $35 billion

Rising concerns over misclassification risk drive industry growth

According to a report from SIA, the global expenditure on employer-of-record services is estimated to fall within the range of $25 billion to $35 billion. This growth is primarily being propelled by a progressively intricate legislative environment, which has raised concerns about the risk of misclassification. Additionally, there has been an upsurge in the utilization of talent platforms for the direct sourcing and management of workers, among various other factors outlined in the report.

The report acknowledged that due to insufficient data, a more precise assessment of the industry’s growth couldn’t be provided. The study examined data from 11 employer-of-record firms for its analysis, while pointing out the existence of over 100 such providers worldwide.

In line with the report’s findings, an employer of record is an entity that takes on the role of the employer for a worker who has been recruited and hired by another party for administrative purposes only. This arrangement allows the worker to carry out their tasks under the supervision and control of the hiring party. The benefit of this setup is that companies can legally involve workers in new geographical locations without the need to establish a legal entity or running afoul of local regulations.

The suite of services provided by EOR firms encompasses various functions such as onboarding, offering benefits, managing payroll, overseeing time and expenses, as well as handling other administrative tasks.

For those affiliated with SIA as corporate members, the complete 66-page “Employer of Record and IC Evaluation and Compliance Landscape Summary” report is accessible.

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Nearly half of employers show ‘no interest’ in hearing from a diverse range of job applicants

Basic steps to improve EDI are not being met by employers

A new survey analysing the views of employers on Equality, Diversity and Inclusion (EDI) revealed 41% of large businesses  (250-plus staff) do ‘not state their interest’ in diverse candidates in their job adverts,

Key highlights of the survey, commissioned by the  Recruitment and Employment Confederation (REC), found that; 60% of the 167 employers interviewed, have reviewed the wording of their job adverts to improve inclusion. Last year it was 54%. However, nearly half of respondents (49%) said they do not state their interest in hiring diverse candidates in their job adverts. This is roughly the same proportion as last year (48%).

Around two-thirds of respondents (67%) do not use name-blind CVs during selection. This is up on 53% of respondents in 2022 – a step backwards – and more than half of respondents (56%) do not have a policy of using diverse interview panels. This has moved little from 2022 when 53% said they did not use diverse interview panels.

Despite greater HR resources  – compared to SMEs, larger firms perform only marginally better than SMEs – 57% do not use name-blind submissions and 48% do not use diverse interview panels. All three results are higher than reported by employers in our 2022 survey.

 Neil Carberry, REC Chief Executive, said: “Given the profile of equality, diversity and inclusion issues, it is disappointing to see so little action being taken by firms. While a slim majority of employers have reviewed the wording of their adverts, the overall picture suggests there is a lot still to do. Many employers remain either unconvinced about the importance of changing their approach or are relying on old adverts and approaches that will not serve them well. In doing so they also miss out on the business benefits of a diverse workforce, which are only enhanced by the tightness of our labour market now. Pressure to change must come from Boards and executives, as well as government and sector and trade bodies.“

 For further information please visit:www.rec.uk.com.

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Singapore advances fair workplace legislation

New recommendations aim to combat discrimination

The Singaporean government has officially accepted the final recommendations put forth by the Tripartite Committee on Workplace Fairness (TCWF), aiming to enhance workplace fairness and protect employees from discrimination. The TCWF initially published 20 recommendations in an interim report in February 2023.

In collaboration with tripartite partners, including The Ministry of Manpower (MOM), the National Trades Union Congress (NTUC), and the Singapore National Employers Federation (SNEF), the government is committed to implementing these recommendations starting in 2024.

The legislative framework, once enacted, will comprehensively cover all stages of employment, encompassing in-, post-, and pre-employment periods, with a special focus on addressing discrimination complaints that predominantly arise during the pre-employment phase, according to MOM.

The legislation aims to safeguard workers and jobseekers against unfair and discriminatory practices based on specific protected characteristics, namely nationality, age, sex, marital status, pregnancy status, caregiving responsibilities, race, language, religion, disability, and mental health conditions. However, it will not include provisions for sexual orientation, gender identity, and criminal history.

To refine the legislation further, the TCWF proposed two additional recommendations. Firstly, they suggested the importance of a clear definition for ‘discrimination’ to facilitate employers and employees in understanding the law’s coverage. In response, the committee recommended defining ‘discrimination’ as ‘making an adverse employment decision because of any protected characteristic’.

Secondly, the TCWF advised that the legislation should solely encompass direct acts of discrimination, as including indirect discrimination would impose extensive legal obligations on employers. Indirect discrimination refers to seemingly neutral company practices that unintentionally put individuals with specific protected characteristics at a disadvantage. The committee proposed that such cases be handled through the Tripartite Guidelines on Fair Employment Practices, allowing employers and employees to find reasonable resolutions for disputes.

Additionally, the TCWF recommended the issuance of a Tripartite Advisory focusing on providing reasonable accommodations for individuals with disabilities. The committee believed that mandating such accommodations through legislation might lead to a more litigious workplace environment. Instead, they suggested that the Tripartite Alliance for Fair Employment Practices (TAFEP) should intervene to achieve better outcomes for employees with disabilities and employers.

The government is mindful of keeping the legislation’s scope restricted for the time being, with the proposed characteristics covering 95% of all discrimination complaints received by MOM and TAFEP, offering protection to 75% of all workers in Singapore.

In tandem with the Tripartite Guidelines on Fair Employment Practices (TGFEP), the legislation aims to provide comprehensive protection against all forms of discrimination. To allow smaller companies sufficient time to adapt to the changes and bolster their human resource capabilities, they will be exempted from the legislation for the first five years.

Minister of Manpower, Tan See Leng, emphasized that the Workplace Fairness Legislation (WFL) intends to prohibit common forms of discrimination experienced in Singapore, including age, sex, family status, race, nationality, and mental health. The approach seeks to provide redress to victims of discrimination while promoting workplace harmony and preserving relationships.

The TCWF believes that these recommendations will foster a positive workplace culture in Singapore, avoiding an overly litigious atmosphere. Nonetheless, the committee highlighted that the legislation alone cannot eradicate workplace discrimination, stressing the importance of education to challenge stereotypes and sustain fair employment practices.

The Singaporean government is committed to collaborating closely with its tripartite partners to implement these recommendations in 2024, fostering a fair and inclusive work environment for all.

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New EU directive aims to close gender pay gaps with mandatory reporting

UK leads the way with maternity pay

Data from EDGE Certified Foundation provides an overview of the legislative landscape relating to Diversity, Equality and Inclusion (DE&I) in certain countries, shedding light on the progress made as well as pinpointing areas to be improved.

EDGE Certified Foundation has published the EquiNations DE&I legislative overview of the top 20 countries – based on the highest number of current EDGE Certifications; including the UK, USA, Australia, Brazil, Canada and China.

The EquiNations research shows that the vast majority of the 20 researched countries have implemented legislation to safeguard against discrimination in employment based on gender, race/ethnicity, nationality, LGBTQ+ identity, age, or working with a disability.

Certain jurisdictions have progressed beyond the legislative recognition of the importance of eradicating all kinds of discrimination in the workplace, and have taken a proactive approach by implementing, for example, hiring quotas for people with disabilities and workplace accessibility requirements, by setting paid maternity and paternity leave above the recommended level of the International Labor Organization (ILO), or by mandating recurrent pay gap reporting, aiming to manage and eventually close the gender pay gap.

Key findings from the EquiNations research cite that the majority of countries examined have implemented hiring quotas for individuals with disabilities, with exceptions including the US, UK, Switzerland, Canada, Mexico, and Australia.​

Most countries analysed have legislation against LGBTQ+ employment discrimination already in place, but less than half of the countries have implemented legislation to ensure gender quotas on company boards.​

The UK leads the way with the highest amount of paid maternity leave (in weeks), with 39, while the USA has the lowest by offering no paid maternity leave. Germany has the highest employment rate for individuals aged 55-64, standing at 73.69%. Whereas, Romania has the lowest rate at 48.4%.​

The EDGE Certified organisations within these nations are setting important benchmarks within their national contexts, by committing to measure where they are in their DE&I journey and to progress on their path to workplace gender and intersectional equity. Such organisations can serve to inspire other employers within their jurisdictions to follow suit by adopting best practices, engaging with their employees and stakeholders, and seeking out the diverse perspectives and experiences that are indispensable for achieving true inclusivity.

 Aniela Unguresan, Founder of EDGE Certified Foundation, said: “Organisations looking to adopt DE&I policies and practices for their workplaces need to understand how local legislation and regulation impacts the workplace, and where there may be areas to go beyond regulation to support long-term sustainable value creation in the DE&I area. We can see that all the countries in the top 20 list by number of current EDGE Certifications have made great progress in promoting DE&I nationally, by enacting certain anti-discrimination laws and labour protections.”

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1 in 4 employees are job hunting

Job seekers prioritize higher salaries and remote work options

According to a recent report released on July 27 by Robert Half, a prominent talent solutions and business consulting firm, a quarter of the workforce is actively seeking new job opportunities, indicating a positive outlook for the job market in the remainder of 2023.

The survey, which involved 2,500 U.S. workers, revealed that an additional 24% are planning to embark on a job search by the year’s end. When combining these figures, it amounts to 49% of workers considering a job change, a noticeable increase from 41% during the third and fourth quarters of 2022.

Dawn Fay, the operational president of Robert Half, emphasized the significance of this data for employers, particularly those grappling with recruitment challenges. She stated that skilled workers are eager to seize the right opportunity when presented to them.

The primary motivation cited by job seekers in the survey was a higher salary, followed by improved benefits and remote work options. Additionally, about 40% of workers expressed openness to contract roles.

On the other hand, certain factors were noted as likely to cause workers to lose interest in a job and withdraw from the application process. These included poor communication and follow-up from hiring managers, excessive rounds of interviews, and a protracted hiring procedure.

The study also highlighted specific groups more prone to making career moves in 2023. Gen Z workers topped the list, followed by technology professionals, working parents, and employees with two to four years of tenure at their current companies.

For both recruitment and retention efforts, pay emerged as a pivotal factor. A recent survey indicated that more than three-fourths of U.S. companies intend to increase salaries in 2024. However, the average expected increase is 3.8%, slightly lower than the 4% increase witnessed this year.

Dawn Fay stressed the importance of competitive pay and benefits, along with fostering a work culture that promotes employee well-being and professional growth. She advised that efficiency and openness to negotiation play critical roles in attracting top talent.

As the job market continues to evolve, companies that embrace these insights and adapt accordingly are likely to thrive in attracting and retaining skilled employees.”

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51% of hiring managers prefer in-person interviews

Impact of the pandemic is still evident

Express Employment Professionals conducted a survey revealing that more than half of US hiring managers, precisely 51%, prefer conducting job interviews in person rather than through virtual means or over the phone.

Despite the ongoing impact of the pandemic, 8% of hiring managers continue to conduct interviews exclusively virtually, while 40% have adopted a hybrid approach, combining both in-person and virtual interviews.

Express Employment International CEO, Bill Stoller, highlighted the significance of technology during the Covid-19 pandemic for maintaining workforce connectivity. However, he emphasized the importance of returning to face-to-face or incorporating virtual components at the beginning of the hiring process. This allows employers to evaluate soft skills, which are challenging to gauge without meeting candidates in person. The survey results indicate a consensus among companies supporting this viewpoint.

The report emphasizes that interview methods may vary based on industry and the candidate’s skill level. Nonetheless, the study underscores the value of in-person interaction, as it enhances the likelihood of candidate success.

The survey was conducted online by The Harris Poll between June 13 and June 26, targeting 1,010 US hiring decision-makers who are either employed full time or self-employed.

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How incomplete benefits packages ‘rob’ workplace of talent

Addressing the gendered benefit gap is moral imperative to support women

Labor experts and equality advocates have been closely examining the impact of the COVID-19 pandemic on the future of work, particularly concerning women. However, it’s important to acknowledge that the challenges related to childcare and its effect on women’s participation in the workforce have existed long before the pandemic. A recent survey conducted by the British Standards Institute (BSI) titled “Lifting the Second Glass Ceiling” sheds light on the enduring consequences of this gender-specific burden.

The term “secondary glass ceiling” refers to the obstacles many women and marginalized individuals encounter while trying to progress to higher positions, such as the C-suite. Gender roles and associated responsibilities often hinder their advancement. In response to this issue, the BSI researchers not only stressed the need for workplace flexibility to support childcare but also emphasized the importance of considering women’s lived experiences and their reproductive health care needs.

Anne Hayes, Director of Sectors at BSI, expressed in the report that when women leave the workforce prematurely or before having the chance to reach senior positions –  due to caring responsibilities, structural factors, or a lack of recognition of their contributions – it results in significant productivity losses, deprives organizations of valuable talent, and deprives newer staff of experienced mentors.

The researchers at BSI underscored that addressing the gendered benefit gap is not only a moral imperative but also presents an opportunity to foster growth, drive innovation, and expedite progress towards a sustainable world. Their proposed solution is simple yet powerful: “Ask women what they want and act on it.”

Furthermore, it’s crucial to acknowledge that the overall workplace experience has traditionally been designed by men for men, given historical gender roles. To achieve a more equitable work environment, it is vital to involve women in the decision-making process and tailor workplace policies to accommodate their needs and aspirations. By doing so, we can begin to break down the barriers that have hindered the progress of women and marginalized individuals in the professional sphere and unlock their full potential for the benefit of all.

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“Minimum requirement”: More MENA professionals want to work remotely

Employers urged to invest more in going digital to connect with potential employees

As many professionals consider changing employers this year, organisations offering some form of flexibility are likely to win the talent war. These are the findings of Bayt.com after surveying 7,591 respondents in the Middle East and North Africa (MENA) region in a bid to give employers a glimpse of the current job market trends. According to the report, 85% of the respondents said they prefer companies that allow remote work all or some of the time. This is a slight increase from the 83% of professionals who want companies offering remote work in 2022.

Ola Haddad, Director of Human Resources at Bayt.com, previously said this shows how flexibility is no longer seen as an extra benefit. “In fact, flexibility is now a minimum requirement as job seekers look for their next career opportunity,” Haddad said in a media release last year. The findings come as this year’s report found that 91% are considering changing jobs this year, with 85% expecting remote hiring to increase in the next few months. “There is an observable shift in the MENA region’s job market tendencies. Our latest survey provides data on how job seekers are adapting and thriving in the face of these emerging trends,” Haddad commented on this year’s report.

Changing job practices

Meanwhile, the report also found the growing impact of digitalisation on the behaviours of many jobseekers. Over three in 10 respondents (36%) revealed that among the crucial parts of the job-seeking journey includes looking for opportunities online. More than half of the respondents (53%) also said they have become very familiar with conducting video interviews at the hiring process. They also continue to prefer using email (41%) and online job sites (38%) as the primary communication avenue when connecting with an employer. The findings underscore that organisations need to invest more on going digital to find and engage with potential candidates who are looking for their next suitable organisation. “Employers must also keep these trends in mind to remain competitive, whereas job seekers should focus on developing the necessary skills and harnessing digital tools to stay relevant and successful in a more balanced and future-ready work environment,” Haddad said.

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Is the UK on the brink of becoming a tech superpower?

Tech firm reveals the top ways to reach out to entry-level talent

With the Chancellor’s recent pledge of £3.5 billion to support tech – there’s never been a more exciting time to enter a career in technology.

By investing in attracting and nurturing new talent, tech companies can secure their position as industry leaders and ensure a sustainable future amidst evolving technological landscapes. The success of tech companies relies on their ability to attract and harness the potential of new talent, thereby fuelling innovation, fostering growth, and driving technological advancements for the benefit of society.

Following a stratospheric revenue growth of over 750% from £267,000 in 2018 to £ 2.3 million in 2022, UK tech firm, Talk Think Do has come up with six routes to reaching entry-level talent:

 Early exposure: Businesses can utilise careers fairs to reach out to students, apprentices, and graduates, interested in tech, via coding events, or tech-related workshops in schools and community centres.

Make tech relatable and relevant: UK tech firms can demonstrate how technology impacts daily lives and solves real-world problems, via work experience placements. Helping students work on real-time projects can bring concepts to life. Companies can tap into students’ interests and demonstrate how tech is used in; healthcare, entertainment and environmental sustainability.

Offering a mentorship programme: Team members can mentor students, graduates, and apprentices by providing shared experiences, career paths, and insights – demystifying the industry and boosting confidence. This can be promoted on LinkedIn to share programmes with other professionals in their network to initiate positive conversations.

Embrace AI: Teaching students how AI can be a highly marketable skill when used correctly, is invaluable – putting the tech company in a strong position to attract talent and become thought leaders in the AI space.

Diversity and inclusion: Proactively reaching out to underrepresented groups, including women and minorities, to pursue tech careers. Ideas include; using blog posts and case studies; showcasing successful, relatable role models in tech.

Highlight career prospects and opportunities: Using social media to present visuals – bringing employees’ potential career pathways to life for those new to the sector can paint a clear picture of opportunities available and give tech companies a competitive edge.

Promote free learning and development: Entry-level talent are looking for support and training on the job, and illustrating the availability of online resources, courses, and certifications through online literature, downloadable PDFs and infographics can effectively communicate this message. Offering free information opens new conversations with those looking to advance their understanding of the tech industry.

Matt Hammond, thefounder of UK tech firm, Talk Think Do, said: “Technology is constantly evolving, with new programming languages, frameworks, and tools emerging regularly. To keep pace, organisations need a continuous influx of talent that adapts quickly and brings a fresh understanding of the latest technologies. Attracting entry-level talent fosters diversity and inclusion, which is crucial for the tech industry’s success.”

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Retention of over-50s rises up employers’ agenda

Employers embrace strategies to retain older workers

According to a recent study conducted by insurance company Aviva, employers are increasingly focused on retaining older workers, with 10% of them implementing new initiatives over the past year.

The research uncovered various schemes aimed at supporting older employees, including apprenticeship programmes, mid-life MOTs, job-sharing arrangements, and opportunities for “part-tirement” (semi or partial retirement).

A significant majority of employers, 76%, acknowledged the importance of retaining workers aged over 50, with 32% of them emphasising its high significance. Debbie Bullock, the Head of Wellbeing at Aviva, emphasised the crucial role of employers in supporting older workers during this time.

In an interview, Bullock stated, “People between 50 and 64 are increasingly economically inactive, but we are also facing a skill shortage. UK vacancies have fallen slightly in recent months but they are still high, so you have to be on the top of your game as an employer to attract and retain talent.”

Research conducted by Age UK in February revealed that there has been a significant increase of 320,000 in the number of individuals aged over 50 who are not part of the workforce but are of pre-retirement age. This concerning trend highlights the urgency to address the issue.

To address the situation, the government introduced a ‘Back to Work Budget’ in March, allocating £70 million to support over-50s in staying or reentering the workforce.

Bullock reiterated the need for employers to align the employee experience with the challenges faced by individuals aged over 50, both at work and in their personal lives. Flexibility emerged as a key factor, with older workers seeking options such as part-time employment or job sharing to accommodate responsibilities related to caring for older relatives or grandchildren.

Additionally, employers should carefully consider their reward and benefit packages, particularly in terms of promoting well-being. Many older workers experience musculoskeletal conditions, and support for menopause is crucial as it often becomes a reason for women leaving their jobs.

Bullock cautioned against the misconception that older workers no longer desire additional responsibilities or opportunities for career advancement. She highlighted that success for many older workers can be found in a sense of purpose and satisfaction in their contributions. Retaining such employees often involves providing them with enjoyable roles, which may include transitioning into different positions and necessitate reskilling. Bullock emphasised that learning new skills, whether through apprenticeships or other avenues, is not limited to younger workers alone.

The research was based on interviews conducted by Censuswide between May 3 and May 5, 2023.

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