1099 Risk Blog

Leadership Excellence in Government Highlights Federal Hiring Reform and Insourcing

The new issue of the Leadership Excellence in Government highlights the latest issue among government talent and HR executives: hiring reform. Ever since a May 11 memo by President Obama, Federal talent leaders have been scrambling to change hiring practices to radically transform the way agencies engage talent. These changes come on the heels of another memo, the in-sourcing initiative, which has put pressure on the federal departments to evaluate what work is outsourced to contractors (including independent contractors, government integrators, consulting firms, and other services vendors) and to make changes in order to maintain the integrity of the . . .

Read Post >

New Study Results: Secrets of Successful Contingent Workforce Management Programs

According to the Aberdeen Group, the use of contingent labor -- including independent contractors, SOW consultants, and temporary employees hired on a contract basis -- has increased 20% over last year. Clearly, contract labor is in demand as companies struggle to emerge from the recession. But this increase in the use of contingent workers presents challenges, too. Costs can spiral out of control, the quality of the talent can suffer, and businesses can become exposed to tremendous risks should the use of the contingent workforce fail to meet compliance and regulatory requirements . . .

Read Post >

Contingent Labor Brings Significant Savings, Research Finds

As we settle in for an uncertain and lumpy economic recovery, everyone is looking for savings. And the word on the street is using contingent labor -- defined broadly to include staff augmentation, independent contractors, SOW consultants, and temporary workers -- saves businesses money. But conventional wisdom isn't always right. As Edward Deming once said, "In God We Trust, all others bring data." Staffing Industry Analysts just published their data benchmarks with the following statistics for annual savings attributed to the contingent workforce . . .

Read Post >

Aberdeen Study Proves ICES Compliance Results

Contingent labor is a reliable strategy to overcome tough economic times. However, enterprises must ensure they are mitigating the risks of using contract talent, in particular with independent contractors, according to a new contingent labor report by Aberdeen Group. The contract workforce report found organizations using an Independent Contractor Engagement Specialist (ICES) are capturing 55% more independent contractor spend through their contingent workforce management program, and driving an independent contractor compliance rate 40% higher than average. By using an ICES vendor . . .

Read Post >

ROI in Enterprise Contract Talent Management

The contingent and contract workforce is both large and important. Yet, in most organizations, it is loosely managed and all but ignored by HR. Are you able to track SOW consultant spend? Is co-employment risk managed? How much does centralized Contingent Workforce Management cost, and is there a return on investment for organizations doing it? If you’re curious to know the costs and benefits of a centrally managed contract talent program, or learn how organizations are saving millions of dollars on their contract and contingent workforce, download this report on the ROI in Enterprise Contract Talent Management.

Read Post >

New GAO Report on Misclassification Sets the Agenda

The GAO recently published a new report on worker classification, and here it is in full text for you: GAO-09-717 Employee Misclassification: Improved Coordination, Outreach, and Targeting Could Better Ensure Detection and Prevention. It seems that the leadership of DOL, OSHA, and IRS agree with the recommendations, and there is energy for the reform of independent contractor classification and compliance. The congressional requesters were Senators Kennedy (may he rest . . .) and Durbin, and Representatives Woolsey and Andrews. This bodes well for H.R. 3408 or similar to make progress . . .  

Read Post >

New Study Underscores Risk of Using Independent Contractors

With the nation facing the toughest economic times since The Great Depression, enterprises are being forced to reevaluate their current labor needs and implement alternative workforce strategies to effectively drive performance without sacrificing time, cost, or quality. A new study released by Aberdeen offers the latest benchmarks and numbers surrounding the use of contract labor, and in particular the risks and challenges for managing the growing sector of independent contractors.  Contract talent, also known as contingent labor, is a multi-faceted category that includes independent contractors and known for its complexity and risks. In 2009, enterprises will do their best to face a demanding economic environment and succeed in their respective contingent labor programs by driving performance from outside experts (managed service providers), automation (vendor management systems), and superior management of independent contractors via Independent Contractor Compliance and Engagement Specialists (ICES) like MBO Partners.

Read Post >

Latest E-Verify Legal Research

The latest legal update on E-Verify compliance for government contractors is now available. Jointly produced by Michael Best & Friedrich LLP and MBO, E-Verify Requirements for Contractors offers a groundbreaking preview of the shape of new regulations to come. In June, Bush signed an Executive Order mandating E-Verify I-9 checks for persons working on government contracts -- both new and existing workers. E-Verify raises sticky issues when it comes to sub-contractors, small vendors, and independent consultants performing work for federal contractors. Even more attention-getting is the risk of getting it wrong -- failure to comply can lead to penalties ranging from fines to debarment from federal contracting. As was revealed at our briefing on Friday, your E-Verify program is only as good as your contractor classification. If you're exposed to contractor reclassification risk, then for every misclassified contractor, you have a de facto employee working on a government contract who you have not E-Verified. But don't take my word for it -- check out the paper, run your own research, and send our your comments and feedback.

Stay tuned for the most up to date info regarding E-Verify. The comment period is closed, and detailed instruction is expected to be released as soon as November.

Read Post >

New GAO Report: Contractors as Contract Specialists

The GAO released a new report yesterday highlighting the use of contractors to serve as defense contract specialists, managing procurement. In just a few short years -- since 2003 when the Center for Contract Excellence (CCE) began using contractors in this role -- their contractor population has swelled to 42% of CCE's contracting force.

Get the report here:

GAO-08-360 Defense Contracting: Army Case Study Delineates Concerns with Use of Contractors as Contract Specialists

Read Post >

Intuit Future of Small Biz Report

The third installment of the Intuit Future of Small Business Report has arrived. A wonderful read, and all three papers in the series are worth consideration.

Download the paper, The New Entrepreneurial Economy.

Read Post >