NetHire News is published monthly and emailed to recruiters, HR professionals and managers with hiring responsibilities. It contains information on the latest hiring trends and best practices - particularly in the areas of online and social media recruiting.
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Independent Contractors: Right for you?
 In our May NetHire Newsletter we discussed how society judges the health of the economy relating to employment. Our opinion was that we cannot judge today’s economy based on pre-recession employment levels. We pointed out that during tougher economic times over the last few years employers were forced to adjust to working with a smaller core of workers and as such their businesses fluctuated and now work more efficiently with a smaller core workforce. We suggested that using the pre-recession economy as a benchmark is pointless, as new realities faced every day by employers need a new frame of reference. Independent contractors provide an employment solution that fits with current economic realities.
Independent contractors (ICs) fit this standard by providing flexible and transferable skills. ICs are self-employed individuals or groups who contract themselves out to one or more companies on an as-needed basis. They are, in a word, independent of the employer. Comparatively, a contract employee (CE) is a person working under a contract and who is an employee of a company but without all the benefits. CE’s usually work on fixed term contracts, and are often used to fill maternity leave periods, complete projects or to fill in for peak periods.
ICs are attractive as workers because of the flexibility and cost-saving potential they provide: employers who have fluctuating workloads can benefit from ICs for employment lasts only as long as the need does, the employer is not responsible for matching EI and CPP contributions, and there are fewer legal obligations. Time and money is also saved on training, as you would be hiring experts in the field.
The down sides to hiring ICs is that you have less control over the work as you would if they were an employee, quality of work can be uneven and your control over the IC's workforce is limited. Having a revolving door of ICs can also be disruptive to your own work or other employees and can be hard to organise.
While ICs are a great way to find the skills you need short-term for your business, there are serious financial consequences if you misclassify the business relationship. If you claim someone as an IC, but the government finds they are actually an employee, you will be responsible for paying back-dated benefits. There are certain criteria that need to be filled for an individual to be considered an IC as opposed to a contract employee. In Canada there is a four-point test to determine if someone is an IC or a CE.
1) Control – Who will have the right to control extra hiring and firing, the type of work, how and when work is completed, and determining wages? If you are hiring an IC he or she will have control over these issues, if you are hiring a CE then you will have control.
2) Tools – Where is the money for investment in and maintenance of tools coming from? An IC will provide their own tools, whereas you will provide tools for an employee.
3) Profit and Risk – Who has the potential to make a profit or risk losses, i.e. because of delays, damage and operating costs? If you are the one to make or lose a profit then you are in an employer-employee relationship.
4) Integration – Are you integrating into their services, in other words are you their client? Or are you integrating the worker into your projects, taking them on as an employee?
It is important to identify whether an IC, CE, fullt ime or part time employee fits better into your business structure, so you can find qualified candidates as well as establish the appropriate relationship with your workforce. These criteria should be taken together, and are by no means concrete in defining the type of employment relationship.
In our current economic landscape, simply increasing job growth isn’t enough to create a healthy employment environment. If there are not enough of the right people to fill the new jobs, there will be no economic growth. It is important to look at the type of employee you want, and to clearly specify the skills you require. Obviously not all positions can be filled by short-term contracts, but independent contractors are one way to address your employment needs and offer relief to acute skill shortages.
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Effects of the US Federal Reserve’s Stimulus Plan
On Thursday, September 13th the US Federal Reserve announced that it would take new measures to stimulate the American economy. Under these new measures, which are the third wave in the quantitative easing plan (QE3), the Federal Reserve will buy $40 billion worth of mortgage-backed securities per month, with no set end date. Short-term interest rates will also be kept low, to maintain higher levels of funds available for spending. Combined with the current stimulus plan, the Federal Reserve will be spending roughly $80 billion per month, until at least the end of the year.
The QE3 measures are intended to keep interest and mortgage rates low, which will increase available funds and stimulate spending. Stocks will surge as a result of the investment, creating an increase in returns, further stimulating spending. Economic growth is expected to accelerate over the next few months as a result of the increase in available funds, investment in the real estate sector and low interest rates. The growth will in turn fuel hiring, easing unemployment.
What do these plans mean for the Canadian economy and hiring?
The Canadian economy is inexorably linked to the American Economy, and indeed has already responded to the announcement of the new stimulus plan. The day of the announcement the dollar was strengthened and the TSX closed at a higher rate than anticipated. As small businesses in the US benefit from the low interest rates and increase hiring, Canada’s economy will benefit from a recovering American economy.
A growing Canadian economy means that there will be challenges surrounding recruiting. A strengthening Canadian dollar may impact the manufacturing industry. However, the increase in demand for products internally due to a growing Canadian economy should offset any loss in the export market. As the economy expands commodities will become more in demand and there will be greater need for skilled workers, which will in turn increase the skill shortage that Canada is currently experiencing.
The Federal Reserve’s stimulus plan and a strengthening American economy will mean that Canadian companies, for the most part, will be busier but will need to be strategic about recruitment. Employers that focus on training and programs to have staff ready as they grow will be the best prepared for the coming hiring challenges. A growing skill shortage also means that companies like NetHire will be needed to match qualified candidates with employers.
So as the stimulus plan takes hold, and the economy shifts and grows, it is important to plan out your company’s next steps in hiring and training.
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Change Your Hiring Process to Find Great Candidates
A new study has found that today’s high unemployment rate is influenced by poor hiring practices by employers.
The study, sponsored by SmartRecruiters, found that over half of employers have, at least once, given up trying to fill a vacancy because finding a qualified candidate was too difficult. In the US, there are 13 million unemployed workers, yet there are still 3.8 million unfilled job openings. In Canada there are over 300,000 jobs that have been open for four months or longer. These vacancies are in part due to the imbalance between workers’ skills and the jobs available. However, lengthy and convoluted hiring processes were found to dramatically decrease the likelihood of finding the right employee. Add to the ungainly recruitment process an unrealistic view of the perfect candidate, the chances of either not hiring anyone or settling and hiring the wrong person greatly increase. Hiring managers get discouraged with the lack of results and give up or make a desperate hire.
The study found that if the hiring process was shortened and made easier, either by allowing job seekers to apply through social media, offering a mobile application process or removing the need for a job seeker to enter a user name and password for every company they apply to, roughly 50 per cent of job seekers would be more likely to apply to a job.
By tailoring the hiring process to appeal to and draw in candidates you will receive more applicants and ultimately be able to make a faster and more informed hire.
NetHire can help you improve your hiring process. Contact a NetHire account manager today to find out how we can help you extend your job posting beyond traditional posting methods to find the right candidates for your opening.
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External Effects on Employment Numbers
We all know that employment numbers are far from concrete: they are adjusted seasonally, change depending on what information is available, and don’t always represent everything that is happening in the employment landscape. Elements beyond the number of job openings, the number of those who are unemployed, and the number of people who sought unemployment benefits influence the various rates economists use to determine the health of employment in the country, and autumn is full of these external factors.
Weather, if extreme enough, can influence the employment landscape. Major snowstorms or the lack of snow, floods, droughts, tornados, forest fires, extreme heat, extreme cold as well as other meteorological events effect employment numbers. September is the height of the hurricane season in the US Gulf Coast and for Canada’s maritime provinces, which can impact hiring and unemployment numbers. Indeed, many economists claim that the jobless rate spike in the US that occurred at the end of August was due to Hurricane Isaac, rather than a weakening economy. Isaac disrupted work in 9 states, pushing claims for unemployment benefits higher than anticipated.
September also marks the end of summer. With people back to work and students back to school there will be a shift in the labor force. There will be fewer students who are employed or looking for work, an increase in job openings students occupied in the summer and an increase of people entering the job market as kids return to school and parents are able to go back to work. Typically, this shift in the labor force means that the hiring market tightens in September. As the holiday season fast approaches, employers are increasing hiring for the holiday season push, further tightening certain segments of the labour market, especially the retail sector. This year with Target and other US retailers entering the Canadian market and looking to hire thousands of workers, the hiring market is getting more challenging. Any further external events that would further tighten this segment of the market could make finding quality people almost impossible.
Higher or lower unemployment numbers or jobless claims are not always a direct result of a weakening or strengthening economy. External factors, the time of year and cycles in hiring, can swing rates up or down on a monthly basis, making it important to take all these factors as well as the wider social context into consideration when judging the health of the economy in general and hiring and employment in particular.
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Canada’s Largest Job fair in Toronto October 16-17
Canada’s largest Job fair is coming to Toronto again.
The National Job Fair and Training Expo rolls into Toronto October 16-17th at the Metro Toronto Convention Centre. This is the largest show in Canada with over 500 recruiters on hand and well over 10,000 job seeker attendees.
The National Job Fair provides an exciting opportunity for employers looking to recruit qualified candidates.
NetHire will be there and we have an exclusive opportunity for NetHire clients: You can have your jobs marketed at the show on 6 feet by 2 feet posters with resume boxes to collect all applications. We will also have staff on hand to discuss your opportunities with prospective candidates and take their resumes for you.
Talk to a NetHire account manager today about Job Posting and Poster Specials, Multi-City Hiring, and more!
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Unemployment Statistics
CANADA
The August job report beat all expectations. Over 34,000 jobs were added, more than making up for the lower than  anticipated job gain in July. The unemployment rate stayed at 7.3 per cent despite the huge increase in jobs added, due to a large number of people entering the workforce.
USA
There were more applications for unemployment benefits than anticipated, although that rate was influenced by extreme weather. The unemployment rate fell to 8.1 per cent this month, down from 8.3 per cent in July. However, the drop in the rate was largely due to people dropping out of the labor force. Despite these numbers, more Americans are feeling optimistic about the economy, according to a recent Ipsos poll.
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September Hiring Specials
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Postings good for use for up to 6 months.
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5 Hourly Non-Skilled Job Postings $497.50 – Save $497.50
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10 jobs posted within 48 hours of purchase. All are 28 day postings.
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Excellent for jobs you are always hiring for, or if you always want to know about new top talent. Reposted every 14 days to remain at the top of results.
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150 Job Postings to use over the next 12 months and beyond as they never expire!
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Post 10 jobs monthly. Plus AMS, Facebook App and Career Page Insert. Annual agreement, cancellation 60 days written notice. Additional Job Postings $99.50 each.
6. New! - Pay per click – Only $19.99 to post the job and $0.49 for each person who clicks and reads the job posting. First 100 clicks FREE.
Pay only for prospective candidates who click and read your job posting.
New Clients – Please Try Us – you will be impressed **
Try Us Promo 1. Buy any job Posting and Get 1 FREE
Buy any one job posting and get another of equal value FREE. Good for use up to 90 days after purchase.
Try Us Promo 2. 5 Max Exposure Job Postings posted at one time - $999
5 Max Exposure Job Postings, posted all at one time.
**New clients only.
New! Our Applicant Management system is now included with all job postings and packages!
All applications stored in your account for 2 years.Allow 1 or any number of recruiters to share in any number of configurations with different levels of accessRate each candidateMake notes on each candidateTrack each candidate through the hiring processFilter resumes by keywords without ever opening a resume
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NetHire is a hiring process. It includes profiling and benchmarking to create a job description that targets the ideal candidate and then uses the entire Internet including social media, search engines and
hundreds of job boards to reach out to those qualified people. In turn, you get the best candidates
in the right area, even for the hardest to fill positions in Canada or the US. NetHire puts your open job postings in front of more of the right people than any single job board or newspaper in Canada or the US.
If you have suggestions for content or inquires regarding this newsletter please email editor@nethireinc.com.
If you would like to post a job immediately or speak with an account manager regarding your hiring and recruiting needs please contact us.
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