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The Road Ahead for contingent workforce management in 2013

By Raj Sesha, CEO SDP.
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As we proceed into a New Year, some of us may feel the pinch on profit margins. Last year the market saw a steady and stable development, however some recruitment agencies still faced cash flow challenges which hindered their growth opportunities. The year ahead may bring some level of uncertainty; however it is imperative not to dwell on the negatives but to look at new and improved ways of doing things. With some industry professionals forecasting that Australia will continue a steady economic growth for 2013, there is some hope that opportunities will arise and that there will be generation of jobs. It is therefore crucial that recruiters maximise their cash flow, and seek to improve back office systems, where necessary, to withstand these prospects.
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Contingent Workforce management: Adapting and embracing new changes

The recruitment sector has survived one of the toughest years on record, and with entering into a New Year there is still a level of uncertainty as to whether market conditions will improve. With uncertain market activity, there are increasing trends of the contingent workforce and in many industries they are being used in greater capacity, as the benefits become more widely recognised. With some industry observers forecasting that Australia will post steady economic growth in 2013; the market is seen as being stable and over the past two years employment rose by half a million. This forecast suggests scope for the employment market, with the generation of jobs and increased opportunities for the recruitment industry to grow.
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News: Payroll experts warns Australian companies at serious risk (source: riskmanagementmagazine.com.au)

A large number of Australian companies are at risk by being non-compliant and not meeting statutory requirements. The news item is below:

According to the head of the peak payroll body, an alarming number of Australian companies are non-compliant and not meeting statutory requirements, putting employers at risk. This is compounded by companies using inefficient payroll practices, and having unqualified staff to manage what is a very complex process.

Australian Payroll Association (APA) managing director Tracy Angwin, sounded a warning to company directors, chief financial officers and HR managers over the urgent need for all businesses to come up to speed on their payroll obligations or risk serious consequences, including substantial penalties and brand damage. “The fact is that most businesses are not taking their payroll obligations as seriously as they should be, and are failing to leverage payroll as an asset of the organisation,” Angwin commented. “We can see that through payroll disasters, such as the rollout of Queensland Health’s flawed payroll system, which could ultimately cost taxpayers up to $1.2 billion, and the $20 million payroll fraud at retailer Clive Peeters.”
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