Happy April everyone! With the first Friday of the month comes the release of the Bureau of Labor Statistics' March unemployment data, and some not-so-terrible news to kick off the second quarter. In March, the labor market experienced the largest job gain in three years (though, admittedly, it did fall short of the number of additions expected). The unemployment rate held steady at 9.7 percent. And 40,000 temporary workers were hired, bringing the grand total since September 2009 to nearly 313,000.
Speaking of non-permanent employees, consider this:
Contingent Workforce Strategies 30: Estimated Total Expense Savings Due to Use of Contingent Labor. A study by Staffing Industry Analysts found that for most companies, using contingent labor saves money. The chart on the right demonstrates the approximate cost savings for participating organizations.
CNNMoney: Auditors crack down on 'independent contractors.' This article takes a closer look at the initiative launched by the IRS to randomly examine independent contractor classification and usage at 6,000 companies. It also reports on two companies' experiences being audited. An interesting read to see exactly what the IRS is looking for.
Bottom line? Make sure you truly understand the qualifications and definition of an independent contractor. Your organization could benefit from adding them to your workforce mix, but if you're not careful, you could also put yourself at risk.