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Is your rate card too low?; Solving the broader labor problem

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Contingent Workforce Strategies 30, September 15, 2010

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Pricing Strategies
Knowing when you've gone too low on pay rates
By Bryan T. Peña

Feature Photo Last year, we had to cut back on contingent staff dramatically, while asking our suppliers to reduce rates and cut worker pay rates. This year, there is a continued expectation for saving money, but I'm concerned that we have cut as much as we can. We are seeing an increase in usage and I expect that to continue for some time, so I'm concerned that last year's price cuts may have an overall negative effect on our program as the competition for talent increases. How do I know when my rates are too low?

Contracts and pricing strategies are favorite topics of mine. I speak to 30 or 40 contingent workforce managers a week, and the number one concern in the past year was, "How can I save money?" I am excited to be addressing my favorite topic, but at the same time, my warnings about the consequences of too-drastic cost reductions often fall on deaf ears. Don't get me wrong, I like helping other CW managers ...

Follow CWS 30 Editor on Twitter: subadhra CWS

Hear Shot "More and more clients want to consolidate their supplier base. It's no longer about temporary labor. It's about solving the broader labor problem.."

-- Seth Steven Hinckley, president and chief operations officer, Adecco Solutions

Data from Staffing Industry Analysts, the publisher of this newsletter, reveals that customers are looking for...

Talent Shortage Survey

July 2.14 Benchmark

Germany: No Facebooking prospective applicants
If, as an employer, you use Facebook to check prospective applicants, think again. A pending law in Germany makes it illegal for companies to examine candidates on Facebook and other non-career focused social networks. Strangely enough, it’s legal to “Google” them ...

Oh No! More IC Compliance
In July, the New York State Assembly introduced a new, tougher independent contractor or 1099 compliance bill (A11649). The proposed law would:

• Significantly increase the penalties for "knowing and intentional" independent contractor (IC) misclassification. ...

Staffing Industry Analysts' Products and Services

Developments in the European Legal Environment for Contingent Work.

Learn about the hottest legal issues in Western Europe and find out how they impact contingent workforce management. The legal environment for contingent work is changing rapidly. From court rulings to new legislation to changes in regulations, the flow of new information to keep up with can be daunting. Just ignoring those changes can be costly to you and your contingent workforce program if you aren’t prepared. ...

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CONTINGENT WORKFORCE STRATEGIES 30 is published bimonthly by Staffing Industry Analysts and is delivered to buyers of staffing services. For change of email address write to subservices@staffingindustry.com or call 1-800-950-9496.

To contact the editor, please e-mail Subadhra Sriram or call 650.390.6194.

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