CXC Global Asia

Hiring contractors – Engaging talent

2 engaging talent

When it comes to placing contractors after they have been sourced, many companies either directly engage them or engage via a Recruitment Agency.

Without the necessary back office capability to effectively take care of payroll, superannuation, legal issues and debtors, both these options are a long way from best practice.

This is where a specialist Contractor Management Organization (CMO) can play a vital role.

Rely on specialist knowledge

CMOs make a full-time business of engaging and managing contractors and have the necessary skills, knowledge, systems and insurances to reduce company liability. Typically the service is available for a fraction of the cost charged by Recruitment Agencies.

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contractor engagement


Some of the services offered by a CMO include:

  • Reporting recruiter margins
  • Reporting rates by skill level
  • Provision of on-line timesheets with management reporting
  • Specialist payroll management services
  • Protection via quality processes and insurances to mitigate customer risk
  • Multiple remuneration structures offered to the contingent worker
  • Larger CMO companies can payroll internationally and add value with services like salary packaging. Using this structure, contractors can enjoy substantial tax advantages

Mitigate your risk

In addition, and perhaps most importantly, a CMO can provide advice and help reduce risk. Here are just a few areas:

  • Employment mis-classification. Risks associated with definition of ’employer’ and cross claims for employee entitlements
  • Statutory requirements. Assumption of risk associated with workers compensation OHS and common law obligations in respect to a safe environment
  • Employment requirements. Risks associated with base pay rates, benefits and entitlements
  • Fiduciary. Recruitment Agencies being placed into receivership resulting in contractors not being paid

Integrate business systems

A CMO provides value for their clients with their ability to link into existing business systems, providing a seamless gateway for accessing business intelligence and managing information.

Learn more about contractor management

Download free eBook

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Our free eBook will give you insight into managing a more flexible workforce and provide best practices to source, engage and manage contractors.

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