In recent years, the Canadian workforce has seen a significant increase in the number of contingent workers. Approximately 45% of the Canadian workforce is made up of contingent workers.
While building a contingent workforce can be an effective strategy for many companies, it's important to do so in a way that is compliant with Canadian laws and regulations.
Here are some tips for building a successful contingent workforce in Canada.
What is a contingent worker?
Let’s start with the basics. A contingent worker is an individual who is hired by a company on a temporary or part-time basis to complete specific tasks or projects. Unlike full-time employees, contingent workers are not permanent members of the company and are often hired for a set period or until a specific project is complete.
Contingent workers can be independent contractors, freelancers, consultants, or temporary workers hired through staffing agencies. They may work on-site or remotely and are typically paid for the hours or projects they complete. Contingent workers offer businesses the flexibility to hire skilled professionals on a project basis, without committing to long-term employment contracts. This arrangement allows companies to quickly scale up or down their workforce in response to changing business needs while reducing labor costs and administrative burden.
If you’d like to learn more about contingent workers, you can read our last article.
Work with an Employer of Record
Employers of record (EORs) are the new trending topic. If you have a business and you’re looking to build a contingent workforce in Canada, this might be your solution.
One major benefit of using EOR services is that it can help businesses mitigate the risk of misclassification of workers, which can result in crazy fines and legal penalties (luckily, an EOR helps you mitigate risk and stay compliant).
EORs can provide a streamlined process for onboarding, managing payroll and benefits, and handling compliance issues, which can free up resources and allow businesses to focus on their core competencies. EORs can also offer a level of flexibility when it comes to hiring contingent workers, as they can manage short-term contracts or help businesses scale up quickly without the need for a large HR team.
Using employer of record services can help businesses build a reliable and compliant contingent workforce in Canada while minimizing risk and maximizing efficiency.
Understand the laws and regulations
If there’s something we've learned working with our Canadian clients is that one of the most important steps in building a successful contingent workforce in Canada is understanding the laws and regulations that govern the use of temporary or contract workers. These laws vary by province and can include regulations around minimum wage, hours of work, overtime pay, and more. It's important to consult with legal experts to ensure that your company is in compliance with all relevant laws and regulations.
Working with an Employer of Record (EOR) can be especially valuable for businesses that may not have the resources or expertise to navigate the complex landscape of Canadian employment laws and regulations. EORs can provide guidance on best practices for managing a contingent workforce. By partnering with an EOR, businesses can rest assured that they are following all necessary protocols and can focus on their core business operations. This can help mitigate risk and avoid costly fines or legal penalties that can result from non-compliance.
Develop a strategy for managing contingent workers
Another key to building a successful contingent workforce is developing a strategy for managing these workers. This can include everything from recruiting and hiring to training and development, as well as setting expectations around work quality and deadlines. It's important to treat contingent workers as valuable members of the team, providing them with the resources they need to be successful.