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Acronyms
CWM (Contingent
Workforce Management)
- umbrella term typically used
to refer to the combination of software and services that help
streamline temporary staffing processes. (As defined by
Forrester Research, Inc.)
ERISA (Employment
Retirement Income Security Act)
- A federal law
that governs pension and welfare employee benefit plans. Sets
guidelines for these programs. A group of complex and extensive
law governing employee benefits.
FUTA (Federal Unemployment
Tax Act)
- The term used for the
payroll tax every employer must pay under this Act. This tax
cannot be withheld from the employee's pay; it is solely the
responsibility of the employer.
MSP (Managed
Services Provider)
- An MSP provides value-added services to
help streamline the procurement process, acting as a broker to
multiple staffing companies, performing background checks,
processing requisitions, and managing the time and expense
tracking workflow. MSPs can also assist in a more strategic way,
helping with demand forecasting, organizational assessments, and
employee development. (As defined by Forrester Research, Inc.)
Saas (Software
as a Service)
– software which is accessed via the Web
by end users
SUTA (State
Unemployment Tax Authority)
- A form of payroll tax
each state requires employers to pay for their workers.
SUI (State
Unemployment Insurance)
- Each state imposes a
payroll tax on the employer for unemployment benefits. The tax
ranges from 1% to over 5% of each dollar of payroll. The
employer is entirely responsible for paying the tax; it cannot
be deducted from the employee's pay.
TAM (Talent Acquisition
Management)
– A holistic approach to
optimizing human capital, which enables an organization to drive
short- and long-term results by building culture, engagement,
capability, and capacity through integrated talent acquisition,
development, and deployment processes that are aligned to
business goals." (As defined by the American Society for
Training and Development)
VOP (Vendor on Premise)
- Outsourcing arrangement where a full-time
staffing coordinator administers the entire outsourcing process
for the client: interviewing, testing and screening applicants,
filling job assignments, issuing payrolls, providing on-site
management of the department.
VMS (Vendor
Management System)
- At the most basic level, this
is the software that hiring managers use to open new
requisitions and evaluate candidates. Staffing firms use the
software to respond to requisitions with a shortlist of
candidates, check on the status of submittals, and update bids.
Additional VMS functionality includes time entry, consolidated
invoicing, and performance tracking.
Spend
Bill Rate
– the rate billed by the supply firm for providing a contractor
Pay Rate
– the rate earned by the contractor as their pay
Mark-up -
The percentage that the client company bill rate is greater than
the contractor salary. For example, if the hourly bill rate is
$30.00 and the hourly salary is $20.00, the mark-up is 50%.
Margin -
Dollar amount difference between the client company bill rate
and the contractor salary. For example, if the hourly bill rate
is $30.00 and the hourly salary is $20.00, the margin is $10.00.
See also "mark-up".
Rate Card
– this allows companies to designate an appropriate rate based
on pre-selected criteria such as job description or general
skill set. Rate cards often include a pay rate, the appropriate
mark-up, and the calculated bill rate.
Sourcing
Payrolling
- A term primarily found in the temporary help
literature. Refers to situations where all or a portion of a
client’s employees are on the payroll of a staffing firm but
working at the client’s location. The client company may want to
screen or interview the employees because of safety or
experience requirements, but they do not want the recordkeeping
obligations associated with payroll and withholding.
Traditionally, a recruiter does not locate a payroll candidate.
Sole-Source
- One "source" or means of acquiring all of your staffing needs.
Commonly referred to as Sole-Source Supplier which allows a
client company to go to one recruiter (firm) for all their
staffing needs. (Permanent, Temp-to-Perm, Contract, Payrolling,
Etc.)
Vendor Neutral
- a firm that is completely impartial in it's
relationships to suppliers
Workforce Process
Contractor
- Employee of "staffing company" who provides services to
a "client company" under the day-to-day supervision of the
client.
Full Life-cycle
Recruitment - The process of recruiting workers from
recruitment to on-boarding to off-boarding
Risk
Co-employment
- The employment relationship where two or more legally
separated employers share potential or actual employer
responsibilities with a common employee[s].
Independent
Contractor - An independent contractor provides services
to a company, but is not an employee of that company. The
company pays the independent contractor without withholding
payroll taxes or paying the employer's share of payroll taxes.
An independent contractor has the right to decide how the work
will be done and may hire others to assist or do the work.
Independent contractors also do not receive wages. Independent
contractors are under intense scrutiny from the IRS and states
because of abuses costing billions of dollars of taxes.
W-2 vs. 1099MISC
- At the end of each year, workers either receive a Form W-2 or
a Form 1099MISC. An employee receives a W-2 and has all required
payroll taxes withheld throughout the year. An Independent
contractor receives a 1099 and has no payroll taxes withheld.
Technology
Back Office - handles the administrative duties and
payroll functions of a contract placement. Administrative duties
include: legal contracts, insurance requirements, employee
forms, paperwork, etc. Payroll functions include: funding,
taxes, unemployment, workers’ compensation, etc.
Business Intelligence
Business Intelligence - Business intelligence (BI) is a category of applications and
technologies for gathering, storing, analyzing, and providing
access to data to help end users make better business decisions.
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