Presented by John Smith of CXC Global at the 2017 PG Customer Summit in Nashville, TN

1. Global Engagement in the Gig Economy:
Freelancers, Independent Contractors &
Corp-to-Corps
John Smith, Managing Director – Americas

2. #PGCustomerSummit
72%
60%
39%
of companies
plan to
increase
their
international
share of
business
of companies
say their
international
planning will
increase
of US CEOs
plan to
complete a
cross-border
M&A in the
next year
Companies Seek Global Growth

3. #PGCustomerSummit
Why are these trends important?
5 Billion internet users
in next 5 years
Smartphones, Tablets
widely used globally
for payment
transactions
1.1 M Foreign Students
at USA Colleges &
Universities
For Profit Universities
expanding recruitment
and campuses globally
US companies are
acquiring global
companies & increase
product & Services
footprint
Workers are
increasingly accepting
of
contract/gig/freelance
work vs full time jobs

4. #PGCustomerSummit
U.K. Brexit – Hot Topics
• Current EU framework provides for mobility of labor
• Loss of skilled workers from EU countries
• 2.1M workers in UK from EU countries
• UK Blue Collar workforce is dependent on EU
workers
• UK based Recruitment firms source talent from EU
would be impacted
• EU Countries reaction could also restrict UK workers
U.K.

5. #PGCustomerSummit
U.K. Brexit – Hot Topics
• UK already in IT talent skill shortage
• Movement of delivery and service centers out of the
UK
• Renegotiation of contracts due to regulatory changes
• VAT & Tariff implication on export / imports
• Currency volatility
• Other countries following UK lead
U.K.

6. #PGCustomerSummit
Gig Economy – Self Employed / Freelance
46%
of employers expect at least 20%
of their workforce to be
contractors by 2020
30%of employers have
incorporated this into their TA
strategy
Less than
The majority of talent
acquisition does not plan
for the gig economy
$63B
Industry value projection of the gig economy by 2020 Percent of millennials who see themselves working
“independently” during their career:
Source: Personnel Today 70% Source: Inc.cm

7. #PGCustomerSummit
Gig Economy – Self Employed / Freelance
Risk Mitigation – Act like a
business & be treated like one!
Control Test
•What to do vs.
how to do it!
Ownership of
Tools Test
•Who supplies?
Chance of
Profit or Loss
•Risk assumed?
Integration
Test
•Integral part of
client’s business
or an accessory?
Detailed
written
contract Contractor conduct

8. #PGCustomerSummit
Global – Contractor Landscape
•Major changes to treatment of UK contract workers
•IR35 - Contractor taxation / expense recognition
•End users can be held liable for unpaid taxes, debt transfer
•AWR – PAYE (W2 / T4) Contractor must be paid like FTE’s
United Kingdom
•Restriction on independent workers
•Zero Hour contracts
•Changing rules on how to engage contract workers
Netherlands
•Deemed employment issues increasing
•Govt. requires all parties involved in services sign all agreements
•Restriction on employment of contract workers
•Extensive PTO
Germany
•Limitation on Freelance / Gig Contractors
•Governments prefer workers employed
•Very rigid visa’s for nationals from many countries
Asia
Singapore / Hong Kong

9. #PGCustomerSummit
Global – Contractor Landscape
•Cost to employ can equal up to 85% of pay rate
•Contract workers same PTO and 13th month salary as full time
•Nearshoring – due to time zone and English capabilities
•All workers including contractors Unionized
Latin America
•Awards = Overtime / shift differentials
•457 Visa under review to promote Australians first
•417 Working Holiday Visa – 183 days maximum
Australia
•Technology sector looking to grow given USA H1B & Immigration
policies
•Govt. requires all parties involved in services sign all agreementsCanada

10. #PGCustomerSummit
Questions?
John Smith, Managing Director – Americas
203.459.0683
john.smith@cxcglobal.com
www.cxcglobal.com