The Expansion of Todays Contingent Workforce and Why

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Today’s Agenda § § § Introductions and Background The Expansion of Today’s Contingent Workforce

ABOUT Ardent Partners is a research and advisory firm focused on defining, advancing, and

Speaker Bio: Christopher J. Dwyer Research Director and VP of Operations • Recognized expert

ABOUT CXC Global is a leading supplier of global contingent workforce solutions, with over

Speaker Bio: John Smith Managing Director, Americas, CXC Global • Recognized expert in global

Ardent’s Contingent Workforce Management Research Evolution Innovation “Flex Economy” Contingent Workers On-Demand Talent Emerging

The Expansion of Today’s Contingent Workforce 12

Things to Consider… § Nearly a third (32%) of today’s total workforce is considered

Growth…or Evolution? Independent Contractors Freelancers SOW-Based Labor Traditional Staff Augmentation 14 Copyright © 2015

The Global World of Talent Global Networks The Need For Talent On-Demand Sources of

Global Expansion Plans 17 Copyright © 2015 - Ardent Partners Ltd.

The Evolution of the Contingent Workforce Staffing. Based SOW & Complexities 18 Copyright ©

The Contingent Workforce Management “Balancing Act” Drive visibility and intelligence Manage costs, budgets, and

Challenges Faced by Today’s CWM Programs 63% 51% 47% • The need for talent

What’s Missing? Only 40% of companies today perceive the mitigation of compliance risks as

Compliance Impact Areas Federal audits to determine degree of non-compliance. Judgments, consent agreements, or

Global Compliance: “Why and When” Rest of world following, USA “IRS” audits for contractor

Poll Question #2 25 Copyright © 2015 - Ardent Partners Ltd.

The Value of Outsourced Compliance Management 26 Copyright © 2015 - Ardent Partners Ltd.

Recent Compliance and Tax Headlines in the News § Sept 21 “HMRC ruling on

Things to Consider… § Your company or your end clients don’t want to be

Recommendations for Action and Audience Q&A 29

Recommendations for Action Understand the impact of globalization (in all of its forms) Balance

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CXC Global: Upcoming Events CXC Corporate Services Event “Globalization and the Future of Work

Contact Information Christopher Dwyer Research Director and VP of Operations Twitter: @CJD_Ardent cdwyer@ardentpartners. com

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The Expansion of Today’s Contingent Workforce (and Why Global Compliance is Critical) o o Christopher J. Dwyer Research Director Ardent Partners September 23, 2015 1

Housekeeping Items § All attendees will receive a copy of today’s presentation. § We encourage audience questions! Please submit your questions via the “Q&A” box. (Any unanswered questions will be addressed by our team via email. ) § All lines will be muted; please ask any questions via the Q&A box. § Please contact the Help Desk if you experience any issues with the webcast. § Today’s webinar will run 60 minutes. 2 Copyright © 2015 - Ardent Partners Ltd.

Today’s Agenda § § § Introductions and Background The Expansion of Today’s Contingent Workforce …and Why Global Compliance is Critical Recommendations for Action Audience Q&A 5 Copyright © 2015 - Ardent Partners Ltd.

Introductions and Background 6

ABOUT Ardent Partners is a research and advisory firm focused on defining, advancing, and promoting the supply management strategies, processes, and technologies that drive business value and accelerate organizational transformation within the enterprise. 7

Speaker Bio: Christopher J. Dwyer Research Director and VP of Operations • Recognized expert in spend management and • • contingent workforce management Thought leader in the CWM industry Industry analyst for nearly a decade Previously a Director at the Aberdeen Group (7 year tenure from 2006 -2013) Benchmarked thousands of organizations across spend management, CWM, procurement, etc. Recognized as an “Analyst Superstar” by HRO Today in 2013 and 2014 Recognized as a “Pro to Know” by Supply & Demand Chain Executive Magazine in 2014 Written nearly 300 research studies and reports on the evolution of the non-employee workforce 8 Copyright © 2015 - Ardent Partners Ltd.

ABOUT CXC Global is a leading supplier of global contingent workforce solutions, with over 20 years experience supporting corporations and human capital management partners. CXC Global operates in more than 65 countries worldwide. With an unmatched suite of services, CXC Global takes care of all administration associated with contractor management, classification, payroll and compliance. 9

Speaker Bio: John Smith Managing Director, Americas, CXC Global • Recognized expert in global contingent workforce • • • management, payroll and compliance Trusted Advisor to Corporation, MSP’s/VMS / RPO and Domestic USA Compliance Companies on global contractor engagements Panelist at SIA and HR. com conferences 19 years in the Contingent Workforce Industry 8 years global payroll & compliance experience Assisted in design of the first fully automated global contractor compliance validation software Managed 1 st generation MSP offering for clients such as UBS, Morgan Stanley, Deutsche Bank, NY Life Insurance in late 1990’s, early 2000’s 10 Copyright © 2015 - Ardent Partners Ltd.

Ardent’s Contingent Workforce Management Research Evolution Innovation “Flex Economy” Contingent Workers On-Demand Talent Emerging Technologies Progressive Solutions Evolving Apps Copyright © 2015 -11 Ardent Partners Ltd. Collaboration Procurement Talent Management Human Capital Spend Management

The Expansion of Today’s Contingent Workforce 12

Things to Consider… § Nearly a third (32%) of today’s total workforce is considered “contingent” or “independent. ” § Ardent predicts that, within the next few years, 45%to-50% of the world’s total workforce will be considered contingent. § 92% of organizations perceive the contingent workforce as a vital component of their overall business. § Only 45% of the average company’s contingent workforce is accounted for budgeting / planning. 13 Copyright © 2015 - Ardent Partners Ltd.

Poll Question #1 16

The Contingent Workforce Management “Balancing Act” Drive visibility and intelligence Manage costs, budgets, and compliance Support critical business endeavors Maintain talent and quality Complex Pressure on Today’s CWM Programs 19 Copyright © 2015 - Ardent Partners Ltd.

…and Why Compliance is Critical 20

Compliance Impact Areas Federal audits to determine degree of non-compliance. Judgments, consent agreements, or class action = $$$$$$$. Identity issues: who are our workers? Adherence to localized and culture-specific labor laws. Complex and frequently changing local tax codes. Global negative publicity as a non-compliant company. 23 Copyright © 2015 - Ardent Partners Ltd.

Global Compliance: “Why and When” Rest of world following, USA “IRS” audits for contractor misclassification (Canada, EU and Asia. Pac) Online payment services “Pay. Pal, Bitcoin” can open companies up for employer audits if you’re are viewed as avoiding employment Are contractors being engaged globally “compliant and set up properly” Terms “independent contractor, EOR, employed” vary in every country When and whom “contractor” should be invoicing for local VAT 24 Copyright © 2015 - Ardent Partners Ltd.

Recent Compliance and Tax Headlines in the News § Sept 21 “HMRC ruling on contractor back taxes” http: //www. telegraph. co. uk/finance/personalfinance/tax/11865618/HMRC § Aug 5 “Government Revenues Surge on Global Crackdown” http: //www. ft. com/cms/s/0/4 f 5 f 9 dec-3 d 07 -11 e 5 -8613 -07 d 16 aad 2152. html#axzz 3 m. P 4 Dg. E 7 n § July 29 “UK lawsuit, Uber drivers employees” http: //www. engadget. com/2015/07/29/gmb-uber-court-case/ § July 17 “why the California ruling should frighten the sharing economy” http: //time. com/3924941/uber-california-labor-commission-ruling/ 27 Copyright © 2015 - Ardent Partners Ltd.

Things to Consider… § Your company or your end clients don’t want to be first company identified for global misclassification or non compliant global payments § Freelance economy is growing every day. Governments want tax revenue and are monitoring online payments. Pay. Pal now requires Social Security # for US Citizens § Compliance can be easily achieved, if you have “global buy-in internally” and a partner or trusted advisor to assist you along the way 28 Copyright © 2015 - Ardent Partners Ltd.

Recommendations for Action and Audience Q&A 29

Recommendations for Action Understand the impact of globalization (in all of its forms) Balance talent engagement with compliance strategies 30 Copyright © 2015 - Ardent Partners Ltd. Look to outside experts and solutions for additional support

CXC Global: Upcoming Events CXC Corporate Services Event “Globalization and the Future of Work Summit” Dublin, Ireland November 4, 2015 o To follow the event, updates, and to register: #CXCFutureof. Work o http: //cxccorporateservices. com/cxc-future-of-work/ o Twitter: @CXCCorp. Services @Connor 1980 @CXCGlobal Contacts: Orla. Byrnes@cxcglobal. com or connor. heany@cxcglobal. com 32 Copyright © 2015 - Ardent Partners Ltd.

Contact Information Christopher Dwyer Research Director and VP of Operations Twitter: @CJD_Ardent cdwyer@ardentpartners. com www. linkedin. com/in/christopherjdwyer Global and Americas Contacts: JP. gooch@cxcglobal. com john. smith@cxcglobal. com Europe Contact: connor. heany@cxcglobal. com Get social with CXC Global: www. cxcglobal. com We’re on Twitter: @CXCGlobal_USA @CXCGlobal_CA @CXCGlobal. LAM @CXC_Global_Asia @CXCGlobal_UK @CXCGlobal_ANZ 33 Copyright © 2015 - Ardent Partners Ltd. 33