Vendor Management

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Maximize Temp Worker Success: The KEY Strategy for Recruiters & Staffing Agencies
Maximize Temp Worker Success: The KEY Strategy for Recruiters & Staffing Agencies 2560 1707 PayReel

Engaging temporary workers is a nuanced process under the best of circumstances. Juggling state-by-state and federal compliance with the regular burden of onboarding temp workers is one of the many reasons agencies traditionally focused on direct hires stay out of temp staffing. When temporary or contract workers are brought on for last-minute projects, those challenges are tenfold due to the time constraints, the amount of up-front work required to bring those workers on, and the fact that requirements vary from state to state. This post explores how engaging support from an Employer of Record service (EOR) can help overcome these challenges and get workers onboarded and on the job quickly.

Understanding the Challenges

1. Completing Onboarding for Last-Minute Projects
One of the significant challenges staffing agencies face is the need to onboard temporary workers for projects that come up at the last minute. Without a previously-established system to handle these situations, the crunch time can lead to oversights and mistakes.

2. The Amount of Up-Front, Administrative Work Required
Engaging independent contractors involves a substantial amount of administrative work even before they start their assignments. This can include paperwork for employment, background checks, and more. For staffing agencies, it’s crucial to get this right, especially when dealing with large numbers of temp workers. The administrative burden can be overwhelming, diverting resources from other critical areas of operation and potentially leading to delays or errors in the onboarding process.

3. Varying Requirements from State to State
The United States’ decentralized approach to employment legislation means that onboarding and independent contractor payrolling compliance requirements can vary significantly from one state to another. This presents a complex challenge for staffing agencies, especially those operating across multiple states. Agencies must navigate a maze of differing state laws regarding wages, overtime, breaks, termination, and more. This not only complicates the onboarding process but also increases the risk of non-compliance, which can lead to legal complications and financial penalties. Staying updated with each state’s requirements demands constant vigilance and adaptability, adding another layer of complexity to the onboarding of temporary workers.

4. Barrier to Entry to Temp Staffing
Even though temp staffing can deliver more advantageous profit margins, the barrier to entry can be large for a company that doesn’t already have the systems in place to address the challenges.

Engaging an Employer of Record

An EOR can play a significant role in overcoming the challenges of engaging temp workers. An EOR is a third-party organization that takes on the formal responsibilities of employment, such as payroll, taxes, and compliance with local labor laws. Here’s how an EOR overcomes the challenges associated with engaging temp workers:

1. Handling Compliance and Administrative Details
By handling the complexities of employment legislation, an EOR ensures that temp workers are onboarded in compliance with local laws, removing this burden from the company. This is especially helpful because requirements vary state to state.

2. Access to a Larger Talent Pool
For companies looking to hire temp workers from different locations, an EOR can facilitate the smooth onboarding of these workers in compliance with local laws (in PayReel’s case, that includes the U.S. and Canada!), widening the talent pool.

3. Streamlined Processes
EORs offer streamlined onboarding processes and best practices. This can improve the efficiency and effectiveness of bringing temp workers onboard.
Instantly Opens up a New Revenue Stream: An EOR is a partner that fills the void and breaks down the barriers to entry by enabling a more cost effective strategy for agencies looking to start or grow their temp staffing programs. For example, as an EOR with these systems established, PayReel enables agencies to add a turnkey temp staffing program / revenue stream overnight without any additional investment on the agency’s part. For those already doing temp staffing, it’s a more cost effective solution that also addresses the compliance concerns.

The Bottom Line

Onboarding temp workers has unique challenges. Using an employer of record service (like PayReel) can enhance this process by addressing these challenges, including compliance concerns, access to a larger talent pool, efficient onboarding practices, and reducing the barriers to entry. A thoughtful approach to engaging temp workers can significantly contribute to their success and, by extension, the achievement of company goals.

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What California’s Private Attorneys General Act (PAGA) Means For You
What California’s Private Attorneys General Act (PAGA) Means For You 2560 1707 PayReel

California’s Private Attorneys General Act (PAGA) is a critical piece of legislation with far-reaching consequences for labor rights and business operations. With PAGA, employees have power to enforce labor laws and directly hold employers accountable for violations. We’ll discuss what this significant piece of legislature means for employees and businesses.

What’s in a Name?

The Private Attorneys General Act grants employees the right to “recover civil penalties on behalf of themselves, other employees, and the State of California.” The name itself holds a big key to understanding the act because the law effectively deputizes private individuals to act as “private attorneys general” and gives them the authority to pursue civil penalties. Under PAGA, employees can make claims regarding a wide range of labor issues, including wage and hour violations, inadequate break periods, and workplace safety concerns.

What is The Argument in Favor of PAGA?

Like any legislation, PAGA has detractors, but proponents say it has the following benefits:

  1. Increased Employer Accountability: The idea is that by giving employees power to hold employers accountable for violations that might otherwise go unnoticed, employers are held to a higher level of accountability to maintain positive workplace conditions.
  2. Deterrence of Violations: PAGA intends to serve as a deterrent against employers taking advantage of employees as the threat of substantial financial penalties and long legal battles encourages companies to comply with labor laws.
  3. Empowerment of Employees: PAGA purportedly empowers individual employees to take an active role in safeguarding their own rights. It democratizes the process of upholding labor standards by enabling individuals to seek justice without relying solely on government agencies.

How Does PAGA Affect Businesses?

Detractors says the Private Attorneys General Act presents significant challenges and drawbacks for businesses and makes it prohibitive to operate there. They also say it increases the potential for frivolous lawsuits, and a cascading list of damages.

  1. Makes Operating in California Harder: The constant threat of PAGA claims has the potential to increase financial strain. Penalties for violations can be substantial and even if businesses ultimately prevail in PAGA lawsuits, the processes can tie up internal resources and lead to collateral damage. Negative media coverage and public perception can impact a company’s brand image and customer trust. This can have long-lasting effects on customer loyalty, shareholder confidence, and overall business success.
  2. Incentivizes Frivolous Lawsuits: While most companies have internal procedures to address grievances, PAGA empowers employees to file lawsuits for relatively minor violations that might’ve been handled internally instead. Opportunistic individuals may bring forward frivolous lawsuits and exploit the system for personal gain rather than use the system to address genuine labor law violations. Such lawsuits waste valuable time and resources and also undermine the credibility of legitimate claims, therefore diluting the effectiveness of PAGA.

How Can Businesses Protect Themselves?

Understanding the implications of PAGA and taking proactive measures to protect themselves against potential claims is essential to the health of a business. Here are some strategies companies can adopt to safeguard their interests while ensuring compliance with labor regulations.

  1. Comprehensive Compliance Practices: The foundation of protection against PAGA claims lies in ensuring that your business is fully compliant with labor laws and regulations. Establish comprehensive compliance practices that include regular audits of your HR policies, wage and hour practices, employee classification, and other pertinent areas. By identifying and correcting potential violations early, you can mitigate the risk of PAGA claims arising from inadvertent errors.
  2. Transparent Documentation: Maintain thorough and accurate records of all employment-related activities, including payroll, working hours, breaks, and employee classifications. Transparent documentation not only demonstrates your commitment to fair practices but also serves as invaluable evidence in case a PAGA claim arises. Consistently documenting policies, training sessions, and communication with employees can help establish your company’s efforts to comply with labor laws.
  3. Effective Employee Communication: Clear and open communication with your employees is key to preventing PAGA claims. Ensure that your employees are well-informed about their rights, responsibilities, and grievance procedures. Create a culture that encourages employees to raise concerns internally before resorting to legal actions. Having a well-defined internal process for addressing grievances can help resolve issues before they escalate into legal disputes.
  4. Regular Training and Education: Invest in training programs that educate both management and employees about labor laws and workplace policies. Regular training sessions can help prevent unintentional violations and foster a proactive approach to compliance. By demonstrating your commitment to keeping all stakeholders informed, you create a stronger defense against PAGA claims.
  5. Engage a Compliance Partner: Given the complex nature of labor laws and the nuances of PAGA, seeking support from experts is wise. They can provide insights into potential vulnerabilities and help you implement strategies to mitigate risks. If handling all of these details is beyond your interest or bandwidth, you can engage an Employer of Record that is in position to do all of the above and indemnify you of many of the risks associated with engaging employees in California. Contact us to discuss your potential vulnerabilities as well as how you can protect yourself.

The Bottom Line

The Private Attorneys General Act (PAGA) has reshaped the landscape of employee rights and employer responsibilities in California. While it does present potential challenges for businesses, adopting a proactive and comprehensive approach and engaging the right partners can significantly reduce the risk of PAGA claims.

 

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How To Improve Client Relations (An Uncomfortable Take)
How To Improve Client Relations (An Uncomfortable Take) 150 150 PayReel

Olympian Abby Wambach said the thing that concerns athletes the most is when the coach ignores you. If the coach didn’t give feedback, it meant they’d given up on her. On the other hand, if she was getting coaching–even difficult or rough-around-the-edges coaching–she knew she was relevant and they believed in her. It’s time to view feedback the same way in business.

Sure, compliments feel better than complaints or even comments on where you can improve. Can you honestly say that you always appreciate this type of feedback? Maybe not. But the best thing any business can do for client relations is to treat those complaints as the gift they are.

Follow these easy steps to improve client relations

  1. Consider every complaint as the gift that it is. In customer oriented organizations, complaints should be embraced with the same anticipation and curiosity as those in wrapped in silver paper and a big red bow. Complaints are gifts because they are our clients’ way of offering us a second chance to get it right. When a customer doesn’t invest the time and energy to complain, you’re in deep trouble. You’ve probably lost the advantage of knowing your offer has fallen short of expectations before the problem impacts your bottom line.
  2. Make it easy for the customer to give this gift. Giving key accounts a single point of contact is a great strategy, but what happens when the SPOC you’ve provided is the source of the dissatisfaction? Executive relationships are vital. Giving your clients the ability to pick up the phone and share concerns directly with upper management is the business equivalent of being one of Santa’s LinkedIn connections. Direct line to the source.
  3. Respond quickly. Clients know you’re busy. Sometimes simply making their concern a top priority is enough to smooth rough waters. Sometimes being heard does as much to fix the problem as an actual fix does.
  4. Thank the gift giver. When someone gives you a gift, you express gratitude, right? In order to do so with authenticity, you have to truly see the benefit and opportunity in the feedback. If you don’t see if that way, work on your mindset. The highest form of gratitude you can convey is to fix the problem. Once fixed, make a call and acknowledge the mistake as well as how you have fixed the problem.

Handle complaints well and my guess is that you will have effectively turned a complaint into a bonding agent that will strengthen your connection with the customer. That’s an even better gift!

 

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