Direct Sourcing Payroll Management

We offer payroll solutions, worker classification support, and risk and compliance mitigation to any company managing a contingent workforce.

And yes, that includes those using Direct Sourcing.

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Direct Sourcing is when a company or its workforce partner sources workers directly using the company’s own brand, whether through a third party or using an internal department. A direct sourcing program can work in conjunction with other efforts and still remain effective. Direct Sourcing is an especially good fit for big brands conducting high volume hiring in one geographic area.

This allows companies with strong brand recognition to access talent directly without needing to rely exclusively on third party staffing or recruitment companies.

It’s easier and more advantageous than ever for companies to use their own talent pool to meet their contingent workforce needs. Direct Sourcing also allows businesses to place workers within the company on a temporary basis while keeping the best workers in the pipeline between projects. Another advantage of direct sourcing is that it allows seamless integration between recruitment efforts and gaps in the workforce. It also allows shorter hiring time, a quicker learning curve for established workers, and lower costs.

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Employer of Record=The Perfect Partner When Direct Sourcing

When direct sourcing talent, many businesses find an Employer of Record (EOR) that takes care of all the administrative details to be an indispensable part of their team. 

Clients that are direct sourcing tend to have a solid system in place to find and place talent. What they say makes their lives easier is having a partner with the specific skills and bandwidth to manage the administrative details for such a contingent workforce. Those details include:

  • Worker Classification
  • Payroll (including overtime and benefits)
  • Risk & Compliance
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What Are The Stakes?

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The government takes worker classification and payroll incredibly seriously and a contingent workforce presents a unique challenge. Mistakes damage a company’s reputation and can cause a litany of fines. What’s more, the rules around classification and payroll vary from state to state and on a federal level as well, which makes it very easy to make mistakes.

Part of what makes this particular group so challenging is that regulations change frequently and organizations must continually do due diligence to keep up with the changes and ensure their practices are compliant and their businesses in good standing.

Any company using direct sourcing simply must include effective IC classification and payrolling services as a part of its plan.


When does engaging a partner make sense?

The best partner will fill in the gaps when a company is direct sourcing and will be able to offer custom solutions for your company’s specific needs. Companies without a department dedicated specifically to managing the details related to a contingent workforce will benefit most.

One of the biggest gaps we see is onboarding. For your brand reputation to thrive and for you to offer the best experience to workers and customers, your onboarding process must be a fine-tuned operation.


If you’re wondering whether an EOR would be helpful to your business, let us know!

We can help you decide what services would make your life easier.


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