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.
