Onboarding a temporary worker is so much more than filling out paperwork and making quick intros on Slack. It’s a crucial step that makes sure your contingent workforce is motivated, your business operates smoothly, and your clients remain happy.
Key takeaways
- An efficient onboarding process is critical to success, not only ensuring that placements go smoothly but also fostering strong engagement from day one.
- Managing temporary workers can be complex. Compliance with labor laws, worker classification, and payroll across multiple regions can quickly become overwhelming.
- By handling compliance, payroll, and administrative tasks, an Employer of Record (EOR) allows staffing firms to stay flexible and focused on winning new clients.
Why the onboarding process matters to temporary workers
First impressions are everything. A negative onboarding experience can double the chance of temporary workers seeking opportunities elsewhere. But building a smooth onboarding process creates a positive start and sets the tone for impactful collaboration.
What temporary workers expect:
- A fast and efficient onboarding process so they can start working immediately.
- Timely and accurate payments without chasing unpaid invoices.
- Compliance with labor laws to protect their rights.
- Clear communication about expectations, overtime, benefits, and more.
Sometimes, staffing firms face the added pressure of onboarding contingent workers quickly for last-minute projects or tight deadlines. In these moments, a poor onboarding process can result in a huge administrative burden, frustrated workers, and even project delays. Ensuring your onboarding process is efficient and reliable is crucial to staying flexible and satisfying your clients, no matter the timeline or situation.
Why the onboarding process matters to staffing firms
Businesses typically engage staffing firms for their flexibility, speed, and pool of specialized talent, giving them a cost-effective solution to completing projects without long-term commitments. However, a poor onboarding experience can neutralize those benefits, creating a frustrating experience for clients. Moreover, compliance failures during onboarding can create significant legal and financial consequences. For example, in Denver, two staffing companies were recently ordered to pay over $280,000 in restitution and $800,000 in fines for misclassifying workers as independent contractors. This resulted in workers being paid less than minimum wage and denied overtime pay and sick leave, highlighting the importance of getting onboarding right.
What staffing firms need to get right:
- A streamlined process to avoid delays and get temporary workers up to speed quickly.
- Clear expectations around deliverables, timelines, and communication.
- Accurate and timely payments to build trust and retain top talent.
- Compliance with labor laws to avoid costly misclassification or legal issues.
Getting these fundamentals right ensures a smooth onboarding experience, helping you retain skilled workers and keep your clients’ projects running efficiently. However, building a seamless and compliant onboarding process isn’t always easy—especially when you’re managing multiple placements, tight deadlines, and compliance requirements across different regions.
How an employer of record can help
This is where an employer of record (EOR) can make all the difference. By handling the complexities of contingent workforce management, an EOR takes on all of the hassles that come with employing temporary workers, freeing up staffing firms to focus on impactful projects that move the needle, such as building up their talent pools or reducing time-to-fill.
What is an employer of record?
An employer of record is a third-party organization that takes on the legal and regulatory responsibilities of employing workers on behalf of your business. While you maintain control over the day-to-day tasks and project direction, the EOR becomes the official employer for tax, insurance, and compliance purposes.
What does an employer of record do?
An employer of record service handles functions related to personnel, such as:
- Payroll processing and funding
- Tax deposits and filing
- Contracts
- Benefits
- Payroll relating to employment termination
- Background checks / drug screenings
- Full insurance coverage
- 401(k)
- I-9 / E-Verify forms
- Unemployment insurance
- Data security
Why should I use an employer of record?
Managing temporary workers effectively requires a careful balance of compliance, administration, and communication. This can create challenges that quickly overwhelm even the most experienced of internal teams.
Here’s how an EOR can help:
- Ensure compliance: Keeping temporary workers on your own books means navigating complex labor laws, tax regulations, and worker classifications in every location they operate. Misclassifying them as 1099 contractors when they should be W-2 employees can deny them benefits and protections to which they’re legally entitled. Alternatively, blanket W2-ing every worker can be expensive, especially if these workers can classify as true 1099s. An EOR takes on these responsibilities, ensuring accuracy and reducing your liability.
- Simplify administration: Payroll, taxes, insurance, and compliance can become a logistical headache, especially with a global workforce. An EOR takes on these tasks, freeing internal teams to focus more on sourcing the best candidates and managing client relationships.
- Improve temporary worker experience: Fast, accurate payments keep temporary workers happy and eager to do their best for your clients. PayReel pays temporary workers faster than anyone else in the industry.
- Scale with confidence: Don’t let the complexity of managing a contingent workforce hold your business back from developing expertise in specific industries or expanding into new markets. An EOR allows you to scale up quickly and efficiently.
Relax with PayReel
While managing temporary workers directly might seem like the simplest option, it can expose your business to unnecessary risks and burdens. With PayReel as your EOR, you can mitigate these risks, streamline your operations, and focus on growing your business, knowing that your contingent workforce is in good hands.
Ready to offload the hassle of managing temporary workers? Let’s start a conversation today.
The information provided within PayReel’s marketing collateral, including its website, blog & social media posts, and/or email campaigns, does not, and is not intended to, constitute legal advice. The information provided is for general informational purposes only and may not reflect the current law in your jurisdiction. PayReel makes no representation or warranty, express or implied regarding the contents of marketing collateral. Your use of the information is solely at your own risk. Additionally, materials may contain links to third party content, which we do not warrant, endorse, or assume liability for
