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HR, Payroll & Workforce Management Best Practices for Staffing Agencies

July 31, 2019 By Emma Smith - Leave a comment

HR, Payroll & Workforce Management Best Practices for Staffing Agencies

Managing essential HR functions such as benefits administration, time tracking, and payroll can be a real challenge for staffing agencies. Due to the ever-changing nature of both your industry and temporary workforce, you’ve likely witnessed labor demands and compliance obstacles first hand. The changing economy and jobs being filled make it very hard to compliantly track and manage every employee in your business.

Staffing businesses operate across a variety of economic sectors and because of the wide range of applicability, its unique challenges include:

  • Keeping up with candidate sourcing and recruiting – depending on the many roles your firm may fill, there’s always a continuous need to source new candidates. Keeping up with recruiting efforts can be challenging without a clear process or software.
  • Compliance - staying up-to-date with payroll laws, changing deadlines, and tax regulations make it increasingly difficult to stay consistently informed and maintain all records as requested.
  • Record-keeping – guidelines require employers to maintain payroll and employee records for a set period of time. With so many potential employees, staffing firms often find it difficult to properly keep track of all current and past employees, especially if they’re using paper!
  • Payroll Processing- your employees work a variety of roles, so differentiating between the correct pay rates for each role and each individual employee can be overwhelming without the proper management system. The companies you contract with may have their own pay rates as well!
  • Time tracking and workforce management – due to the various roles an agency may be filling or the type of contracts you may be fulfilling, properly tracking time (including overtime) can be a big challenge, especially when employees report to your client for day-to-day work.

Best Practices for Workforce Management in the Staffing Industry

It is important for you to remain aligned with the industry-best practices. Some of the most important methods that lead to success include:

Clear CommunicationWhile this could be said about every industry, it is even more important in the world of staffing. You need to have clearly written policies that allow expectations, data, and information to be shared across multiple departments. This helps you keep your fill rate high. Make sure you have protocols to ensure that your clients are on the same page as you at every turn.

Risk Reduction is KeyWhile clear communication is important, it is also vital to minimize risk. Examples of possible risk include misclassification of workers, taxes, minimum wage calculations, bad publicity, and accidents in the workplace. Every staffing partner needs to remain committed to staying compliant across many different facets including taxes, benefit administration and more.

Standardize the WorkFormalize as many procedures as possible to make sure that all tasks are done the same way every time. This includes the process for onboarding employees, ensuring compliance with various government regulations, and even rules that are in place on-site. In addition, try to make sure that the drug screenings, safety audits, and paperwork are consistent. Many of these procedures can be managed through an HCM platform.

Use Cutting-Edge Technology: Technology can help staffing agencies like yours properly manage complex workforce needs. The ability for employees to track their time via mobile phones or online is key to properly managing your workforce while ensuring a solid ROI. Technology should also make adding new clients effortless and approving employees’ hours quick and easy.   

The Benefits of EPAY Human Capital Management Software in the Staffing Industry

EPAY is here to help. With our high-quality workforce management software, the staffing industry can benefit from increased workforce visibility, enhanced payroll processing, and compliance protection.

Our integrated, cloud-based HR and Payroll platform offers:

  • A standardized onboarding system that helps new hires get started more quickly
  • The ability to manage multiple clients, unique client pay rules, and scheduling with ease- including client approval of time sheets
  • The submission and allocation of hours by employees as well as clients
  • Optimizing tools for last-minute subs by proximity and location
  • Enhanced HR management tools that provide increased data and task automation
  • Helpful tools to both recruit and track highly qualified applicants
  • Performance management software that helps staffing firms retain employees and create employee goals
  • Automated tools that can expedite payroll and tax information
  • Administration of various benefits
  • Compliance tools that help staffing industries meet the requirements of employment and labor laws such as ACA reporting
  • Time and attendance tracking to reduce misreporting of hours

EPAY Systems also has access to E-Verify which helps employers verify the identity of their new hires. This matches the data provided on the employee's I-9 to the records that are furnished by the Social Security Administration and the Department of Homeland Security. Check out our I-9 On-Demand Webinar for more insight. Take our two-minute tour to witness what our powerful solutions can do for your business today!

Filed Under: Human Capital Management, Time Tracking, Mobile, Staffing, Payroll & Tax