At this point in 2017, it’s hard to remain unaware of how the gig economy has reshaped the job market. Not only is it a skilled candidate’s market out there, there are also many companies that are starting to prefer hiring temporary workers over permanent employees. Sounds like an equation ripe for a staffing firm’s growth, right? Yet there are many firms (perhaps yours is one them) that believe adding temp staffing is too difficult.
We’re here today to help dispel any misconceptions you might have about offering temp staffing services. Now is the best time to add temp workers to your recruitment offerings. Read on to learn about just how viable, not to mention lucrative, temporary recruitment truly is for your staffing business!
Administration Doesn’t Have to Be a Headache
One of the most prominent sources of doubt staffing specialists harbour about temp staffing is the challenge it presents for administration. Since most placements for temp workers are short, you must deal with the ongoing administration of onboarding and offboarding new workers.
But the thing about temp admin is that there’s specific proprietary software that’s built to streamline all of that. Automating admin tasks is one of the key strategies staffing firms have been implementing to stay competitive in 2017, as it maximizes their budgets and optimizes their efficiency.
Some firms even partner with the vendors of their proprietary software, giving them ready access to HR, payroll, and compliance experts as well as payroll financing.
Worker Classification Is Simpler Than You Think
It’s understandable that your staffing firm might be wary of offering temp workers. Temp workers can be potentially risky regarding classification, but only if you’re not aware of best practices for determining whether you’re dealing with independent contractors or employees.
The CRA has developed a four-point test for determining worker classification. These four factors are as follows:
- Control: If the schedule, workplace, and the manner of the work done is controlled by the payer, then you have an employee, not an independent contractor.
- Ownership: Independent contractors supply their own supplies and tools.
- Risk: Perhaps the most important factor, an employee is guaranteed to profit from their work, while independent contractors take the risk of losing out if their placement goes poorly.
- Integration: This last factor is more subjective to the opinion of your CRA auditor, but generally a worker is classified as an employee if their activities are integrated with their payer’s. An independent contractor is acting independently.
More details on how to determine the differences in worker classification are offered in CRA’s RC4110 document.
What’s more, you can outsource compliance to a back office solutions provider to solve this issue.
Workforce Flexibility Is Your Greatest Asset
You might be thinking that this era of precarious work is only offering more problems than it’s solving regarding sourcing skilled talent, but it’s actually the opposite case. Due to the workforce being made up largely of millennial candidates and the unpredictability of the market, both veteran and new grad candidates often prefer temp work to achieve a better work-life balance. Many of your clients and leads also prefer a flexible staffing solution as well.
Temp staffing offers your clients appropriate manpower for their busy and slow seasons, and gives them a greater command of their budgets. You’ll find that if you don’t offer temp workers, you could start losing some of your long-term clients to firms with more diverse solutions.
Being capable of providing a solution that is in demand in the gig economy opens the doors for your staffing firm to grow rapidly. And with effective back office solutions available to handle the trickier aspects of temp staffing, there are virtually no barriers to adding these services to your firm’s offerings.