The Staffing Edge Blog

Focus on your core business. We’ll take care of the rest.

How Back Office Support Boosts Post-Summer Productivity

Posted by Mai Dowdie


Sep 22, 2017 9:00:00 AM

How Back Office Support Boosts Post-Summer Productivity.jpgStaffing agencies are in the thick of it during their post-summer slumps. Companies aren’t as in need of temp workers during this period because a lot of their permanent employees are back from vacation, many student candidates have returned to their full-time studies, and there aren’t too many projects on the horizon (yet) that require extra hands on deck.

But there’s no need to despair about your staffing agency’s post-summer productivity. There are still ways to keep to your employer brand attractive and growing during fall season. Take your back office administration for example—is it running as smoothly as you’d like it to be? Chances are, if you’re a relatively green staffing agency, it isn’t optimal.

Download "10 Things You Need to Know When Starting a Temp Staffing Agency"

That’s why you need to work on obtaining back office support. If you’re curious about how exactly back office support can help your new temp agency compete with the big staffing firms, keep reading.

Reduce Your Compliance Headaches

To start off with, you might have noticed that one of the largest responsibilities your back office carries is the constant need to stay up-to-date with Canadian compliance. Business legislation, regulations, and employment standards are shifting and changing even right now as you read this. As of the end of last May, the Ontario has proposed updates to the old Employment Standards Act and the Labour Relations Act as well.

There are strict monetary and legal penalties for failing Canadian compliance, whether it’s regarding government remittances, classification of employees, or establishing a Canadian administrative entity with employer of record services. When you engage a back office support team, you can access expert advisement on compliance matters at any time.

Such a team can not only provide guidance, but act as an extension of your current customer services staff. You can rest easy knowing that the intricate paperwork involved in staying compliant is taken care of, making more time for your front-end to focus on generating more client leads for fall.

Tighten up Your Book Keeping

The summer season demands many payroll obligations, even for a new staffing agency that’s getting into the swing of the industry’s rhythm throughout the business year. During the summer, you might have noticed that with multiple clients there came multiple different pay schedules that you had to measure against your own.

When you have seamless back office support, you can easily ensure that your payroll structure accommodates both your candidates and your agency. Back office teams can customize your branded invoices, make sure they’re delivered on time, and inquire about the status quo of accounts. They can also offer receivables insurance for when your client defaults on a payment, and ensure your remittances and taxes are squared up.

With all your financing in order and even less paperwork to deal with, your post-summer productivity will soar. Your front-end should really be fixated on the core of your business: landing talented candidates and placing them successfully with new clients.

Access to Streamlined Staffing Agency Software

The more efficiently you can run your back office, even in a slow period like the beginning of fall, the better your agency’s reputation becomes. Your salespeople should be able to go about their daily tasks without worrying about possibly doing double-duty for administration.

One last way your back office support can maximize the efficiency of your administration is by implementing staffing agency software that’s designed specifically for the industry. Back office experts have developed software like Stafftrak, which rolls an applicant tracking system, a client relationship management system, and a financial reporting system all into one suite.

Maximizing your efficiency of everyday tasks also maximizes your budget, meaning your staffing agency becomes a contender, no matter how new or established. So, invest in your post-summer productivity.

Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Back Office

5 Signs You Should Invest In Back Office Solutions

Posted by Ray Gonder


Jul 20, 2016 9:00:00 AM

5_Signs_You_Should_Invest_In_Back_Office_Solutions.jpgAt one point or another, you’re going to consider whether or not you should outsource your back office tasks, like payroll, bookkeeping, compliance, and human resources, to a back office solutions provider. The key, though, is to invest in back office solutions at the right time. Wait too long to take the leap and you’ll cause damage to your staffing firm. The time, money, and resources you waste on handling these tasks in-house could end up hurting your profitability, your reputation, and your edge on the competition.

If you notice any of these signs, then know that it’s time to invest in back office solutions for your staffing firm. Don’t wait until it’s too late and the damage is already done.

1. Your Agency Is Growing

A growing agency is a good thing for your bottom line, but it can also add hardships to your back office. The more employees you onboard, the more time sheets you have to track, the more complex and time consuming your payroll will become, and the more time you’ll need to spend on HR. The more clients you get, the more credit checks you’ll need to do and the more invoices you’ll need to create and keep track of.

If your staffing agency is growing at a quick rate and you can’t keep up, it might be time to invest in back office solutions and get the help you need to handle the extra work.

2. You’re Making Mistakes

You’ll undoubtedly make some mistakes while running your staffing firm, especially if it’s in its infancy. But some back office mistakes are more costly and damaging than others. Payroll mistakes can cost you money or reduce your employees’ trust in you. HR mistakes can get you in trouble with the law. Worker classification errors can lead to lawsuits, bankruptcy, and even jail time.

If your mistakes are becoming more frequent and more expensive, then it might be time to outsource your staffing firm’s back office. A back office solutions provider will have experts on staff to ensure that no mistakes are made.

3. Your Overhead Is Too High

Handling administrative tasks in-house can lead to costly overhead. You need to hire and pay trained staff as well as offer health insurance, vacation time, sick days, and other benefits. You need to invest and update technology as needed. You need to continuously buy supplies, like paper, ink, printers, and computers. You have to invest in training conferences and seminars to keep your staff members up to date, and more.

If you’re looking to reduce your overhead costs, then look no further than back office solutions. You’ll pay one monthly fee, and that’s it.

4. You’re Not Focusing on Revenue-Generating Activities

As the owner of a staffing firm, it’s up to you to ensure that your business remains profitable. But if you’re spending all of your time on compliance, payroll, HR, and other administrative tasks, you have little time left over to focus on your core business—on activities that will actually generate revenue.

When you outsource your back office, you’ll be able to get back to the work that matters, like recruiting, marketing, and client services.

5. Customer Satisfaction Is Slipping

If your clients and candidates are unsatisfied with your services, then you’re not doing your job properly. Customer satisfaction must be a top priority if you intend to retain these valuable clients and candidates, get good reviews, and get word-of-mouth marketing. If you’re ignoring phone calls and not meeting your clients’ needs because you’re too busy with paperwork, then your customer experience will suffer, and with it, so will your sales. Outsourcing means you can once again get back to meeting the needs of your talented candidates and your much-needed clients.

Starting a Staffing Agency

Topics: Back Office

3 Back Office Employment Challenges and How to Solve Them

Posted by Ray Gonder


Apr 15, 2016 9:00:00 AM

3_Back_Office_Employment_Challenges_and_How_to_Solve_Them.jpgThe journey towards true back office efficiency is one that never really ends. There are many common back office employment challenges that make it nearly impossible for you to achieve your dream level of operational efficiency in house. When you don’t have the right technology, resources, and personnel or the amount of time required to keep up with your back office employment challenges, you end up in a constant struggle, one that continues to get more difficult as your volume of work keeps increasing.

You know that operational efficiency is critical to the success of your staffing agency. If you don’t take charge and eliminate common back office employment challenges that plague your firm, your entire company will suffer, from the back to the front.

Here are some of the most important back office employment challenges to focus on fixing, and the one solution you need to create total operational efficiency, which is necessary for driving profitability, performance, and customer satisfaction.

1. Time Constraints

Back office work is incredibly time consuming, especially as your agency starts to grow. As you start working with more clients and candidates, mundane paperwork will end up taking up most of your days, leaving you with less time to focus on your core business, like sales and service. You’ll be spending all of your time on contracts, insurance claims, health and safety training, payroll processing, and other administrative tasks. When paperwork continues to pile up as you become busier, you have to change the way you do things. What might have worked in the past won’t work for long, especially if you’re doing most of the work by hand instead of relying on adequate technology.

2. Data Integration

When you have disparate systems, such as paper-based processes combined with various desktop applications that aren’t seamlessly integrated, your back office work becomes fragmented, particularly if you have many different employees handling several back office tasks. This can lead to work that is disorganized and inefficient. You could lose valuable data, you could end up doing the same work more than once, and you can waste significant time. Data integration is critical to an efficiently run back office.

3. Compliance

You know that compliance is vital to the success of your staffing agency. You have thousands of laws and regulations to follow, from HR and health and safety to insurance and payroll and everything in between. Learning all of these regulations and making sure you keep up with ever-evolving legislation can seem nearly impossible. Who has the time? But if you don’t, you could end up being non-compliant in many areas of your business. It’s risky to handle compliance in house—it can lead to significant fines, penalties, and fees.

Outsourcing to Solve Back Office Employment Challenges

Your in-house back office work doesn’t have to be inefficient. There’s a simple solution to these back office employment challenges. By outsourcing common tasks, like human resources, payroll, and compliance, you can streamline your processes, integrate your data, make use of top-of-the-line technologies, and save time.

Partnering with a back office solutions provider can help you grow your staffing agency. Its experts will handle the time-consuming and often tedious work, using their skills, experience, and resources, so you can get back to your core business. Outsourcing to a back office solutions provider will increase accuracy and compliance, save you time and money, and eliminate the administrative hassles that plague you. But most importantly, you’ll have the peace of mind knowing that your back office is working as smoothly and efficiently as possible, which will reverberate throughout your entire staffing firm.

It’s time to fix your back office employment challenges. It’s time to outsource.

Starting a Staffing Agency

Topics: Back Office

7 Reasons Staffing Firms Outsource Back Office Tasks

Posted by Mai Dowdie


Jan 22, 2016 9:00:00 AM

7_Reasons_Staffing_Firms_Outsource_Back_Office_Tasks.jpgBack office tasks are key components to staffing firms. Someone needs to be responsible for managing payroll processing, taxes, time sheets, WSIB, invoicing and collections, background checks, and all of the other largely administrative non-revenue generating tasks.

But that someone doesn’t have to be you.

Many staffing agencies benefit from the advantages of outsourcing back office tasks. Here are just some of the returns of outsourcing.

1. Time Is Money

Owners of smaller staffing agencies are often tasked with handling all of the back office tasks on their own—HR, payroll, admin, compliance, and everything else. Unfortunately this takes time away from money-making deals with clients and candidates. And for larger staffing firms, the sheer amount of employees required to handle these tasks can add up to hefty payroll costs—which is money that can be better spent on business growth.

Staffing firms that outsource back office tasks have more time to spend on more important revenue-generating tasks, leading to higher profits.

2. Back Up

Do you have one or two people administering payroll? Handling HR? Ensuring compliance? What if these people get hit by a bus, leave suddenly, are sick, or go on vacation? You have no one else in your firm available to pick up the slack because no one else has been trained. When you only depend on one or two people for these back office tasks, you run the risk of missing payroll, missing deadlines, and more, which can be extremely negative for your reputation. When you outsource, you’ll have a reliable team on your side—a team you can depend on, no matter what.

3. Exposure to Risks and Liability

All it takes is one fine for non-compliance or one lawsuit to sink your agency. Each client you have, each worker you employ, and each decision you make exposes you to risks of errors, accidents, lawsuits, and more. If you can’t properly manage your risks and ensure compliance, you might be forced out of business. Let experts handle risk management and compliance for you.

4. Liability Insurance

For small staffing firms in particular, liability insurance can be incredibly costly. And having insufficient coverage isn’t an option, because it’s often a deal breaker with clients who have specific requirements. By outsourcing your back office though, you’ll gain increased group buying power, so you can get the high-quality liability insurance you need to be fully protected, at a lower cost that you can actually afford.

5. Legal Contracts

Contracts are vital to staffing firms. You have them with your clients and you have them with your candidates. But all it takes is one poorly worded paragraph to generate costly legal action. Having experts on your side to review and negotiate your contracts can save you a lot of grief, time, and money.

6. Audits

Staffing firms are under a governmental microscope. Sooner or later, you’re going to get audited. Handling an audit is tedious and time consuming, and it can be damaging to your firm. Even worse is if the audit uncovers mistakes that you’ve made. A back office solutions provider can take control of audits, and because you’ll have compliance experts on your side, there won’t be any errors to find. Everything will be in order, so the audit will be done quickly.

7. Expansion

All staffing firms want to expand their operations into new markets and grow their businesses. But how can you expand if you already can’t handle your back office tasks? You can’t realistically take on more work. Plus, if you’re expanding into different provinces and territories, you’ll have a whole slew of new employment standards, payroll regulations, tax rates, and other compliance issues to learn and follow. A back office solutions provider can offer you the support you need for a smooth expansion.

 Competing with the BIG multi-national agencies?

Topics: Back Office

Starting a Staffing Firm? Get the Back Office Support You Need

Posted by Karen McMullen


Jan 1, 2016 9:00:00 AM

Starting_a_Staffing_Firm_Get_the_Back_Office_Support_You_Need.jpgTemporary work is booming in Canada. It’s a wise choice to get into the industry now in order to cash in on this new business trend. However, although it’s a lucrative industry, starting a staffing firm is hard work. A lot of it is time consuming and tedious. Though you might be adept at finding and hiring top talent, and you might be a stellar sales person who can lock down clients and generate revenue, there’s a lot more that goes into starting a staffing firm than just recruitment and client services. There’s payroll to worry about, human resources to manage, insurance to purchase, laws and regulations to comply with, and so much more administrative work than most staffing firm owners expect.

If you’ve got a handle on recruitment and client services, but need support for the back office work at your staffing firm that doesn’t generate revenue, your best bet is to outsource tasks like payroll, HR, and compliance to a back office solutions provider.

Here’s what you’ll receive if you do.

Legal Counsel

The staffing world is filled with risks and liabilities and you need to be able to reduce them if you’re going to succeed in the industry. One lawsuit, one significant CRA fine or penalty and you could be out of business. You simply can’t survive in the industry without legal counsel to ensure due diligence. When you outsource your compliance function, you’ll get experts on your side who understand staffing and provincial legislations, human rights, the Employment Standards Act, workplace violence and harassment policies, disciplinary policies, termination and layoff clauses, health and safety laws, and all other regulations that relate to your new business.

Payroll Management and Financing

Believe us when we say that payroll is going to be a big headache. It’s going to be complex. And it’s going to be easy to make payroll errors if you don’t have a background in finances. Not only will this function be complicated, but it will also be incredibly time consuming. It takes a lot of time to pay your staffing firm’s workers every two weeks, ensuring that calculations are correct, the right deductions have been withheld, and all payroll and tax laws have been followed. A back office solutions provider can manage payroll for you, so you don’t have to spend time doing it yourself or worry that it’s being done incorrectly.

In addition, a back office solutions provider can offer you payroll financing. The staffing industry faces up-side-down cash flow, meaning that firms must pay their workers long before they get paid by their clients. This can make cash flow difficult for your staffing firm. A back office solutions provider, though, can pay your workers from its own bank account—it can finance your payroll so you never worry about having the funds in time. This can keep you in business when your bank account is in the red.

Human Resources Administration

Health and safety training, WHMIS testing, employment contracts, benefits administration, termination and layoffs—all of these human resources activities take up a lot of time. There’s endless HR paperwork that needs to be handled, and it all has to be done accurately and in a timely manner. Human resources could end up taking up the majority of your time—taking you away from your core business. But outsourcing can remove HR administration from your plate—giving you more time to focus on more important responsibilities.

Bonus: Group Buying Power for Insurance

You’re going to need tons of insurance to adequately protect your staffing firm, your workers, and your clients. But as a small business, insurance is going to be costly. Not only can a back office solutions provider offer you the administrative support you need, but it can also give you the group buying power you need to get insurance at a better price.

 staffing agency cash flow

Topics: Back Office

CASL Will Change the Way Staffing Firms Connect

Posted by Stacey Duggan


Jun 9, 2014 9:15:00 AM

CASL new law in Canada taking affect on July 1 2014 also known as Canada Day! Image courtesy of The Staffing EdgeCanada’s new Anti-Spam Legislation is taking effect on July 1, 2014 and requires changes to how your temp or contract staffing agency sends commercial email correspondence to clients and candidates. What do you need to adjust to be compliant? Read on…

Canada’s new Anti-Spam Legislation is the toughest anti-spam law in the world so naturally your staffing firm may be overwhelmed by the strict guidelines and unsure of how to incorporate the new rules into your marketing campaign.

The Canadian government has added hefty monetary penalties to the legislation if companies are found in breach of CASL. 

  • For individuals a single violation of CASL could be up to a $1 Million fine
  • For organizations like temp, perm or contract staffing firms, a single violation could be up to a $10 Million fine

Take those numbers in and put a plan in place now for your staffing agency’s email communications reorganization strategy.

Does Canada’s Anti-Spam Law apply to my staffing agency?

CASL regulations referred to in this article pertain to Commercial Electronic Messages or CEM’s, sent via electronic message mediums, email or text message. If the recipient is located in Canada, the law applies to you. If the recipient is located outside of Canada and you are sending the message from within Canada, the law applies to you.

Some examples of email marketing your staffing agency may currently send out would be  daily, weekly or monthly newsletters, and promotions to clients & candidates’ about career fairs, outlining company news, or automated 'hot candidate' alerts etc.

Implied Consent vs. Express Consent Conditions

Implied consent is a regulation clause to the law whereby if a recipient on one of your email lists has done business with you within the last six months there was implied consent. Some examples of doing business with you include exchanging of business cards, fishbowl submissions, verbal consent and signup forms where explicit consent was not gained. Implied consent lasts two years from the date it was obtained therefore you have two years to gain explicit consent which offers the best protection against violation allegations.

Express consent is the best way staffing agencies can protect themselves from a spam complaint because it lasts until the list recipient withdraws their consent. Implied consent may be harder to prove in a court of law and can easily be disputed without written proof or a date and time stamp stored upon signup when obtaining express consent.

We know you want to build your list of contacts through whatever email marketing portal you use (MailChimp or Constant Contact to name a few) but to comply with CASL you must practise permission based email marketing!

If a candidate fills out a sign up form to submit their resume through your website or to get a call back from your staffing agency, that does not give you permission to send them CEM’s. To gain explicit permission you would have to add an unchecked radio button to the sign up form explicitly asking for their permission to send job alerts, promotional messages and newsletters.

One last thing regarding your email content

All CEM’s must have an unsubscribe mechanism and all CEM’s (email or text messages used for a commercial purpose) must clearly list the senders name and address. Sign up forms will also need to have your staffing agency’s name and address listed below the form or close to the submit button.

The Staffing Edge is committed to permission based email marketing and is working diligently to ensure our methods of correspondence with our contract staffing firm members and non-members is compliant.  We pride ourselves on offering professionals in the contract staffing industry  relevant, timely and innovative  information giving them the freedom to focus on sales & service and the tools to achieve success.  

Competing with the BIG multi-national agencies?

Topics: Staffing Agency Marketing recruiting agency Staffing Industry Expertise Staffing Agencies Back Office

The Top Three Things That Put Staffing Firms Out of Business

Posted by Ray Gonder


Nov 1, 2013 10:14:00 AM

The Top Three Things That Put Staffing Firms Out of BusinessDemand is always high for good quality temporary workers and for staffing firms that consistently provide excellent service. It's not an easy industry, however, because of the constantly changing rules and regulations surrounding Canadian employment. In addition, staffing firms are low-margin, high volume businesses with a tricky cash flow situation.

There are typically three big obstacles every temp staffing firm must overcome to enjoy success in their industry:

  1. Independent contractor misclassification
  2. Ministry of Labour fines
  3. Payroll financing.

1. Independent Contractor Misclassification

Many employers feel that if they're going to give a person a job, they should be able to set the terms and make arrangements that best suit them and the employee in questions, but the CRA has set very specific rules about how employees must be classified. In some cases, both the employee and the employer would prefer to use an independent contractor status. This works well for the employer, who doesn't have to pay CPP, EI, income tax, pensions, and benefits to the employee, and it also works well for the employee, who can write off reasonable business expenses working as their own boss.

The CRA has developed a 4-point test to determine if an employee is indeed an independent contractor or an employee. It's imperative that staffing firms classify their employees properly because the CRA not only levies fines for misclassification but it also requires companies to pay back taxes, CPP contributions, and EI deductions for each misclassified employee. These finescan be overwhelming to staffing agencies that are already running on a tight
cash flow system.

2. Ministry of Labour Fines

The CRA isn't the only governmental agency that can fine your staffing firm. In an effort to make sure that Canadian business comply with HR policies, safety procedures, and harassment regulations, among others, the Ministry of Labour can and will fine staffing firms that have not taken care to become fully compliant.

Staffing firms deal with a great many workers, and it can be difficult to make sure each person is fully trained and documented. It's easy to overlook one or more of the many compliance details. For instance, each worker must sign documents stating they have read and understood
a variety of different policies, and you must keep these documents on file.

3. Payroll Financing

Perhaps the most harrowing obstacle for new staffing agencies is figuring out how to make financial ends meet. Staffing firms normally pay their workers on a weekly or bi-weekly basis, but this creates a cash flow gap when clients pay every 45 to 60 days. On top of this imbalance, staffing firms also have to handle remittance to several government agencies, and remittance is due on the government's schedule, not on a schedule that correlates with your cash flow. If clients are slow to pay, cash flow can be seriously disrupted, putting your company in peril.

Outsourced Back Office Support

You do not have to be on your own dealing with all of these issues. A back office service provider like The Staffing Edge can provide affordable payroll financing to help your staffing firm ride the unavoidable cash flow highs and lows. A back office service provider specializing in supporting staffing firms can also help make sure you're fully compliant with the Ministry of Labour and even keep you free from fines from the CRA by avoiding misclassification of
independent contractors.

Topics: ministry of labour Temp Agency Temp Agencies Temp Staffing Agency Outsourced Back Office independent contractors Temp Staffing Agency Payroll Back Office Service Provider Payroll Financing Back Office Payroll Financing independent contractor compliance cash flow Back Office

A Temp Agency Is Only as Good As its Clients – Don't Get the Wrong Ones

Posted by Stacey Duggan


Jun 19, 2013 9:00:00 AM

A Temp Agency Is Only as Good As its ClientsOf the many pitfalls associated with running your own temp agency, bad clients can be one of the most troublesome. They can look good on paper but, if they don’t pay on time, or cause you other problems, they probably aren’t worth the trouble. While timely payment is an important issue, there are many other ways that a bad client can cost you time and money. The best way to avoid these problems is by avoiding these clients altogether. Of course, that’s not always as easy as it sounds. Trying to identify and avoid every client who could pose a risk takes time away from finding valuable clients. One way to reduce the time you spend is by working with a back office service provider that is experienced in weeding out undesirable clients.

Out on a Limb

Until the client pays you, all of the money that you’ve paid your temps is at risk. Temp staffing is a low margin business, so you’re going to need a lot of temps in the field. That means you’ll have a lot of money paid out, long before you have any coming back in. Most businesses operate on a 60-day payment cycle. Using a 30-day billing cycle leaves 90 days between the time you send a temp to a business and the time you can expect to be paid for their services. That’s why it’s so important to make sure your clients will pay on time.

An outsourced back office can handle all of the necessary credit and background checks. They can also handle the service contracts for the payment terms, and even finance your payroll so you are not constantly strapped for cash.  They can help you weed out bad clients, while giving you the means to better service the good clients.

In Harm’s Way

Some clients mistake the word “temp” for the word “disposable.” They expect to use temps for dangerous or demanding jobs that they wouldn’t ask their permanent employees to handle. This can lead to accidents and injuries that can end up costing you much more than just money.  Not only does it put the health & safety of the temp worker in jeopardy, but it puts your company at risk for fines and lawsuits but also could cost you your reputation in the industry from both a client and candidate perspective.

You need to make sure that your clients are committed to the health and safety of all employees. One way to do that is by conducting a comprehensive worksite audit.  These worksite audits take the expertise of someone well versed in the Ministry of Labour’s rules and regulations as well as the expectations of the Employment Standards Act.  An effective back office service provider will be able to provide the tools and expertise to conduct successful workplace safety audits.

Left Holding the Bag

In Ontario, the temp agency is responsible for giving temps appropriate notice before an assignment ends. This notice is calculated from their first assignment, not their current assignment. If a client lets the temp go without giving you a chance to give notice, you owe the temp a termination payment. You need to make sure the client understands their obligation to give you adequate notice before ending an assignment.

Standing out from the Crowd

General labour firms are everywhere. To operate successfully, you need to separate yourself from the dime-a-dozen firms that abound. A back office service provider can really help you stand apart. With high-end insurance, legal and compliance experts, and advanced technology, they have the tools to help you rise above your competition. With their expertise and experience, you can enjoy all of the services and advantages usually reserved for only the largest staffing agencies.

Topics: Temp Agency Temp Agencies Temp Staffing Agency Government Compliance Health and Safety Back Office Service Provider Back Office Bad Clients

Why Temp Agency Payroll Administration Is More Than a Full-Time Job

Posted by Stacey Duggan


Jun 6, 2013 2:40:00 PM

Why Temp Agency Payroll Administration Is More Than a Full Time JobHandling your payroll administration in-house can quickly become a losing proposition. As a temp agency, you have to survive on narrow margins—that means having a lot of temps in the field. As you bring on more temps, payroll administration puts more demands on your time. Eventually, there aren’t enough hours in the week for you to keep up with all of the paperwork. Considering all of the paperwork involved in payroll administration, it’s easy to see how it could get out of hand.

1. Reconciliation

Every week, you have to collect and organize all of the time sheets from your various temps. All of those reported hours must then be compared to the current assignments, to make sure your temps are working the agreed-upon hours. Too many or too few hours could indicate an accounting error, or a problem at the work site.

2. Resolving Discrepancies

If an error is discovered, whether it’s in reported hours, pay rate, overtime pay, or any other area, it can’t simply be erased. You have to take the time to find the source of the error, amend the payroll reports, and ensure that the error isn’t repeated in the future. If you’re handling things yourself, the time spent resolving a single discrepancy can throw an entire work day off schedule.

3. Preparing Invoices

Preparing invoices should be a simple process. Unfortunately, every client has their own particular preferences. In order for your temp agency to get paid, you need to customize each invoice. You may have to include copies of time sheets, some of which may require the signature of an on-site supervisor. If one of your temps forgets a time sheet, or a signature, that’s more time you will have to spend resolving the issue.

4. Responding to Queries

Whether they’re from Money Mart, HRDC, or other financial institutions, there will always be a slew of queries around payday. Some will be fraud alerts, some will be EI verifications, and some will just be general questions from employees—but all of them will take time to address.

5. Legal Documentation

Once a year, or whenever an employee leaves your temp agency, you’ll have to prepare and issue ROEs and T4s. You’ll also have to prepare various federal and provincial documents that accompany ROEs and T4s. In the run up to tax season, the preparation of these documents can consume far more time than you have to spare.


You may be thinking that hiring a full-time payroll administrator will solve all of your problems. Just remember, a full-time payroll administrator won’t be administrating payroll full time.  For starters, they’ll spend every payday handing out checks, dealing with queries, and handling the inevitable problems that seem to crop up at the end of the week. That leaves your payroll administrator just four work days to handle all of your payroll needs--if you're lucky.

7. I’m Not a Machine

Whether it’s something as short in duration as a lunch break, or as long as a serious illness, your payroll administrator is going to be out of the office eventually. During that time, you have two bad choices: a) leave it all until they return, or, b) have somebody else put down what they’re working on, and take over payroll administration for a while.

8. It’s all about Teamwork

What if you could have an entire team of payroll administrators who never take breaks and always have the right answers? With a back office provider, that’s just what you get. For less than a full-time in-house administrator, you can engage an outsourced back office to take over all of your payroll administration needs.

Topics: Temp Agency Temp Agencies Temp Staffing Agency Outsourced Back Office Temp Staffing Agency Payroll Payroll Administration Back Office Full-Time Payroll Administration

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