The Staffing Edge Blog

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Staffing Firm Growth Reliant on Payroll Financing Options

Posted by Stacey Jones


Jun 16, 2014 8:30:00 AM

The Staffing Edge and Payroll financing for staffing industryStaffing firms in Canada are tasked with matching thousands of people with thousands of temp, contract and perm positions. With such a great focus on sales and service, it can be hard to keep up with cash flow requirements to keep any business stable and secure.

You Have Financing Options

The staffing industry is a competitive environment that sees financially stable staffing firms prosper and achieve business success and longevity. To achieve optimal financial stability you have three financing options for your staffing agency to meet payroll obligations: A line of credit, a factoring firm or payroll financing.

A line of credit is not always the best option for staffing agencies as bankers don’t understand the ups and downs of temp and contract staffing. You may find yourself with a sudden increase in orders but the inability to fill them due to the bank’s refusal to increase the line for payroll purposes. The bank will rarely take future sales into account when assessing your ability to pay a line increase.

A factoring firm buys your invoices and takes anywhere from 2.5-4 per cent for themselves. That percentage might seem reasonable but consider this; a factoring firm’s percentage will increase the longer it takes for the client to pay. In fact, a factoring firm may deny an invoice all together if the client is known to take over 60 days to pay. In the end, a factoring firm may only be able to help you with a certain percentage of your clientele and, as we all know in the staffing industry; clients can fluctuate just as much as temps can. You need a partner that can support your full book of business, no matter what.

The above options offer your employment agency nothing more than payroll financing.

Big Competition

We know your start-up or small to mid-sized staffing firm is faced with the pressure of competing with the multi-national staffing firms that have access to financing, technology, insurance and a bevy of expertise when it comes to HR, legal and government issues. Can you compete with them and gain a level playing field? Of course you can! It’s on this precedent that The Staffing Edge was started over 19 years ago. Our founder, Lou Duggan, a staffing firm owner himself at the time, experienced the disadvantages an independent staffing firm faces such as expensive technology, banking needs that he didn’t qualify for, and a complicated government bureaucracy that took him away from his core competency; sales and service. Since then, The Staffing Edge has grown to foster over 120 independent staffing firms and is recognized for its expertise in the staffing industry.

Wouldn’t it be nice to have a solution tailored for your staffing firm that supports your vision of independence? Here’s what The Staffing Edge package solution for employment agencies contains:

• Payroll Financing
• Full Payroll Processing
• Complete Employee and Employer Remittances
• Exceptional Insurance Coverage
• Credit Checking, Invoicing and Collections
• Receivable’s Insurance
• Worker’s Compensation Management
• Complete Government Compliance
• In house Legislative, Employment and Legal Expertise
• Award Winning Staffing Software

The Freedom to Focus and the Tools to Achieve! Please visit our services page for more information.

Competing with the BIG multi-national agencies?

Topics: Temp Staffing Agency Payroll Back Office Service Provider Payroll Financing Back Office Payroll Financing cash flow Payroll Administration Staffing Industry Expertise Cash Flow Management

As Min Wage Increases so Does Client Pressure for Temp Agencies

Posted by Stacey Jones


Feb 10, 2014 3:41:00 PM

minimum wageOn January 30, 2014, Ontario's provincial government announced that it would increase the minimum wage in the province from $10.25 to $11.00 per hour.  The change becomes effective on June 1, 2014.

The increase of 75 cents per hour will account for inflation since 2010, when the minimum wage rate was frozen at $10.25.  The provincial government is also introducting legislation that would see the minimum wage rise every year based on inflation, which would see a rise of $0.20 every year.  This increase would be announced on April 1st to take effect on October 1st of that same year.

For contract staffing firms specializing in temporary, minimum wage labour this will mean a busy next few months ensuring that they are compliant with the increase come June 1.  Service contracts need to be revisited and perhaps re-signed in order to have a client's acceptance of an increase in their hourly bill rate to cover the cost of the wage change.

Although generally an increase in pay rate makes recruitment easier and gives clients a reason to put pressure on your markup, this is not the case when the minimum wage is increased. 

Raising the minimum wage, effectively makes it harder to recruit, since after the increase people who were previously receiving $11/hr - $11.50/hr will no longer have work that is more attractive than any other position since they will be at, or slightly above, the minimum standard.

This theory means your current percentage of markup should remain in effect after the increase, not decrease as clients may demand. If clients want an incentive to attract better people they will need to move to pay rates above the minimum, at which time you may be more open to negotiating markup to keep the margin dollars equal.

For members of The Staffing Edge, watch for special reporting to help you prepare in advance for the changes. 

Topics: Temp Agencies Temp Staffing Agency Government Compliance Temp Staffing Agency Payroll Minimum Wage Minimum Wage Increase

How Payroll Financing Can Keep Cash Flowing for Staffing Firms

Posted by Stacey Jones


Jan 28, 2014 9:00:00 AM

How Payroll Financing Can Keep Cash Flowing for Staffing FirmsGood temp employees are the key to running a successful business, but you can't rely on their loyalty if you can’t pay them correctly and consistently when the competition can. Reliable workers don't want to work for a staffing firm who miscalculates their pay, doesn’t pay them accordingly to the laws set out by employment standards or can’t pay them until the client has paid. This is only common sense, but anyone who has ever run a Canadian temp staffing agency knows that the "simple" process of paying temp workers can be a hairy business at times.

The temp staffing agency must pay its temp workers every week or every other week consistently, must remit payroll taxes according to the schedule that they are assigned and cover other overhead costs regardless of the fact that the client won’t pay the bill for 30 to 45 days. It's a tough balancing act for any business but for temp staffing firms who deal with the ever-fluctuating nature of the business, it can cause havoc on their cash flow.

As a staffing firm owner, have you ever turned down an order due to cash flow? You crunched the numbers and you knew that you just couldn’t make payroll for more temps while you waited for invoices to be paid. You want to grow your business but inconsistent cash flow can slow down growth and turning down business isn’t just bad for growth in the short term, it causes a client to look elsewhere for a staffing partner that can service their needs in the long term.

What's the Answer?

The answer to this temp staffing problem is payroll financing. With payroll financing, you can avoid the financial problems that have historically been major obstacles to Canadian staffing firms. You can avoid turning down new business, accruing late fees from the CRA for missed remittance schedules, and risking non-payment of your temp workers. In fact, with a payroll financing back office provider like the The Staffing Edge, you can stop looking behind you to make sure you've covered your tracks and begin looking forward to future possibilities. What about expansion? New clients? New territories? Updated equipment and renovated office space? The sky's the limit when you can operate on firmer financial footing.

How Payroll Financing Can Keep Your Cash Flowing

1. Consistent Payroll. You don’t have to keep an eye on the ins and outs of your bank account. A payroll financier pays the employees for you out of their bank account and then waits the 30 to 45 days for the client to pay.

2. Credit Checks. If you've ever had a client fail to pay you for work already done by your temp workers, you know how frustrating and harrowing this problem can be. Your payroll financing service provider can help you to avoid this problem by running credit checks on potential clients before you ever send a single temp worker over to them. 

3. Receivables Insurance. Sometimes, even with adequate credit checks, a client occasionally fails to pay. The Staffing Edge foresees this problem and provides receivables insurance to cover your losses when this happens.

4. Custom Invoicing. Different clients like their invoices processed in different ways, and your payroll financing provider can help with this time-consuming task. Instead of burdening your own office staff with this issue, assign your outsourced back office to take care of custom invoicing. When invoices are processed according to client preferences, you're more likely to be paid on time.

5. Collections. Collections are handled more effectively by a third party, and your payroll financing service provider can deftly handle this job for you. When collections are promptly and professionally dealt with, your cash flow will continue to roll along without interruption.

6. Remittance. The government doesn't care if your clients are delinquent in paying you for work already done; they want their remittance, and they want it on time. If you're not able to remit to the CRA on time, you will incur fines, which can take a further toll on your ability to operate. Payroll financing can take care of government remittances and ensure that they are done correctly and in a timely manner.

Payroll financing is truly the key to keeping staffing firms humming along and providing their valuable services to Canada's companies, large and small. With payroll financing, your business can operate the way you always envisioned it would, without interruption and with great success.

Topics: Temp Staffing Agency Outsourced Back Office Temp Staffing Agency Payroll Back Office Service Provider Payroll Financing Back Office Payroll Financing Staffing Agency

The Biggest Challenge in Temp Staffing Agency Cash Flow Management

Posted by Karen McMullen


Dec 20, 2013 11:15:00 AM

The Biggest Challenge in Temp Staffing Agency Cash Flow ManagementSomething has to be done about your cash flow problem. In an industry where you get paid 45-60 days after you've already had to pay your workers many times, you need a cash flow solution if you're going to stay afloat and thrive. In an effort to fix this upside-down cash flow problem, some temp agency owners utilize some of the following tactics:

  • Only servicing clients who pay within 30 days
  • Making late payments on their own bills
  • Being more aggressive about collections jeopardizing new business while collecting on current
  • Increasing prices for those clients who pay after 30 days

While some of these methods may help your cash flow problem a little, they're also likely to hurt your temp staffing agency. Only servicing clients who pay within 30 days reduces your flow of business and forces otherwise good clients to seek services elsewhere. If you wait until you absolutely have to pay your suppliers, you could damage long-standing relationships with them. Being more aggressive about collections requires additional time that could be better spent on business development, and increasing your prices could price you out of the market for some of your clients.

There has to be a better way to deal with the inherent problems in the Canadian temp staffing industry. There is: payroll financing.

Instead of trying to run your temp staffing agency on a shoestring and limiting your potential for expansion, partnering with a back office service provider that can offer low-cost short-term revolving capital. These extra funds allow you to run your business with ease and peace of mind. Your back office service provider can keep your temp staffing agency on safe financial footing and even provide the funds necessary to expand into new territories, hire additional temps, or establish relationships with new clients.

But that's not all. Working with a back office service provider can also help your temp staffing agency management in a variety of ways:

  • Personnel Tracking. A good back office service provider like The Staffing Edge already has systems in place to track your temp workers and stay up-to-date on trainings, certifications, past work, benefits, and more.
  • Invoicing. Instead of employing a full-time person at your temp staffing agency to keep up with invoicing, turn the job over to your back office service provider who is familiar with the different ways clients like to receive their invoices.
  • Government Remittance. All Canadian businesses have to deal with the unsavory task of government remittance, but temp staffing agencies know that their remittance can be a bit trickier. With so many workers spending time with so many different clients, this task can easily overwhelm.
  • Legislative Compliance. If Ministry of Labour rules and regulations always stayed the same, you could be more confident in your legislative compliance, but the rules change, and it's tough to keep up with. A back office service provider has the resources to keep up with compliance regulations, and they can ensure that your temp agency is fully compliant.

Imagine how much you would enjoy managing your temp agency if you didn't have the constant constraints imposed by your upside-down cash flow. You could spend more time finding new clients, implement some of those ideas you've never had the time or resources to consider, and focus your energy on the parts of your business you most enjoy. By partnering with a back office service provider like The Staffing Edge, you can transform your temp staffing agency into the business you always imagined it could be.

Topics: Temp Agency Temp Staffing Agency Temp Staffing Agency Payroll Back Office Service Provider Payroll Financing Back Office Payroll Financing cash flow Cash Flow Management

Why Payroll Financing is Essential for Canadian Temp Staffing Agencies

Posted by Karen McMullen


Dec 17, 2013 9:00:00 AM

Why Payroll Financing is Essential for Canadian Temp Staffing AgenciesCanadian temp staffing agencies that have tried to go it alone without payroll financing have plenty of stories to tell. In an effort to keep things simple and cost-effective, some staffing agencies choose to forego payroll financing at the start, thinking that with enough determination and meticulous oversight, everything will work out fine. 

The challenges in financing contract staffing payroll stems from the inherent upside-down nature of the Canadian temp staffing industry.

Why is Canadian payroll upside down?

Temp staffing clients expect to pay for their temps every 45-60 days, but the temp agencies have to pay their workers every single week. Having to pay the workers before being paid creates an immediate predicament and this predicament is even more pronounced when temp staffing agencies experience fluctuating growth. During seasons of elevated growth, a temp agency has to pay an army of new workers four or five times before ever being reimbursed for their work. It's easy to see how temp agencies can quickly develop cash flow problems.

How can payroll financing help?

Instead of trying to meet current needs with past profits, using a back office payroll processing firm can help you to operate in a much more manageable way. Your outsourced back office can handle collections, invoicing, and even insurance on the funds you've paid out to your temp workers. With a back office as your partner, you can always have the liquidity you need to handle payroll, and you won't have to deal with the steep and inherent risks of providing your own payroll financing.

Payroll financing will help you to expand your business by hiring more temps, taking on more clients, and even expanding into new territories. But payroll financing isn't the only benefit of partnering with a back office provider. Let's take a look at some of the other benefits, beyond just payroll financing.

  • Personnel Tracking. Not only do you need to calculate taxes, overtime and stat holiday pay for each temp worker, but you also need to track assignments, availability, training, and qualifications. Why not offload this mountain of paperwork to your payroll financing back office provider who already has systems in place for tracking personnel?
  • Invoicing. Preparing and sending invoices to client’s sounds like a relatively simple task, but each client can have different requirements about how the invoices should be prepared and sent. These specific requirements can make the difference between getting the invoice paid and causing a delay in processing by accounts payable. Again, your payroll financing back office provider can handle this task, so you can focus on more immediate issues.
  • Government Remittance. Rain or shine, the various federal and provincial government tax remittances must always get done. When you take care of these remittances in house, you must track the different remittance schedules and be aware of the ever changing rules surrounding them. Your payroll financing back office provider can take this onerous task off your hands and guarantee that it will be done correctly.
  • Legislative Compliance. The temp staffing industry in Canada is heavily regulated, and it's your responsibility to make sure that all Ministry of Labour requirements are followed to the letter. This is difficult because legal requirements change frequently, and as a temp staffing agency, you'll have workers in a large variety of industries. Fortunately, this is another task you can delegate to your back office provider.

A back office provider specializing in the staffing industry can provide you with the tools to succeed and the freedom to focus on why you started the business in the first place.

Topics: Temp Staffing Agency Outsourced Back Office Temp Staffing Agency Payroll Back Office Service Provider Payroll Financing Back Office Payroll Financing Staffing Agency

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

3 Key Benefits of Financing Your Staffing Agency Payroll

Posted by Shannon Dowdall


Oct 24, 2013 11:52:00 AM

3 Key Benefits of Financing Your Staffing Agency PayrollBusiness cash flow ought to be a simple and straightforward process. Your clients pay you for services, and you use that money to pay your employees, overhead costs, and suppliers. What’s left over is your profit. For staffing agency payroll, however, the process can be anything but simple. Temp workers need to be paid weekly or bi-weekly, and yet client payment cycles can run anywhere from 45 to 60 days. The gap between these vastly different pay cycles can create serious cash flow struggles for staffing agencies. What's the answer? Payroll financing.

Payroll financing bridges the cash flow gaps while you're starting up your staffing agency or experiencing the growing pains of expansion, or at any time. But not just from any lender. The benefits of financing from an outsourced back office solutions provider specialized in supporting staffing firms are significant, and can mean the difference between limping along with meager gains or growing boldly into new industries and territories. Let’s quickly look at three key benefits.

1. Flexibility and Options

All Staffing firms experience the ups and downs of their specific niche. General labour firms tend to be busiest in the fall as companies utilize a contingent workforce in anticipation of the Christmas consumer. This means a large increase in payroll without any extra cash flowing in. Banks don’t often understand the fluctuations so requesting a credit line increase to meet your payroll demands is often denied. Your clients are feeling the crunch too as their busy season sees an increase in not only staff but things like materials and shipping. This will affect the efficiency of their own accounts payable department turning a regular client into a slow payer.

Agencies who provide professionals at high pay rates will rejoice when a client calls in a need for some highly skilled contractors but when the math is done, the agency can feel the crunch of paying these high wages on a regular basis while waiting months for a payment to come in.

Being able to tap into payroll financing, however, can give you the opportunity to happily accept your clients’ orders without having to consult your cash flow and worry about the payment timeframe.

2. Freedom from Non-Paying Clients

Nothing affects in your cash flow like clients who pay late or do not pay at all. You can avoid this situation when you outsource your payroll financing. A lender with specialized knowledge of the staffing industry will run in-depth background checks on all of your potential clients to find out whether they regularly pay their bills or not. Of course, past performance does not always equal future results, so you may have a client who has always been reliable in the past but who fails to pay when their firm runs into temporary trouble. This happens to many good firms from time to time, and you may not want to end your working relationship because of it. A smart payroll financier has the processes in place to keep you up to date with any fluctuations in your client’s stability. A slow paying client may not be a concern but a back office provider with the rights tools can tell you when it is and how to proceed so you recoup your costs.

3. Day-to-Day Cash Flow Management

Cash flow isn't as simple as clients paying you and you paying workers. As a staffing agency, you have many more details to consider, and these details affect your cash flow as surely as do your clients and workers. You have to keep track of your personnel, take care of invoicing, and manage government remittances and legislative compliance. While you're running your staffing agency, it's difficult to stay on top of all of these administrative duties and to make sure they don't disrupt your tenuous, day-to-day cash flow. Back office payroll financing is more than just keeping you afloat. It can also keep you running smoothly, saving you time and letting you focus on other tasks.

When you partner with a back office payroll financing provider like The Staffing Edge, you gain three key benefits:

1. The flexibility of unlimited payroll financing with no personal liability.

2. A Credit and Collections department with a proven track record of thorough checking and timely collections paired with the only receivables insurance in the business. So if your client goes bankrupt or has financial trouble, you’re protected.

3. With day-to-day cash flow management, you have the freedom to focus on what you do best, sales and service.

These payroll financing benefits, along with the practical, expert advice from an outsourced back office that is well-acquainted with Canadian law and regulations, can help your staffing agency to thrive without cash flow impediments.

Topics: Temp Staffing Agency Outsourced Back Office Temp Staffing Agency Payroll Back Office Service Provider Payroll Financing The Staffing Edge Business Cash Flow Back Officer Payroll Financing

Why a Temp Agency Must Stay On Top of Changes in Health and Safety Regulations

Posted by Stacey Jones


Jul 8, 2013 9:00:00 AM

Health and Safety RegulationsAs a temp agency, you’re in the unique position of being responsible for the health and safety of many workers at multiple work sites. Not only at your own office, but you could be indirectly held responsible for any violations found at a client site. With fines and penalties that can range into the hundreds of thousands of dollars, just one violation during a Ministry of Labour (MOL) inspection could evaporate your revenue stream. While the penalties doled out by MOL are considerable, they pale in comparison to the personal and financial losses you could suffer if a worker is injured or killed due to workplace accident.

Given the ever-changing nature of the regulations, maintaining compliance at one business is challenging enough. Trying to manage compliance at multiple businesses and with a revolving roster of workers will consume precious time and energy, and eat into your profits. The best way to handle compliance is by partnering with an experienced back office service provider. They already have a compliance management system in place, and have the experience and expertise to ensure you have met your due diligence in the eyes of the MOL.

Agency Side

The first step to avoiding MOL penalties is to ensure that your own workplace is in compliance. Any place of business is expected to have certain policies and procedures visible to their employees. As the employer to your temp workforce, it is required that you have these policies posted in the registration area of your office.  You are also required to have each and every temp you send out on assignment, sign that they have read and understood certain policies and procedures. A back office service provider can provide you with all of the tools you need to bring your business and the required paperwork up to the latest standards. They make it their business to keep abreast of changing regulations, so you don’t have to worry about being penalized for following outdated standards.

Client Side

Ensuring compliance on the client side can be difficult. Unless you have the manpower and the expertise to conduct inspections, you often have to rely on self-reporting from the client and your temps. This isn’t reliable, since the client may have competing interests, and the temp can’t be expected to know all of the latest requirements. You may have no idea there are any problems until they are revealed by way of an accident or MOL audit. Being kept in the dark won’t help you, as MOL doesn’t believe that ignorance of the law is a valid excuse.

As part of their suite of services, back office providers already offer the tools to help you complete work site safety inspections if necessary but also provide a legally authorized service agreement to be signed by your client ensuring that they understand their role in the safety of your temporary workforce.

When MOL Comes Knocking

MOL inspects thousands of businesses with little or no warning every year. They issue tens of millions of dollars in fines, compliance orders, and even stop-work orders. When they come calling, the best defense is adequate preparation. Working with a back office provider like The Staffing Edge, you’ll know that you’ve done your due diligence and met your statutory requirements.

Topics: ministry of labour Outsourced Back Office Employment Standards Government Compliance Health and Safety Temp Staffing Agency Payroll Back Office Service Provider

Canadian Contract Staffing has Tripled the Pace of Permanent

Posted by Stacey Jones


Jun 26, 2013 1:00:00 PM

contract staffingIn a recent article by the Globe and Mail, it was discussed that Canada, although to a lesser degree than our neighbours to the South, is seeing a decline in the middle skill worker.  

"Middle-skill jobs, such as administrators and operators, lost the greatest share of employment between 1999 and 2010, a TD paper in February found. Low-end jobs, such as cleaners, janitors and fast-food cooks, have lost a little ground, while those at the high end are gaining. Specifically, the share of people in high-skill jobs has risen 8.6 per cent in the past decade, while it’s fallen 4.7 per cent among middle-skill positions and 1.9 per cent at the low end. (Ontario’s the exception, where low-skill jobs are rising in numbers along with high-skill jobs, with a disappearance of the middle.)"

The number of people in temp jobs has grown at more than triple the pace of permanent employment between 2009 and 2012.  

Contract staffing continues to grow and now accounts for 13.6% of the workforce according to Stats Canada.

Virtually all industrialized economies, including Canada, are experiencing various degrees of polarization, said Henry Siu, a labour economist at University of British Columbia who has studied the issue.

"Growth in other areas has softened the hit to middle-class employment in Canada," said Mr. Siu and David Green, an economics professor at UBC. "The loss of manufacturing jobs has been replaced by growing employment in construction and natural resources – which may explain why Canada never had the “he-cession” (or plunge in male employment) of the United States."

Although this news sounds good for those staffing firms that specialize in contract staffing, it's clear that even those must diversify and fluctuate with the market and the needs of their clients. With such an increase in the need for professionals on a contract basis, a staffing firm in Canada that focuses solely on permanent recruitment may be wise to expand down this avenue and create another revenue stream.  

A committed client in the past may well hand over some perm business in the future to the agency that can offer them full service. 

Although the article can be seen as both negative and positive as it discusses the precarious nature of temp work along side those with the right skill set faring very well in the current labour market, no matter the perspective, it's clear that the temporary and contract staffing business is a growth market and will continue to do well into 2014.

Full Article from The Globe and Mail

Topics: contract staffing recruiting agency Temp Agency permanent staffing Temp Staffing Agency Payroll

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

Posted by Stacey Jones


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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