Employees are one of the most dynamic resources in the company. With the fast and ever-changing business scenario, there are bound to arise several uncertainties, one of which is managing the employees themselves. There might arise scenarios where organisations would be short-staffed for various reasons including, but not limited to, personal leaves, lay-offs, resignations and retirements, business expansions, etc. The choice to invest in hiring employees is something that they have to make while predicting the business because the process, end-to-end, from inviting applications to sending out offer letters is a long-drawn one.In case of small or medium companies, there is another issue to be dealt with which is the opportunity cost of maintaining an HR department. This is particularly pertinent considering the fact that most organisations today are based on projects and each such project can prove to be a unique one. For that purpose, you can’t afford to hire staff on roll if you might need to terminate them in the near future. Added to this is the fact that you have to provide them additional benefits including but not limited to health insurance, bonuses and hikes. It is in these cases that temp agencies are a cost-effective alternative.
How Do Temp Agencies Work?
Temporary staffing agencies, or just temp agencies are HR consultancy agencies that provided employees on a contract basis for temporary assignments. Since they are specialised agencies, they source talent from numerous sources providing you respite from the hassle of going through candidates before selecting the ones that you need. The uncertainty element of employee attendance is largely reduced when you hire a temp agency because they provide you a replacement if the one they allotted you fails to show up. You are also freed from the problems of payroll. While the employees might be entirely on your staff, they will be on the temp agency’s payroll which means that the temp agency will be responsible for all payments towards the employee’s services. This, however, does not absolve you of the liability as a principal employer towards ensuring that the temp agency employees are paid. It just removes the onus from you.Temp agencies are a fairly straightforward form of HR consultancy business. They source talent and the candidates applying to be part of the temp agency submit their areas of talent and their skill level, followed by an assessment on part of the temp agency to verify the same. Whenever a job opportunity arises, the temp agency contacts the relevant candidate and forwards the profile to the company. That means the company can be assured that the candidate being referred to them possesses the required skill set to work on the job, removing the hassle of training them afresh.
How Do the Payments Work with Temp Agencies?
The payment is pretty straightforward too. Temp agencies, in the contract with the company, provide a flat hourly rate, or a fixed rate for a fixed duration. This typically includes the markup over and above what is paid to the employee. The markup is typically 50% or above of the employee’s hourly rate. Everything else is taken care of by the temp agency, including the health benefits and statutory compliances. The company typically negotiates the payments to the employees including the additional benefits they’d like the employees to be provided with and the fee varies depending on that. Apart from this, the organisation need not pay the employees anything. While this might seem costly prima facie, in the long run, it proves cheaper for the organisation especially if the organisation’s projects are seasonal in nature or the projects are case-to-case unique.
How PaySquare Assists Organisations?
With PaySquare, organisations can hire talent from the temp agencies and enrol the staff members on PaySquare’s payroll system thus removing the accounting and the calculations of each employee who has worked during the said period. With the employment terms being flexible, organisations can let the employees go if the project is not seen through, or if the employee is no longer needed for any purpose. Therefore, all the formalities from joining to administering benefits can be taken care of by PaySquare which means the individual contributions to the organisation and the individual differences in payroll are accounted for accurately. PaySquare also provides a horde of services including providing required documents from the CTC break-up to the policies and practices of the organisation regarding the accident policies, health benefit policies and retirement policies.
Reasons to Hire Temp Agencies
Having said all that, here are 7 reasons why organisations should hire temp agencies:
1.) Reduces Costs
Employing a temp agency reduces the cost of maintaining a dedicated in-house HR department whose job it is to take care of all the employment requirements from inviting applications to issuing offer letters. This funding can be utilised elsewhere by the organisation to strengthen its market standing.
2.) Helps Small and Medium Organisations
Small and medium organisations would still need to expand so that they can increase the scope of their business. Temp agencies and payroll organisations like PaySquare assist these companies by removing that burden thereby ensuring that these organisations divert those resources elsewhere so that they can generate return on their investment.
3.) Seasonal Requirements
Organisations might have a sudden and seasonal spike in employee requirements. These requirements might generally be short-lived which means organisations can’t really afford to hire employees. In that period, it is usually easier to contact a temp agency to hire a temporary worker to meet the seasonal need of the organisation.
4.) Talent Sourcing
Temp agencies typically have a lot of experience because they are specialised in this field. This means that you get the appropriate skillset for the job that you require. If the performance is satisfactory, then the organisation can get the employee released and be on the permanent rolls of the organisation after paying the temp agency a certain fee for releasing the employee.
5.) Increased Flexibility
Whether an organisation is planning expanding or downsizing, vertical, horizontal or concurrent expansion, they have the flexibility to hire or let go of employees when they go through temp agencies. They are not obliged to retain the employees and therefore most certainly are not obliged to pay any severance pays or retirement packages which can cost the organisation a sizeable chunk of money depending upon the position that the temp agency employee has been hired for.
6.) Saves on Training
Since most of the candidates that the temp agency sends are qualified personnel, the organisation can save a lot of time in training and acclimatisation into the work culture of the organisation and directly put the employee into work which saves the productivity per man-hour and the rate of efficiency gleaned from the employee. The resultant savings help boost the profits of the organisation
7.) Legal Compliances
Temp agencies and payroll companies like PaySquare keep themselves updated with the statutory requirements which means that the organisation need not keep abreast of the rules that are applicable to the organisation beyond what are applicable to them. Therefore, organisation is saved from the hassle of remembering and following the legal requirements and the investment that goes into maintaining a roster of the statutory compliances.
Why Hire Temp Agencies over Independent Contractors?
One of the main arguments that one can make in favour of choosing temp agencies is that the employees are part of the organisation itself. That means the employees use the organisation’s equipment and are integrated into the organisation’s work culture. Independent contractors on the other hand, are not really part of the organisation. It is only leasing them for the work to be completed. That means organisations won’t have complete control over the project; only oversight and supervision. They can’t assure the requisite or planned quality in the work delivered. The training that is provided to the temp agency workers is to the organisation’s standard and therefore consistency can be maintained. Independent contractors on the other hand, work their own hours, come with their own training and it is hard to vet their training and expertise. These factors come into critical play when organisations are choosing employees for projects that are required to be completed under a strict deadline, or those that require vetted skillset and experience.
Make New Beginnings Zwei flinke Boxer jagen die quirlige Eva und ihren Mops durch Sylt. Franz jagt im komplett verwahrlosten Taxi quer durch.
DeliziaHR is designed with rich features and enhanced UI/UX experience for managing onboarding, payroll management, leave management, compliance management and exit management. It is designed for businesses of all sizes and scalable to meet any of the complex requirements of HR Department.
‘Paysquare’ a perfect
match for us as a consultant to deliver the best to our client. It extends User friendly
portal for Employees and seamless processing of Payroll including statutory compliance
on time! We
‘Paysquare’ a perfect
match for us as a consultant to deliver the best to our client. It extends User
portal for Employees and seamless processing of Payroll including statutory
on The most valuable service that we get from you is "peace of mind." I know that
submit our payroll information, everything will happen on time, payroll, pay slips,
statutory reports, full and final settlement, returns and I know that we are and
always in compliance with statutory laws regarding payroll.
Sr. Manager – Finance
We would like to take this
opportunity to thank you for your continual support till date! Your support
during this pandemic has been awesome! Be it the TAT (turnaround time) you people
processing our requests, being accommodative in accepting the II, III payroll
working late/ weekends, delivering the reports in time and minimal to zero errors
some of the examples of your commitment towards work & deliverables.
SENIOR MANAGER- HUMAN RESOURCE
Altra Industrial Motion India
We would like to take this
opportunity to thank you for your continual support till date! Your support especially
during this pandemic has been awesome! Be it the TAT (turnaround time) you people are
processing our requests, being accommodative in accepting the II, III payroll revisions,
working late/ weekends, delivering the reports in time and minimal to zero errors are
some of the examples of your commitment towards work & deliverables.
Sukesh Baban Dhage
Hi Tech BioSciences India Private Limited
On behalf of Hitech
Bio Sciences India Pvt. Ltd., Hi Tech Bio Laboratories, Hi Tech Analytical Works
& Hi Tech Biosynth Pvt. Ltd., we appreciate your dedication to provide Payroll
services to our companies from the approximately last 4 years. We acknowledge the fact
that due to COVID-19, situation has become really tough across the globe. We all are
forced to stay at our homes and take extra care of ourselves along with family members.
It is a privilege to acknowledge you and your consultancy’s efforts and recognize the
valuable service that you have provided to us.
It is always gratifying to
work with such great people with extraordinary abilities to provide good and quality
service. The kind of response from your side get is fabulous and most memorable with
professional culture. Specifically we would like to mention that, your approach towards
the client is fantastic, for e.g. response to email is very prompt, continuous touch
with client, on time response to queries or questioners’, on time and accurate report
sharing. Flexibility to client requirement, Client / customer centric approach etc.
Timely payment of salary gives a lot of confidence to all employees and it is due to our
partners like Paysquare that Hi tech has never defaulted on its commitment of timely
payment of salaries.
Senior Operation Manager
Tecknack Technologies Private Limited
We are very impressed
with Paysquare team due to their ability to process payroll very efficiently. We
found the implementation team very knowledgeable, supportive and very systematic.
Paysquare is a very
matured payroll processing solution and they have well paid down processes to manage
first time as well as every month's processing.
HR Business Partner India
Victaulic Piping Products India Private Limited
Honestly , It has been an
amazing experience working with Payroll team as on date . Deepika and Uma
has been a strong support to us.
They have always been very helpful and co-operative. I congratulate them to run payroll
with zero error
And I expect the same level of support in future. I am happy to be associated with
I have been a client of Paysquare for 7 years and their services are fantastic. Migration from the old
consultant to Paysquare was seamless. Soon after the migration, Paysquare team was up the learning
curve. They never missed the deadlines provided by us. The team is always reachable, and they keep us
informed about changes in taxes or government policies which impact payroll. I have complete
confidence and trust in their payroll solutions, and we will always recommend them. Any company
looking to ease their payroll burden with friendly service and a flexible, secure system should partner