By Julie Kramer
For clients and workers, staffing companies are in the business of keeping people happy—otherwise both will likely go elsewhere. And in light of the current talent shortage, keeping everyone happy is more important than ever.
That’s why a flawless payroll process is critical to staffing employers. If you can’t pay employees correctly and promptly, you risk losing your workforce and, in turn, your clients.
But it’s not as simple as it sounds, especially when you manage a distributed, hourly workforce that’s always on the move.
If you want to unpack the talent crunch, you need more than adequate payroll software—you need state-of-the-art software that can wow your workforce and clients while saving you money in the long run.
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Growing Demand, Shrinking Talent Pool
According to a recent World Economic Forum survey, 43% of responding employers said they intend to rely on contract workers to augment their workforce through 2025. Added to that figure: In the U.S., just short of 11 million job openings remain unfilled, according to the most recent data from the U.S. Bureau of Labor Statistics. For staffing firms poised to fill this breach, opportunity abounds.
Not surprisingly, the American Staffing Association reports a steady first-quarter industry growth trend, including 7.3% more staffing jobs compared to this time last year.
Offering candidates competitive compensation and a positive work experience is essential to attracting and retaining temporary workers. But so is paying them like clockwork—and perhaps offering them something extra, like quicker access to their paychecks.
Attract Workers by Offering On-demand Pay
If you’re looking for a recruiting edge—and what staffing firm isn’t?—one of the best moves you can make is to offer workers an on-demand pay option. With this increasingly popular payroll feature, workers can get paid faster by requesting half or more of their day’s pay right after clocking out.
For a small ATM-like fee, funds are transferred to workers’ pay cards or bank accounts in short order. For those living from paycheck to paycheck (as 6 out 10 workers currently are) this option can bring workers the peace of mind they need, especially when unexpected expenses arise. On-demand pay programs help workers pay bills on time, thereby avoiding late fees, overdrafts and predatory payday loans—and keeping more money in their pockets.
For staffing firms, this can be a game-changer—not only by improving retention and recruitment but also by potentially reducing absenteeism, since temps receive almost-immediate gratification for their work. It may even motivate them to clock in and out more diligently!
While few employers are currently offering on-demand pay, it won’t stay that way very long. For staffing firms, becoming an early adopter offers real advantages in terms of recruiting, retention, and, ultimately, reputation.
Please Clients With Workforce Visibility
Regardless of industry, most staffing firms’ clients want the same things: knowing their people are hard at work, plus demonstrated value for their staffing dollars.
As a result, staffing companies that offer clients visibility into workers’ daily activities have another competitive edge through software and technology.
For staffing firms, the best payroll software comes paired with powerful workforce management tools that provide clients with qualified access to their system.
Want to make clients happy? Offer them the ability to see and sign off on timesheets online, review time and attendance reports on-demand and view real-time dashboards that show who is working and where at any time.
A Must for Staffing Agencies: Multiclient Management Tools
It’s not enough to manage your workforce well—you need to be able to manage them client-by-client.
Look for a platform that:
- Allows you to add new clients easily and instantly—without having to call your software provider.
- Lets you create custom pay rules and schedules by client.
- Includes a dashboard that allows you to move seamlessly from one client’s records to the next, while keeping everything siloed that needs to be siloed.
- Makes it easier to manage multiple clients at once.
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Pay Only for What You Use (But Don’t Pay Extra for Service)
Because the staffing business ebbs and flows, it’s smart to choose payroll software with pricing that scales up and down with your activity. Forget flat rate pricing—look for providers that charge per employee per month, while charging minimal add-on fees.
Speaking of fees, think twice before choosing a software vendor that charges you extra for premium service. Yes, responsive service is a must, but when a vendor is only eager to support clients for a price, that reveals quite a bit about its service philosophy.
In today’s competitive environment, staffing firms should expect more from payroll software than just making payroll—from going the extra mile for workers to offering clients more services for their dollars. Then, everybody’s happy.