The duties of a staffing firm go beyond candidate recruitment. They also handle documents and comply with employment laws. On top of this, they’re faced with challenges brought upon by different trends and shifts in their specialized industry.
Your staffing company can quickly become overwhelmed with tasks that must be accomplished. As a staffing leader, what can you do to simplify the employment complexities that your business faces on a daily basis? The key is to partner with Employer of Record experts like Signature Back Office.
Employer of Record Explained
To effectively utilize Employer of Record (EOR) services, understand the services they offer.
What is an Employer of Record? As a third-party organization, EOR experts take on the legal and administrative responsibilities of their clients. They handle admin and employee-facing tasks such as filing taxes and managing payroll.
In essence, EOR partners ease the burden of staffing firms by becoming the official employer for tax purposes and legal compliance. This allows you to fill your workforce with skilled professionals without the hassle of admin tasks that come with new recruitments.
Although success can be reached without partnering with EORs, the value and ease they can bring to your business are unmatched. Within the staffing ecosystem, they can help you focus more on your company’s core functions and services. They can also give you access to other benefits that improve your business overall.
Core Functions of an EOR
If you’re planning to partner with EOR experts, it’s important to fully understand their core functions. Knowing what their role will be in your business can help you manage your expectations and guide your business decisions.
1. Payroll and Tax Processing
The EOR takes on the critical responsibility of payroll management. They ensure that all of your employees are paid accurately and on time. This entails the proper computation of regular hours, overtime, and other forms of compensation for each of your employees.
Beyond correct wage calculations and disbursement, they also handle the complexities of tax processing. They become responsible for filing taxes at the federal, state, and local levels. Moreover, they expertly handle tax returns on a quarterly or annual basis. With EOR partners, you won’t have to worry about making mistakes related to either compensation or taxes.
Read more: 7 Top Reasons to Outsource Your Payroll
2. Benefits Administration
Another core function of an EOR is related to benefits administration. The EOR is responsible for managing all aspects of your employees’ benefits. From health insurance to paid time off, this function can offload the complexities associated with providing a competitive benefits package to your new and current hires.
Since EORs usually provide a range of health insurance options, your business can leverage their existing offers. This can result in more comprehensive benefits for your people. It can also generate cost savings for your business, making it a better option compared to offering your own packages.
Read more: Outsource Employee Benefits
3. Employee Management
As a staffing agency, you’re more likely than other companies to hire employees regularly. From onboarding to offboarding, it’s important for you to stay on top of your people’s entire professional lifecycle. Unfortunately, with the varying needs and contracts with clients, keeping track of your employees can be difficult. This is another area where an EOR partner can help.
EOR experts ensure that all necessary paperwork is completed. They conduct background checks and keep track of every worker’s tax forms and verifications. Aside from onboarding, they also handle the offboarding processes when professionals choose to leave. They even manage final paychecks and benefit terminations on your behalf.
When managing employees, working with EORs results in correct employee categorization. Their services won’t only aid your administrative staff, but will also make the lives of your employees easier through the timekeeping and attendance tracking systems they can offer.
Why EOR Services Are the Best Choice
With the many responsibilities an EOR expert can handle, it’s undeniable that they can help your staffing firm succeed. If you’re still uncertain about the value of Employer of Record companies as a partner, consider the following advantages of availing EOR services:
1. Reduced Administrative Burden
As mentioned, partnering with an EOR expert can offload a significant portion of your administrative tasks. Whether it’s payroll processing, benefits administration, or employee management, you would be able to redirect your people and your resources to other important business aspects.
You won’t have to maintain extensive human resources or legal departments since your EOR partner can handle those tasks for you. This reduction in admin-related workload can lead to fewer errors while providing you with more opportunities to increase your operational efficiency.
2. Streamlined Processes
Through their carefully planned solutions, EORs can consolidate multiple business functions into one service. This makes it easier for you to streamline different processes, such as onboarding and leave approvals. Moreover, it eliminates the need to work with multiple vendors or systems at the same time.
When your important processes are streamlined by professionals with the necessary experience, you can reduce the complexity related to your tasks. This creates smooth day-to-day operations for your employees despite the diversity of their employment contracts and environments. It can also lead to faster placements and seamless employee management throughout the year.
Read more: Testimonials for Signature Back Office
3. Improved Compliance and Risk Mitigation
One of the most difficult aspects of maintaining a staffing firm is related to compliance. With changes in employment laws, it can be difficult for staffing agencies to stay up-to-date on the changing regulations in every state or country. Fortunately, EORs specialize in learning, understanding, and adhering to these shifting rules.
When you partner with the right EOR provider, you can minimize the risk of non-compliance penalties. Experts can manage all required forms while helping you avoid errors such as worker misclassification and wrongful termination claims. With their expert guidance, you can rest assured that you’re meeting all legal requirements.
4. Scalable Functions and Services
What makes the staffing industry unique is the fluctuating need for professionals throughout the year. Beyond seasonal demands, firms are dependent on the needs of their clients. This is why they also need a partner who can help them scale their workforce up or down at a moment’s notice.
An EOR partner can support you as you find professionals within your talent pool. You can focus on finding the right employees for your clients without worrying about the administrative tasks that come with hiring new people. This capacity to scale can make it easier to adapt to client needs and shifting market trends without creating any delays or operational strain.
Read more: Revolutionize Your Recruitment: 9 Benefits of Automation
5. Simplified Multi-State Operations or Global Hiring
If you’re a global employer or you distribute your workforce to different locations, then you require a global EOR partner. More than managing your employees, they are knowledgeable in navigating a variety of local labor laws and tax regulations. With their help, you can simplify your multi-state operations and prevent complex compliance-related challenges.
With the help of EOR experts, you can continue your global employment and talent acquisition. If you plan on hiring international employees, you won’t need to hire legal teams at every location. You can ensure compliance and proper onboarding with the help of your EOR partner.
ENJOY THE BENEFITS OF WORKING WITH EOR EXPERTS
Are you looking for a partner to alleviate your administrative burdens? We at Signature Back Office are here to offer our personalized services.
Our team of experts with real-world staffing experience understands what your business needs. We take the time to learn about your firm and provide the back-office support you need to further drive your success. From basic benefits to comprehensive financial services, learn more about our Employer of Record company!
