Business demand is never constant. There are times when there is a surge in demand which may be seasonal or due to a major project that you have secured. These are temporary phases when you need extra staff and once the demand falls or the project is over, they are no longer required. This is where temp staffing agency comes in.
You hire an employee on a contractual basis for the duration of the project or the increased demand. It is a win-win situation for the temporary staff as well as the company.
Temp staffing in India specialize in payroll processing and compliance for a fee. If we look at the benefits provided by a temp staffing agency, the fee is worth it.
Here are the 10 benefits of partnering with a temp staffing agency
These are the benefits that you can derive by appointing a temp staffing agency in 2019:
1. Saves time
Maintaining the payroll for employees is a time consuming process. The temp staffing agency will take care of sharing the CTC and issuing the offer letter to the employee.
Documents provided by the employee will be collected and scrutinized, reference check done and appointment letter issued. The details of the employee will be entered into the software and all statutory compliance covered. They will also take care of the termination formalities.
2. Cost reduction
Having a separate payroll processing department means that your fixed overheads like salaries and statutory benefits will go up.
Considering that you would require qualified finance professionals with knowledge of provident fund, income tax and employee state insurance rules, it will prove very costly for you. Instead, a temp staffing agency will charge a fixed fee.
Compliance with the statutory regulations is quite a complicated process. All temporary employees need to be registered under the Employee State Insurance Scheme, group accident assurance benefit as well as the provident fund scheme.
The deductions made towards employee provident fund with a matching contribution from the employer need to be submitted to the concerned provident fund department on time.
A temp staffing agency like Paysquare has a team of experienced finance professionals who will take care of all your compliance issues. Non-compliance means heavy penalties and you are spared of this hassle.
The temp staffing agency takes care of not only the salaries of the staff but other benefits like leave policy, retirals as well as reimbursements and claims policy which is at par with the other staff employed by you.
When the temporary employee is satisfied on the pay and benefits front, they will put in their best effort thereby improving productivity.
5. Data security
A temp staffing agency has the latest software when it comes to providing payroll services. All the data relating to the employee from the date of joining are stored including the pay, benefits, leave status or statutory deductions are available and there is complete confidentiality.
You don't need to invest in expensive payroll software to keep a record of these employees as they are on the payroll of the temp staffing agency.
6. Variety of services
A temp staffing agency provides a variety of services apart from payroll processing like leave policy, retirals benefits policy, as well as reimbursements and claims policy.
They take care of the all the contractual procedures relating to the temporary employee from joining to providing the relieving letter. Details with regard to CTC, retained amounts, loans and advances, as well as full and final settlement are provided.
7. Lower employee turnover
Employee turnover is a major problem that most businesses face. One of the major reasons of high employee turnover is dissatisfaction with pay.
When you partner with a temp staffing agency, they not only ensure that the temporary employee is paid at par with your staff but also provide the required statutory benefits. A satisfied employee is unlikely to leave the job.
8. Greater Focus
As a business owner, it is important to focus on the core area which is retaining existing customers and expanding the customer base.
With the payroll being handled by the temp staffing agency, you can concentrate on providing better service to your existing customers and acquiring new customers. This will lead to greater profitability.
9. End-to-end solutions
A temp staffing agency provides end-to-end solutions from issuing the offer letter to termination of employment. Their team of qualified professionals ensure that all the statutory registrations are complied with and deductions are submitted on time.
You don't need to worry about any payroll issue from joining to termination of employment.
10. Absenteeism/resignation costs
One of the major disadvantages of having an in-house payroll department is absenteeism or resignations. Absenteeism may be due to some sudden medical emergency or prolonged illness.
This will lead to the remaining employees being overworked and a possible fall in productivity. There could be delays in payment of salary or other benefits.
When you partner with a temp staffing agency, you will not face any such issues. The employees will always get their salary and other benefits well in time.
Get the Winning Edge with Paysquare
Payroll benefits administration plays a major role in the success of every company. There are compliance issues that need to be addressed and an efficient payroll system leads to motivated employees which in turn leads to higher profits.
Paysquare provides end-to-end solutions in payroll processing and compliance with over 17 years of experience in various industries like consumer durables, manufacturing and so on.
With no payroll responsibilities to worry about, you can be more focused to achieve higher growth and take your business to the next level.
If you have any queries, please reach out to Paysquare here.