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Professional staffing agencies perform on a level similar to managed service providers in that they handle a wide variety of services for their clients, cutting a company's operating costs dramatically.
Up to the point when a corporation decides to transfer the status of a temporary employee to a full-time, permanent position, the staffing agency is, under law, considered that individual's sole employer. Issuance of paychecks and implementation of health benefits are the singular responsibility of the staffing agency, and are carried out appropriately.
Companies utilizing the services of a professional staffing agency for their temporary employee pool eliminate the costs associated with the administration of payroll and benefits. This is an important and financially beneficial strategy that allows corporations to control cost and improve production.
In addition, because temporary employees are legally employed by the staffing agency, companies can operate worry-free with respect to their unemployment tax rate.
|Jennifer Mathes, Ph.D.|