Many companies use temporary help but how many use them the right way? We, of course, all know the standard uses such as vacation fill-ins, maternity leaves, illness and your busy periods, but there are other reasons and uses for temporary help.
All businesses have jobs where there is high turnover. No matter what, it is always necessary to find new people to replace the individuals who have left the company. Turnover is not only common, it’s inevitable. It’s surprising how many jobs fall into this category. Messy factory jobs are obvious, waste disposal, cleanup, etc. but it’s surprising how many data entry jobs are high turn-over, security type jobs, or generally boring jobs. It seems you are always recruiting for certain jobs that might represent only a small percentage of your total work force. These positions are ideal for a personnel agency to fill long term. Agencies deal in turnover and will have an individual who can step in at a moment’s notice. The turnover won’t be reduced, but at least you know someone will be there. The perpetual ads to recruit and the interview time that it takes to fill these jobs constantly will be eliminated. In the end, it will be less costly and less disruptive if you pass this responsibility on to the personnel agency!
These days temporary or contract employees (otherwise known as assignment employees) have many rights and benefits. These individuals are just as entitled to stat. pays, etc. as any full-time employee. With Bill 139 (See previous post), temps now have to be paid for statutory holidays and they still fall within the Employment Standards Act as it relates to termination and severance. You will, in turn, be saving dollars by not having to pay for sick time if they are off and if they are, you can call the agency for a temporary fill-in as opposed to having to move one of your own workers from their job to look after the absence.
One thing you have to ensure is that you work with a reputable employment agency. If you have a temporary worker at your company through an agency who is making the minimum wage of $ 10.25 per hour and you are being charged $ 11.50, you know they are short-changing the employee and/or the government. Basic costs over these days, even for a temporary employee, are at least 22 % of wages. Do the math! Their legitimate basic costs are over $ 12.50 per hour so it remains obvious there is some illegitimacy involved. You need to check what they are paying in terms of Government Premiums and whether they are categorizing the employees properly for Workers Compensation remittances. These days it can come back to the client if the proper premiums are not being paid. Many don’t even realize that! Consider all that.
Also, beware of cash daily agencies as it has been shown that they are taking money from the worker almost without exception, that the law says they cannot! Not to mention, some cash-paid workers could be collecting other Government money in some way, whether Employment Insurance or Welfare, or they are using illegal workers??? Something’s not right! Are these companies falling within the guidelines of Bill 139? I would ask that you get them to prove they are and even ask to see a pay stub or payroll summary. Somehow many of these companies still seem to slip under the Government’s radar and remain in business.
We have heard from companies that it’s not their problem if the agency isn’t complying. These days that’s not true and so you need proof they are complying with all Government premiums and regulations. It’s not only good business…it’s protecting YOU!
Keep all of this in mind and support companies, such as TPI, who are very diligent in ensuring that they comply with all regulations and treat their workers with respect. We will all win in the end!
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