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Is Your Staffing Company Putting You at Risk?

September 23, 2013 | Staffing Blog


If you made the decision to outsource your temporary staffing needs, it’s probably because you wanted some expert assistance with the growing demand of Governmental Regulation compliance.  But what if you found out that “expert” staffing company was exposing your business to unnecessary risk? 

Let’s look at just three ways your business could be in jeopardy because your staffing agency isn’t providing comprehensive service: 

Insurance: We don’t always think about it until we need it, but then it’s too late. If something were to happen while your temporary employees are on the job, who’s responsible? Could it be your staffing company charged a lower hourly rate because they have cheap and inadequate insurance? And if they don’t have insurance at all, you could be stuck with a big bill.  

Background checks: In addition to protecting your business from an employee with a troubled past, are you and your staffing company familiar with the new EEOC standards towards background checks and employment? Do you know you could be dragged into an EEOC suite because your staffing company didn’t follow proper guidelines? Do you want someone with a history of theft working in your high-end electronics warehouse? Or let’s say you employ a temporary worker who turns out to be an excellent employee. You spend five months training that employee and getting him up to speed. You’re ready to offer him a full-time position and when you run the background check, you find a drug violation and can’t offer him the job. Now, you’ve wasted time and money on this employee because you thought the staffing company ran the background check first. 

E-Verify: Employers must use the E-Verify program to verify potential employees are eligible to work in the United States. Running temporary workers through the E-Verify program keeps you from breaking the law. Violating the law can result in civil fines or criminal penalties. You don’t want to face those problems because you assumed your staffing agency had completed the E-Verify process.

Remember it’s never the staffing company that is in the paper or on the news!

Is it worth shaving $2 off the hourly rate only to have your business hit with a huge insurance bill? What about the lost productivity and overtime pay because you lost 10 employees who couldn’t pass a background check? 

You’re not just buying people from a staffing company, you’re buying the assurance and peace of mind that you’re getting quality employees who have been vetted and put through a rigorous hiring process. 

Are you really transferring risk to a staffing agency? Or, do you just think you are? And the bigger question becomes: Is it worth taking that chance? We don’t think so. You should hire a high-quality staffing company with a reputation for industry excellence. 

If you have questions about what your staffing company is – or isn’t – doing, just ask. A reputable company is more than willing to provide documentation, background check results and insurance details. If the company isn’t forthcoming, that should be your first red flag. 

Don’t put your business at risk just to save a couple dollars. Do your research and hire a staffing agency that delivers with vetted, trained and possible full-time workers.