Avoiding Co-Employment Pitfalls When Using Temporary Workers

Co-employment refers to the relationship between a business and a staffing firm. With this pact, a company and its staffing agency share employment responsibilities. In many cases, co-employment agreements work well for all parties. However, co-employment pitfalls sometimes arise with companies that use temporary workers. If you have to deal with any of these pitfalls, they can make it tough for your company to stay on track. 

Below are three co-employment pitfalls that may come up if your company uses temp workers, along with tips to help you avoid these issues.

1. Legal and Compliance

Unfortunately, there are times when a temp worker is misclassified as a full-time and permanent employee. If this happens in a co-employment agreement with a staffing agency, a temporary worker could request unpaid wages, overtime, or benefits from your company. Since the worker was misclassified, it may be difficult to contest their case for these. Yet, if you dispute the employee's case, you could encounter legal and compliance problems. 

Address legal and compliance risks by understanding co-employment and all that it entails. Establish an agreement with your staffing partner that defines the terms for both sides. Maintain transparency with this partner, too. If you have concerns or questions for your staffing partner, there should be no issue with discussing them at any point. 

2. Financial 

You are committed to creating a culture that keeps temporary workers coming back to your business. As such, you enter into a co-employment agreement with a staffing firm and expect to find temp workers to fill roles in alignment with your budget. Yet, unexpected costs can come up, putting your business in a bind financially. 

Make sure your staffing agency is upfront about its fees relative to your co-employment agreement. There is no room for gray areas in this pact. Otherwise, if it is unclear about the costs you will incur if you get help from a staffing agency, you could have to pay substantial fees as you add temp workers to your team. 

3. Operational

The terms of a co-employment agreement can dictate the success of your partnership with a staffing firm. If the agreement doesn't state what each party is obligated to do, operational issues can arise. These problems can make it difficult for your company to keep pace with the needs of its temp workers and ensure they get the help they need to thrive. 

In a co-employment agreement, each party's responsibilities should be defined clearly. That way, your company and your staffing partner know what is expected of each other. Plus, both parties can avoid overlapping on various responsibilities or missing out on opportunities to capitalize on opportunities to engage with and support temp workers. 

The Bottom Line on How to Avoid Co-Employment Pitfalls When You Use Temp Workers

Who you choose as your staffing partner makes a difference relative to the success of your co-employment initiatives. Select a staffing agency that is committed to your business and wants to help your company find the right temp workers for myriad roles. This agency will go the extra mile to serve your business and ensure that your staffing needs are met continuously. 

Ascend Staffing is a trusted choice for companies in need of temp workers. Allow us to assist you with your staffing needs. Contact us for more information about how we discover talent in everyone.