Why Contingent Payroll is the Smart Move for Your Business

In today’s ever-changing business world, flexibility is everything — especially when it comes to your workforce. Contingent workers can be a critical part of modern hiring strategies whether you’re staffing up for a new project, hiring seasonal interns, or need specialized talent on short notice. 

 

But, when it comes to suddenly managing payroll for a group of employees who may only be there for a few weeks or months, that’s when things get complicated. This is where a staffing company comes in handy. A nationwide staffing firm like Nesco Resource has the expertise and bandwidth to process weekly payroll, manage benefits, help with onboarding, provide safety advice, and handle taxes and employment laws in every state. 

 

Using a staffing company for contingent payroll offers numerous benefits like reduced administrative burden, cost savings on benefits, and access to a wider talent pool, while also freeing up internal resources to focus on core business activities. Here are just some of the benefits: 

 

Staffing agencies handle all the paperwork, compliance, and legal requirements associated with contingent workers, freeing up your company to focus on its core activities. A staffing company can help eliminate the compliance burden by ensuring all employment-related paperwork is complete and valid, allowing candidates to start quickly. Nesco takes the extra step of using E-Verify to confirm temporary associates’ eligibility to work in the United States. 

 

Having a staffing company E-Verify every contingent candidate for you helps protect your business from significant fines and other business repercussions like loss of government contracts. Staffing firms also assume the worker’s comp liability for your company. In case of injury, this saves you the financial burden of covering medical expenses and lost wages. 

 

In addition to not paying for worker’s comp, you also don’t have to pay for employee benefits like health insurance, paid time off, and any retirement contributions like matching 401K plans. Temporary employees may be offered these benefits, but the staffing firm would provide them. 

 

The move toward a more remote workforce over the past several years opens up a much wider talent pool for companies, colleges, and other businesses. Let’s say you’re an engineering college in Indiana and you want to hire an out-of-state engineer who worked on a NASA program as an adjunct professor to teach an online class. It’s much easier to do when you have a staffing agency as the employer of record. An agency with nationwide reach like Nesco knows the labor laws in other states and can properly withhold applicable taxes, as well as managing compliance with any other local or state regulations.

 

If you’re a company that needs to take on dozens of temporary warehouse associates during the busy season, you may not have ready access to the cash flow to cover their weekly pay. As a payroll provider, the staffing agency will pay the temporary employees weekly and invoice you. 

 

You only pay for the days worked. If a project finishes early, you can end the assignment early. Or, you can keep the workers for a longer period of time if needed. When you work with a staffing company, your workforce is very flexible and can easily be scaled up or scaled down. 

 

At Nesco Resource , we've been helping organizations navigate workforce challenges such as employee turnover since 1956. As a nationally ranked staffing and workforce solutions company, we're dedicated to transforming lives by connecting job seekers with opportunities that fit their skills, schedules, and goals. 

 

Our comprehensive services – which include contingent labor, HR & payroll, managed services, onsite partnership, and direct hire solutions – are designed with one goal in mind: delivering flexible, efficient, and strategic workforce solutions that empower both businesses and individuals to thrive.