Why Pay Too Much For Contract Employee?
WHY PAY TOO MUCH?
by Maria Ricci, General Manager
PSC’s service offering is singularly that of a Professional Employer Organization. This is our key differentiator in comparison to a 
staffing company. We do not participate in any recruiting activities. We provide 3rd party independent contractor engagement and billing services to those corporations who are manning their Independent Contractor population on their own, bringing known independent contractors back from previous projects or pay rolling independent contractors through staffing companies for long periods of time.
A staffing firm’s primary objective is to supply quality independent contractors to corporations when needed. Speed and quality is of the essence. In order for a staffing firm to enable this operation and maintain a high level of satisfaction within their customer base they need to continuously invest. The majority of their spend goes toward the marketing and maintenance of these contractors. The corporation pays for that of course. At the outset, that is reasonable, considering that the corporation does not necessarily have the time or the savoir faire to do their own contingent workforce recruiting. It begins to get costly for the corporation when the contractor is needed for a longer time period but cannot hire them on permanent status: head count restrictions, permanent hiring freeze, project delays, additional workload etc...
Temporary to Permanent, without any additional fee clauses, are popular and beneficial to the corporation when the corporation can hire the contractor on a permanent basis. When the corporation cannot, often the corporation nor the contractor is allowed to continue their relationship unless the corporation buys the contractor.
Why choose a PEO:
- Reduced costs of contract employees
- Standard Rate across the board – rate management through established rate cards
- There isn’t Temporary to Permanent placement clauses. This means that you can end and rehire the contractor as you wish if he has already been identified by the corporation through previous projects or placements with staffing firms.
- Turnover. Although this practice lacks in professionalism and good business etiquette, it is happening in the marketplace today. Because a PEO is not in the recruiting business the risk of offering your contractor a better opportunity is nonexistent.
- Proper classification of contractors reduces risks of co employment
- Proper processing of contractors ensures the right agreements and paperwork are signed and provided by the contractors to ensure the protection of the corporation, the contractor and the PEO.
The transition to a Professional Employer Organization can represent substantial cost savings for the corporation and therefore, why pay too much?
To learn more about PSC please do not hesitate to contact us at: info@paymentservicescorp.com or take our free Risk/Reward Questionaire. click below
