Companies all too often unnecessarily increase their NEER surcharges by one simple mistake in how they hire staff.

Aside from the strategic advantages and flexibility a temporary staff workforce provides, there are significant financial benefits that can be realized with temporary workers augmenting your permanent workforce.

The Secret NEER Risk Reduction Risk Strategy

Most companies know WSIB premiums are reduced when using temporary workers as the temporary employees have their WSIB premiums paid for by the temporary staffing agency. But less well-known is how the temp agency paying WSIB premiums for temp staff reduces the possible maximum WSIB NEER surcharge that would levied should one of your permanent employees be injured at your place of work.

How can that make sense? NEER surcharges are calculated using a complex formula based on the amount of WSIB premiums you pay on behalf of your total permanent workforce. Generally speaking, the higher your WSIB premiums, the higher your NEER surcharge! And the more permanent staff you have, the higher your WSIB premiums.

Fewer Perm and More Temps Reduces Potential NEER Surcharges

Should one of your permanent employees be injured in the workplace, depending on the severity of the injury and length of time the employee is off work, the WSIB claim cost for the injured worker could trigger a significant NEER surcharge for your company that would be much more than if your permanent staff headcount has been offset by temporary workers through a staffing agency.

Staffing agencies can help fill all kinds of positions with temp staff, not just labourers and for short-term clerical assignments. Managers and supervisors, right up to C-level executives can be hired on a long-term temporary basis.

Don’t Make This WSIB Premium Mistake

A common misstep is for companies to offer permanent full-time employment to a temp worker whose performance they are delighted with. But by doing so, they increase their permanent headcount, thus increasing their WSIB premiums, and exposing them to increased NEER surcharges should any permanent staff be injured.

The lowest risk strategy to minimize NEER surcharges is to lower your WSIB premiums by reducing your overall permanent headcount, filling those roles with temporary workers whose WSIB premiums are paid for by the staffing service.

Ask your temp staffing agency how they can help you integrate this strategy into your hiring practices, and help you reduce an unavoidable on-going overhead cost.