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Is Your Temp Staffing Agency Putting Your Company at Risk?

The right temp staffing agency can provide your company with a high return on investment (ROI). Partnering with the wrong agency can expose your company to unnecessary risks. Let’s quickly look at a few of the sources of those risks.

The Staffing Agency Lacks Experience in Your Industry

Even a good temp staffing agency can still expose your company to needless risk if they do not have the needed experience in your industry. Lacking knowledge and experience within your industry could lead to:

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  • Temp workers lacking the necessary skills
  • Not having a large enough pool of workers to adequately meet your needs
  • A lack of knowledge of legal and safety procedures as they relate to your industry

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Ignoring these potential issues is exposing you to risks that could impact your productivity and employee morale. You could also be exposing you, your firm, and/or your workers to legal issues and safety risks.

The Staffing Agency Lacks an Understanding of Your Company  

Does your temp staffing agency understand what makes your company different than others within your industry? If they do not then your agency is putting your company at risk.

This is an area which highlights the need for good communication. You need to clearly explain not only the needs of your company, but also your place in the industry. You need to have confidence that your temp staffing agency has a clear understanding of your company culture. How can your agency fill your needs if they do not understand these factors?

If the temp staffing agency seems to be unresponsive to concerns you express, take this as a clear warning sign that you have selected the wrong agency.

The Staffing Agency is Disorganized

The organizational ability of your temp staffing agency is really important. You need to have confidence that they will keep track of needed details, such as:

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  • Temp workers past work history with your company
  • Times, dates and hours worked by temp workers
  • Tax and personal information concerning temp workers

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Does your temp staffing agency regularly need to communicate with you to clear up confusion or misinformation? If the answer is yes, then this is a clear warning sign that the agency may have record-keeping issues. You do not want to risk their dis-organizational issues becoming your issues.

The Staffing Agency is Charging You Too Low of a Billing Rate

If your temp staffing agency is charging you too low a rate it could be a key signal they may be taking shortcuts like:

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  • Not paying their temp workers at least minimum wage
  • Not paying Workplace Safety and Insurance Board (WSIB) premiums for their temp workers
  • Using temp workers that are not legally permitted to work in Canada

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Ignoring  signs like these puts you at great risk of costly fines and other legal ramifications should you ever be audited by the Ministry of Labour or Canada Revenue Agency.

The Staffing Agency Fails to Properly Screen Applicants

Ending up with temporary workers that do not have the necessary skills could potentially be a sign that your temp staffing agency is not properly screening applicants. If they are not checking references and performing background checks, you are taking all sorts of risks. Your company really cannot afford surprises when it comes to the temp workers that you are using.

If you see any of these warning signs, it is important not to ignore them. Instead of high risks and low rewards, you want to ensure that your temp agency is consistently providing you with high ROI.

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