How does this article impact the Human Resources community? Have you seen it in

Question

How does this article impact the Human Resources community?

Have you seen it in any organizations?

Transportation Solutions Company

Client:

A LEADING GLOBAL MANUFACTURER OF TRANSPORTATION-BASED TECHNOLOGY APPLICATIONS

Problem:

The client wanted to hire temporary employees without using a traditional staffing company model, in which markup rates include a finder's fee for sourcing prospective hires. Knowing best how to hire for their own projects and wishing to retain tighter control of their contingent workforce, the client wanted to source their own temporary staff from an already-identified pool that included past employees, retirees, and other specialized talent. However, the client also wanted to hire these employees without losing some of the accompanying benefits offered by a traditional staffing service, including fewer administrative hassles, quicker on-boarding processes, and reduced employer liability.

Solution:

Innovative Employee Solutions worked with the client to design a customized, outsourced solution that relieved the company of HR administrative burdens and lowered their risk and liability, while still allowing them the ability to source their own talent and adhering to their stringent standards for pre-employment screening and expense reporting. IES designated an account manager and experienced payroll staff to handle the hiring and HR administration for the client's temporary employees, and implemented an outsourced payroll program that included customized forms, applications, and timecards, all accessible online. IES set up pre-employment screening procedures for new hires, including background checks and drug-screening notifications, and offered payrollees a voluntary healthcare plan, 401K participation, and other fringe benefits. In addition, IES managed workers' compensation and unemployment claims on behalf of the client, and issued W2 forms to payrolled employees at the end of the year.

To help the client monitor expenses and improve corporate transparency regarding its contingent workforce, IES also developed specialized reports for the company's hiring managers and accounting departments, detailing the number of new hires processed, the amount of regular and overtime hours worked, employee pay rates, quantity and amounts of paychecks issued, and more.

Benefits and ROI:

With IES acting as their employer of record, the client now spends significantly less time on the administrative tasks of hiring, payrolling, and managing their contingent workforce. And by sourcing their own temporary hires and payrolling them through IES, the client is able to save up to 50% when compared to traditional staffing fees; maintaining tighter control of its contingent workforce, while still enjoying the reduced risk and liability that comes with utilizing temporary staff. Using IES' outsourced HR administration also allows the client to bypass its own lengthy internal hiring procedures, mandatory wait times, and other red tape that previously led to extended hiring delays. Thanks to IES' smooth, expedited on-boarding process, the company is now able to quickly and easily hire its desired temporary employees, who can begin working almost immediately.

According to the company's Installation Manager, "The service IES provides us is priceless, and saves a huge amount of time. IES has allowed us to bring on employees in a streamlined, hassle-free fashion. Their cost and superior service are far and away better than any other service I have used."

Explanation / Answer

Benefits of using IES:

With IES acting as their employer of record, the client now spends significantly less time on the administrative tasks of hiring, pay rolling, and managing their contingent workforce. And by sourcing their own temporary hires and pay rolling them through IES, the client can save up to 50% when compared to traditional staffing fees; maintaining tighter control of its contingent workforce, while still enjoying the reduced risk and liability that comes with utilizing temporary staff. Using IES' outsourced HR administration also allows the client to bypass its own lengthy internal hiring procedures, mandatory wait times, and other red tape that previously led to extended hiring delays.

Now you can see that IES is doing almost everything on behalf of the clients based on the Talent requirement given by them. Hence there would not be a requirement of Talent Acquisition Team anymore in the Clients organisation. They can go and layoff most of the department which are only busy in doing the paper work for the new hires.

Yes, there are many companies which takes the help of such outsourcing companies to manage the hiring process of the other country. Especially when the company is busy and see the clear trade-off between having a talent acquisition team and outsourcing the hiring task. For example: SAP, which procure the talent from their partner on the contractual basis for short term duration. SAP pays to the partners and all the payrolling of contractual employee taken care by partner company.

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