Recently, DCR began working with a new client whose business employs thousands of contingent workers each year. As we began to review their business practices, a number of issues surfaced. Susan (not her real name), the Human Resources Director, proudly stated that her team establishes strong working relationships with the temp workers. She went on to say that they personally verify all employment and educational credentials. They directly extend offers to successful candidates. They include the contingents in employee reward and recognition programs. The client was truly astonished when we expressed concerns about the client being vulnerable to claims of co-employment and violations of other employment regulations.
The Law of Unintended Consequences certainly is at play here. In an attempt to foster a strong work environment in which they source the best workers, maximize productivity and minimize unplanned attrition, the client took actions that could result in fines and penalties.
In this blog, we will review who should be responsible for what when a company retains a staffing agency to source and place contingent workers.
Roles and responsibilities, as indicated above, are governed by a number of Federal and State laws:
As the number of contingent workers is growing by leaps and bounds, the need to ensure regulatory control is also growing equally fast. Ensure that the contract with each staffing supplier clearly articulates and assigns the responsibilities for each aspect of the use of contingent workers.
Now, back to Susan. To assure her team that candidates were properly vetted, DCR revised staffing agency contracts to specify screening requirements and indicated penalties for non-compliance. Our VMS system indicates mandatory questions that must be answered prior to candidate submission, then captures the results of all screening and onboarding actions. Supporting documentation allows Susan and team to be confident that the same level or rigor applied by her team is in place today. We help Susan regularly revisit roles and responsibilities with all supervisors and functions using temporary labor. Her well-informed supervisors establish a highly effective work environment without increasing the risk of regulatory non-compliance. Susan is able to audit all contingent worker related transactions. In her company, the differences between yours, mine and ours is now clear.
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