5 Reasons Why You Should Payroll Your Next On-Site Apartment Professional
Payrolling has gained steam over the past few years. The concept works because it gives the hiring company and the potential employee the opportunity to work together before a formal offer is made. Payrolling is a simple process. For example, an apartment manager identifies a leasing consultant that she is interested in hiring. She contacts a staffing company and lets them know that she has a candidate that she would like to payroll. The candidate registers with the staffing company, making them the “employer of record”. The candidate works at the property until a hiring decision is made. Once the decision is made, the apartment manager notifies the staffing company and is only charged for the number of hours the candidate worked at the property. No additional fees or buyout expenses are incurred.
The concept of payrolling keeps all the benefits of gaining a candidate for a position, while saving money on administrative, processing fees and much more. Here are five examples of these benefits and what they can look like for your company:
1.) Save on workers comp
While you are payrolling your potential employee, they are on the staffing company’s payroll, which means that the staffing company is liable for any workers compensation cliams. This translates to saving money on insurance premiums and saving time on processing claims. For instance, if you are trying a groundskeeper out with the possibility of hiring him full-time and he hurts his hand while working on a project, his insurance claim will be filed by the staffing company. As you know work injuries can often be prevented, but inevitably, still occur.
2.) Save on unemployment
Because the candidate is an “employee of record” for the staffing company, the staffing company is therefore responsible for all unemployment issues. For example, if an apartment community decides to payroll an employee and for some reason it turns out a candidate is not the right fit for a position, then the client can dismiss him or her and not worry about unemployment claims. In Texas, unemployment rates are assessed annually and the number of qualified claims affects rates. Many companies are experiencing all-time highs on their unemployment rates. A few bad hires, can truly affect a company’s bottom line.
3.) Save on additional costs
There are several additional costs that you can side-step with payrolling. Some of those costs include healthcare benefits, leasing commissions and apartment discounts. For instance, if you were payrolling a leasing consultant for two to three weeks and they leased four apartments, you would not be responsible for paying commissions. During that two to three week period they are employees of the staffing company so the apartment community is not responsible for commissions, healthcare or apartment discounts.
4.) Payrolling – the true TEST
Payrolling is a great way to “test” out a candidate and see if they are a good fit for a property. Trying a potential employee at your property means having the opportunity to observe how well they function in their job and the company’s environment-and if he or she is match for the long-term. Furthermore, the candidate can decide if the property is a good match for him or her.
5.) Cost is almost equal to hiring full time
The cost of payrolling an employee is compelling, since it comes out to a little under a net $4/hr. Here’s an example using a leasing consultant: The average pay for a leasing consultant is $12/hr and the average payrolling rate is $18/hr. The gross difference is $6/hr, but is less than $4/hr after you add in workers comp, payroll taxes and administrative overhead. So, if you were to payroll an employee for two 40-hour weeks, you would be looking at spending a net $320.00. This is a small price to pay for the opportunity to try an employee before hiring them full-time.
So why should you payroll your next employee? These five reasons translate to saving money on the costs of hiring a new employee, as well as minimizing all the risks involved. Payrolling can be used for any onsite position. Contact a staffing company to get more details.
