Save Lots of Money: Choose Third Party Payrolling Over Temp Staffing

Here's the thing about temp staffing: it's a remnant of a time when finding talent was hard and companies needed middlemen. The market has evolved, but many organizations are still paying premiums of 45-75% for services they don't actually need anymore. 

Think about it. When you use a temp agency, you're essentially paying a premium for someone else to do your thinking. But what if you've already identified the perfect candidate through your network, job boards, or employee referrals? 

This is where third-party payrolling changes the game. It's like hiring a day-of coordinator instead of a full wedding planner - you've already made the important choices, you just need someone to handle the paperwork. With markups typically between 18-22%, payrolling delivers the administrative support you need without the hefty fees you don't. 

Consider this real-world example:  

COST COMPARISON FOR TWO $25/HOUR WORKERS

Temp Agency (50% Markup): 

• Each worker costs: $37.50 per hour 

• Two workers cost: $75.00 per hour 

Payrolling Service (20% Markup): 

• Each worker costs: $30.00 per hour 

• Two workers cost: $60.00 per hour 

YOUR SAVINGS: 

• Every hour: You save $15.00 

• Every week (40 hours): You save $600.00 

• Every month (4.33 weeks): You save $2,600.00 

• Every year: You save $31,200.00 

Think of it this way: Using third-party payrolling instead of a temp agency for just these two workers saves you enough money each year to buy a new car or hire another full-time employee. That's the difference between paying unnecessary markups and choosing the smarter payrolling option. 

Beyond the direct cost benefits, payrolling partners handle all the complex stuff - employment paperwork, tax documentation, benefits administration, and worker's compensation coverage. They become the employer of record, assuming key responsibilities and liabilities while reducing your administrative burden and compliance risks. 

The magic happens when you cut out the middleman's middleman. Everyone wins: your new hire gets more of their actual pay, you save money, and the paperwork still gets done professionally. Plus, without a staffing agency as intermediary, you can build stronger working relationships with your contingent workers, leading to better engagement and productivity. 

Smart companies are realizing they don't need the full temp agency package. They're building their own talent pipelines, leveraging their networks, and using payrolling partners strategically. This isn't just about saving money (though paying 20% instead of 50% markup sure feels good). It's about being smart with how we structure work relationships. 

This approach is particularly valuable if you: 

• Frequently hire temporary or contract workers 

• Have already identified qualified candidates 

• Want to reduce workforce costs without sacrificing quality 

• Need to maintain workforce flexibility while minimizing administrative burden 

The market is shifting. Sometimes the best innovation isn't creating something new - it's stripping away the unnecessary layers of the old. That's exactly what payrolling does. It's simpler. Cleaner. More direct. 

To maximize these benefits, partner with a provider offering robust technology platforms, clear communication channels, and a proven track record of compliance management. They'll help you streamline your contingent workforce management while delivering significant cost savings compared to traditional temp staffing arrangements. 

The choice is yours: Keep paying for the full buffet when you only want the dessert, or switch to ordering à la carte. Smart leaders are already making the switch to third-party payrolling, optimizing their workforce spending while maintaining crucial administrative support. \

The question isn't whether to make the switch - it's when will you? 

The benefits extend far beyond the bottom line. While you're saving on costs, you're also building a more dynamic organization - one that can seize opportunities faster and adapt to market shifts with confidence.

This isn't just a different way to manage payroll; it's a strategic advantage that puts your business in position to thrive.

Need Help?

Need help managing your contingent workforce? Contact TCWGlobal today to learn more.

Whether you need expertise in Employer of Record (EOR) services, Managed Service Provider (MSP) solutions, or Vendor Management Systems (VMS), our team is equipped to support your business needs. We specialize in addressing worker misclassification, offering comprehensive payroll solutions, and managing global payroll intricacies. 

From remote workforce management to workforce compliance, and from international hiring to employee benefits administration, TCWGlobal has the experience and resources to streamline your HR functions. Our services also include HR outsourcing, talent acquisition, freelancer management, and contractor compliance, ensuring seamless cross-border employment and adherence to labor laws. 

We help you navigate employment contracts, tax compliance, workforce flexibility, and risk mitigation, all tailored to your unique business requirements. Contact us today at tcwglobal.com or email us at hello@tcwglobal.com to discover how we can help your organization thrive in today's dynamic work environment. Let TCWGlobal assist with all your payrolling needs!