The use of temporary staff can be a great resource for companies of all types and sizes as a way to fill voids in the everyday workforce. Due to the nature of the business, staffing insurance is purchased as a way of protecting the staffing agency in the event the employee becomes injured on the job, or is responsible for some type of loss as a result of a mistake or error made.
Most companies upon determining that a temporary employee is needed will seek out a staffing agency based on which entity is able to deliver the best candidates. However, any business relationship with a staffing company should be carefully reviewed given that clients of temporary employees are placed in a co-employment relationship with the agency of their choosing.
Concerns the should be addressed
There are certain risk management issues that are inherent in staffing, such as whether the chosen recruiter is representing the best agency for your personnel needs, and is the agency’s workers’ compensation plan and staffing insurance adequate in the event of an accident or injury. Furthermore, does the agency have adequate new hire materials to protect the organization and what are the agency’s qualifications regarding human resource education and training?
There are many considerations involved in evaluating the agency assigned with this task. A staffing firm should be in charge of maintaining all employment-related records and also provide a handbook and any essential training to its employees regarding key labor and employment issues.
Temporary employees may be exposed to sensitive and confidential material while on assignment. A confidentiality agreement allows the agency to address the importance and seriousness of maintaining confidential information and can assist with risk management requirements of clients, such as liability and malpractice insurance coverage criteria.
In addition, state and federal employment laws require employers to have a policy that addresses harassment issues. Laws are also in place requiring employers to have a formal safety policy known as an Illness and Injury Prevention Program. New hires should be given a complete written program that addresses safety and accident reporting procedures.
In the event of a claim, an arbitration agreement can help to manage the cost of any litigation procedures. Finally, a client benefit waiver acknowledges that a temp employee is employed by the staffing service for benefit plan purposes and that the employee is eligible only for such benefits as the staffing service may offer to its employees.