Why should I use the services of a Flexi-Staffing service

By: Hbr Personnel  11-11-2011
Keywords: Human Resources, human resource, Employment Service

HBR Human Resources is a Temporary Employment Service (TES) or flexi-staffing provider, providing staff to clients for more than 28 years. We are registered with the Department of Labour to run a Private Employment Service (PES). We are also members of the Association of Personnel Service Organisations (APSO) complying with their strict code of ethics. Our financial director is the treasurer for the APSO Western Cape region.

The decision by a company to use the services of a TES is usually a difficult one as the company feels that it can do what the TES does, more economically. By using a TES, your HR department is able to continue with their daily tasks and responsibilities. Your accounts department will not need to reconcile all of your flexi-staff employees’ wage payments on the company’s bank accounts. You issue one cheque to HBR for the invoiced amount for each pay cycle. The amount is fully inclusive and no other amounts are due. You do not have the liabilities of an employer as there is no employee/employer relationship between our employees contracted to work at your company and you. HBR, as the employer of the flexi-staff, goes to the CCMA or Labour Court for any conciliations/arbitrations. Our experience is that once a company converts to using the services of a good, reputable, registered TES, they will rarely go back to doing it themselves. The TES should belong to APSO or CAPES to ensure they comply with a code of ethics.

There are many aspects to the benefits of using a labour broker, many of them tangible and many apparently intangible and when the situation is accurately assessed, it would be seen that the benefits far outweigh any cost trade-off. The tangibles are easily identifiable. The staff are not employed by your company resulting in there being no employer/employee relationship. HBR employs the staff and everything to do with staffing and the administration thereof is the responsibility of HBR i.e. sourcing, advertising, screening, interviewing, referencing, administration, payroll processing, payment and discipline. HBR issues accurate, detailed payslips and pays the : wages ; company UIF contributions ; COIDA (Workmen’s Compensation) levy ; Skills Development Levy (SDL) ; the employees’ PAYE and UIF contributions to the relevant state organisations.

A TES spends their business time sourcing, interviewing, referencing, paying, counseling, disciplining, training and administrating staff. This is all done in anticipation of our clients seasonal/production-linked or changing staffing requirements. It is our business and after 28 years of refining it we feel we’re highly qualified to do it well.

When company’s human resource (HR) departments, or Heads of Departments, take on seasonal staff, they effectively take themselves away from their designated jobs in order to process the company’s seasonal requirements. This results in the HR department having to stretch themselves in order to satisfy their existing increase is workload as well as the contract staff requirements during the company’s high season. This is usually when the HR department is at its busiest regardless of the seasonal extra staffing requirements. This results in more complex pay slips because of increased man-hours worked; overtime calculations and sick leave applications. Accidents increase because of the extra hours worked, resulting in more Compensation for Occupational Injuries and Diseases (COIDA) claims and administration. Wage queries occupy a large part of the HR department’s day (queries happen whether the pay slips are 100% accurate or not). Most of the staff have bank accounts into which their wages can be transferred, however there are always some who have to be paid by cheques or cash issued because their bank account has been closed or they are unable to open accounts because they are black-listed. The payroll takes longer to process and longer to check. More union interaction with management is required because of the changes taking place as a result of the increase in staffing for the season. Staff loans and requests for transport money to get to and from work increase and have to be administered.

If the HR department has to take on the added responsibility of the seasonal staff it would be unable to do so without making compromises or taking on extra HR staff resulting in an increase in costs. For HBR to get 1000 seasonal workers in to work for the duration of the season, approximately 5000 would have to be screened when applying telephonically. Of the 5000 applicants, 2000 may make it through the telephonic screening and 1000 through the interview and reference phase. Many of the applicants are eliminated during the reference phase for various reasons, usually dishonesty, chronic absenteeism/late-coming, drink/drug abuse or poor work performance. The final 1000 selected and employed will not be the same 1000 at the end of the season i.e. there will be a turnover of staff and there will be peaks and troughs in demand during the season resulting in more screening, interviewing, referencing and selection. It is vital that the correct staff are chosen in the beginning to ensure minimal disruption. Staff changes during your peaks in the season result in a slowdown of service and quality while new staff are oriented and trained. These processes take many man-hours to process and many expensive telephone calls are made, usually to cell phones as the majority of applicants only have cell phones and not landlines, for their contact numbers.

If more than fifty of HBR’s flexi-staff are utilised, we appoint a site manager, on HBR’s payroll, to ensure the smooth running of the operation, which allows the company’s HR department to administrate and maintain their permanent employees’ and their payroll. The site manager processes disciplinary issues, wage queries, counseling, training needs analysis (with input from your company’s supervisors/management), management of timesheets, issuing of pay slips, replacement of absent staff (if required), topping up and scaling down of staffing numbers to meet fluctuations in requirements and general staffing administration.

Once the season has tapered of the staff members’ final wages, leave pay and adjustments etc. have to be calculated and paid. Their UIF details have to be submitted to the Unemployment Insurance Fund. Certificates of Service have to be issued outlining the staff members’ details i.e. name, address, ID, position, wages, date employed, date terminated and reason for termination. At the end of the tax year, HBR produces and submits the information required by SARS for SITE/PAYE and prints the IT3 or IRP5 certificates, whichever are applicabale.

To summarise, these are the benefits you will receive as a result of using the services of HBR Human Resources : -

  • We will provide you with the excellent services of a reputable long-standing flexi-staffing service
  • No staffing liability for contract staff
  • Take a load of work away from your HR department
  • No extra load on wage department for contract staff
  • Only one cheque required from you per pay cycle
  • Source the best staff available
  • Screen the applicants
  • Interview the applicants
  • Reference the applicants
  • Select the best applicants (with assistance from your management)
  • Sign contracts with the new employees
  • Submit employee details to UIF
  • Orientate the new employees
  • Train the new employees
  • Open individual files for the new employees
  • Manage the employees’ shift rosters
  • Manage the employees’ timesheets
  • Process the employee payroll
  • Pay the employees
  • Produce pay slips for the employees
  • Process pay slip queries
  • No need to conduct disciplinary hearings
  • No need to counsel staff
  • No need to attend CCMA conciliations/arbitrations
  • No expensive telephone costs
  • No expensive advertising costs
  • No union interaction for the contract staff
  • No increase in HR department staff for the seasonal staff take-on
  • No staff loans to pay and administrate
  • No garnishee orders to process
  • HBR pays the company UIF contribution
  • HBR pays the COIDA levy
  • HBR pays the PAYE
  • HBR pays the SDL
  • HBR pays the bank charges on the wage payments
  • HBR appoints and pays a site manager (if more than 50 staff)
  • HBR keeps the employees’ administration up to date
  • HBR provides a Certificates of Service at the end of the contract
  • HBR provides the communication channel to the staff

Keywords: Employment Service, human resource, Human Resources

Other products and services from Hbr Personnel


Service that HBR Personnel offer

The employment relationship exists between the skilled individual and HBR, who provides an all-encompassing service to you, covering all facets of the employment service from the initial phases of advertising, screening, interviewing, referencing and placement through to the management of the employment relationship.