The Keys to Mitigating Your Employment Risk

Do you know the risks of co-employment? If you use any type of contingent labor (temps, contractors, consultants, freelancers, etc.), you run the risk of everything from financial loss to legal compliance issues, liability and damage to your brand. To avoid these issues, reduce costs or improve efficiencies, a Recruitment Process Outsourcing (RPO) program might be right for you.

What can an RPO do?

1. Make sure you’re compliant with employment law

A good RPO can recommend and implement fully compliant sourcing, application, and interview and selection processes; perform background and credit checks; and create and maintain all required recordkeeping and analysis.

If you’ve previously had trouble with noncompliance, your RPO may be able to propose solutions for remediation.

Both can help you save on potential fines and other sanctions, and save you from being exposed to criminal prosecution.

2. Helping you attract and retain talent

RPOs can help you win the war for talent. They keep a finger on the pulse of the candidate market. They often specialize in niche recruitment, which should include tapping into the passive candidate pool and helping companies find and hire the right candidates.

Why is hiring the wrong candidate such a risk? Beyond the overall replacement costs for an employee, which can range anywhere from one-third to one-half of that person’s salary, bad hires result in higher turnover, lower productivity and bad morale.

3. Avoiding employee liability

When hiring needs fluctuate frequently, it’s often a good idea to use a staffing firm. However, that can mean further risks if you’re not careful to avoid a co-employment situation as defined by the IRS. When you work with an RPO, there is always clarity regarding the employer and employee relationship, which helps mitigate against this kind of risk.

4. Protecting your brand

If you use poor recruitment practices, not only will you make hiring and retention more difficult but in the long run, you may harm your company’s overall image,or brand. For example?  WalMart has repeatedly earned negative PR because of its well-publicized employee violations, and many shoppers boycott the chain because of them.

All companies turn away more applicants than they hire—but how you do it can make a difference. Rejected candidates can spread the word about their experience quickly and easily. Do you want them to say they wish they’d gotten the job because your company seems so great, or say they’re glad they didn’t because your company was full of rude or disengaged employees?

Not only can RPOs handle the nuts-and-bolts portion of recruitment, but they can also help better promote your employment brand throughout the recruitment process.

If you’re looking for more information on how an RPO can help you, contact CSSvSource any time. We’d be happy to tell you about our range of customized options that will help make your hiring more efficient and risk-free!