5 Reasons Why You Should Payroll Your Next On-Site Apartment Professional

Payrolling has gained significant momentum in recent years, especially within the apartment industry. The concept works because it allows both the hiring company and the potential employee to test the working relationship before making a formal commitment. It’s a simple, flexible process that benefits both parties.

Here’s how it works: an apartment manager identifies a leasing consultant she is interested in hiring. Instead of making an immediate offer, she contacts a staffing company and requests to place the candidate on payroll through them. The candidate then registers with the staffing company, which becomes the official employer of record.

During this time, the candidate works at the property while the manager evaluates their performance, attitude, and fit with the team. Once a final hiring decision is made, the apartment manager notifies the staffing company. The company then invoices only for the actual hours the candidate worked—no additional fees or buyout costs apply.

Payrolling provides a low-risk, cost-effective way to make smarter hiring decisions while ensuring a smoother transition for both the employee and the employer.

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 assumes responsibility for all unemployment matters. This arrangement protects the client from the risks and costs associated with potential claims.

For example, if an apartment community decides to payroll an employee and later discovers that the candidate is not the right fit, the client can simply end the assignment. The staffing company handles any unemployment issues that may arise. This gives property managers the flexibility to make smart staffing decisions without financial risk.

In Texas, unemployment rates are reassessed annually, and the number of qualified claims directly impacts a company’s rate. Many employers are currently facing record-high unemployment costs. Even a few bad hires can significantly affect a company’s bottom line. Payrolling helps minimize that risk by shifting responsibility to the staffing provider, allowing companies to focus on growth and performance instead of costly claims.

3.)  Save on additional costs

Payrolling also allows apartment communities to avoid several additional costs that typically come with direct hires. These savings can make a big difference, especially when evaluating short-term or trial employment situations.

Some of the costs you can sidestep through payrolling include healthcare benefits, leasing commissions, and apartment discounts. For example, imagine you are payrolling a leasing consultant for two to three weeks. During that time, the consultant leases four apartments. Because the staffing company is the official employer during that period, the apartment community is not responsible for paying commissions.

The same applies to healthcare benefits and apartment discounts. For the duration of the payrolling period, the staffing company handles all employment-related expenses. This arrangement allows the community to evaluate the candidate’s performance without taking on the financial commitments that come with a full-time hire.

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.