The power of specialization: Why high-volume staffing firms need a payroll partner, not a payroll feature
The world of high-volume staffing, particularly in the commercial and light industrial (CLI) industry, moves at lightning speed. Workers are onboarded and dispatched to client sites with remarkable swiftness. Payroll runs are frequent, turnover can be high, and margins are often tight. In this dynamic environment, payroll adjustments aren’t just common, they’re expected. To keep pace, CLI firms need technology that moves just as fast, without sacrificing accuracy or compliance.
This pressing need often leads staffing firms to a platform offering built-in payroll. The allure is undeniable: one system, one login, one vendor. On the surface, it appears to tick the payroll box on your operational checklist. However, relying on one-size-fits-all payroll solutions can create significant roadblocks down the line, especially when your firm is looking for meaningful scale and growth.
Having a dedicated payroll partner seamlessly integrated with your Applicant Tracking System (ATS) can be a true differentiator. It’s the key to unlocking consistent growth, maintaining ironclad compliance, outpacing the competition, and ultimately, becoming a leader in recruitment.
The reality of payroll in CLI staffing
What makes payroll in clerical and light industrial so uniquely challenging? To begin with, CLI firms often deal with hundreds of thousands of workers, frequently spread across multiple job sites or clients. Beyond sheer volume, CLI often involves intricate pay structures: overtime, varying pay rates per shift, blended rates, FLSA regulations, complex holiday schedules, bonus payouts, and shift differentials — the list goes on.
Then there’s compliance, which in staffing, is absolutely non-negotiable. State and federal labor laws, garnishments, and countless other regulations require constant vigilance. And let’s not forget the critical importance of accuracy and speed. A missed paycheck isn’t just an inconvenience; it can mean immediately losing a valuable worker, directly impacting your bottom line. These inherent complexities demand far more than a basic payroll feature embedded within recruiting software. They demand a purpose-built, robust payroll engine.
Why built-in payroll often falls short for high-volume staffing
While a payroll module within an ATS platform may seem convenient, this convenience often comes at the cost of depth and specialized functionality. Here’s where issues can arise:
- Limited flexibility: These solutions often lack the nuanced support required for complex rate structures, intricate shift premiums, or the ability to handle mass adjustments efficiently. When your operations demand agility, a rigid payroll system can quickly become a bottleneck.
- Slow or generic support: When a critical payroll issue surfaces, and in high-volume staffing, they will, you’re likely to encounter general ATS support that may not understand payroll well. You instead need payroll experts who live and breathe the intricacies of staffing payroll.
- Feature lag: When payroll is merely one component of a larger platform, it’s rarely the top priority for product development or updates. This means new regulations, industry best practices, or efficiency-boosting tools might be slow to materialize, leaving you behind the curve.
- Compliance gaps: As your firm expands into new states or specialized verticals, a bundled payroll solution might struggle to keep up with unique and evolving compliance requirements, such as California’s specific meal and rest break rules. These gaps aren’t just an inconvenience; they expose your firm to significant risk.
It’s also worth noting that while platforms might claim to have built-in payroll, this often exists only at the surface level. Many still rely on clunky, third-party integrations to connect the front and back office, negating much of the single system appeal. Supporting comprehensive payroll is inherently complex, especially when managed by an overarching platform. When there are complex, time-sensitive changes, like ACA updates or new sick leave laws, other valuable features can often get delayed, such as tools to attract talent or reduce recruiter admin workload. This directly impacts your staffing firm’s long-term strategic goals.
What a dedicated payroll provider brings to the table
A dedicated payroll provider’s singular focus is on getting payroll right, 100% of the time. For high-volume CLI staffing, this specialized focus is an absolute game-changer.
- Unwavering compliance: Dedicated payroll providers are compliance experts. Compliance isn’t just an add-on; it’s their core business. They are constantly ahead of the curve, meticulously tracking local tax laws, federal mandates, and every regulatory twist and turn, ensuring your firm remains compliant.
- Engineered for scale: These systems are purpose-built for volume. They feature tools that simplify and automate complex processes, enabling your firm to handle increased worker numbers and intricate pay structures without breaking a sweat.
- Real expert support: When you partner with a dedicated payroll provider, you gain direct access to specialists who live and breathe staffing payroll. They understand the unique complexities of high-volume temporary staffing and are equipped to provide rapid, accurate solutions. Imagine the satisfaction of knowing you have a team of experts on call.
- Continuous product development: This is arguably the most critical advantage. For a dedicated payroll provider, payroll is the main event, not a side module, meaning they invest heavily in payroll. For example, Bullhorn invests over $45 million into research and development towards products and features. Combine that with an additional $5 to $10 million from a payroll partner, and you’re now looking at around $50 million invested in your staffing platform. Comparatively, platforms with built-in payroll invest $5 to $10M total into R&D investments for the platform, so only a fraction of that makes it to improving payroll. This means with a payroll partner, you get better tools, faster updates, and smarter automations built specifically for your operational needs. They are agile, open to feedback, and can make changes to fit your precise operational requirements without impacting development on other parts of your core ATS platform.
Combining best-in-class systems: ATS & payroll
Combining a specialized payroll partner with a powerful ATS allows staffing firms to flawlessly connect their recruiting workflows with a robust payroll system.
When your ATS and payroll systems are in lockstep:
- Your middle office experiences cleaner, faster payroll cycles while retaining the flexibility to meet unique client requirements and demands.
- Compliance risks drop dramatically, safeguarding your firm’s future.
- Candidate satisfaction rises, boosting your talent pool and reputation.
- Crucially, you avoid getting locked into limiting technology, preserving invaluable flexibility as your firm scales and grows. All while increasing internal employee satisfaction and potentially reducing the headcount dedicated solely to payroll administration.
Payroll as a strategic edge
Payroll cannot be an afterthought, not for you, and certainly not for your technology vendors. It is absolutely critical to your candidate and client experience, directly impacting your ability to attract and retain top talent and serve your clients effectively. When you’re looking to grow from being a $10 million company to a $50 million one, you need a tech platform that can grow right alongside you. 20 out of 25 of the largest industrial staffing firms, according to SIA, are growing with the Bullhorn platform.
By partnering with a dedicated payroll provider and integrating them with a strong platform like Bullhorn, you don’t just improve operations; you create a powerful strategic edge in a competitive market.
Want to explore dedicated payroll providers that integrate directly with Bullhorn? Learn more about Greenshades and Employdrive. And join us for our upcoming webinar on September 18!
