AGENCY TEMPORARIES: What You Need to Know
by Bob McComas
It happens, but it shouldn't - the temporary teller has a $1,100 out. You call the temporary service to find out what the teller's credit/criminal history check revealed. They say they didn't do one, or the employee's criminal check shows a felony conviction for theft over $2,500 two years ago, but the agency never let you know. You ask what they are going to do to cover the outage created by their employee. They say you have to recover it yourself. You don't have a written contract, and the agency is not bonded.
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Situations like these can happen to any bank. But how can you make sure you are covered if it happens to you?
Today temporary work is on one of the fastest-growing sectors of the employment market; about 90 percent of U.S. businesses including banks use temporary employees in some capacity, either hired directly and paid from the company payroll or, more likely, obtained through temporary help firms. On any given day, some 2 million people work as temporary employees.
Temporary agencies offer a qualified interim workforce on demand at a lower cost and with reduced attendant paperwork. These firms in some respects also perform the role of talent broker for client and worker, ready and able to provide labor when a company needs an occasional stand-in to fill a slot that's become open because of an emergency or personal leave, or more likely, a surge in the business cycle or for a long-term project. Knowing how to select a temporary agency will benefit you and prevent you from sustaining an unnecessary loss.
Here are some guidelines for selecting a temporary agency for your bank:
Meet with a representative of the temporary firm to discuss your bank's specific job requirements. If you have a written job description, provide them a copy.
Inquire about similar positions they have filled. Have they worked with other banks in the area? What is the average time to find a candidate(s)?
Establish what the selection process will be. Will a resume(s) be forward to you to evaluate? Who will be involved in the selection proves? Who makes the final decision on the candidate?
Establish how the candidate will be notified if they are no longer needed. The agency should be responsible for this. You should be able to notify at least 24 hours in advance if the temporary employee is no longer needed. Sometimes however, circumstances may dictate that the temporary employee be dismissed immediately. Have a plan of action established with the agency to handle this.
Is the temporary agency bonded? If they are, does the bond cover losses due to theft, and what is the recovery process? Can the temporary agency provide you with a copy of the certificate for the bond within 24 hours? (Note: a NO to any of these questions should disqualify the firm from further consideration.)
Does the temporary agency conduct credit and criminal background checks on their candidates? Is this cost built into their mark-up? (Note: if the agency does not conduct credit and criminal background checks - eliminate them from further consideration!)
Does the agency provide workers compensation or alternative insurance if their employee is injured in your bank? Obtain a certificate of insurance from the agency.
Ask the agency for their bill rate and mark-up (usually a percentage of the base hourly rate paid to the employee by the agency). Get it in writing.
What is the agency's policy on conversion fees if you decide to hire the temporary employee at some point? Get it in writing. This amount is normally prorated based on how long the person has been working for you.
Is there a termination clause for immediate termination of the contract if you desire?
How is the time keeping handled? Will the agency provide the temporary employee with a weekly time card, or will you need to provide this? The agency should have their own time keeping system to use.
References from other clients. Obtain a list of other clients the temporary agency has, especially banks. Call them and find out what level of service they have provided in the past.
What you should not do:
Do not put hiring restrictions such as age, gender, or other protected group classifications on the position. These are illegal, unless you can prove you are trying to meet you Affirmative Action goals. Then and only then can race and sex be considered if you are seeking qualified females and minorities.
Bob McComas is the Human Resource Compliance Officer for Financial Professionals. He may be reached at (972) 991-8999, or e-mail: bmccomas@fpstaff.net.
This article is intended to provide information but not provide legal advice regarding any particular situation. The information in this article is to make you aware of the implications of several contemporary problems, and should not be regarded as, a legal opinion or legal advice.
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