fact sheet

The Risks of Recruiting & Payrolling Your Temporary Workforce

Safeguard your organization while maximizing the benefits of temporary workers through Employer of Record (EOR) Payrolling solutions from Atrium.

As companies seek cost-saving measures, many turn to directly hiring and payrolling their own temporary workforce. While this may seem like an effective way to save money, it can introduce significant risks, including misclassification penalties, co-employment liability, and administrative burdens. Without proper oversight, businesses may face legal exposure, compliance challenges, and operational inefficiencies.

CHALLENGE #1 | INCREASED ADMINISTRATIVE BURDEN

Managing a temporary workforce requires significant resources to handle compliance and operational processes, including:

–  Onboarding and offboarding temporary workers.

–  Ensuring compliance with Affordable Care Act (ACA) and Paid Sick Time (PST) regulations.

–  Conducting mandatory Sexual Harassment Training (SHT) for temporary workers.

–  Managing annual W-2 distribution.

–  Handling unemployment claims and workers’ compensation cases.

BEST PRACTICE #1  | ADMINISTRATIVE EFFICIENCY WITH ATRIUM

Our tailored services provide centralized visibility into your temporary workforce, improving oversight and operational efficiency.

–  A centralized workforce management process ensures consistent screening, digital onboarding, and streamlined compliance tracking.

–  We manage all aspects of onboarding, ACA/PST compliance, SHT, and W-2 distribution.

–  Atrium benefits are available to temporary workers, eliminating the need for you to cover these expenses.

CHALLENGE #2 | co-employments risks

Companies may face potential co-employment liability when temporary workers are onboarded, paid, and managed alongside full-time employees (FTEs). Without a clear separation between FTEs and temporary workers: 

–  Businesses expose themselves to legal risks due to blurred lines in worker management.

–  Temporary workers may petition for employee benefits, leading to costly legal disputes.

BEST PRACTICE #2 | Atrium Reduces Co-Employment Risks

As the EOR, Atrium eliminates co-employment risks and clearly distinguishes between FTEs and temporary workers.

–  Our weekly payroll processing ensures timely, compliant, and accurate compensation, reducing the risk of potential co-employment disputes.

CHALLENGE #3 | Unengaged Temporary Workers

Without a focus on employee satisfaction and engagement, companies may encounter:

–  Depersonalized candidate experiences, leading to low engagement and high candidate dropout rates.

–  Fragmented onboarding and communication methods that don’t provide clear guidance or expectations for new employees.

–  Lack of accessible support infrastructure, leaving temporary workers feeling isolated and unsupported when they encounter workplace challenges.

BEST PRACTICE #3 | Atrium’s Commitment to Employee Experience

Atrium’s Applicant-Centric™ approach prioritizes temporary worker satisfaction and engagement.

–  We provide clear communication with temporary workers from the initial onboarding process to ongoing employment.

–  Our dedicated support channels assist workers with concerns, issues, or inquiries.

– We ensure compliance with employment regulations and industry standards, protecting workers’ rights.

Shield Your Organization from Liability with Atrium’s Extended Workforce Solutions

Atrium’s concierge Employer of Record (EOR) Payrolling services provide a streamlined, compliant, risk-free approach to managing your temporary workforce. As the EOR, we assume responsibility for hiring, onboarding, payrolling, administration, and ongoing compliance for temporary workers, serving as a dedicated point of contact to ensure quality control throughout placement and performance management.

Every company has unique workforce needs, and we’re committed to providing solutions that deliver lasting benefits. Our EOR Payrolling services mitigate risks, safeguard your business from liability, and enhance workforce operations with expert guidance.

Don’t let compliance risks and administrative burdens hinder your organization’s growth. Atrium’s team of experts is here to help you optimize your talent strategy while managing risks.

Atrium Can Help

AtriumWORKS™ is a specialized division of Atrium with expertise in the design, deployment, and management of programs to help companies manage their temporary workforce. AtriumWORKS offerings included Managed Service Provider (MSP), Employer of Record (EOR) Payrolling Services, Independent Contractor Compliance Technology, Agent of Record (AOR), Recruitment Process Outsourcing (RPO), Independent Contractor Engagement, Statement of Work (SOW), Direct Sourcing, and Early Talent Administration.

All of Atrium’s solutions fully integrate with HR technology, such as digital recruitment and onboarding, freelancer management tools, applicant tracking, and vendor management systems. 

DOWNLOAD THIS FACT SHEET

​*The information provided on this fact sheet does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available here are for general informational purposes only.

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