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3 Key Benefits of Payroll and HR Software for Staffing Agencies

Lauren DeBisschop
Feb 16, 2024

Discover how payroll and HR software boosts efficiency for staffing firms.

Table of Contents:

The staffing industry is one of the fastest-growing sectors in the global economy. In 2022, U.S. staffing firms employed over 14.6 million temporary and contract workers.

As the demand within this industry grows, staffing agencies face the challenge of maintaining a competitive edge. Streamlining payroll and HR operations not only saves significant time but also allows agencies to focus more on recruitment, hiring, and training.

This blog explores three major advantages of payroll and HR technologies for staffing agencies, enhancing operations and adding value for both agencies and their employees.

Automation Improves Efficiency for Staffing Firms

Efficiency is key in the staffing industry. Your company thrives on its ability to quickly find, hire, and onboard employees. Payroll and HR software equipped with automation capabilities provides a distinct advantage in this area.

  • Speed Up Payroll Processing: Managing payroll as a staffing agency is particularly complex due to the diversity of employees, pay rates, schedules, locations, and more. Automated payroll software calculates employee pay based on these factors, ensuring everyone is paid accurately and on time.
  • Reduce Compliance Hassles: With employees spread across multiple jurisdictions, keeping up with tax and labor regulation updates is daunting. Payroll and HR software that updates automatically with the latest laws ensures compliance, avoids potential legal problems, and saves your team valuable time.
  • Calculate Payroll Deductions Easily: With different pay rates, varied pay schedules, and a range of deductions, staffing employees present diverse payroll needs. Automated payroll software calculates pay for every employee and applies the appropriate deductions, tax withholdings, garnishments, and includes the proper amount of overtime pay when needed.

In the Greenshades blog: Are You Calculating Shift Differentials and Overtime Accurately?

2. Data Management Simplifies Processes for Staffing Agencies

Handling data for all your staffing employees presents a significant challenge, especially in an industry with high turnover rates. Payroll and HR software optimizes your data management processes.  

  • Reduce Manual Data Updates: During the hiring process, your team collects a lot of information from new employees, and it is important to transfer this data correctly from your Applicant Tracking System (ATS) to your payroll and HR solution. Payroll and HR software, featuring either a built-in ATS or direct integration with another system, such as Bullhorn or Avionte ( , facilitates the transfer of new hire data between solutions, reducing manual data entry and avoiding potential errors.
  • Easily Maintain Accurate Employee Records: Managing employee data is particularly challenging for staffing agencies due to high turnover and the frequent need to update employee records. Payroll and HR software allows your team to keep data organized and easily accessible, enabling them to make changes and apply updates as necessary.  
  • Simplify Year-End Reporting: Payroll software refines the process of year-end reporting by gathering the necessary data and automatically populating it into year-end forms. Many systems also assist in the distribution of these year-end forms, streamlining the reporting process for your firm.

3. Self-Service Portals Improve Staffing Firm Employee Experiences

As a staffing company, your employees are your most valuable asset. Enhancing their experience not only benefits your workforce but also positively impacts your bottom line. Payroll and HR software that features self-service portals plays a pivotal role in this enhancement, leading to happier employees and saving your team valuable time.

  • Streamline HR Workflows: Within self-service portals, employees manage their time, access essential HR documents, complete tax forms, and more. This reduces the workload on HR and payroll teams by improving important HR processes and making them more efficient overall.
  • Empower Workers: Self-service portals equip employees with the necessary tools to independently manage their information. Through these portals, employees access vital documents and retrieve details about their hours worked, pay, benefits, and more, fostering a stronger, more collaborative relationship between your staffing firm and its employees.
  • Enhance Communication and Accessibility: Self-service portals in payroll and HR software also act as central communication hubs. Staffing companies utilize these platforms to keep employees up-to-date with company news, updates, and policies in real-time, ensuring constant communication regardless of the employees' work locations.

Key Features of Payroll and HR Software for Staffing Agencies

Staffing agencies face unique challenges, from managing a diverse workforce to ensuring timely payroll and compliance. Choosing the right payroll and HR software can make all the difference. Here are key features to look for:

  • Integrated Systems: Look for software that includes or integrates smoothly with payroll, HR, and other essential solutions. This integration ensures data flows seamlessly between different parts of the system, reducing manual entry and errors.
  • Automated Compliance: With laws and regulations constantly changing, it's crucial to have automated compliance features that handle everything from tax calculations to employee classification and adherence to labor laws.
  • Employee Self-Service Portal: Empower your employees with access to their personal information, pay stubs, and leave balances, enhancing HR efficiency and boosting employee satisfaction.
  • Scalability: Ensure your software can scale alongside your agency's growth, offering solutions that adapt to meet your evolving needs.
  • Real-Time Data Analysis: Access to real-time data is invaluable. Make more informed decisions by tracking employee hours, managing leaves, or analyzing costs.
  • Comprehensive Leave Management: Choose software that makes leave tracking easier by managing entitlements, requests, and balances, a necessity for large or diverse workforces.
  • Customizable Reports and Analytics: Being able to customize reports and analyze your operations is key for boosting efficiency and profitability.
  • Support and Training: Prioritize software that is backed by robust support and training resources, ensuring you and your team can get the most out of the software.

Do you outsource your payroll? If you are looking for a more flexible solution, now is the time to consider taking your processes in-house. Consider these benefits of managing payroll in-house.

Choosing the right payroll and HR software is crucial for staffing agencies that aim to streamline their operations, ensure compliance, and improve employee satisfaction. By focusing on key features that address the staffing industry's unique challenges, agencies can boost their efficiency, grow their business, and stay competitive in a fast-paced market.

Driving Growth with Greenshades Payroll & HR

Greenshades optimizes the complex and time-consuming aspects of payroll, HR, benefits, time and attendance, and tax and compliance for staffing agencies.  

Featuring unlimited pay runs, an intuitive payroll wizard, automatic tax code assignments, and more, Greenshades’ Payroll and HR solution adapts seamlessly to meet all your agency's needs.

The Greenshades solution reduces the time your team needs to spend on administrative tasks and more time on what you do best: connecting great people with great jobs. Contact us today to discover how.

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