13 Questions to Ask Your Manufacturing Staffing Company
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Your relationship with your staffing company is more important than you may realize. These companies play the important role of allowing manufacturers, distributors, and other companies like you handle the ebbs and flows and cyclical nature of work orders. As work spikes, a staffing company can provide immediate labor, allowing you to process the peak work demands with ease. Staffing companies are a good solution to ensure that the peak new level of sales will remain over the long haul. Not to mention, they allow you to utilize temporary employees over an extended period of time before hiring full-time employees.
Staffing companies are also becoming more important to general industry as employer responsibilities become more complex due to the Affordable Care Act (ACA). In fact, many employers may decide to let the staffing company handle the compliance headaches associated with these new rules and regulations by using the staffing company employee instead of hiring full-time employees.
Before you invite employees from a staffing company into your facility, some due diligence is in order. Here are 13 simple questions that you need to ask your staffing company to minimize the risk and maximize the health of your organization:
- Can we have a formal contract in place that lays out the role, responsibility and insurance requirements of each party?
- Is your staffing company properly insured?
- Do you have workers’ compensation insurance coverage, general liability insurance, crime insurance, employment practices liability insurance, automobile insurance coverage and excess insurance coverage of at least $1 million?
- Will you provide a certificate of insurance that outlines all of your insurance coverages?
- Are the insurance companies on your certificate reputable and licensed to do business in our state?
- Will you agree in writing not to subrogate against our company in the event one of your employees is injured at our facility?
- Will you reimburse our company if your employee steals from our company? Do you have insurance that will cover this?
- Will you reimburse for damages your employees may cause to our company or customers while working at our facility?
- Have you provided basic operational and safety training to your employees?
- Do you have proper hiring practices in place that ensure employees you send to our facility are able to work in the U.S and can do the job that we’re requiring?
- Do you believe in a safe working environment to the extent that our company does?
- Will your staffing company add our company as an alternate employer on your Workers’ Compensation policy?
- Will you indemnify our company in the event of non-compliance with the Affordable Care Act?
Contact a member of the Assurance ‘A’ Team for more information on how to ensure a solid relationship with your staffing firm for years to come.
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