Red Flags to Look for When Working With a Staffing Company

Hiring a staffing company can be a great option for businesses looking for temporary or contract employees, but it's important to be aware of red flags that could indicate problems down the road.

Key Items to Look Out for When Considering an Asbestos Staffing Company

Here are five key items to look out for when considering a staffing company for your next asbestos abatement project:

1. Little or no document management system. A good document management system is crucial for keeping track of important information like employee certifications and expiration dates. Without a reliable system in place, mistakes can be made that could put your business at risk.
    
2. Blanket or flat markup rates. A staffing company that charges a flat rate no matter the location or type of work may be misclassifying workers to evade the true cost of Workers Compensation insurance or federal/state income tax. This could lead to problems for your business down the road with the IRS and other organizations as those agencies have pursued both the staffing company and the client for tax-related issues in the past.
    
3. Considerably lower quotes than competitors. If the price a company provides is much less than others, they may be paying their workers as 1099 contractors or not have legitimate workers' compensation insurance. Both of these could result in issues regarding the safety and security of everyone on the job site along with issues with taxes and fees down the road.
    
4. Payroll issues. If a staffing agency pays workers with live checks, it can create problems for project managers on payday if there is ever an issue with payroll. Additionally, smaller agencies may not have the resources to handle the call volumes or react quickly enough to resolve payroll problems.
    
5. Poor safety record. A staffing company's experience modification rating (EMR) or mod rating is used to measure the company's safety record. An average rating of 1.0 is what you want to take a look at when doing your research. Anything significantly over 1.0 should be questioned before proceeding.

Key Questions to Ask

When vetting an environmental or asbestos staffing company, there are certain phrases or words you can listen for that could indicate problems down the line. Before deciding to work with a staffing company, we recommend you ask these key five questions:

1. How many W2s did your company issue last year?
    
2. How many states do you have workers' compensation coverage for?
    
3. What is your experience modification rating (EMR) or mod rate?
    
4. What is your safety protocol?
    
5. Can you provide a certificate of insurance and can I call the insurance broker to ensure the insurance is legitimate?
    
6. What is your current job order or fill rate?

Clarify Insurance Coverage

Finally, when considering a staffing company for construction or environmental projects, ensure they have the right insurance coverage for your project. In general, a company should have commercial general liability with at least $1 million of coverage per occurrence, excess liability with at least $5 million per occurrence, and workers' compensation with at least $1 million per accident.

Play the Long Game

While everything we’ve shared in this article are very tangible things to look for, it is also important to consider less tangible factors when choosing a staffing company, such as trust and honesty. When you are researching your next partner, look for a company with good integrity, solid references, and a team that is pleasant and easy to work with. Once you find an organization that your company connects with, you can build a solid partnership making future projects a breeze.

Contact CRM to Learn More

Do you have additional questions about what to look for in an environmental staffing or asbestos removal staffing company? Contact our team today to start the conversation!