What is Employer of Record—and Why Is It So Beneficial in Today’s Recruitment Landscape?
With Employer of Record services—otherwise known as payrolling—the recruitment agency (like Acara) acts as a contract worker’s official employer while that worker performs services for you. As the payroller for your contract hires, the agency assumes all employee classification responsibilities, absorbs all relationship management and clerical duties, and protects you from sensitive co-employment risks.
In addition to alleviating administrative tasks and insulating you from co-employment risks, Employer of Record services save you money. Acara’s contractual payrolling solutions do not incur recruiting or advertising costs, and we pass these savings on to our clients by reducing the markup rates applied to the pay rates of the workers placed on our payroll.
Below are some of the most impactful benefits of our Employer of Record services:
Acara’s Employer of Record services do not incur recruiting or advertising costs. We pass these savings along to our clients by offering the services of payrolled workers at reduced markup rates.
Our teams ensure that all our payrolled personnel understand that Acara will terminate employment at any time at the request of our clients. Our payrolled workers adhere to the policies our clients prescribe, including work practices, hours, and overtime.
Acara is well equipped for serving giant corporates, SMEs, and startup organizations. This is validated by our current success rate in fulfilling our partners’ requirements in aerospace and aviation, IT, and engineering, among others.
Insulation from Co-Employment Risks
Because all payrolled personnel are Acara employees, our clients are better insulated from potential co-employment risk. Our Employer of Record services solidify employment relationships and eliminate confusion regarding the contract worker’s actual employer. All employment matters are directed to Acara—and our clients’ management is not involved.
As a larger number of organizations are looking to hire employees on a contract basis to save costs on benefits and insurance, our teams are well aware of the dynamics of the recruitment industry. At Acara, we understand our partners’ approach revolves around combatting long-term impacts due to costing, seasonal project demands, business slowdowns, or fixed overheads.
Our Employer of Record services enable our clients to try out candidates before deciding whether to bring them on full-time. Acara lets you payroll a worker and test out their skills before transitioning them to your payroll or terminating their employment.
This blog was written by Acara Vice President of National Delivery Cameron Beer.