How embedded payroll will transform the staffing candidate experience

March 3, 2022
David Sokolow

General Manager, Staffing & EORs

David Sokolow

3 years ago, Check pioneered the embedded payroll industry. Through modern payroll infrastructure and services, we have enabled software platforms to launch native payroll businesses -- without spending years to build and tens of millions in investment.

There are few industries where the dynamics of how people are paid are more top of mind than in Staffing. And yet, most Staffing businesses are still forced to work with 3rd party payroll providers that create disjointed experiences for employers and candidates alike.

Technology-driven staffing platforms have brought about a new wave of innovation in the traditional staffing space, leaning on technology to power consumer-like experiences and higher rates of job matching for their clients. With unemployment rates at an all-time low, these platforms have been able to lead the way with a differentiated approach. Now, these disruptors are looking at embedded payroll as their next opportunity to capture top talent and improve their bottom line.

Legacy payroll software presents challenges for Staffing

Before we dive into the advantages of embedded payroll, let’s first take a look at some of the challenges that legacy payroll software presents to staffing businesses.

Disjointed candidate experiences

In order to get paid, candidates have to access pay information and tax forms outside of the primary app. This means they have to remember two logins and navigate two completely different experiences to access their pay. This not only increases churn risk, but adds cost for support teams that need to help candidates troubleshoot.

Support issues and delays

As staffing businesses grow, the lack of direct connectivity to payroll providers’ systems can lead to operational and support pains. From incorrectly formatted addresses, to confusing pay statuses, to missing forms — these discrepancies result in more manual work, delayed payments and in some cases, payroll errors. 

Incomplete or limited access to data

Data on candidate behavior, engagement, and acquisition cost is critical for staffing businesses to help them better manage their P&L. Transparency into and control over this information can provide insight into valuable questions like, “What’s my profitability on a candidate by candidate level when taxes are accounted for?” By outsourcing the payroll experience, staffing platforms sacrifice control over this valuable data, making it challenging for internal teams to get a complete view of the business

Embedding payroll is changing this. By bringing payroll directly into the technology stack, it eliminates much of this pain and creates opportunities to differentiate the business and increase candidate lifetime value. 

3 reasons why every staffing platform should embed payroll

So, how does embedded payroll help staffing platforms unlock new revenue and improve candidate outcomes? We see Check help staffing platforms in 3 key ways.

1) Own the candidate experience end-to-end

When you embed payroll in your staffing platform, the entire payroll process can be completed and managed within your application, without the need for candidates to deal with a 3rd party directly. Any information the payroll provider needs to onboard candidates — from collecting tax withholding to sensitive information like SSNs — can be collected via API. Access to key documents like paystubs and W-2s can be pulled via API as well, so you can own the front-end experience and pay candidates, seamlessly.

2) Simplify support through technology

The main driver of payroll support in Staffing is bad data. An invalid SSN, an incorrect address, or a withholding form typo can all block payroll in a traditional system. Embedded payroll helps eliminate these errors, by making it easy for candidates to enter data themselves. The moment an issue arises during onboarding, candidates are able to correct it directly in your app, rather than having to navigate through your support team.

3) Unlock data to optimize your business

Many staffing platforms wonder how profitable candidates are by location, by client, or by state for a given date range. They also seek to take this data, export it to a centralized data warehouse where they can combine it with other data about their business like bill rates or cost to acquire a candidate. Embedding payroll enables platforms to truly manage their business in a sophisticated way. Developers and data analysts can pull any data they need, down to an earning level for an individual. This allows staffing platforms to more effectively manage their business and gain a competitive advantage when competing for top talent.

At Check, we’re ready for this next wave of innovation in the staffing space and are here to speak with any staffing platforms that want to learn more about what it takes to embed payroll. In 5-10 years time, we believe every staffing platform will have an embedded payroll solution, unlocking a better experience for both candidates and clients, ultimately achieving more revenue for your business.

If you’re interested in learning how Check can help you embed payroll, reach out!

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