Managing payroll is a difficult task for any company, but even more so in healthcare. Between irregular scheduling based on patient demand, overtime, shift wage differentials, various worker classifications, benefits management, and strict labor laws, healthcare administrative teams are kept busy, to say the least. On top of it all, hospitals have seen high turnover rates (currently standing at ~20%) over the past few years, meaning teams are constantly on- and offboarding staff and updating payroll systems.
This not only bogs down administrators, it leaves more room for error, thus opening the facility to penalties and litigation. If, for instance, a worker is misclassified (whether intentional or not) they may not receive the full benefits they're entitled to, which can be quite costly in both the short and long term.
One of the best ways organizations can protect themselves from these hazards is by enlisting the help of an employer of record (EOR) to manage necessary administrative tasks such as payroll services for contingent staff. Here we'll explore the ins and outs of healthcare payroll services, how they streamline operations, and how they can protect your company from liability.
EORs are a third-party entity that handle all aspects of employee onboarding, compliance management, payroll, and other administrative duties for contingent workers. They also assume all legal responsibilities for the employees, meaning that they are responsible for benefits administration, worker classification, and more. If errors do occur in any of these processes, the EOR is the one held liable, shielding the larger organization from penalties and fines.
Healthcare EORs, however, are somewhat unique and have added responsibilities compared to other industries:
So why would you want to rely on an EOR over internal teams to perform payroll and other administrative duties? Well, the truth is you don't have to choose one or the other. In fact, an EOR can work with your internal administrative teams to free up their bandwidth to focus on other priorities.
Additionally, healthcare EORs offer:
If your internal teams make an error, your company could be held liable. EORs specialize in understanding existing and incoming legislation that affects the industry in order to protect the organization from legal issues like employee misclassification. By taking on legal responsibilities for the employees that they manage, the organization is able to shirk responsibility for payroll or compliance violations. Even simple clerical errors can lead to hefty penalties and fines, so EORs can wind up saving you tens of thousands of dollars, if not more in this regard alone.
By reducing the burden on internal teams, you're able to focus on reaching organizational goals more efficiently. Since EORs handle all aspects of onboarding, payroll, benefits administration, and employee classification, your team is free to focus on patient care initiatives rather than back end operations.
Even the most complex staffing models are easily managed by a competent healthcare EOR. Ensuring a smooth payroll cycle for each employee improves job satisfaction and retention all while mitigating legal risks.
If you're trying to grow the business, EORs can fill administrative gaps wherever necessary and augment your own teams. Most of the time they have vast experience working with organizations big and small and thus have the resources to ensure scaling up or down wherever necessary.
HWL is your premier resource for all things healthcare staffing, with tailored service offerings that include:
Glean valuable insights about how your workforce operates, streamline internal procedures, and protect yourself from legal liabilities by getting in touch today!