The temporary work sector in France employs more than 3 million temporary workers, of whom more than 700,000 are deployed each year on long or short-term assignments. One of the major difficulties for every temporary employment agency is to proactively manage the costs of temporary assignments, taking into account a multitude of criteria such as the length of assignments, mileage allowance scales and the specific amounts of packed lunches negotiated with the client company.
So to optimise the time it takes to process temporary assignment costs, let’s take a closer look at the solutions you can put in place and the real benefits for both your agency and your temporary workers.
1. Temporary agency assignment costs: what you need to know
The diversity and complexity of temporary assignment costs
Because of their special status, temporary workers are on a business trip every time they carry out an assignment for a company. But the calculation of costs will vary according to the duration, nature of the assignment and type of expense.
Assignments of less than 3 months
- Transport costs (mileage allowance, train or plane tickets, tolls) : A temporary worker on an assignment of less than 3 months with a client company is considered to be travelling. If they use their own vehicle, they are reimbursed for travel expenses based on a mileage scale.
- Meal expenses (packed lunches, restaurant bills) : Meal allowances are paid to temporary employees who are unable to return home or to the temporary employment agency that hired them.
Assignments of more than 3 months :
After three months with the same company, the usual place of work is considered to be the client company. The temporary worker is therefore no longer travelling on business, but may be sent on other projects requiring travel. In this case, they are entitled to reimbursement of expenses incurred (transport, catering, accommodation, etc.).
Specific rates and regulations
Given the specific working conditions of temporary workers, who may have to travel far from home, the reimbursement of expenses is governed by specific scales and regulations. These are subject either to prior negotiation between the temporary employment agency and the client company, if it is the temporary employment agency that holds the contract, or to application of the same reimbursement scales as those for permanent employees, if it is the client company that holds the contract. In all cases, this means that the temporary employment agency has to manage potentially as many reimbursement scales as there are temporary workers on assignment.
Multiple players and administrative complexity
The particularity of temporary employment agencies lies in the tripartite system that governs this sector, giving administrative management an intrinsic complexity. Three stakeholders, each with their own specific prerogatives and responsibilities, are constantly interacting :
The temp :
- As the central player in the assignment, the employee is the direct beneficiary of the employment contract and the associated remuneration.
- Its obligations include carrying out the tasks entrusted to it, complying with safety instructions and communicating its availability. The temporary worker advances the costs and justifies them to the temporary employment agency. They must keep all supporting documents and submit them by the deadline.
The user company :
- It is the driving force behind temporary work, defining staffing requirements and recruiting temporary workers via the agency.
- Its obligations include providing a precise job description, supplying the necessary equipment and complying with collective agreements. It defines the conditions under which expenses are covered prior to the assignment.
The temporary employment agency :
- As the pivotal intermediary between the temporary worker and the company, it plays a crucial role in administrative management.
- It has a wide range of duties, including finding and selecting candidates, managing employment contracts, invoicing and paying temporary workers. It checks receipts and reimburses expenses.
👉 Administrative management in temporary employment agencies is a complex, multidimensional process that requires close coordination between the three stakeholders. Knowledge of the respective obligations and the implementation of rigorous procedures are essential to ensure the smooth running of the temporary assignment and minimise risks.
2. Solutions to simplify the management of temporary assignment expenses
Using a digital solution to manage temporary assignment expenses means you don’t end up with a pile of paper receipts on your desk, having to ask the temporary employment agency to reimburse your business expenses or having to ask your temporary workers for proof of expenses. There are three main advantages to using expense management software :
Dematerialisation of processes
The dematerialisation of processes simplifies the management of temporary assignment expenses by :
- Digitizing receipts: temporary workers can now insert or scan or scan their receipts as they spend via a web or mobile application.
- Automating expense control : software can analyse expenses and immediately identify anomalies such as VAT not being charged or authorised ceilings being exceeded.
- Simplifying the reimbursement of expenses : temporary workers can be reimbursed as they go along, directly into their bank account.
Setting up dedicated software
Dedicated software for managing travel expenses allows you to :
- Centralize all information: The temporary employment agency has access to a centralized view of each temporary worker, the duration of their assignment and the control & validation rules of each expense.
- Smoother communication : the temporary employment agency has a single point of entry for all new assignment expense requests and can interact with the temporary worker in the event of non-compliance.
- Track the progress of files: the administrative team has access to intelligent management tools to track and analyze expenses related to the customer’s business.
Outsourcing the management of mission expenses
Outsourcing the management of assignment expenses enables temporary employment agencies to :
- Focus on their core business : the agency no longer has to worry about the administrative management of assignment expenses and can concentrate on its core business: recruitment.
- Benefit from the expertise of a specialist service provider : the service provider has the tools and skills needed to manage mission expenses as effectively as possible.
5 stars or nothing
Hear what Ergalis, an Actual Group company, has to say
3. The challenges to be met for optimum adoption
User support
The arrival of new software is an important event for every company. To ensure that the transition goes smoothly for your administrative teams, and especially for your temporary workers, it’s essential to communicate clearly and transparently.
👉 For example, you can include detailed documentation on “the art & manner of declaring expenses” in the new temporary worker’s induction booklet.
Data security
Integrating SaaS software certainly presents an opportunity to improve your data management, but it can also raise concerns about the security of the information collected. That’s why it’s important to check :
- Data storage security
- Managing access to confidential information
- Regulatory compliance (RGPD)
Interoperability of solutions
To guarantee optimum efficiency, it is essential that your software can be interconnected with other business applications in your IS environment. Automating data exchanges between applications not only saves time and reduces manual errors, it also enables you to manage your business more effectively.
👉 For example, by retrieving the name of the client company, the dates and the location of the assignments, you can compare the planned budgets and the actual expenditure for each assignment. The software can also limit the period during which temporary workers can enter their expense claims, ensuring compliance and reducing the risk of fraud.
Managing mission expenses is more than just an administrative issue. It is a real strategic challenge for temporary employment agencies, as it has a direct impact on the satisfaction of temporary workers and the profitability of the agency. On the one hand, the satisfaction of temporary workers is essential for retaining talent and guaranteeing the quality of our services. Fast, efficient processing of expense claims is a key element of this satisfaction. On the other hand, profitability is a major objective for any company. Rigorous management of mission expenses helps to limit costs and optimise profit margins.
