Challenge: This global manufacturer serves the automotive, aerospace and industrial markets. The company is growing steadily and needs greater control of its contingent labor costs. As with many companies seeking to avoid co-employment issues and potential re-classification concerns, this manufacturer was relying on 3rd-party vendors to house contractors as W-2 employees. As a result, the company was using its staffing vendors to process and payroll contractors at a rate as high as 18-25% above the pay rate.
Solution: ZeroChaos implemented its payrolling service, presenting a plan to convert existing contractors for payrolling services. ZeroChaos was able to provide 1st year cost savings of over $12,000 per contractor, saving the company $1.5 million per 100 contractors in one year.