Whether you’re a law firm looking to fill in the gaps when employees take vacations or a retail business trying to handle an out-of-season rush, per diem services can help keep your operations running smoothly. But not all per diem providers are created equal. Some offer better support and higher value than others. So how can you tell if a per diem provider is worth your investment?
Unlike regular employees, per diem employees per diem services ny are hired on an as-needed basis. They’re often hired to cover vacations, sick days, and other planned absences, or to tackle a big project or event that requires more staff than usual. While some companies choose to employ permanent full-time per diem staff, most opt for part-time or contract workers.
Per diem employees are reimbursed a set amount each day for lodging, meals, and incidental expenses when on business travel. The rates are updated each year by the U.S. General Services Administration for locations in the continental United States, the Department of Defense for non-foreign travel (Alaska, Hawaii, Guam, and Puerto Rico), and the State Department for foreign travel.
If employees spend less than the predetermined daily allowance limit, they keep the difference. This helps to reduce expense reporting time and the need for receipts. It also helps control costs by minimizing taxable income. Per diem reimbursements are also generally non-taxable if your company uses an accountable plan and meets government guidelines.
Aside from expense management, some other benefits of per diem rates include flexibility and reduced paperwork. Employees have the freedom to spend within a fixed allowance, eliminating the need for them to track individual receipts and submit detailed expense reports. Plus, you can save on administrative costs by offering prepaid cards that are integrated into the expense management system, allowing for real-time spending updates and reconciliation.
While per diems can provide a lot of benefits, they can also cause discontent among some employees. According to one study, the per diem model creates conflict by causing people to feel slighted or retaliate against those they think are getting more than their share. It can also foster a negative organizational culture where people change work practices to maximize financial gain by slowing down their work, scheduling unnecessary trainings, or exaggerating the time needed for tasks. In addition, officials may use per diems for personal gain by appropriating money meant for others or engaging in other forms of fraud.
No matter what the reason for your business’s need to hire a temporary worker, it’s important to treat them like an ordinary member of the team. Start by ensuring they’re well-trained in the software and processes used by your company. Then, give them a clear outline of what they need to do and how long they’ll be on the job. Most importantly, hold them to the same standards as your other employees. The more you invest in your per diem staff, the more likely they are to be a positive addition to your team.