Exploring the benefits of consolidating contract workers under a single employer of record
HireArt recently published a case study describing a major workforce consolidation from several different agencies and employers serving California-based autonomous vehicle company Zoox. The project consolidated siloed groups of contract workers supporting Zoox into a single platform for employment–namely, HireArt.
This case study examines challenges in maintaining a positive employment experience amidst growing program complexity, important factors in simplifying contract workforce programs, and what can ultimately result from improving worker happiness. The following are three key takeaways from the case study.
It’s not uncommon for a contract workforce program to be supported by multiple different staffing agencies and employers of record. As programs grow and mature, so too does the level of complexity in managing it.
Multiple vendors means multiple points of contact, multiple systems with which to interface, and multiple schedules to consider for the approval and submission of timecards. This has an impact on the workers themselves, who are counting on a smooth onboarding process, timely communication response, and consistent pay, and it is reflected in industry-typical worker net promoter scores (NPS), which hovered at around +28 in 2023.
Handling employment through a single agency as opposed to multiple agencies seems like a simple solution to address growing program complexity, but there are a lot of important considerations to make when migrating workers to one platform.
Accruals - Workers have saved up PTO and sick days that must be migrated to the incoming EOR.
Regulatory Compliance - Zoox has operations across the United States that are each subject to regulatory requirements from the local and state levels, which would need to be supported.
VMS Integration - Zoox uses a vendor management system (VMS) provided by VNDLY, which means any incoming EOR would need to integrate with that system.
Happy workers feel inspired to do their best work each day, but does that translate into positive outcomes that can be measured? The answer is yes. Among the group of 88 workers that transitioned to the HireArt platform, there was a 90% retention rate. Additionally, Zoox’s contract workforce program through HireArt continued to grow 270% by the end of 2023.
One vehicle operator from that group had this to say: “We feel taken care of and like the good communication. Definitely would recommend this agency.”
Consolidation of contract workers under HireArt resulted in an efficient, compliant, and worker-friendly contract workforce program, contributing to Zoox’s operational growth and high worker satisfaction.
Click here to read the full case study.
