How To Manage Per Diem Employees in 5 Steps (Plus Tips)

The workforce of today is ever-evolving, and with that comes a variety of employee types that organizations must manage. Per Diem employees are a type of employee that are growing in popularity, and their unique status requires precise management. Per Diem employees do not work the traditional 9-5 workday and are instead hired to work on an as-needed basis. This type of employee may fill in for vacationing staff or provide additional staff during peak hours. Organizations must take special consideration when managing per diem employees in order to ensure a successful working relationship. In this blog post, we will explore the different methods for managing per diem employees in order to achieve maximum productivity and employee satisfaction. We will cover topics such as how to set expectations, staying organized, and building trust with these employees. By following these strategies, organizations can create an effective and successful working relationship with their per diem employees.

Per Diem for Employees

Pros and cons of per diem employees

There are many pros of hiring per diem employees. For instance, having adaptable employees makes it simple to add or remove workers from your company’s schedule. You can hire per diem workers to help with staffing if the business is experiencing a busy period. Another advantage is that per diems can easily transition into full-time workers. This facilitates the hiring process because you are already familiar with the qualifications and abilities of the employees. They are a cost-effective staffing solution because they are less expensive than hiring more full-time workers. In general, companies can benefit from using per diem workers when they need extra help.

The pay these professionals receive from their employers is one of the drawbacks of per diem workers. Per diems are typically paid by employers at a much higher rate than regular wages. This might serve as an inducement to put in odd and irregular hours. These workers still represent a savings over hiring a full-time employee, so paying them at a higher rate is acceptable. Another drawback is that unlike full-time employees, who cannot reject shifts, per diems recipients can. Consider creating a rule requiring per diems to work a certain number of shifts in order to maintain employment to help reduce this.

What are per diem employees?

Professionals who work on a per-diem basis for their employers Per diem, which translates to “as needed,” is advantageous for businesses or industries that need workers all the time. For night shifts, weekends, and holidays, a hospital may employ per diem nurses. When regular employees are ill or on paid time off (PTO), businesses may also have a reserve of per diem workers. Per diem employees typically work less than full-time employees. Since they work less, they dont receive traditional benefits. Although per diems work less frequently than other full-time professionals, they still have flexible schedules.

How to manage per diem employees

Here are five suggestions for managing per diem workers:

1. Treat per diem employees like actual employees

It’s crucial to treat per diem workers just like regular employees when working with them. This can assist you in keeping tabs on them and making sure they finish their work. Per diems typically have the same roles and responsibilities as regular employees, so it is important to treat them as such even though they work less than full-time employees. Give annual reviews for per diems, as well as the same rules, for instance. The same disciplinary procedures that apply to your regular employees should also apply to these workers. If per diems have the same responsibilities, managing them might be simpler for you.

2. Document all details related to per diem employees

Try to record all information pertaining to per diem employees in order to prevent any problems. This might include the number of hours they put in, the shifts they took, or status changes. Additionally, you might want to record any adjustments to per diem schedules, shift cancellations, or resignation proof. Documentation can help you organize your employees information. It also can help you avoid unemployment liabilities. For instance, you can offer evidence of absences if a per diem employee applies for unemployment benefits. To ensure you can access these documents in case you need them, try to have them printed or saved on a computer.

3. Create expectations for your per diem employees

Despite having the same duties as regular candidates, per diem workers need to have different expectations set for them. This clarifies to them their function in per diem employment, which may lessen any issues. For instance, you might state that in order for per diem workers to continue working, they must work a shift within a certain amount of time. If a per diem applies for unemployment, you may also find these guidelines helpful. To win your case, you can use these expectations to demonstrate to the state. Ensure that your employee handbook outlines these requirements in clear terms.

4. Use per diem employees as theyre defined

For businesses that require additional assistance, per diem employees are a valuable asset. You must treat them fairly and according to how per diem employment defines them. This means that you schedule them only as needed. Avoid scheduling per diem workers too frequently so they don’t work full or part time. To assist you in keeping their schedules within their allotted hours, try keeping track of their hours. Another choice is to conduct quarterly reviews of their hours to make sure they are working the appropriate number of hours. If you observe that they frequently exceed their allotted hours, think about hiring them as a part- or full-time employee with benefits.

5. Ensure per diem employees have PTO

Despite not having benefits, per diem workers are still entitled to PTO and sick days. Depending on your city and state of residence, this may be the case, but most local laws demand that these employees have a certain number of protected absences. Create a separate policy that permits PTO and sick leave to ensure that your per diem employees receive the appropriate amount of PTO. In order to create a policy that complies with local laws, research local and state laws. To assist your business in adhering to state law, encourage your per diems to keep track of their PTO and work hours.

Tips for managing per diem employees

Follow these tips to manage per diem employees more effectively:

Create flexible training programs

It’s critical that you design a training program that fits with the schedule of per diems because they work flexible hours. Per diem workers need the same training as regular workers, but they don’t have set schedules. Try creating a flexible training program to train your per diems. They could thus complete their training at home or at their place of employment. Training your employees ensures they can complete their job duties. Additionally, it indicates that they are aware of their per diem expectations. Although you can design a flexible training program, you might also inquire about per diems’ availability for regular training.

Make schedules for each employee

Consider creating a schedule for each employee to aid in keeping track of your per diem hours. Despite the irregularity of their schedules, they find it useful to be aware of their working hours. This can decrease no-shows and ensure that they arrive on time for their shift. You can track your per diems’ hours by making a schedule for them. For documentation and to make sure they don’t work past their allotted hours, this is important. You can use a spreadsheet or calendar application to create their schedules. Remember to give your per diems a copy of these schedules prior to their shifts so they are aware of when they are working.

Use management software

To assist you in managing your per diems, think about using management software. Per diems are advantageous, but there are many aspects to managing them. You can organize the details for each of your employees using a program. Software can be used, for instance, to create and manage schedules. You can also use a program to store your documentation. Keeping your management digital could help you grow your organization. To choose a management software solution that works for your business and its per diem employees, research various options.

Create a spreadsheet of per diem employees

Keeping a spreadsheet of your per diem employees may be beneficial. Spreadsheets are valuable for storing, sorting and analyzing data. When a regular employee is ill or requires PTO, you can use a spreadsheet to find a per diem worker who is available. You could include columns or rows for the names of the per diems, contact information, and availability in this document. Use a spreadsheet to keep track of their working hours and paid time off. You can typically calculate your data using spreadsheet programs, which is useful for adding per diems total hours.


How does per diem work for employees?

Per diem is an allowance given to your staff to cover travel-related lodging, food, and other expenses. This reimbursement takes the place of covering their actual travel costs.

How does per diem scheduling work?

Per diem employees work on an as-needed basis. A per diem position is for someone who may be needed one day but not the next, despite the fact that the term “per diem” means “for each day” rather than “as-needed.” The work schedules of per diem employees can change significantly week to week.

How should per diem be paid?

Employees paid per diem receive pay by the day. This is frequently the daily allowance provided to workers who travel for work. Additionally, it is employed when short-term contract workers are given a daily rate.

Is per diem a payroll expense?

As long as certain requirements are met, per diem payments are not regarded as wages and are therefore exempt from taxation. If any of the following apply, you will be taxed: Payment exceeds the federally permitted per diem rate You did not file an expense report with your employer.

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