The gig economy in Canada is booming—over 2.4 million people took on gig work in just one year. That’s a huge opportunity for staffing agencies, but also a big challenge. Because when it comes to placing temp workers quickly, the biggest roadblock isn’t finding candidates—it’s verifying them fast enough.

Let’s be real: manual verification is a complicated task. Sifting through documents, chasing down missing info, and waiting on background checks slows everything down. And it’s not just frustrating—it’s costly. 31% of employers have lost great candidates because the screening process dragged on too long. On top of that, skipping steps or rushing vetting can lead to compliance issues, and in 2023, businesses faced $2.1 million in fines for failing to meet labor regulations.

So, what’s the solution? Automated candidate verification. Instead of getting bogged down in paperwork, agencies can digitize the process, verify workers in seconds, and stay compliant without the stress. The result? Faster placements, fewer dropouts, and a more scalable hiring process.

In this blog, we’ll break down the challenges of manual verification, show how automation changes the game, and explore why platforms like VRFI are a must-have for staffing agencies today.

Key Challenges Hiring Agencies Face 

Hiring agencies play a crucial role in filling short-term and gig positions, but unlike traditional HR departments, they deal with an entirely different set of challenges when it comes to verifying workers. The demand for temp staff is high, with businesses needing workers on short notice and job seekers expecting a fast placement process. But behind the scenes, hiring agencies must balance speed with accuracy, ensuring every worker is properly vetted before placement. Let’s see what are the biggest hurdles the agencies have to face.

1. Time-Consuming Manual Processes: 

A lot of agencies still rely on recruiters to manually check IDs, work permits, certifications, and references. That paperwork takes up a ton of time for each candidate. Since recruiters already spend 50–70% of their work hours on admin tasks like compliance checks, adding slow verification steps just drags things out even more. And when you need to place workers fast, manual processes make it nearly impossible to keep up.

2. High Volume of Workers: 

The number of candidates moving through temp agencies is massive. With approximately 1.87 million temp jobs in Canada at any given time—not to mention millions more in the gig economy—agencies are screening dozens of applicants daily. More candidates mean more room for human error and delays. If every new hire’s SIN, work eligibility, and licenses have to be verified manually, things can quickly get out of control.

3. Regulatory & Compliance Risks:

Staffing agencies in Canada have to make sure every worker they place is legally eligible to work and has the right certifications. If they don’t, the consequences can be serious—like fines up to $5,000 or even jail time for hiring someone without a valid work permit. On top of that, agencies have to handle tax forms (like TD1s) and follow different provincial rules. The problem? Regulations keep changing, and if your records aren’t well-organized, staying compliant (and passing audits) becomes a nightmare.

4. Data Management Issues: 

Verifying documents is just one part of the job—keeping track of them is another challenge entirely. A lot of agencies still use a mix of spreadsheets, email chains, and even paper files to manage ID checks, work permit expirations, and certifications. This scattered system makes it way too easy for things to slip through the cracks, putting the company at risk. 

Relying on outdated tools and spreadsheets no longer works—especially with a dispersed workforce. Without a centralized system, ensuring every placement is compliant (and having proof for audits) is way harder than it needs to be.

5. Client Expectations for Speed & Reliability: 

In the temp and gig economy, clients don’t have time to wait—they need workers fast, sometimes within 24 hours. They expect agencies to send over fully vetted, work-ready candidates right away. If your verification process is slow, they’ll go to a competitor who can move faster. And it’s not just the clients—top candidates won’t wait around, either. 

While the average hiring process can take over 40 days, agencies really need to lock in candidates within about 10 days before they accept other offers. The bottom line? Clients and workers expect speed and reliability. But agencies have to balance that with proper verification, and doing it all manually just makes things even harder.

How Automation Streamlines the Candidate Verification Process?

Automating candidate verification isn’t just a convenience—it’s a game-changer for the hiring agencies. Instead of getting bogged down by manual checks, agencies can use modern software (like digital ID checks, document recognition, and database cross-referencing) to tackle verification challenges head-on. Here’s how automation helps speed up hiring while keeping compliance in check:

1. Faster Onboarding

Automation slashes verification time. Instead of waiting hours—or even days—for someone to manually review documents, digital tools can verify a candidate’s ID, work permit, or certification in seconds. Some AI-based systems have cut ID check times from 60 minutes down to just 30 seconds—that’s a 99% reduction in processing time! 

Faster verification means workers can be onboarded immediately, so you can fill client requests without delay. Plus, candidates appreciate the smoother experience, since they can start working sooner without unnecessary hold-ups.

2. Less Admin Work for Recruiters

Let’s be honest—no one likes spending hours buried in paperwork. When software takes care of routine checks, recruiters don’t have to waste time manually scanning documents, cross-checking databases, or following up on missing details. 

An automated system handles all of that, flagging any issues along the way. This is huge, considering that over half of managers already spend an entire day each week on repetitive tasks. By reducing the manual workload, automation lets recruiters focus on what really matters—finding top talent and building relationships with clients, instead of chasing paperwork.

3. Stronger Compliance, Less Risk

Compliance is non-negotiable, and automated platforms make sure nothing slips through the cracks. Every candidate is checked against a standardized process—verifying their SIN, confirming work permits, ensuring training certificates are up to date, and more. This means zero shortcuts when it comes to placing workers. 

Automated systems can also help you to stay updated with the latest government regulations, so you’re always in line with the law. And because compliance records are neatly stored and ready to go, agencies can breeze through audits without scrambling for proof or worrying about legal penalties.

4. Built to Scale

One of the biggest perks? Automation makes it easy to grow. Whether you need to onboard 10 or 1,000 workers in a week, an automated system can handle the workload—far beyond what a manual team could manage. That kind of scalability means you can expand your candidate pool and take on bigger contracts without drowning in paperwork. 

One company, for example, processed over 5,000 hires in just a few months using AI-powered verification—with a 98% accuracy rate. When your verification process runs smoothly through technology, your business can scale confidently, knowing you’ve got the infrastructure to support it.

How VRFI Makes Candidate Verification Easier for Hiring Agencies

Hiring agencies have a lot on their plate—managing candidates, tracking job assignments, and ensuring compliance with regulations. VRFI simplifies this process by centralizing everything in one easy-to-use platform. Here’s how it helps:

1. All Candidate Info in One Place

No more digging through spreadsheets or email chains. With VRFI, every candidate has a dedicated profile where their personal details, job history, payroll records, and verification status are stored. Agencies can easily upload and track important documents like IDs, work permits, and resumes, so everything is up to date and easy to access when needed.

2. Stay on Top of Verification & Compliance

Keeping track of candidate verification status, job assignments, and payroll updates is effortless with VRFI. Agencies can quickly check if a candidate is verified, pending approval, or missing documents. The platform also logs key activities—like job applications, interviews, and payroll updates—helping agencies stay compliant without extra paperwork.

3. Secure Access, So the Right People See the Right Info

Handling sensitive data comes with responsibility, and role-based access makes it easy to control who sees what. This ensures that each user only has access to the information they need, keeping candidate data secure and reducing the risk of mishandling.

4. A Clear Dashboard to Track It All

VRFI’s dashboard gives agencies a bird’s-eye view of everything happening in real time. Open jobs, assigned candidates, upcoming interviews, payroll details—it’s all there at a glance. The system also categorizes jobs as ongoing, upcoming, completed, or canceled, making it easy to track progress and keep things moving.

5. Built-In Audit Logs for Accountability

Need to look back on past actions? VRFI keeps a detailed record of every update made to candidate profiles, job assignments, and payroll. This ensures transparency and provides agencies with a reliable history for compliance and reporting when needed.

With these features, VRFI takes the stress out of candidate management, helping agencies work smarter, stay compliant, and focus on what really matters—placing the right people in the right jobs.

Stop Wasting Time—Hire Smarter

Manual candidate verification can cost you more than time. Apart from being slow and tedious, it is full of pitfalls that can delay hiring and create compliance nightmares. In today’s fast-moving staffing world, agencies that rely on outdated processes are falling behind.

But it doesn’t have to be this way. With VRFI, you can ditch the paperwork, speed up hiring, and ensure every candidate meets the right requirements—without the manual grunt work. Instead of chasing down documents or scrambling for compliance records, your team can focus on what really matters: finding the right people, filling jobs faster, and growing your agency.

The future of hiring isn’t just about working harder—it’s about working smarter. Agencies that automate candidate verification aren’t just keeping up; they’re winning. 

So, why stay stuck in the past? Book a demo of VRFI today and see how effortless hiring can be!

Frequently Asked Questions

1. How can we ensure compliance with Canadian labor laws?

Compliance is crucial, and agencies must verify that candidates have valid work permits, Social Insurance Numbers (SINs), and necessary certifications. Automated verification platforms help by cross-referencing government databases, tracking expiration dates, and ensuring all documentation aligns with Employment Standards Acts and immigration regulations.

2. What background checks are essential for gig workers?

The type of background check depends on the industry, but common verifications include criminal record checks (via CPIC or provincial databases), employment history, reference checks, and credential validation. Some roles may also require credit checks or vulnerable sector screenings.

3. How can we speed up verification without errors?

Using AI-driven identity verification, digital document recognition, and automated cross-checking with government databases can drastically reduce verification time. Some platforms can validate IDs and work eligibility in seconds, reducing bottlenecks while maintaining accuracy.

4. What if a candidate’s documents are incomplete or flagged?

If a document is flagged, agencies should follow a standardized escalation process—requesting additional proof, cross-verifying with issuing authorities, or conducting manual reviews if necessary. Automation tools can also flag inconsistencies early, reducing the risk of non-compliance.