An effective staffing strategy can help your business improve its bottom line. How? By controlling HR costs, improving production, and managing risk. Consider these factors in assessing your staffing strategy:
- Transfer Administrative Burden
Work with a staffing firm to provide temporary staff in place of direct hires. All costs associated with processing and administering payroll and benefits are then transferred from your company to the staffing firm.
- Outsource Human Resources Needs
If hiring tasks are distracting your key employees, transfer those duties to your staffing firm. Let them handle screening, testing, interviewing, and reference checking and free your staff to focus on more important activities.
- Reduce the Risk of Hiring Mistakes
A bad hire can be expensive, costing you up to seven times the employee’s annual salary. Staffing firms follow rigorous screening procedures for both temporary personnel and direct hires, which increases your chances of getting the right person. They will most often provide candidates who not only possess the skills and experience you require, but who also have the personality traits needed to thrive in your work environment. To further reduce your hiring risk, you can also take advantage of your partner’s temp-to-hire services and direct placement guarantees.
- Avoid Unemployment Claims
Temporary personnel work for your staffing firm partner and their unemployment claims don’t affect your rating or your bottom line.
- Change Fixed Costs to Variable Costs
Labor expense likely has the greatest impact in your Profit & Loss statement. Reduce labor costs by teaming with a qualified temporary staffing firm to supplement your core staff with skilled temporary employees to bridge peak production intervals as needed.
- Reduce Overtime Costs
Using temporary employees in place of overtime can reduce labor costs by 20% or more.
- Control Benefits Expense
On average, benefits can cost up to 25% in excess of payroll expenses. These costs can be eliminated by using temporary and payrolled employees (who are paid through the staffing firm). This strategy is ideal for short-term employees, and using these employees in place of independent contractors will help control your employment risks.
- Reduce Training Costs, Scrap & Rework
Training is expensive. There are also the costs of lower productivity and quality associated with new or under-trained staff. Reduce training costs and improve productivity by employing skilled temporary employees.