How Staffing Agencies Help Save Your Business Money
Running a business can be an ongoing struggle between reducing expenses and increasing income. One way businesses can save costs is through a staffing agency. Hiring a professional to help you find quality employees and temporary workers have many benefits.
1. Help Eliminate Upfront Hiring Costs
Any business that has ever tried to hire a new team member is aware of the time it takes to find the very best candidates available on the market. Not only does the process take time, but it also has hard costs associated with it. One of these costs is advertising and marketing for the job. You can post it on your LinkedIn company page and your website but in order to bring in more leads, you may do sponsored ads online or post to any number of job boards. Not only does posting positions online have an upfront cost but there are no guarantees of the results. There are costs to prescreening, testing potential candidates, screening resumes, and conducting interviews. At NetworkESC, we help businesses like yours eliminate those costs.
2. Decrease Your Turnover Costs
According to the U.S. Bureau of Labor Statistics, turnover can cost an organization 33 percent of an employee’s total compensation, including wages and benefits. One reason employees leave is compensation. Our staffing agency is knowledgeable about current competitive salaries and benefits in order to help you be a stronger competitor. A second reason for employee turnover is the misalignment of expectations. Using a professional to hire your workers means you can count on them having a clear idea of what to expect from the start. Hiring through our agency also allows you to make sure the employee is a good fit for your organization before you take on all the costs of their employment. If they end up not working out, you are out significantly less than you would have been had you hired them directly to your payroll.
3. Reduce Overtime and Avoid Layoffs
When you are short-handed it slows your response time, production output, and existing workforce. This creates long days and overtime for those who are most valuable to your company. Turning to our staffing agency allows you to quickly react to these needs because we bring in contractors who can offload the work without adding the cost of full-time benefits. You hire and use workers when you need them and avoid layoffs when the work slows.
4. Free Training and Resources
Our staffing agency not only finds candidates for your business, but we also offer resources and training to your temp workers in order to help them improve their skills. With no extra costs to you! This will keep you both on track with training both new and temporary workers.
5. Try Candidates Before Committing
Finding the right fit for your business isn’t easy but when you hire a full-time employee on your own you do not get to work with them before-hand. Temp to permanent positions lets you bring someone on to see how they work or how they fit in your organization before giving a full-time offer. No matter how great the interview, you cannot get a perfect read on how a new person will fit within your organization. Companies that our staffing agency find that they save money by taking fewer chances with their hires.
6. Adjust Your Staff to Current Business Conditions
No matter what industry you are in, it is nearly impossible to predict how your industry and your company will change over time. While your workers will become the heart of your operation, to save money you will need the flexibility to respond to demands as they come. Our staffing agency can help you respond to these demands with temp-workers that you can scale up or down as needed. By avoiding large-scale layoffs you keep your company from absorbing severance costs.
7. Save on Benefit Costs
The costs of basic salary, employment taxes, and benefits are typically in the 1.25 to 1.4 times base salary range. That means if you hire an employee at the cost of $50,000/year, the additional costs are $16,500- $20,000 more than that. When you turn to a staffing agency like NetworkESC, the cost of these benefits does not affect your company until you make the decision to hire the employee on your payroll. We will offer benefits like health, vision, dental, and life insurance without you having to absorb the cost. While there are some mandatory benefits such as Paid Sick Leave that you will still pay, you will save substantially on the employees that turnover quickly.
8. Find The Right Employee Affordably
Anyone who has staffing needs can tell you that finding the right person for your opening is not easy. A new employee needs to fit your organization's culture, as well as have the right skill sets to benefit the business. There is possibly nothing worse than hiring and training an employee only to decide that they just are not the right fit for the role. No piece of paper or social profile will let you know whether someone is a good fit for your business. Turning to our staffing agency means a couple of things: we know our candidates well and can screen out those who would not fit your company. We also allow you the flexibility to hire someone as a temp worker first and see the fit for yourself.
9. Have an HR Department with No Overhead
There are many costs of owning and operating a business. As you grow one of these costs is hiring and maintaining your workforce. This can translate into an HR position or a full HR department. That translates into salaries, benefits, and more office space. When you turn to our staffing agency for these needs we save you these costs and you gain a competent HR partner.
10. Reduce Your Payroll Expenses
Payroll is tricky and the per-employee cost of payroll can range from $20-$100 each month. Then there are benefits, laws, regulations, and deductions to consider. When you partner with our staffing agency we take care of payroll for you. This means you save on your overall payroll and HR department by having fewer people to pay directly. In fact, depending on how much you use our staffing agency, your payroll expenses could be eliminated altogether. As experts in the field, NetworkESC specialists stay up to date on the current laws and knows how to operate within them. That could translate into fewer mistakes, fewer man-hours, and overall less cost when it comes to your payroll.
NetworkESC has years of experience in matching the right candidates with job openings in a variety of industries. If you want to improve your hiring processes and save money, contact us to find out how we can help keep your business's positions filled.