5 Ways Staffing WILL Save You Money
As a business owner or manager, you’ve likely noticed that finding and keeping quality talent is becoming more and more challenging. The cost of recruiting internally includes the cost of advertisements, time spent by an internal recruiter or hiring manager reviewing resumes, conducting interviews, and background and reference checks. But it doesn’t end here! New employees will often require training as well before they can begin performing their tasks at satisfactory levels.
You may be contemplating whether or not you should use an external recruiter. Recruitment fees can seem expensive, especially for entry or mid-level roles. Staffing these roles through an agency as opposed to hiring permanent employees may present as an excellent option in these cases as it will likely save you money. Here’s how.
1— Staffing is less expensive than direct hiring. Given all of the expenses mentioned above, the cost of replacing an employee will often cost about half of the employee’s annual salary—and that’s considering you’re making all of the right decisions during the hiring process. Hiring the wrong employee or making other mistakes during this process can cost the company thousands of extra dollars in unnecessary and avoidable expenses. Staffing, however, will allow you to quickly onboard qualified candidates while paying a small markup on the employee’s salary.
2— Specialization makes a world of difference. Have you ever gone to a steakhouse for their salads? Probably not. The reason your business makes money is it’s able to solve a specific problem more easily, quickly, and efficiently than the average individual or business can on their own. The reason why staffing agencies are in business—and growing—is they provide value. All successful staffing agencies tend to focus their efforts in one specific field i.e. clerical or industrial, and can help you avoid all of the bumps and bruises you are likely to face trying to hire on your own.
3— Staffing agencies have greater networks and resources than you do. Simply put, staffing agencies know the professionals you need to operate and grow your business. Time is the most important variable here. You may need a qualified accountant with experience in a certain software right away for a 6-month project. By the time you find, interview, hire, and train someone, it may be too late. Staffing will help you to bridge this gap and complete your project in time—keep in mind that failing to complete this project in time will likely cost you much more than a staffing fee. Further, staffing agencies will often have access to resources and software that will expedite the hiring process but may be redundant for you to purchase.
4— Retention can be increased through staffing. Nowadays, employees are switching jobs more often than ever before. High turnover exposes a company to financial losses such as all of the costs associated with hiring as well as intangible costs like employee morale. Staffing will allow you to observe an employee’s performance, work ethic and habits before offering them a permanent role.
5—Staffing provides flexibility. Cash flow is as important as oxygen for a small, growing business. As opposed to absorbing the costs associated with hiring in addition to paying for employee benefits, vacation time, and sick leaves, staffing will provide you the flexibility of paying only for hours worked. More importantly, it will enable you to add staff when business picks up during busier seasons without having to deal with layoffs or downsizing when work slows down. Believe it or not, many professionals are beginning to trade their full-time jobs for work on a contract basis as it allows them flexibility, variety, and independence as well.