Staffing Agency Benefits

A Gallop Poll Survey in the first quarter of 2005 showed that 90% of companies in Northern America use staffing services to hire temporary and permanent staff. Over 2 million people per day are employed by staffing companies. Office, Clerical and Light industrial positions account for 55%. Heavy industrial and IT account for 20%; while Marketing, Sales and Professionals account for the remaining 25%. While the concept of hiring outside employees for a specific assignment has been around for years, there are many new reasons to contract with professional staffing services. If you are looking to improve operating margins in your business, then you should take a look at your staffing approach. Effective staffing is crucial to maximizing profitability. If your company is like most, labor is the biggest line item on your P&L. Trim down core staff to necessary levels to maintain normal operations, and then look for a qualified temporary staffing agency to work with to supplement your staff with trained temporary recruits to meet peak production demands as needed. When you use temporary staff instead of direct hires, all costs associated with processing and administering payroll and benefits are transferred from your company to the staffing firm. This strategy can help you to control cost, improve production, and manage risk. Unlike short term direct employees, temporary personnel work for your staffing partner — not you. Consequently, their unemployment claims don´t affect your rating or your bottom line. Hiring the wrong person can cost a tremendous amount of money. Staffing firms follow rigorous screening procedures for both temporary personnel and direct hires, which increases your chances of getting the right candidate. They will most often provide candidates who not only posses the skills and experience you require, but who also have the personality traits needed to flourish in your work setting. Overtime and benefits are costs that can be eliminated by using a staffing agency. On average, benefits cost 20 — 25 percent in excess of payroll expenses. Using temporary and pay-rolled employees in place of independent contractors will also reduce your employment risks. Training is another expense that affects your bottom line. It not only shows up in dollars, but in lower productivity and poorer quality that result from employing inexperienced staff. Cut training costs and improve quality and productivity by employing trained temporary employees. By working closely with your staffing associate, you gain access to candidates who are well trained and have experience in the skills your company needs. Many companies push direct staff to produce more with fewer resources and as the stress increases, so do problems with quality, output, non-attendance, and ultimately, turnover. Take this pressure off by hiring temporary employees. The additional personnel will help your staff avoid burnout, reduce the costs of defects, avoid productivity losses, and limit turnover expenses. "Experience is one thing you can't get for nothing." ~ Oscar Wilde