Managers and company owners must make smart decisions that help them reduce costs while maximizing profits across the board. These decisions can vary from choosing the most cost-effective office supplies to changing the benefits offered. Personnel costs can be one of the biggest expenses for businesses in today’s market. Hiring a staffing firm (like L.K. Jordan & Associates) can alleviate some of these costs while making it easier for companies to find quality employees.
Short-Term Cost Solutions
There are a number of short term cost solutions that come from hiring a staffing firm. Because they are essentially a comprehensive Human Resources Department, business owners are not faced with the immense expense of having to provide everything that the firm does. They handle the application, screening, interviews, drug testing (if requested or necessary), job specific testing, background checks, benefits and payroll. Companies that choose to use a staffing firm are avoiding paying for all of these overhead costs and instead paying for the staffing firm to take it on themselves. Not only will experts be handling these areas, but managers will not have to worry about their current employees taking on too many tasks other than their specific position.
Long-Term Cost Solutions
Finding the correct employee is not always easy. High turnover rates hurt company moral, can be extremely expensive and waste a lot of time, not to mention one of the best long-term cost solutions. Staffing firm’s oftentimes carry a guarantee, if the employee does not fit well, the manager always has the option of asking for a different candidate until completely satisfied.
For mid-level employees it can cost up to 40% of their salary just in hiring costs – this does not include if the employee leaves within a month and the manager is faced to find someone else. Even for positions that do not require any previous experience, it can cost the company 10%-18% of the employee’s annual salary if they do not work out. Having a staffing firm ensures that the owner will not have to worry about finding the perfect employee and allows them to focus on the current job at hand, not finding a replacement.
When managers and business owners make the ultimate decision to partner with a staffing firm, they receive customized recruiting fit entirely to their precise hiring needs. Even their invoicing will be specific to their company. With these unique recruiting efforts, managers and owners are ensured that their needs are filled quickly and correctly.