You need more help in your company. Suddenly there’s more work and your team is getting burned out. If your business experiences busy and slow periods throughout the year, trying to balance your staff and productivity can be challenging. In some cases, you just are not sure you want to add headcount.
Temporary staffing companies are a solution that a lot of companies forget. Sometimes they only think of it when they need a receptionist or other office help. They may not realize that temporary staffing has expanded into many other categories such as accounting, IT, medical, creative, HR, and more.
Here are top three ways a temporary company saves you money:
1. The cost of on-boarding and letting go – A lot of money and time goes in to the processes of bringing people on. Expenses start with placing ads, interviewing, getting people set up with benefits and the entire employee packet. There may be on-the-job training, moving expenses or special bonuses involved as well. Then, if things don’t work out or business dries up, you are not necessarily off the hook. Costs here come from compensation, unemployment insurance and any legal advice you may have needed.
Using a temporary staffing company can alleviate a lot of these expenses. On the hiring end, a staffing company can find good people for you quickly because they already know the local talent pool. They can help facilitate the hiring process to make it go faster and more smoothly. When you hire through an outside agency, everyone knows that the roles are temporary and can end at any time, which can lessen expenses associated with letting people go. Agencies can even handle all terminations for you, so that you and your team can focus on your projects instead of staffing concerns.
2. The cost of benefits – People expect some little perks when working for a company. Traditionally benefits often include vacation days, sick days, 401K, etc. You would not be required to offer, and should not offer, anything like this to a temp through a staffing company. It is the staffing company’s responsibility to address all of this, including worker’s compensation and unemployment payments. As every business owner or manager knows, benefits take quite a bite out of the budget, so going with a staffing firm can make a significant impact in this area.
3. The cost of being audited – You can find your own independent contractors to fill in as needed. Just be aware that if they do not meet the true criteria of an independent contractor, you could get audited and both parties can be fined. Working through a temporary staffing company can help serve as a buffer to any issues of having independent or virtual employees. There are fewer gray areas for the IRS when a worker was hired, compensated and billed through an outside party.
Make sure you do research to find the staffing company that works best for you. The one that best understands your needs can be a true partner for your business and contribute significantly to your bottom line and overall profitability.
This article may be reprinted when the copyright and author bio are included. ©2011 Catherine Lang-Cline, Portfolio Creative, LLC.
Catherine Lang-Cline is co-founder and owner of Portfolio Creative, a workforce innovation firm that was named a fastest growing company in by Inc. magazine in 2009, 2010 and 2011. Portfolio Creative helps connect clients with creative talent in all areas of design, marketing, communications and advertising. www.portfolioiscreative.com.