People don’t always think of using a temporary staffing company as a way to save money. Sometimes the hourly rates seem like more then you want to spend. But when you really look at the cost, you are probably actually saving money, a lot of money, by using a temp. Here’s how:
- Time savings - Let’s start with you having a role to fill.
You need to find just the right person, so where do you look? Do you advertise or put it on a job board? Some of that will cost money. Then if time is money too, who will be going through the hundreds of resumes you’ll receive to find the perfect candidate, schedule appointments, negotiate a rate, conduct the interviews, etc? A staffing company can take just about all of that off of your plate by providing you with a few select candidates that meet your criteria, schedule your appointments and negotiate a rate on your behalf.
- The hiring and firing dilemma - Sometimes you hire someone and you know pretty quickly that they are not the right fit.
If they are a temp, they can be replaced immediately by the staffing company. If you hired them, there might be more involved, including some of the legal aspects. Not to mention, it is never pleasant to fire anyone. With a temp there is no real commitment. Projects are “at will” and can end at any time. Think also about the concept of “trying before you buy” a candidate.
Staffing companies routinely provide applicants on a trial basis with no long-term commitment or pressure.
- The IRS - The IRS has made it more difficult for companies to handle temporary staffing on their own. They have created specific guidelines on what makes someone a consultant worker vs.
employee as well as a special taskforce to enforce the new laws. Companies who fail to understand and abide by the differences could be held liable for back taxes, penalties and back benefits to a candidate, not to mention punitive fees. Going through a staffing company for flexible employment needs avoids the whole issue, as the company is responsible for meeting all the legal and tax requirements.
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.