Employing people is expensive and the biggest line-item in any company’s budget. Managing wages and staying in budget is a daily task for business owners.
But there other, less obvious ways to keep employment costs in check. Here are six employment mistakes that can impact your bottom line.
- Spending too much on employment ads. Gone are the days of newspaper display ads, but you can still spend money for online ads and boosted posts to get your openings in front of active and passive job seekers. But why spend money at all? A staffing company handles all costs of recruiting for its clients.
- Hiring the wrong person. In today’s tight labor market, it could be tempting to hire the first person who comes along or to settle for someone who is “ok” but not perfect for your team. Hiring the wrong person wastes time and money and can hurt your productivity. It’s just too risky. When you work with a staffing company, they can place an employee with you on a “temp to perm” basis. It’s like a working job interview. The person is temporary so there’s no hiring risk to you and can become permanent when the timing is right.
- Loss of productivity when vacancies occur. It can take months to fill an open position and, in the meantime, that vacancy costs you money in lost productivity. Turn to a staffing company to fill your vacant positions as they occur, and your business can keep moving forward with a full crew.
- Laying off seasonal workers. Hiring is expensive. So are layoffs. Your time and effort have a cost to them and so does your unemployment insurance premium. The more churn, the greater the cost. When seasonal hiring needs come up, shift the cost to a staffing company. They can partner with you to flex your workforce up when you need it and draw it down when the busy season ends.
- Managing workforce compliance. Staying current with growing number of local, state and federal workforce regulations can be a daunting task. The risk of non-compliance is high and can cause expensive mistakes. A staffing partner makes it their business to know follow the regulations for all of its employees, shifting the burden of compliance from you to them.
- Workers’ comp insurance premiums. Keeping employees safe and out of harm’s way is a priority for all employers. When the worst happens, it unfortunately can have a big impact on your workers’ comp premiums – not just today but for the long term. Staffing companies cover workers’ comp for their employees on your premises, so this cost shifts to them. In addition, your staffing partner will have their own safety program; they want to keep their employees safe on your site, too.
Bottom line: staffing companies can be a valuable partner to keep your business going and growing, and to save you money along the way.