Being a business owner, operator or manager is stressful. A big cause of stress for anyone in business today is hiring and employing people. But let’s face it – there are few organizations that can grow and thrive without a team of people around them.
As an employer, you take on risk from the moment you place a recruitment ad till the day an employee reaches the end of their tenure with you.
The recruiting and hiring process is becoming more complex every year. New laws and regulations at the local, state and federal level require employers to be knowledgeable about a plethora of compliance matters, from handling I-9 paperwork to harassment and non-discrimination.
Once a hiring decision is made, the financial burden of wages and benefits hit the bottom line. Hard. This is typically the largest line item on any company’s P&L.
Keeping people employed safely creates additional risks and on-the-job injuries can create workers’ compensation impacts for years. Let an employee go and you could face unemployment insurance costs of both time and money.
Businesspeople know about these risks. But they don’t have to accept them.
Stop Hiring People
Fortunately, businesses continue to grow and thrive. Jobs keep getting created and filled. People find work they enjoy and earn wages that allow them to care for themselves and their families.
But companies don’t have to hire people.
That’s where a staffing model comes in.
The American Staffing Association reports that some 17 million people find work through a staffing company every year. Businesses in all sectors and industries successfully work with staffing firms, of which there are some 20,000. Here are some additional facts from the ASA:
- Most staffing company employees (76%) work full time, comparable to the overall workforce (82%).
- Half (49%) of staffing employees say it’s a way to get a permanent job.
- Nine out of 10 said staffing work makes them more employable.
- One-third (35%) are offered a permanent job by a client where they work on an assignment, and two-thirds (66%) of those accepted the offers of permanent employment.
How Businesses Use Staffing
Depending on your business needs, you can stop hiring all or a portion of your workforce directly and instead employ them through a staffing firm. There are several models you can adopt as you embrace staffing as a way to reduce the number of employees you hire.
- Some companies hire and maintain a core group of employees or managers then build teams around those individuals.
- Others have a stable roster of regular employees and use staffing when they need to flex their workforce up or down to meet seasonal demands, expansions, or unexpected turnover.
- Another model is to use staffing companies when you need employees only for specific job types or projects.
- Employers can use staffing company employees as a working interview and move top performers onto their permanent payroll when the time is right.
No matter what model you use, when companies stop hiring employees themselves and work with a staffing company instead, they transfer the employment risk to the staffing company.
Staffing companies handle the recruiting, interviewing, screening and compliance requirements for their employees.
Staffing companies provide wages and handle all payroll functions, benefits and in many cases retirement programs.
Staffing companies cover workers’ comp and unemployment insurance for their employees.
The Active Way
Active Staffing has been providing employees to its customers for more than 70 years. We believe in the staffing model and the bridge to permanent employment that we build for our associates.
Yes, we charge employers for our service. Our clients have found that the fee we charge more than makes up for the cost and risk of direct employment.
And there is never a charge to our employees who rely on Active to find them work and keep them working safely in job that match their skills and interests.
Our advice? Stop hiring so many people. Start working with Active and putting our decades of industrial staffing know-how to work for your company.