If you are a business owner you know how difficult it is to find the right independent contractor. You also know the time and money it takes to train individuals only to have them not work out. Here is a list I have complied to show the benefits of using a temporary staffing agency.
- Vacations and Illnesses
During times when your workers are on vacation or are ill. You can bring on a staffing agency to cover these types of situations. With vacations and illnesses your productivity will not go down because you can use a staffing agency to fill in while your worker is gone. These types of situations can hit a company hard, but that does not need to be the case.
Temporary staffing agencies can supply workers for companies when there are extended medical leaves needed for their employees. The Family and Medical Leave Act also allows workers to take up to 12 weeks off in a year. The leave is unpaid, but usually health insurance coverage is maintained. The law applies to companies with 50 or more employees and workers are eligible after being employed for 12 months.
- Insurances & Other Expenses
Temp agencies can take on the financial responsibility of workers comp, payroll expenses, screening and testing. No longer will a company need to face the worry and financial burden of someone being injured on the job. These Workers Comp claims fall on the staffing agency, and not on the company using the Staffing agency.
- Reduced labor costs
You can reduce your labor costs by employing a staffing agency. Often, there are significant costs that are overlooked when placing help wanted advertisements, implementing background checks, and training employees. It would be good to mention here that peak productivity costs can also be offset by hiring a temporary staffing agency.
- Avoid unemployment Claims
There is a large cost involved when an employee files for unemployment. When you lose an employee to injury, they can be replaced by a temp worker in as little as 24 hours. In so doing, your productivity does not suffer, and your employee base remains stable. Temp agencies screen applicants so they meet your specific employment needs, preform background checks, and even administer drug tests to applicants prior to being sent to you, the employer. As a result, when you need a position filled, they have already been screened to fit your personal business needs.
- Payroll Employees
Staffing agencies work with businesses who have chosen not to bring on an employee as a company hire. They do what’s called “Payrolling the Employee” through a temp service. That means the temp service is the employer of record and manages all payroll expenses such as taxes, unemployment, and workers compensation. Payrolling also allows your company to bring back skilled, experienced, former employees and utilize the temp agency without legal worries.
Employees calling in sick are a fact of everyday business life – but while having staff off for illness can cause problems for businesses of all sizes, it’s even more trying for smaller enterprises, where fewer people on board to begin with means more noticeable effects when they’re away. The Integrated Benefits Institute, which represents major U.S. employers and business coalitions, says poor health costs the U.S. economy $576 billion a year, according to new research. Of that amount, 39 percent, or $227 billion is from “lost productivity” from employee absenteeism due to illness or what researchers called “presenteeism,” when employees report to work but illness keeps them from performing at their best. Absenteeism costs U.S. companies billions of dollars each year in lost productivity, wages, poor quality of goods/services and excess management time. Temporary staffing agencies can step in at these points to limit the loss and productivity of companies.
“If an employee is missing for several days … other people might have to step in and take some of their work because it has to get done . And if someone has to substitute in, something else isn’t getting done. So absolutely, productivity gets hampered in a small organization,”
“Temporary talent can be a great way to deal with a short-term problem while nurturing a long-term solution. The cost of temporary labor isn’t free, but it can often lead to more confident hiring, since the candidate went through a “try before you buy” period to ensure fit and skills.”