Utilizing the services of established staffing agencies can be highly advantageous for many businesses. Staffing agencies help their clients reduce the amount of time and effort to recruit new employees and keep up with the market demands. All of which, in turn, allows staffing agencies to help save their clients significant amounts of money through the hiring process and beyond.
Better and Quicker Hires
Staffing agencies are equipped with highly trained recruiters to help find and secure the right clients for a specific company and positions. Recruiters ensure that talent is appropriately screened and prepared for each job at hand. This process allows for pre-screening to be done much quicker than if companies were hiring independently. Time saved means money saved, and better screening means lower turnover costs.
Elimination of Job Advertising Costs
The costs of advertising for open positions are pretty high. Regardless of whether it is through job boards, fairs, or just the time put into going through resumes and interviewing, these expenses quickly add up. Since agencies can handle these tasks for their clients, finding the right talent will be much less expensive for their clients.
Full-time Employee Cost vs. Temporary Associate
It is also essential to consider the costs of wages and benefits for a full-time, independently hired employee compared to a temporary associate. Typically, the benefits offered to employees for temporary associates are taken care of by the staffing agency. The hourly rate may even be below the average cost (this will be dependent upon the position).
Using these services also helps a company’s human resources department since they will not have to worry about attracting qualified applicants and the many administration actions that go into finding and hiring employees. This will save agency clients the expense associated with those duties and potentially even the need for in-house human resources staff along with all costs associated with retaining human resources personnel.
Staffing efficiencies also help with operations’ efficiency as the time it takes to train new hires will be remarkably lower. Agencies can help bring on candidates that already have experience in the field and tasks they would be doing. The money saved on training and from the time that won’t be taken away from those training them could be tremendous. Better workplace efficiency can allow businesses to generate more sales, create more products and reduce errors, which improves the bottom line.
If clients add better-qualified employees to their operations, this will help limit the expenses that go into overtime payments made to existing employees by reducing the work hours needed to meet their production goals. Reducing overtime may significantly help save money by lowering the errors employees may make due to stress and fatigue.
For business owners who incur cyclical sales, staffing agencies help save money by allowing the company to adjust according to their specific needs. For instance, small business owners making gift items may want to utilize an agency to bring on more staff for peak periods, such as major holidays, while cutting back on staff during slower periods to avoid unnecessary spending. With so much at stake and the wide range of risk exposure, your clients must secure staffing liability insurance to protect their assets.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.