Do your clients contract work with staffing agencies? Do they prefer to minimize their full-time staff and pick up extra hands during busy times? The practice continues to grow, offering companies many financial benefits. As an insurance agent, spend time discussing your clients’ employment interests and needs for staffing business insurance. Help them understand why outsourcing continues to increase among establishments.
Why You Should Outsource Your Staffing Right Now
In the past few years, companies have faced constant turnover. People no longer feel committed to one institution. Instead, they seek out their path, choosing to leave a location when it no longer suits their interests or needs. Forbes magazine reports that the average tenure for staff in 2021 was 1.8 years, showing a low retention rate.
The article notes that replacing an employee can carry a high cost as the organization must return to hiring, interviewing and training someone new. This process adds up quickly, sometimes surpassing the lost employee’s annual salary. Chronic turnover, therefore, places a financial strain on company operations.
Furthermore, your clients face several other factors such as increased labor costs, varying labor needs, and a desire for work-life balance. People don’t want to work overtime and the market has ebbs and flows, making it hard to staff your facility consistently.
Benefits of Outsourcing Your Staffing Responsibilities
A staffing company eliminates much of the strain in this current environment. Talk to your clients about the struggles they currently face. Do they have too many people on staff? Do they find that they require fewer hands and only need a few during peak sales months? Maybe they are tired of dealing with the constant employee hunt? If any of these come up in conversation, encourage them to consider outsourcing.
How much do your clients waste in their hiring efforts? Work with the budget first. Staffing sources locate for them, reducing time, paperwork and stress. In addition, proprietors may see a reduction in their overhead costs.
Morale may suffer when people consistently leave or cannot handle the workload. Employees take on more than they can manage, offering less value and feeling anxious and unappreciated. This dip in motivation impacts the overall atmosphere and productivity level. Outsourcing reduces the need to ask others to take over, maintaining a respectable amount of work for your crew.
Futhermore, companies don’t always need more hands. Agencies can evaluate talent to seek out the best people for a position. With the appropriate employee in place, productivity can increase and wasted time decreases. Business leaders, then, may find themselves reducing staff, requiring fewer helpers to handle jobs.
If you’re clients struggle to keep their employees on board and happy, talk with them about outsourcing agencies and staffing business insurance. With an agency’s help, they may find it easier to boost company morale and improve overall production.
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.