Owning a business requires making thousands of decisions every year, most of which can have a direct impact on your bottom line. For most business owners one of the largest expenses they incur is Payroll cost because of this making the right hiring decisions is extremely important.
Employees bring with them a litany of hidden expenses along with their obvious payroll cost in this article we will talk about how you can lower your employee cost by switching to temporary staffing to fill certain positions
5 Ways temporary Staffing Saves You Money
1 Lower Upfront Cost
According to the 2016 Human Capital Report The average cost of hiring new labor is set at $4,129 and can leave you short-handed for up to 42 days.
Now don’t get us wrong $4129 is a lot of money but a 42 day drop in production can be detrimental to a business.
2 Lower Total Compensation
The US Bureau of Labor Statistics shows that the average cost of a new hire, including salary, training, benefits, and more, is $57,967.88. Thats an average of 6-7k over the average us salary!
4 No ‘Hidden’ Cost
FICA (Federal Insurance Contributions Act), FUTA & SUTA (unemployment insurance),Workers’ Compensation Insurance, No need to advertise for job openings.
5 Reduce Your Payroll Expenses
Payroll is tricky and businesses large and small can look at their payroll partners and find savings as the per employee cost of payroll can range from $20-$100 each month. That’s a lot of potential savings to realize. Then there are benefits, laws and regulations, and deductions to contend with. When you partner with a staffing agency they take care of payroll for you. This could mean not even needing that person in HR who handles all the paperwork. It also means you save on your overall payroll with fewer people to pay directly. In fact, depending on how much you use a staffing agency, your payroll expenses could be eliminated altogether. As experts in the field, an agency will stay up to date on the current laws and know how to operate within them. That could translate into fewer mistakes, fewer man hours and overall less cost when it comes to your payroll.
In addition to the many money saving opportunities temporary staffing provides it also increases the free time available to business owners to make decisions they need in other areas.
See the difference yourself.
Whether you need somebody for general assembly work, heavy lifting, or any of the vast numbers of industries we service, we have temporary laborers ready to work 7 days a week, 24 hours a day.