It’s a new year, and that means your company has some new goals in mind for 2018. More than likely, at least some of those goals will be financially driven, which means you might have to take a good look at some ways your business can save some money. You might be surprised to learn that working with a staffing agency might allow you to reach some of those economic goals in the coming year. Here are just a few ways an employment agency can save your business money.
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- They can eliminate turnover
Employee turnover presents a colossal cost to businesses. In fact, $11 billion is lost every year due to turnover. When you staff your team, you’ll want to make sure you get it right the first time. Working with a staffing agency can make sure you have access to highly skilled candidates who are invested in the position and your company. There are many factors that can contribute to frequent turnover, but if you have a great corporate culture and are simply struggling to make the right hires, staffing companies can allow you to choose from the best of the best and hire those who are in it for the long haul.
- They can eliminate turnover
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- They can reduce training costs and employee errors
When you post a job listing in the paper or on a website, you don’t have much control over who applies. Not only will you waste time and money just weeding through candidates who may not be qualified, but if you hire someone who’s lacking experience, you’ll have to deal with the costs associated with extensive training. Plus, these candidates may be more prone to making mistakes that could cost your company big time. An agency can focus on staffing your company with those who have the experience to dive right in without additional training. You can also reduce employee errors on your current team (often caused by work stress) by hiring new employees to take the pressure off. Ultimately, the cost of hiring new staff members (even on a temporary basis) may be much lower than the costs associated with turnover and employee errors.
- They can reduce training costs and employee errors
- They can cut the costs of overtime and benefits
Although most companies want to provide incentives (like health insurance) to their employees when they can, it may not be feasible to have a staff made up entirely of full-time workers with benefits. Benefits can equate to nearly 25% of a business’s payroll expenses, which can really add up for small or struggling businesses. A staffing agency can help you find temporary or part-time workers to help you manage these costs better. Hiring temp or part-time employees can also help your business eliminate overtime costs, especially during your industry’s busy seasons. And because your agency will have access to highly skilled workers looking for temporary work, you won’t have to waste resources training these individuals; they’ll come in, learn the lay of the land, and be ready to get to work.
A lot of business owners assume that working with a staffing agency will add to their overall costs, but the opposite is often true. If you’re looking for ways to save money in 2018, consider working with a staffing agency to ensure your hires are qualified and that you’re making smart decisions with your workforce.