What are the real costs of recruiting and staffing in Cincinnati? The Society for Human Resource Management (SHRM) recently tried to quantify this, suggesting that the average cost per hire is $4,700. However, they go on to point out, “Many employers estimate the total cost to hire a new employee can be three to four times the position’s salary.” To put this in real numbers, if you’re hiring for a role that pays $60,000, the average company may spend $180,000 or more in direct or indirect costs to find that person.
No matter the industry or size of your company, managing hiring costs is a crucial aspect of maintaining a healthy bottom line. As businesses in Cincinnati, Ohio, strive to stay competitive and agile, the role of staffing agencies has become increasingly significant. Temporary staffing agencies offer a range of services that not only streamline the hiring process but also contribute to cost control. In this article, we will explore the critical ways in which a staffing agency in Cincinnati can help control hiring costs.
How Can a Staffing Agency in Cincinnati Help Control Hiring Costs?
Most companies are still struggling to find the talent they need. It’s the new normal. Last month, there were nearly nine million open jobs. Nearly every industry can’t find the experienced staff members they need—and this, in turn, affects sales.
These kinds of challenges demand new partnerships. Temporary staffing services firms can reduce these companies labor costs while still finding them the talent they need to grow. Here are six specific ways partnering with temporary staffing in Cincinnati can reduce your hiring costs.
Staffing Agencies Reduce Labor Costs
One of the most significant ways a staffing agency in Cincinnati can assist in controlling hiring costs is by reducing labor expenses. Hiring a full-time employee involves not only their base salary but also additional costs such as benefits, paid time off, and insurance. On the other hand, when you work with a staffing agency, you have the flexibility to hire temporary or contract workers. These workers are typically paid an hourly wage, and you are only responsible for their wages during the period they work for your company.
Additionally, temporary staffing services agencies often have a pool of pre-screened candidates, saving you time and resources in the hiring process. They can quickly match your company’s needs with qualified individuals, reducing the risk of hiring mistakes that can be costly to rectify.
Temporary Staffing Services Eliminates Overtime Expenses
The Bureau of Labor Statistics (BLS) issued a press release this summer, stating compensation costs are up. Wages and salaries and overtime, not to mention benefits, are driving corporate numbers higher: 4.6% increases in wage and salaries, 4.8% for benefits — there’s no end in sight.
Overtime pay is a significant cost center and can quickly escalate labor expenditures, especially during peak workloads or seasonal demands. It’s a dilemma for companies who must manage workloads by increasing human labor, but it comes at a high cost. The question then becomes, should I hire more people or pay overtime? But there is a third option and it can significantly cut these costs each year. Temporary staffing services agencies can help mitigate overtime expenses by providing temporary workers during these busy periods. Instead of overburdening your full-time employees with excessive overtime, you can bring in temporary staff to handle the extra workload.
By doing so, you not only reduce the direct cost of overtime pay but also prevent employee burnout and potential mistakes that can occur when employees are stretched too thin. Temporary staffing services offer a cost-effective solution to address short-term spikes in demand without the long-term financial commitment of hiring additional full-time employees.
Staffing Agencies Lower Hiring Risks
Hiring the wrong employee can be a costly mistake. It not only entails recruitment expenses but also potential losses due to decreased productivity, training costs, and even legal fees in cases of employment disputes. A staffing agency in Cincinnati help mitigate these risks by thoroughly vetting candidates before they are placed with your company.
They conduct background checks, verify references, and often assess candidates’ skills to ensure a good fit for your organization. By relying on their expertise in candidate selection, you reduce the chances of making costly hiring errors.
Hiring Temporary Workers Reduces Training Costs
Training new employees can be a resource-intensive process. When you hire temporary workers through a staffing agency in Cincinnati, you often benefit from individuals who already possess the necessary skills and experience for the job. This level of experience reduces the need for extensive training, saving both time and money.
Moreover, temporary workers are often motivated to quickly adapt to new environments and tasks since they understand their employment is temporary. This adaptability can lead to increased productivity and faster onboarding, further contributing to cost savings.
Staffing Agencies Can Help with Compliance
Navigating the complex landscape of employment laws and regulations can be daunting for businesses. Non-compliance can result in costly fines and legal disputes. Staffing agencies in Cincinnati are well-versed in local, state, and federal labor laws, ensuring that the workers they provide are properly classified and that your company remains compliant.
By partnering with temporary staffing in Cincinnati, you can have confidence that your workforce is aligned with all relevant employment regulations, reducing the risk of costly legal consequences.
Staffing Agencies Shoulder the Administrative Burden
The hiring process can be a complex and time-consuming endeavor that involves numerous administrative tasks. Cincinnati staffing agencies have emerged as valuable partners for businesses seeking to streamline their recruitment processes and offload the administrative burden associated with hiring. How do they pull this off? A temporary staffing services firm can:
- Streamline Recruitment Processes
Staffing agencies specialize in recruitment. They have dedicated teams of professionals who are experts at identifying, attracting, and evaluating potential candidates. This expertise allows them to streamline the entire recruitment process, from creating job descriptions to conducting interviews and background checks. By leveraging their experience, businesses can significantly reduce the time and effort required to find the right candidates.
- Give You Access to a Vast Talent Pool
One of the key advantages of partnering with a temporary staffing agency is gaining access to a vast and diverse talent pool. Staffing agencies maintain extensive databases of potential candidates across various industries and job roles. These databases mean that when a business needs to fill a position, the agency can quickly tap into its network to identify qualified candidates. This eliminates the need for extensive job postings and the time-consuming process of sifting through resumes.
- Pre-Screen and Qualify Candidates—So You Don’t Waste Time
Staffing agencies go beyond just connecting businesses with candidates; they also handle the crucial task of screening and qualification. They can assess candidates’ skills, experience, and qualifications to ensure they are a good fit for the position. By thoroughly vetting candidates, staffing agencies reduce the risk of hiring errors and increase the chances of finding the right match for the job.
- Handle Administrative Paperwork
The administrative aspects of hiring can be overwhelming. Tasks such as collecting and verifying references, conducting background checks, and ensuring that all necessary paperwork is completed accurately are time consuming and complex. Staffing agencies take on these administrative responsibilities, ensuring that all documentation and compliance requirements are met. This effort saves businesses time and minimizes the risk of legal complications down the road.
- Manage Payroll and Benefits
Once a candidate is hired, there are ongoing administrative tasks related to payroll processing, benefits administration, and tax withholding. Staffing agencies often serve as the employer of record for temporary or contract workers they place, which means they take care of these administrative functions. This work includes calculating and distributing wages, managing benefits like health insurance and retirement plans, and ensuring tax compliance. By entrusting these tasks to the staffing agency, businesses can focus on their core operations.
- Offer Flexible Employment Arrangements
Staffing agencies offer flexibility in employment arrangements, which can further alleviate administrative complexities. Businesses can choose to hire temporary, contract, or temp-to-hire employees through staffing agencies. This flexibility allows them to adjust their workforce according to fluctuating demands without the long-term commitment and administrative overhead associated with traditional full-time employment.
- Mitigate Legal Risks
Navigating employment laws and regulations can be a minefield for businesses. Staffing agencies are well-versed in labor laws and regulations at local, state, and federal levels. They ensure that the workers they provide are properly classified, and they handle compliance matters, reducing the risk of costly legal consequences for businesses.
Partner with the Top Staffing Agency in Cincinnati to Control Your Hiring Costs
Temporary staffing services offer Cincinnati employers a way to cut labor costs. If your organization is hampered by these costs but at the same time needs more resources to complete the work—we can help. Kable Staffing is a respected temporary staffing services firm in Cincinnati. We provide our clients all these benefits, and more by handling the delicate and time-consuming process of finding you the talent you need. Talk with our team about requesting an employee today and learn more about our cost-effective staffing solutions in Cincinnati and beyond.