Small Business, General Finance

Saving Your Staffing Clients Money With Good Hires

Posted by Factor Funding Co. on December 17, 2015

Saving Your Staffing Clients Money With Good Hires

It is a good thing when businesses are in a position to need a new hire. But, all the costs involved with the process can be quite expensive, especially for a small business owner. Convincing businesses that using a staffing agency can help save money, along with time and hassle can be difficult.

How can your staffing agency convince business owners to work with you?

Business owners might think that paying a staffing agency would be the more expensive option to finding people to fill open jobs. However, when you look at all the costs involved with advertising, screening, interviewing, and hiring, the staffing agency becomes a true bargain.

  • It reduces HR overhead. Most small businesses have no need for a full-time human resource professional. That is, until it comes time to hire new employees. Letting the staffing agency take over the advertising, screening, and interviewing process cuts down on what the business owner and management has to handle while removing the need to hire an HR staff.
  • It helps fill the position faster. Staffing agencies often have a pool of job candidates waiting. When you tell the agency what position you have to fill, you may get a list of potential candidates back within a few hours. Even if the agency doesn’t have the perfect candidate waiting, they do have a network established that lets them find other candidates in the least amount of time possible.
  • It reduces the cost of training a new person. If you bring in an experienced person that fits your job description completely, you won’t have to train that person for any extensive amount of time. Plus, the staffing agency can help with orienting the person to your business, which reduces costs down as well.
  • It reduces the potential for new employee errors. An experienced person is less likely to make costly errors than someone you are training from scratch.
  • It reduces the need for current employees to work overtime. When you have an open position, your regular staff members are likely working overtime to just keep up with everything going on. Filling that position quickly will eliminate that need and keep your overtime costs to a minimum.
  • It avoids the costs associated with employee burnout. If you have your people working a lot of overtime, eventually you will start seeing the effects of it. It will show up in increased employee errors, sick days, and turnover. And all of that ends up costing you a lot of money.
  • It eliminates the costs of advertising the position. It costs money to advertise in the right places to get the right people. Plus it takes time to get the ads put together and monitor the results. Having a staffing agency do the advertising for you will keep those costs to a minimum.
  • It allows the company to meet seasonal needs without going through the lay-off process. Many companies have times when they need more people working and other times when they don’t. Using a staffing agency makes this process easy and smooth. When you need more people working, the agency fills those positions. When the work slows down, those temporary people can go on to work at other jobs and you don’t have the overhead of too many employees.
  • It can cut the costs of benefits. One reason why some small businesses hesitate to bring on a new employee is the additional costs of benefits for that person. Hiring a temporary or contract worker is the solution around that problem. The agency will cover those costs and all you pay is the fees for the service.
  • It allows you to try out a potential hire before going through the hiring process. Adding a new person to your team is a delicate balancing act. Getting the wrong person can cause a lot of problems, besides cost you a lot of money to fire that person and find a replacement. Using a staffing agency will let you see if a person is a good fit before making him or her a permanent hire.

Using a staffing agency can save businesses a lot of money. This can be vital for small business owners who need the help, but also needs to keep costs down. Staffing agencies, chime in on how you can save businesses money.

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Written by Factor Funding Co.

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