Understanding the Cost-Benefit of Staffing
Irvine, CA - April 27, 2023
By Mitch Atkinson, Owner of Express Employment
Professionals of Irvine, CA
In North America, there are estimated to be more than
25,000 staffing and recruiting agencies, with nearly 50,000 offices in the U.S.
alone. After the ups and downs the workforce experienced the past few years,
businesses are looking for solutions for future growth, but with cost-cutting
solutions. This is where staffing services excel.
However, when working with temporary employment agencies,
it can be hard to understand the cost-benefit. In fact, one of the biggest
complaints about using a staffing agency is the cost associated with it.
Recently the American Staffing Association (ASA) did a case study explaining the
breakdown in bill rates.
Outlining the common misconception that an agency pockets
what the employer pays minus what the temporary worker makes, ASA shows that
for a staffing agency to pay a worker the national average hourly rate of
$17/hr., they will have to raise the bill rate by 51.5% to cover legally
mandated labor costs, general and administrative expenses, while including the
industry average of 3.3%. So, while the bill rate charged to a client would be
$25.76/hr., the agency only takes in $0.85/hr.
With the costs of using a staffing agency explained,
let’s look at the benefits they provide employers.
Maintaining a Passive Talent Pool
While businesses only recruit and seek talent when
filling an open job position, staffing agencies are constantly connecting with
professionals and building relationships with those who are either actively
looking for a job or who are just open to test the waters of the market.
However, creating a deep talent pool not only takes time and energy, but
maintaining it can be just as difficult.
By teaming up with a staffing company, businesses can
expand their talent reach exponentially, while staying focused on company
operations.
Recruiting Workers for Direct Hire
When unemployment rates are low, it usually means we’re
in a job-seekers’ market. This means employees may be open to seek
opportunities outside their current positions. These individuals could be
passive talent who wouldn’t normally apply for an open position but would be
willing to speak with a recruiter if the job position was intriguing enough.
This is where staffing companies shine. By seeking out
professionals who fit the culture and have the values and skills needed to
excel in the open position, staffing agencies can find the right person and
place them in a full-time position either through recruiting or accessing the
pipeline of talent staffing agencies have at all times.
Allowing Businesses to Hire Through Evaluation
As companies adjust to the current job market, hiring
managers likewise are adjusting their traditional views on which workers would
be a good fit for open positions, looking past customary requirements. However,
without checking off all the boxes, the question remains if the candidate has
what it takes to excel in their position.
Staffing companies, like Express Employment
Professionals, offer the opportunity to place a candidate through Evaluation
Hire. During the evaluation period, the employee is able to prove to the
company that they are the right match for the job, as well as see if the job is
the right fit for their career goals. At the end of the evaluation period, the
company can decide to hire or to move on to another candidate.
***
The
Irvine Express office is located at 13700 Alton Parkway, Suite 156 Irvine, CA
92618 and serves the Irvine, Tustin, Lake Forest, Foothill Ranch, Mission Viejo
and Rancho Santa Margarita marketplace. Local businesses and applicants are
encouraged to get in touch at their convenience. Call 949.583.7400 or visit
www.expresspros.com/irvineca/.