If a company is struggling to fill in a vacant position and doesn’t know how to post a vacancy advertisement to attract real talent, or if it feels it does not have time for posting advertisements, weeding through resumes – it is best to work with information technology staffing firms. They not only assure to find candidates faster, but also assure good technological and psychological acumen of a candidate to promote a healthy work atmosphere.
Though there are online job portals that work as a meeting place for companies and IT professionals, these portals often lack the insight of an experienced recruiter. An IT recruiter has years of experience in recruiting candidates. He knows how to judge the technical knowledge of a candidate. He also understands that technological knowledge is not enough for a productive work culture. It is also important to judge the mentality of a candidate for a healthy working environment.
To begin with, an Employee Leasing company’s main benefit to an employer is to relieve the non-profit producing tasks of dealing with employee administrative hassles- such as payroll, employee benefits, human resources and workers’ compensation. By outsourcing these to an Employee Leasing company, the employer can focus on what they do best and grow their bottom line.
An Employee Leasing company is typically the most cost-effective option for an employer when the business owner has five or more full-time employees. Costs related to workers’ compensation, unemployment tax and payroll administration are much less in comparison to a staffing or short-term employment arrangement. As you can imagine the more employees as a business has, the more time has to be devoted to employee issues- therefore the value of outsourcing this work becomes a more profitable decision.
A business can benefit by using a staffing or temporary help service in variety of ways, as well. The obvious advantage is the ability to access short-term help immediately. Whether it is a construction project with a timeline that requires temporary labor, or a secretary who takes a leave of absence for an extended period of time; accessing pre-qualified help at a moment’s notice is when these services can be an employer’s best friend.
The administrative costs such as payroll, unemployment taxes and workers’ compensation are handled by the staffing company. The employer also relieves themselves of any benefit requirements like health care, vacation, sick or holiday pay. But, there is a premium to pay for these short-term employment services. The overall employee-related costs will be much higher including fees that are added for using Umbrella companies. The added risks and administrative costs for the services they’re providing is exactly why staffing companies are to be used as a temporary solution.
Just as convenience and grocery stores fill a specific need, the services that Employee Leasing and staffing companies provide (although different) are an invaluable resource for businesses.
This top five list addresses the most beneficial reasons to consider using a temporary staffing or permanent recruitment firm – Liability, Cost, Flexibility, Expertise & Time.
Liability: When you engage the services and/or employee of a staffing firm, they are not your employee. Therefore, you have no liability for their workers comp, professional/general liability, payroll taxes and unemployment claims.
Cost: Though you will pay a service fee or hourly mark up to a staffing/recruiting firm, you need to keep in mind that they are paying all of the workers comp, professional/general liability insurance, state and federal payroll taxes. Generally this adds up to about 12% of what the staffing firm pays the employee. So if they are paying someone $15/hour they are paying out $1.80 on top of that to cover the above mentioned expenses associated with employing that person, not you. The leftover amount between the pay rate and client bill rate is what the agency makes as profit.
Expertise: There are staffing agencies and recruiters that specialize in any industry or position you can imagine. By working with an agency or recruiter that has a specialty for your type of position, you will immediately access the exact talent pool you are trying to reach, as well as upping your chances of getting the best possible candidate. The time a specialized agency or recruiter will take to fill your position will also be significantly less since they only work with candidates with specific skills sets.
Flexiblity: When you need a temporary employee or frankly any employee, there is a lot of expense and time incurred to find the qualified and best candidate for your job. When you only need someone for a few weeks or months, why do this in house when it can be outsourced to an agency that specializes in your type of position and therefore already has the recruitment advertising dollars spent and qualified candidates lined up? You are able to use the agency’s employee as much or little as you need and can discontinue their assignment once your work is complete.
Time: Let’s face it, almost all of us could use a little more time in our days to get more done. Recruiting, screening and hiring a candidate whether temporary or long term takes a significant amount of advertising dollars and your personal time. When you are in a larger company it is easier to handle temporary or permanent staffing needs because employees have more specialized roles such as hiring manager or recruiter. Small to Medium sized businesses can benefit the most from engaging the services of a staffing agency, since they are typically wearing “many hats” in their current role and may not have the bandwidth to add another task to their daily activities, especially a significant one such as recruiting & hiring.