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Sometimes smaller businesses need to outsource staffing because they lack sufficient resources. In such cases this could include accounting, processing payroll, direct deposit processing, and distribution channels. Larger companies want to contain costs and bring in temporary resources for short-term projects. There are additional benefits of outsource staffing to a 3rd party organizations that go beyond money saving measures.
Outsource Staffing – Fixed vs Variable Cost Benefits
Outsourcing is a powerful method for transforming costs from being fixed to available for other uses. Many companies take advantage of this by using increased capital for investing purposes. This is an excellent way to fund important projects or research. There may be a domino effect in that new research or projects that can result in expansion and growth will attract new investors.
Additional gains with creating variable costs can be decreased expenses that normally would cause prices to rise. This is a matter of efficiency in a real sense and wise use of resources. Taking on important R&D typically means your market will pay for it at some point. Avoiding this transfer of expenses help you to maintain or increase your competitive advantage in the market.
Outsource Staffing Improves Reaction Time
One of the hallmarks of large corporations is they move like glaciers. Smaller businesses are very nimble which can be a tremendous asset. Using third party outsourcing can give even a large business speed. One perfect example is with new projects. All new staff can be dedicated, and you will just need to assign company oversight. This structure will minimize drain on full-time resources. Time to start-up will be dramatically reduced in many ways. Attempting a large project with all in-house resources will certainly take weeks if not months.
Outsource Staffing is a Form of Leverage
Small businesses face many obstacles because they lack resources. This is part of the playing field that is not level. Outsourcing is a form of leverage for the smaller companies if they understand how to best take advantage of it. All of the benefits of temp staffing are available with economy of scale being chief among them. Additional expertise can be acquired when it is needed, and capital can be diverted where it can provide a larger ROI.
A Means to Lighten the Load – Peripheral Responsibilities
One common complaint by permanent employees is additional lower level responsibilities. Managers are often subject to the same challenges and can quickly become spread too thin. Outsourcing can be an ideal way to use precise application of additional staffing. Your business can have a greater focus on core duties and priorities. The best approach to this is analyzing all the peripheral duties in your organization. Identify and isolate the functions and responsibilities that can be best handled with temporary staffing.
Flexicrew Staffing has the expert knowledge and resources to help you find candidates you won’t find on your own. Let us assist you in finding the right person for your small or midsize business. Call today. flexicrew.com/contact-us/
Each Important Staffing Lesson from Football Every Recruiter Should Follow
In fact, anyone can value the positive characteristics learned through football like:
You have heard the old management expression, “Inspect what you expect.” In football, coaches catalogue every minor statistic. Similarly, when Flexicrew measures and quantifies performance that frequently leads to meeting targets. And it allows us to set goals for improving customer service. Similarly, based on stats, a football player can set a goal or predetermine a number to attain. Meanwhile, there are multiple football team-oriented goals as well, which will help a player be accountable as part of the team. Similarly, Flexicrew team-oriented goals require staff to contribute to the team outcome that improve customer service.
Goal setting is a great tool for staffing agencies. Goals help us grow and improve. Football or staffing both get started with good goal-setting routine.
Football requires a unique type of teamwork. A football team has up to 90 players. Recognizing an individual’s role and that of your teammates is vital. Trusting teammates to do their job is also of utmost importance. That’s why all teammates count, including on the second and third team players. Working toward common goals helps Flexicrew team to build trust over time and produce better client outcomes.
Football provides challenges a player must tackle. These will test him and help to build a player’s perseverance. Common difficulties like losing a big game, fumbling the ball or missing a critical tackle are much like staffing. Even unique challenges, like lacking strength or speed or catching a ball, may even tempt a player to give up.
But, staffing stumbling blocks are obviously of a different nature. We sometimes can’t convince an employer to use our services. Occasionally we can’t find enough skilled job seekers to fulfill an assignment. Now and again an associate we hire doesn’t work out and we have to replace him. Certainly these disappoint us. But, Flexicrew members persevere by getting support from our 16 locations to meet customer requirements.
Football and staffing teach determination – sticking-with-it to overcome tough obstacles. Both promise a pleasant payoff for jobs well done. We help each of our recruiters with a mentor or support system, to bring individuals through the rough assignments to create the best for clients.
Football demands player discipline and a first-rate work ethic. That applies whether it’s attention to eating and exercise regimen or executing plays. Coaches continually monitor player performance and give constant evaluation. Coaches and fellow players evaluate every play in practice and games. Constant reevaluation promotes improvement and dependability.
Flexicrew naturally evaluates their team daily to be sure they meet their targets, making sure quality candidates are hired quickly. On our team, it helps to have other recruiters and peers give cross-evaluations.
Flexicrew team members improve and take responsibility for individual growth and help others when useful.
Playing football can give players an adrenaline high. There is a certain emotional return from giving your all into a game with your teammates. And, when there is positive achievement it is a moving experience.
Football teaches constructive ways to be grounded by the solidarity within a team.
Surely, some folks dislike football, but they still can appreciate the values taught by football. At Flexicrew, whether one is a client service coordinator or an accountant working with a team of coworkers, the end result is the same. Like football, we work hard, mentor each other, persevere and remain resilient through the complicated projects, and do our best to reach our staffing goals for our clients.
So Flexicrew uses each important staffing lesson we observed from football and takes them to heart. We would value the chance to join your team and tackle your workforce obstacles before they intercept your performance.
As you may already have found out the hard way, hiring friends and family is not always a good move for you – either for you personally or for your business. Before you commit to it, you should consider some very important aspects of working with family and friends.
Strong Personal Relationships Don’t Guarantee Compatible Working Relationships
Just because you get along well in your personal life does not mean that you will get along equally as well with friends and family once you work with them. Often the additional time spent together becomes a strain, even for married couples who have been together for years. There is something to be said for time apart and individual interests.
It can be very difficult for your sibling, parent, relative, friend, or spouse to respect you as a boss, and even difficult for you to feel comfortable “bossing” them, regardless of how wonderful an employer you may be.
Choosing the Right Person for the Job
And, really, how well suited or qualified your friend or family member is for the position he or she will hold? Being a nice person or a deserving person does not make someone qualified for a job – only experience and expertise can do that. And putting an under-qualified person in a position could be detrimental to your company; it could be a liability, too.
Preventing and Managing Disagreements and Difficulties
Managing disagreements starts with prevention.
If you decide to employ family and friends you will need to define roles and responsibilities as well as the structure and hierarchy of the business from the very beginning. Have clear policies and expectations, and hold each person accountable as you would any other employee. Seperate business from personal and make that a priority from the onset.
At its best, working with family and friends can be a very rewarding experience. At its worst it can be detrimental to business and personal relationships.
Those smartphones and BlackBerrys that enable work anytime, anywhere are increasingly blurring the lines between work life and personal life — and introducing the sticky issue of when overtime is owed to workers.
The always-connected worker and the pressures of the uncertain economy have led many to feel they should always be working — because they can, thanks to the growing use of smartphones. That’s allowing work to bleed into evenings, weekends and even sleep, with some people taking their phones and BlackBerrys to bed with them.
And the situation becomes tricky for hourly employees, who qualify for overtime.
“We’ve gotten into a place in our culture where the more you work, the better it is, and the more you should be proud of it,” said attorney Amanda Farahany. “And so people don’t want to assert their overtime right.”
Overtime laws are abused by companies “on a daily basis,” she said.
But in some cases, that has led to lawsuits, seeking pay for what is sometimes called “BlackBerry overtime” or “electronic overtime.”
For employers, “that’s an area of exposure and it’s coming like a freight train,” said Atlanta based attorney David Long-Daniels. By giving hourly employees BlackBerrys or access through iConnect or Citrix, “you’ve implicitly told them to work,” he said.
Long-Daniels advises companies not to allow hourly employees and others who qualify for overtime to use BlackBerrys or remote access to their work computers, unless they’re told to record time when using the devices and the company has a system in place to record the hours.
NEW YORK (CNNMoney.com) — You probably cost your boss a lot more than you think you do.
For Jim Garland, who owns a corporate aircraft cleaning and support services company, a $14 per hour worker has a true cost of $19.63 per hour, or about 40% more than base pay. This so-called “loaded rate” includes fixed expenses — federal and state taxes, health insurance, workman’s compensation, uniforms, and paid time off — along with soft costs like the time spent training a new hire.
Washington’s lawmakers are throwing a lot of ammo at reducing the jobless rate, tax breaks for hiring the unemployed. But no matter what incentives the government offers, it’s hard to convince business owners to hire until they’re absolutely certain they need to. Employees are often the most expensive investment a business makes.
“Our entire existence revolves around two numbers: revenue and payroll,” Garland said of Sharp Details, in Dulles, Va., which he launched out of his car trunk in 1991. Payroll for 60 workers accounts for around 70% of his firm’s operating costs.
Garland outsources his entire human resource department. Joe Sherrier, director of human resources for Employment Enterprises — the company that manages Garland’s HR — said that as a general rule, business owners should to expect an employee to cost an additional 25% to 30% on top of base salary each year.
Breaking down the numbers: Hilda Kernc has been running a Lebanese food production company out of her home kitchen near Chicago for a bit more than a year. Her vegetarian cooking is so popular that she works as many as 20 hours a day keeping up with demand for her hummus and other Middle Eastern fare.
Kernc is applying for a Illinois state business license and is about to start renting out a commercial kitchen part-time. Previously distributed under the name Hilda’s Homemade Appetizers, Kernc’s snacks will now be branded “Deleez Appetizers,” a combination of the word “delicious” and the Arabic word that means the same.
Kernc thinks it might be time to bring on her first employee. “My husband is helping me, and we were thinking we need to hire somebody,” she said. “It will kill me if I am going to work like this.”
To prepare, Kernc began researching the costs.
State income taxes vary significantly, but federal taxes are standard: Social Security tax is 12.4% on the first $106,800 of earnings, and Medicare taxes run another 2.9% of all wages. The employer and employee each pay half. (The self-employed pay the full cost of both taxes themselves.)
Employers also have to pay a federal unemployment insurance tax of 6.2% on the first $7,000 of each employee’s wages. Illinois adds on a state unemployment tax that’s currently 3.9% for new companies on the first $12,520 of wages. (Existing companies have their rates adjusted up or down depending on how many former workers file unemployment claims.) Part of the state unemployment tax is deductible from the federal, but that still leaves employers on the hook for a tax bite.
“I can’t afford it,” Kernc concluded. “When I saw the price to hire somebody, at this point I can’t do it.”
But Kernc she also knows she can’t put it off indefinitely if demand stays high. “I can’t work 24 hours per day,” she said.
Hidden costs: The little perks that employees come to expect, from free coffee to daycare services to group life insurance, factor into the price tag of a new worker.
“All of a sudden, by hiring a new employee, adding up all the fringe benefits, it can be costly,” said Tom Ochsenschlager, a senior manager at the American Institute of Certified Public Accountants.
Sam Meisler owns two animal hospitals and a vaccination clinic in Knoxville and Alcoa, Tenn. He’d like to hire another one or two full-time assistants to work in his My Pet’s Animal Hospital clinics. His company’s business is growing, but still, timing the staff expansion is tricky: “What we have to try to do is anticipate the recovery,” he said. “It is difficult to know when to hire.”
A new hire can actually decrease sales in the short term as they learn the job. As new assistants train on their computer system, Meisler expects occasional missed charges.
“You may even lose a client or two just from miscommunication, because of the veterinarian assistant not knowing how to talk to them on the phone,” he said. But on the flip side, extra administrative help gives the veterinarian more time to talk to each client and potentially sell additional services, such as grooming and dental cleaning.
0:00 /2:24Treat employees like family
A bad hiring decision can be a big hit to a company’s bottom line.
“The cost of hiring the wrong person becomes incrementally more expensive the shorter period of time they have been with you. The first 90 days are typically the most expensive to have them on board,” said Sherrier of Employment Enterprises. “If they stay, that is cost you can recover.”
The cost of losing an employee and hiring a replacement throws complicates the “loaded rate” calculation of what a worker costs each specific business.
Excerpted from CNN Money – By Catherine Clifford, First Published: March 26, 2010