WHY OUTSOURCE STAFFING TO A 3RD PARTY

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 TO A 3RD PARTY

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.

Outsource 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/

Business Hiring Challenges Solved by a Staffing Agency

Businesses have their eyes on growth in 2019 but often business hiring challenges hinder expansion.

If a company wants to grow, it requires quality workers for the right jobs. And they’re hard to recruit in this tight job market.Hire the right people sign

Business Hiring Challenges

Multiple studies over the past several years indicate many businesses have had to deal with major challenges in recruiting and hiring those quality workers:

  • Vast majority admit to hiring a poor choice
  • Almost two-thirds had problems with their hiring procedure
  • About half have miscalculated just how difficult hiring would be

Why is that?

A major factor in hiring struggles seems to be that many businesses don’t have internal personnel to do recruiting. Because of that, the hiring process defaults to senior executives, or even the business owner.  But their time and attention is already fully engaged in other management responsibilities. Because of competing demands, hiring often gets put off. It doesn’t appear to be as urgent as other fire drills.

Running a team or company short-handed leads to productivity loss, and burnout – then eventually resentment and turnover.  To finally solve this situation, a company often makes an impatient, quick hire – often the wrong person.

Bad Hires

When organizations don’t take time to properly background check or thoroughly evaluate applicants, the likely outcome is the wrong hire. In one survey about 80% indicated their business had made a bad hire.  Based on Glassdoor research, it’s even worse.  95 percent of employers surveyed disclosed they make hiring errors each year by recruiting the wrong employees.

It’s difficult to stay patient when you need help urgently.  But you don’t want to hurry so much that you make a bad choice. This will force you back to the beginning to restart the entire process, thus wasting even more time.

Consequences of a Bad Hire

And bad hires produce multiple problems for employers:

  • Wasted time recruiting and training workers who eventually do not succeed
  • lost business
  • decreased productivity
  • increased stress on the team that worked with the bad hire
  • the company’s image gets tarnished
  • lost confidence in managers’ ability to make good hiring decisions

Business Hiring Challenges Timeline

But what does it take to fix these challenges and how long will it take the firm to restore workplace stability? When you’ve hired the wrong person for the job, you can start to get a sense for this fairly soon – within 1-2 months.

But that’s just the first part of a four-month marathon.  Here’s an estimated timeline to fix a bad hiring decision:

  • Recognition of bad hire 4 weeks
  • Assess and terminate worker 9 weeks
  • Recruit and hire new employee 5 weeks
  • TOTAL 18 weeks

That means about 18 weeks of added uneasiness for the staff, lower productivity and potentially damaged client interactions.

Hidden Business Hiring Challenges Uncovered

Unfortunately, hiring managers often make the same mistakes when they restart the process. When they start over, frequently they simply post the same outdated job description online and then expecting the ideal candidate to materialize “out of the blue.”

And even when a candidate emerges, they check references and screen resumes using the same inadequate methods.  They assign the same interviewers who made the hiring mistake in the first place.

Also, they may again fail to observe applicants’ soft skills. On balance, insufficient soft skills account for more than one-third of bad hiring mistakes.  Circumstances like a poor culture fit or personality conflicts often are the cause of bad hires. Soft skills like leadership, communication and organization are increasingly important in today’s recruitment climate.  However, many hiring managers don’t yet realize this.

And in this tight job market, the chances of hiring success with an out-of-date recruitment process are slim.

Think of the hiring process in its entirety.  Then you can grasp on your own the complexity of recruiting for the right worker.

The Strength of a Staffing Agency

More and more businesses have overcome hiring challenges by selecting a staffing agency. It helped them get the quality hire they need for the job.  An agency can recruit and have the candidate go through orientation and ‘hit the ground’ running faster.   And better still, it allowed the employer to focus on the demands of managing their business.

Flexicrew to the Rescue

In a November 2018 Best of Staffing survey by Inavero, respondents reported success from partnering with Flexicrew Staffing agency. This has been the case in 6 of the past 7 years.

When employing with a reliable staffing partner, business owners are able to:

  • Reach more candidates
  • Receive a satisfaction guarantee for every employee
  • Maintain productivity of their team
  • Save time and resources of current staff
  • Add a standardized, professional employment process

Need hiring and recruiting help? Contact Flexicrew. We’ve been finding quality employees for businesses like yours since 2008.