When it comes to hiring new employees, there are two main options for businesses: hiring directly or going through a staffing agency. While each approach has its own benefits and drawbacks, one of the most important factors to consider is the cost.
On average, hiring a new employee directly can be quite costly. According to a survey by the Society for Human Resource Management (SHRM), the average cost-per-hire for companies is around $4,129. This includes costs associated with recruitment, advertising, job fairs, and the time and effort spent by HR personnel on screening and interviewing candidates. Additionally, there may be costs associated with onboarding, training, and benefits administration.
In contrast, using a staffing agency can often be a more cost-effective option. Staffing agencies typically charge a fee based on a percentage of the employee’s salary, which can range from 45-65%. While this may seem high, it’s important to consider the fact that the staffing agency takes care of all payroll taxes, unemployment, workers compensation, the recruitment process, screening, and interviewing processes, as well as any onboarding and training needs. This can save businesses a significant amount of time and money in the long run.
Staffing agencies allows you to observe the employee before hiring and can quickly provide temporary or seasonal workers as needed. This can be especially beneficial for businesses with fluctuating staffing needs or for those in industries with high turnover rates.
Ultimately, the decision to hire directly or use a staffing agency will depend on the specific needs and budget of each business. However, it’s important to carefully consider the costs associated with each option before making a decision.
If you need assistance hiring staffing, give us a call. We are here to help!
Vest Professional Placement Firm, LLC
www.VestPros.com
816-282-6288
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https://vestpros.com/submit-job-app/