As the economy slowly begins to improve, many companies are seeing their business doing the same. However, they may be reluctant to hire additional workers to handle the workload, fearing that it may drop off again and they will be stuck with employees they don’t need, says Danny Spitz, founder and president of EverStaff.
“The solution is temporary staffing,” says Spitz. “Businesses are more comfortable bringing on staff on a temporary basis until they make sure that the workload is going to continue. Although they are cautiously optimistic, they are skittish about hiring permanent workers. First, they want to see the skill sets and want to know that the work is going to last. So they continue to favor temporary staffing.”
Smart Business spoke with Spitz about how a recruiting and staffing firm can supply the right temporary workers to help you control your work force on an as-needed basis.
How can temporary staffing help a company control its work force?
It allows a company to staff for peak needs, with the flexibility of letting those people go when they no longer need them. When some companies have an increase in workflow, they are afraid to hire. So they ask their existing employees to do extra work and sometimes work overtime.
Partnering with a staffing agency to bring in temporary workers can help avoid burnout among your employees, improving their overall productivity and allowing them to continue to focus on their main job tasks. When companies are looking to cut costs, often the first place they look is payroll. And when a company downsizes, it will ask its staff to go into overdrive and handle responsibilities that they are not used to handling. Temporary staffing can help keep your current employees happy and allows you to bring in specialized talent for certain tasks, which, in the end, results in better service and better products for your clients or customers.
Temporary staffing can also help you control your work force because if the workload does continue, you have already trained that individual and you have the option of hiring him or her as a full-time employee. This arrangement allows you to try before you buy, evaluating whether they will fit in the corporate culture and with other employees, see what their work habits are and identify any weaknesses that might not be evident in the interview process before you hire them full time. It allows you to give someone the opportunity to work for your company but say that that person has to earn the right to be a full-time employee.
How can temporary staffing help cut costs?
Because the recruiting and staffing firm — not your company — is the physical employer of the temporary staffing people, you don’t have to worry about them filing for unemployment when they are no longer needed. This can reduce the overall operating costs for a business because it does not affect what the employer pays for unemployment insurance.
It can also keep costs in check because the business is not responsible for paying for benefits. In addition, the staffing firm handles all employer-employee responsibilities, such as workers’ compensation, and the employer doesn’t have to provide sick time and vacation time or contribute to a 401(k) plan.
Temporary workers can also cut costs by stepping in to handle overflow work instead of the company paying overtime to your existing workers.
How can a staffing firm help a company with the interview process?
With unemployment at an all-time high, the number of applicants for an open position is also at an all-time high. If you have one position and 300 people apply, where do you start? How much time and energy are you willing to put into that? An HR person could spend days going through hundreds of unqualified resumes just to identify a handful of appropriate applicants to prescreen for an interview.
A specialized staffing firm like EverStaff will take on that role and mirror the company’s procedures as an extension of the HR department and management team. The firm conducts a thorough screening and very specific skill testing to find a candidate with the right skill set, as well as a candidate who truly wants to work. The firm will mirror exactly how a company does its internal hiring. If it’s two interviews, a background check, drug testing and skill evaluation, the staffing firm will do the same things, so someone who comes in on a temporary basis and then is hired full time has been through the same process as everyone else.
What would you say to an executive who says his or her company doesn’t have a need for temporary workers?
If you don’t have a need now, that is the perfect time to meet with a staffing and recruiting firm. The last thing you want to do is to try to determine the right partner to meet your needs when your need for help is now. Take a proactive approach and take the time to develop a relationship with a staffing firm to identify potential needs.
That way, when someone resigns with little or no notice, or if something in your business changes, the staffing firm already has someone in the pipeline to step in when needed without affecting your productivity.
Danny Spitz is founder and president of EverStaff. Reach him at (216) 674-0788 or [email protected]