Statistics from the American Staffing Association show that staffing companies throughout Florida assign almost 140,000 temporary workers to companies every week. This large number comes as no surprise, considering the expenses involved in directly hiring an employee. ABC News Radio calculated figures from the United States Department of Labor and found that companies incur $57,000 per year to add one direct hire. Staffing companies in Jacksonville, FL can save businesses money by reducing the highest costs of bringing on a new hire.
Benefits and Taxes
Retirement plans, health insurance, overtime wages, and taxes take a chunk out a business’ payroll expenses. Employment industry experts estimate that these expenses make up 18 percent to 26 percent of payroll costs. Businesses can eliminate many of these expenses from their hiring budget by letting staffing companies handle insurance, retirement plans, and other benefits.
Human Resources
An in-house human resources department is a huge cost drainer. For many businesses in Florida, the salaries, office space and benefits given to an HR specialist are simply not worth the cost. Staffing companies in Jacksonville, FL can drastically reduce HR-related overhead costs by performing the functions of a human resources expert.
Employee Turnover
High turnover rates cut into revenues. Per the United States Bureau of Labor and Statistics, construction and utility industries have some of the highest turnover rates in the country, costing employers at least one-half of a lost employee’s wages to hire a replacement. Staffing companies can reduce employee turnover by thoroughly screening temporary workers before they are sent to a job site.
Advertising and Recruitment
Advertising and recruitment costs can quickly chip away at an employee’s hiring budget. Fielding inquiries, reviewing resumes, interviewing applicants and checking references are time-consuming tasks. Employers spend $4,129 to hire one candidate according to the Society for Human Resource Management. However, staffing companies eliminate all the expenses associated with employee recruitment.
Employees Are an Expensive Investment
The cost of hiring employees can destroy a small to medium-sized business’ budget. Even large businesses feel the impact of recruitment expenses, turnover and employee benefits. However, staffing companies in Jacksonville, FL can help employers across the state save money by reducing the costs that hurt businesses’ revenues the most.
Stafforce provides companies in Jacksonville, Florida with reliable, career-minded workers. The staffing agency serves businesses in the construction, shipping, utility and warehouse industries.
