It’s not too surprising that most companies hire internally. From a 2011 survey of 200 companies, internal hiring accounted for 41 percent of all hiring. In this weak economy, internal hiring is likely to increase as companies assume that it is the most cost-effective hiring solution. While this is great for companies with the capacity to hire internally, what about companies that can’t meet staffing demand with their existing employee base? A prime example are light industrial companies: With fickle production schedules, last-minute needs, and inadequate flow of supply, often internal staff are just not able to meet the demand. And why burn out your employees?
This is where staffing firms come in. The benefits of using a staffing service extend beyond giving your HR department a break (although, of course, allowing HR to meet their obligations as employee consultants to current staff is key to this arrangement). The right partnership with a staffing service can reverberate benefits throughout every department in your organization.
On average, companies find that 40-60 percent of external hires are unsuccessful, which ultimately means a higher rate of employee turnover. Partnering with a staffing firm allows you to “try before you buy” and avoid the mistake of hiring an employee that isn’t a good fit.
Moreover, staffing agencies that truly understand their target industries and clients, like light industrial customers, can make successful hiring recommendations—so much so that 80 percent of staffing clients say that staffing firms offer a good way to find people who can become permanent employees.
Staffing agencies also have access to a pool of qualified candidates at the ready, which reduces the time and money required to train new employees. In fact, 90 percent of staffing companies provide free training to their temporary and contract employees. At DePaul Industries, we’re renowned for our Heart of the Workforce program, ensuring that the workers that come to our customers are 100% ready to work.
Best of all, your partnering staffing firm will cover taxes and fees associated with payroll, workers’ compensation, and unemployment—which really can provide the most cost-effective solution.
Intrigued about what can be done? Give us a call to see how we can partner with your company.