According to ResourceNation.com, hiring a new employee can cost upwards of $4,000, when one considers the cost of recruitment, screening, training, taxes and benefits. Well, perhaps that’s just the cost of doing business, you say. But their next statistic is even more startling: 46% of employees fail within 18 months. Research from CareerBuilder reveals that 66% of U.S. employers experienced losses in business last year due to bad hires. And what an expense failure creates! Twenty-seven percent of U.S. employers say a bad hire costs their company more than $50,000. One of the primary reasons for failure, according to the researchers, is a lack of cultural fit. While the candidate’s qualifications may be aligned with the job they were hired to do, their interpersonal skills and temperament for the job were not evaluated within the context of the company’s culture.
These two hiring facts, combined with an uncertain economy, are fueling an increase in the hiring of temporary workers, also referred to as staffing on a contractual basis. According to Staffing Industry Analysts (staffingindustry.com), contract staffing has been on the increase since October 2012. On a nationwide basis, there were 184,200 more contract workers hired in April 2013 than were hired in April the previous year. Staffing through contracting rather than hiring allows an employer to not only evaluate a candidate’s on-the-job skills, but also to evaluate whether the individual can fit within the company’s culture, a factor that is quickly being recognized as a major aspect of the right hire.
Using the “try before you buy” approach to meeting talent needs offers many advantages over conventional “permanent” hires. Benefits costs are considerably lower, and if staffing needs change, the temporary worker can be discharged without outplacement obligations. This allows the company to nimbly respond to changing needs, aligning the workforce to expand or contract as environmental factors demand. If the staffing need becomes more long term and if the temporary worker proves to be an excellent fit based on both skills and fit within the company’s culture, a full-time permanent position may be offered.
Many conventional placement agencies have been scrambling recently to get on the contract staffing bandwagon. Talencio has focused on this niche for the last five years, and we’ve built an awesome talent pool to find you just the right professional with just the right talents. Call us. We’d love to help!
Talencio, LLC is the preferred provider of vetted, accomplished contract professionals to the Life Sciences community.
Sources:
ResourceNation.com
CareerBuilder.com
Staffing Industry Analysts
