New Challenges and Strategic Opportunities in Staffing

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					Strategic Staffing
                                                                    Why Care?
          re you interested in cutting           Decrease employment costs.                       Cut your staffing
          costs, managing risk, and                                                               expense – and headaches.
                                                 Hiring and termination costs are very
          increasing productivity – all          significant. A staffing firm can virtually       The management and administration
while improving employee morale? If              eliminate many of the costs and time             of temporary staff can be a significant
this sounds like a wish list for your next       investment associated with hiring.               challenge. Many staffing services offer
strategic plan, you’re not completely off        Savings can include:                             special programs to help firms proactively,
base. These are achievable and realistic                                                          and cost-effectively, manage their staffing
                                                 •	 Recruiting. Recruiting is non-
benefits for companies taking a strategic                                                         function, such as:
                                                    productive (you don’t hire most of
approach to staffing.
                                                    the people you see). A staffing service       •	 Vendor-on-Premise. A staffing
Strategic staffing enables you to use               can more efficiently manage resume               supplier provides you with an on-site
temporary help as a permanent solution              screening, interviewing, testing, and            coordinator to manage your temporary
for meeting workforce challenges – while            reference checking.                              staff. The on-site manager ensures the
at the same time providing you a means                                                               productivity of temporary workers;
                                                 •	 Turnover. The cost of replacing a
to gain a true competitive advantage.                                                                handles scheduling and recruiting
                                                    person is three to five times the annual
Why make staffing strategic? Read on…                                                                issues; and deals with payroll and other
                                                    salary. Temporary staffing is an ideal
                                                                                                     administrative issues.
                                                    way to reduce expense in high
Cost Containment
                                                    turnover positions.                           •	 Single Source. Have one staffing firm
All businesses must keep their eyes on                                                               assume total responsibility for your
the bottom-line. And staffing firms offer        •	 Overtime. Reduce the overtime worked
                                                                                                     staffing. You only need to manage one
a number of effective solutions to keep             by permanent employees by using
                                                                                                     vendor, which then either fills requests
costs under control. Consider                       temps to cover high demand periods.
                                                                                                     internally, or coordinates with other
the following:                                   •	 Training. Temporary employees can                staffing vendors to ensure your needs
Eliminate excess overhead.                          be productive quickly because they               are fulfilled.
                                                    arrive ready to work, with the skills and
Most businesses are overstaffed. To ensure
                                                    training you need.
sufficient capacity to meet peak demand,
they employ more people than they need.          •	 Administration. Relieve burden on your
Why carry the excess personnel expense?             HR department by using temporary
A strategic staffing program gives you the          staffing and payrolling services. A
flexibility to bring in labor (or expertise)        staffing service has legal responsibility
as needed. While the temporaries may                for processing the paperwork for the
cost more per hour than their full-time             employees on its payroll.
counterparts, you only pay for them              •	 Termination. There is no cost to letting
when they’re needed. Plus, there are                a temp go. They know their assignment
no benefits to pay. In effect, a strategic          is going to be short-term.
staffing approach allows you to convert a
fixed expense to variable.

                                   Encore Staffing Services - Manchester, NH: 603.665.9600 - Lawrence, MA: 978-975-0900 -
Meeting Demand                                     nightmare. Staffing services provide             personnel, the staffing company
Are you forced to do more with less?               flexibility to limit the risk of a bad           assumes financial obligations including
Planned staffing gives you the flexibility         hire. Temporary workers not meeting              payroll, statutory taxes, and all
to effectively manage the ebbs and                 expectations can be easily replaced.             government reporting.
flows in your workload. Whether you                Not only does this limit wrongful
                                                                                                  Why Wait?
have special projects requiring expertise          termination risk, but it’s a great way to
                                                   try out a worker before considering a          Human capital is a key driver to meeting
beyond your core competencies or are
                                                   direct hire.                                   corporate objectives. Why wait for a
trying to manage cyclical trends, staffing
                                                                                                  crisis situation to change? Progressive
firms can give you the flexibility to            •	 Legal and financial issues. Staffing          companies regard staffing decisions as
proactively meet changing requirements.             firms ensure compliance with tax laws         key to their success. By making staffing
Ways staffing can help you meet                     when payrolling or leasing employees.         strategic, you gain a tool to help you
demand include:                                     They also make sure hiring practices          accomplish your objectives and an edge
•	 Seasonal demand / cyclical trends.               adhere to all legal guidelines. Finally,      on the competition.
   Many companies experience                        as the employer of the temporary
   fluctuations in work requirements.
   Rather than hiring employees when
   the workload increases, and laying
   them off when it’s back to normal
   levels, why not use temps? Temporary
   employees can give you the support
   you need during busy periods, and they
   understand that the assignment ends
   when the work is back to normal.

•	 Projects / special expertise.
   Sometimes businesses take on projects
   that require expertise permanent
   employees don’t have. It’s becoming
   more common for firms to bring in
   experts in fields, like information
   systems and engineering, to handle
   special assignments. Staffing firms
   can provide you with temporary
   professionals that have the skills
   and experience you need on a short-
   term basis.

Risk Management
All businesses face a certain amount of
risk. As an executive, your challenge
is limiting your company’s exposure
so you can focus on meeting key
business objectives. Many business and
employment risks can be effectively
managed with a strategic approach
to staffing. Staffing can limit the
following risks:

•	 Bad hires. An employee who isn’t
   meeting expectations can be a
   management, and sometimes legal,

                                   Encore Staffing Services - Manchester, NH: 603.665.9600 - Lawrence, MA: 978-975-0900 -
Am I Boosting My Bottom Line?
Does your staffing service help you save            4.   From time to time we evaluate our            11. We use temporaries as one of our
time and money, increase productivity, or                core competencies with the idea of               recruiting methodologies to find
give you peace of mind? If not, you may                  outsourcing non-critical functions.              permanent employees.
not be using staffing to your advantage.                 True          False                              True           False
After reading the last article, we thought
                                                    5.   We generally place orders for temps just     12. We always call two or more temporary
you might be curious to determine if your
                                                         before we need them.                             services simultaneously to see who can
company is proactive or reactive in its
                                                         True          False                              most quickly fill the order.
staffing decisions. Once you’ve answered
                                                                                                          True            False
the questions, score your answers using the         6.   We conduct an orientation for every
guide at the bottom to determine if you                  new temporary.
could be getting “more bang for your buck!”              True         False                             Answer Key
                                                                                                        Give yourself one point for each
1.   We primarily use temps as fill-ins for         7.   We provide training to temporaries             correct answer.
     unplanned or planned absences or                    when they begin a new assignment.              1. F      2. T       3. T      4. T
     for vacations.                                      True          False                            5. F      6. T       7. T      8. F
     True           False                                                                               9. T      10. T      11. T     12. F
                                                    8.   We have measurable performance
2.   We use technical, managerial, and                   standards for our permanent employees,
                                                                                                        If you score:
     financial level temps for project                   but not for our temporaries.
     assignments as well as using temps                  True           False                           0 - 3: It may be time to call
     for clerical and/or light industrial                                                               your staffing service – you could be
                                                    9.   We periodically review our cost
     requirements.                                                                                      doing more;
                                                         per hire.
     True             False
                                                         True          False                            4 - 7: You’re doing okay – you’re with
3.   Preparing for the use of temporary and                                                             the majority of companies today;
                                                    10. We have compared the cost of a
     contract staffing is part of our annual
                                                        temporary to the cost of a permanent            8 - 10: Congratulations. You’re
     planning process.
                                                        employee in the same position.                  strategically staffing your company
     True            False
                                                        True          False                             to success.

Why make staffing strategic?
1.   The planned use of temporary help can               you’ve used in the past – saving                  article that details how to calculate your
     be extremely cost and time effective.               you time and money on training                    cost per hire.
                                                         and orientation.
2.   If it saves you money to use clerical                                                            10. The real costs of permanent employees
     and light industrial staffing, it stands to    6.   A temporary’s level of comfort on the            are much higher than their wages. Don’t
     reason that using professional staffing             job affects their ability to perform – the       forget about statutories, benefits, 401K
     will save you money as well. Ask us,                more they know about the job and                 plans, vacation time, and paid days off.
     we’d be happy to elaborate.                         requirements, the better they’ll do.             These are all costs you don’t incur when
                                                                                                          using a staffing firm, because you only
3.   Strategic use of staffing allows you to        7.   A well trained temporary is not
                                                                                                          pay for hours worked.
     operate without extensive peaks and                 going to do work incorrectly – saving
     valleys. It helps you stay “right-sized”            you time, money, and potential               11. Try before you buy! Reduce your risk of
     but flexible enough to handle increases             aggravation. Trained temporaries are             a bad hire and increase your likelihood
     in business or unforeseen opportunities             more productive in every way.                    of hiring success by using the temp-to-
     and challenges                                                                                       hire option staffing services offer.
                                                    8.   If they know your expectations,
4.   Strategic staffing will allow you to focus          temporaries will try their best to meet      12. It may get you a faster response, but not
     your strengths on activities that get               them. Give them the opportunity to               necessarily a better person if you call
     you the greatest return on your assets.             perform to the best of their ability             two or more staffing services at the same
     Leverage the expertise of others.                   while fulfilling your needs.                     time. Form a partnership with your
                                                                                                          staffing service – call them first and give
5.   Your likelihood of getting the “cream of       9.   It can be less expensive to use a staffing
                                                                                                          them the chance to meet your needs.
     the crop” is greatly diminished under               firm as your recruiting source than
                                                                                                          Give that service a reasonable time to
     extreme time pressure. If you give a                doing it yourself. If you’d like more
                                                                                                          fill your order and call a back-up service
     staffing service more lead time, you                information on the costs of hiring,
                                                                                                          only if they fail to meet your schedule.
     may be able to get back temporaries                 please call us and we’ll send you a great

                                       Encore Staffing Services - Manchester, NH: 603.665.9600 - Lawrence, MA: 978-975-0900 -

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