Do It Yourself?

Let’s do a little Cost/Benefit analysis on using a staffing agency

We are in uncharted territory today, where uncertainty is here to stay. Flexibility and creativity in hiring are also here to stay for both job seekers and businesses. Navigating this environment is not for the faint of heart, and thriving in it requires making the maximum use of available resources.

When a business has a staffing need, there’s always a choice: hire directly (when you’re positive about your need) or find an alternate approach to getting the work done when your future is a moving target. Many companies default to making a job post and hiring on their own thinking that it saves money, but when you break down the numbers this approach is not very often the one that maximizes available resources. Here’s why:

Costs and Benefits for an Employer to Consider

The graphic above illustrates all the calculations that go into the cost of hiring. The baseline numbers that are standard no matter who employs the office worker are the same – wages and payroll costs (well, if you are a true numbers person you might know that even taxes and payroll costs can vary by employer depending on that company’s history). When you work with Personnel Partners, we are absorbing those costs for you and handling their reporting.

 Now it’s time to get out the calculator to factor in the less obvious, but very real expenses of hiring, onboarding, and turnover. The real comparison happens in the blue section of the graphic when you add up:

• Job posting fees

• Time spent processing resumes

• Interviewing and screening activities

• Onboarding and training time

• The cost of lost productivity due to unfilled positions

• Turnover and replacement costs if you don’t get the right person the first time

• Employee benefits

Last, but not least, is the cost of losing candidates to the typical average of 44 days to fill an opening. There is no good way to show it in the same graphic, but you need to compare that to our average time to fill of just over 4 days—or even 1 day for temporary roles.

So those are the costs. Hopefully the benefits are obvious when you consider the time saved that could be better spent elsewhere; the access to talent you might have missed out on; and the fact that when you run the numbers you might actually save some money using staffing.

Costs and Benefits for Job Seekers to Consider

A common misconception among job seekers is that staffing agencies take a cut from their pay. In reality, our client companies pay our fees—not you. The wage offered for the job is the same whether you apply through us or the employer directly. Our bill rates represent the additional costs that every employer incurs, whether they take a lot of time to calculate those out or not. The tiny sliver on the graphic represents the fee portion of a bill rate, which accumulates little by little and is necessary to keep the agency running.

So, regarding costs, there are none to the job seeker (although we must remind you that applications don’t guarantee placement either, since both a skillset and a client’s opening need to match up perfectly at just the right time). Regarding benefits, consider that our clients work exclusively with Personnel Partners to fill a role. That means the jobs we offer are only found with us. By working with a staffing agency, you gain access to jobs you wouldn’t otherwise see, and you get matched with employers who are committed to finding the right fit, not just filling a seat.

Our responsiveness numbers are a benefit to job seekers as well. While they apply to the time it takes to fill a client’s opening, they also mean that we’ve gotten to know our database of real people well enough to suggest the right openings to our candidates. We can move quickly because we already have all the information needed to make good judgments.

Adding up the Total

For businesses, the cost of leaving a position open for weeks—while also managing hiring tasks internally—adds up fast. Our expertise streamlines the process, saving you time and money while ensuring you get the right hire the first time.

For job seekers, working with us means more possible (right-for-you) opportunities at no additional cost. Our clients rely on us to find top talent, and we’re here to connect you with the right position.

Still weighing your options? Check out the graphic again or see more information and testimonials to figure out how Personnel Partners can help you make the best hiring decision for your business or career!