Staffing companies and temp-to-hire services offer clear, quantifiable cost advantages over traditional in-house hiring models, especially for companies in the manufacturing sector.
According to the Society for Human Resource Management, the average in-house cost per hire for U.S. companies is approximately $4,700. That cost can escalate significantly – reaching three to four times the annual salary – for specialized or senior positions, when factoring in the costs of lost productivity and extended time-to-fill.
The Cost of Commitment: Why not Temp-to-Hire?
Staffing companies save employers on administrative and HR costs. According to Sam Wiczer, partner at Source One Staffing, “Staffing companies absorb major recruitment expenses such as advertising, job postings and background checks, as well as initial candidate screenings.”
There are many other ways staffing companies and temp-to-hire services offer clear, quantifiable cost advantages over traditional in-house hiring models, especially for companies in the manufacturing and logistics sectors, such as:
- Minimized severance/unemployment costs. Staffing companies reduce or eliminate these direct costs by leveraging their own platforms and networks, and enable clients to scale their workforce up or down based on demand. This approach avoids the long-term costs of overstaffing or layoffs during slow periods.
- Reduced time-to-fill and lost productivity. The average in-house time-to-fill for companies with 1,000 employees or fewer is 43 days, compared with 29 for companies with fewer employees. The hidden costs of unfilled positions grow over time, whether it's due to delayed projects, disengaged staff or declining customer satisfaction. Extended vacancies — particularly in roles essential to daily operations and profitability — can result in considerable revenue losses.
“Temporary staffing and outsourced recruiting agencies fill roles significantly faster by maintaining pools of pre-qualified candidates, which minimizes downtime and lost revenue,” says Wiczer. “We collaborate with our clients on custom orientation programs to help ensure our contract workers are productive from day one.”
- Lower turnover and replacement costs. Staffing agencies provide expertise in candidate matching which leads to higher retention and fewer costly hiring mistakes, directly reducing turnover costs.
- Payroll, benefits, and compliance savings. “Staffing companies and temporary staffing agencies handle payroll, taxes, workers’ compensation, and compliance for their contracted workers, reducing administrative overhead and legal risks for employers,” says Wiczer. “This can save businesses thousands annually in payroll processing and compliance management costs.”
- Flexibility and Scalability. Temporary labor and outsourced recruiting models allow companies to scale their workforce up or down based on demand, avoiding the long-term costs of overstaffing or layoffs during slow periods. This flexibility is especially valuable in manufacturing and warehousing, where demand can fluctuate seasonally or due to supply chain shifts.
The Art of Paying Less for More: Partner with a Staffing Company
Manufacturers using staffing agencies and temp-to-hire services, like Source One benefit from lower hiring and training costs, reduced time-to-fill, minimized turnover expenses, and greater operational flexibility — delivering measurable savings that can add up to significant savings, improved productivity and greater overall profitability.
Source One Staffing specializes in find for outsourced recruiting of temporary staffing and temp-to-hire services in the manufacturing and light industrial market sectors, with offices near Chicago, St. Louis and Dallas/Fort Worth.
Source: SubmitMyPR
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