Understanding Staffing Firm Costs
Getting your hands on the right kind of help is difficult these days –especially with the fast paced business market. It seems you take all the necessary time to attract the right kind of talent, you may even be sure you found it, only to be met with disappointment and heartbreaking setback.
To avoid all the unnecessary rigmarole, many savvy companies are relying on staffing firms to supply them with a temporary, full-time and/or part-time employees. A staffing firm will have the experience and know how to do all the work of selecting qualified help to give you only the options you can count on –the best thing is that the fees associated with staffing firms are surprisingly low you may even save a buck or two by relying on experts in the field.
This is how staffing firm costs are calculated. First off, all staffing firms will charge for the work they do, this charge is charged to the companies looking to hire employees –the job seekers are not charged for anything.
When making a direct hire staffing firm may charge the company 20 – 50 % of the annual payment that employee will generate in a year, for matching the perfect employee to the job. Generally, staffing firms try to come to comfortable terms and schedules with the companies they supply with workers.
Hourly Fees and One Time Fees
There are two ways that staffing firm costs are charged: hourly fees and One Time Fees.
An hourly fee is often charged for temp positions and some time part time positions, it means that the staffing firm essentially “rents“ the services of one of their employees to the firm at a cost the firm and company have agreed upon that will cover the wages of the employee and the charge to the company.
Meaning that if the employee’s wages are $15 the company must pay this plus an additional percentage to the staffing firm.
When a firm is looking for a full time employer or sometimes part-time employment also uses this payment option, the staffing firm may charge the company a one time fee that will cover the staffing firm costs –the company will then be responsible for furnishing the employee with satisfactory wages.
The one time fee paid to the staffing firm usually amounts to a percentage of the predicted wages for the employee over a year’s time.
Staffing firms can be a great benefit to companies by finding the right guy or girl for the job right when the position opens up to avoid a lag during the transition or the possibility of hiring a lemon which can be detrimental to your objectives.
there are more long term advantages as well, for example the the management of employees payments and benefits freeing up a concern on the part of the company needing workers. Additionally, some companies that have a hiring department as part of their HR will be able to outsource this to the staffing firm which could save cash in the long run.