| With the current economic conditions, many managers | | | | your budget. |
| are faced with the dilemma of having to attempt to | | | | III.Time Savings |
| grow their business and maintain or increase | | | | Who has the time to go through such a scenario? No |
| productivity, while working with smaller budgets and | | | | one. What if you were in danger of going through it |
| tighter restraints than years past. While many | | | | numerous times? With numerous resumes probably |
| companies have laid off numerous employees, there | | | | out on the job boards now, one might think that this |
| are still companies who are looking at the horizon and | | | | would be a very easy time to hire someone, and they |
| anticipating the need to hire individuals to help with | | | | couldn't be more wrong! With the flood of resumes |
| spikes in certain seasonal growth or major initiatives or | | | | that are going to be on the market, managers will be |
| projects. For these companies, it is more economically | | | | hard pressed to get through all of them in a timely |
| efficient and responsible to engage the services of a | | | | fashion. The downside of having a high number of |
| staffing agency to help with upcoming hiring possibilities. | | | | responses to a posted position is that a number of |
| The reasons to support this are simple: 1.Such a time | | | | them will probably be what some would call "sub par." |
| of economic uncertainty does not warrant an | | | | It's for this reason that partnering with a staffing |
| extended commitment to any new employees. 2. | | | | agency would be ideal to allow them to do all the initial |
| Attempting to hire someone directly now could be a | | | | screening of the potential candidates to make sure |
| large risk to shrinking at already tight budget without a | | | | that you are only presented the perfect cultural and |
| return on your investment. 3. To help focus on | | | | technical match for your position. Nothing could be |
| maintaining productivity and efficiency (which is a main | | | | worse than to finally feel that you have pressed |
| initiative for all companies these days), it is better for a | | | | through the pile of resumes in your email inbox to finally |
| manager to outsource initial recruiting and screening to | | | | get to one that is respectable just to find out that the |
| a company that specializes in this, as opposed to HR | | | | potential candidate was just offered a job two days |
| or himself/herself (which both have other daily duties | | | | prior. By utilizing a staffing company, whose sole daily |
| outside of finding and qualifying talent.) | | | | activities involves recruiting and nothing else, you |
| I.Economic Uncertainty | | | | greatly increase the chances of interviewing that ideal |
| The average economic depression since World War II | | | | candidate way before another company has a |
| has lasted an average of 14-17 months. With most | | | | chance to even get to him or her. |
| people estimating that this recession officially began in | | | | IV.Conclusion |
| December 2007, we are still a good 6-7 months away | | | | While many companies are laying off employees in the |
| from recovery. However, in light of the recent slow | | | | droves, there are still a number of companies who are |
| crawl of the stock market these past few weeks (the | | | | seeing modest growth and projected increase on the |
| Dow just dropped 32 points amid the crisis in the Gaza | | | | horizon. While the need to hire may not be as strong |
| Strip to 8484), many economists are hesitant to give | | | | as it has been in the past, companies are still going to |
| any prediction on when the light will return for investors. | | | | have to add staff to some capacity to meet oncoming |
| As one writer puts it "...economic forecasting has a well | | | | need as the economy attempts to recover. Due to the |
| deserved reputation for being a notoriously imperfect | | | | great uncertainty of the actual recovery date, |
| art (most definitely not a science)." All of these factors | | | | companies should look to build a strong relationship |
| suggest that any long term commitments should not | | | | with a staffing company to help meet their future |
| be made by any companies at this time. By partnering | | | | needs for supplemental headcount. By doing this, |
| with a staffing agency who can provide quality talent | | | | companies are lessening their long term commitment |
| on a short term basis, companies will be able to have | | | | for a full time employee, receiving great cost savings |
| a flexible staff without the enormous commitment that | | | | from contracting by reducing their overall overhead, |
| would naturally come if you hired someone directly. | | | | and saving time as they outsource the screening and |
| II.Cost Savings | | | | qualifying of the wave of resumes to companies who |
| The numbers don't lie. It has been estimated that the | | | | specialize in this every day. The choice is clear. |
| average budget to hire a full time employee is usually | | | | Cited Sources: |
| about 42% above the employee's annual salary. This | | | | Paulson, Peter. The Entrepreneur's Guidebook Series. |
| cost is the sum of the average percentages of social | | | | New York: Patsula Media, 2001-2007. |
| security, unemployment insurance, workers | | | | MBDA Staff. "Hiring Temps and Contractors to Fill |
| compensation (11%) + payments for sick days, | | | | Staffing Needs." MBDA. Internet. Available: mbda.gov |
| vacation, holiday (9%) + health insurance, pension plans, | | | | 94&method=printer (29Jan. 2004). |
| payroll and other HR payroll (6-7%) + miscellaneous | | | | Haun, Lance. "Top Five Mistakes Made By Companies |
| cost of company vehicles, training, cell phone, laptops, | | | | Hiring In A Recession," Standoutjobs. Internet. Available: |
| etc. (17-20%). Also take into consideration that if this | | | | standoutjobs.com/site/blog |
| employee doesn't work out, all that initial "on-boarding" | | | | top-five-hiring-mistakes-in-recession/ (11 Dec. 2008). |
| money has been completely lost from your budget | | | | "The Real Cost of Employee Turnover." The |
| with no way of getting it back. In fact, the average | | | | RainMakerGroup. Internet. Available: |
| cost of turnover for most companies ranges | | | | therainmakergroupinc.com/add.asp?ID=94 |
| anywhere from ½ to 5 times the employees | | | | Young, Chris. "4 Tips for Hiring During an Economic |
| salary, as lost in productivity from the missing | | | | Slow Down." Maximize Possibility. Internet. Available: |
| employee, team morale from being overworked to | | | | maximizepossibility.com/employee_retention/2008/02 |
| "pick up the slack", and the cost of recruiting, training, | | | | 4-tips-for-hiri.html (5 Feb 2008). |
| and "on-boarding" another employee is also taken from | | | | |