In today’s competitive industrial landscape, efficiency and safety are paramount. As companies strive to optimize operations and reduce costs, the decision between direct hiring and utilizing a staffing firm becomes crucial. At Percipio Workforce Solutions, we understand the intricacies of workforce management and the significant impact of hiring practices on a company’s bottom line. Let’s delve into the often-overlooked soft costs of hiring without a staffing firm and how they can affect your business.
Safety & Work Comp Costs
Injuries: New Employees Are at Higher Risk
Statistics reveal that new employees are five times more likely to be injured on the job. This elevated risk is often due to unfamiliarity with the work environment, lack of experience, or inadequate training. When companies opt for direct hiring, they assume the full responsibility of training and acclimating new hires, increasing the likelihood of workplace injuries.
First-Day Vulnerability
A staggering one in eight workplace injuries occur on an employee’s first day. This highlights the critical need for comprehensive onboarding and safety training, which can be resource-intensive for employers. Staffing firms, like Percipio Workforce Solutions, streamline this process by providing pre-screened, well-trained workers who are ready to hit the ground running.
First-Year Injury Statistics
Approximately 34% of all workplace injuries happen within the first year of employment. This statistic underscores the importance of effective risk management strategies during this period. Staffing firm solutions can mitigate these risks by supplying experienced workers who require less ramp-up time.
Work Comp Costs
First-year injuries account for 24% of manufacturing work comp costs. By partnering with a staffing firm, companies can reduce their exposure to these costs, as the agency typically handles workers’ compensation and related claims for their employees.
Unemployment Claims Costs
Shielding Clients from Unemployment Costs
One of the significant advantages of using a staffing firm is protection from unemployment claims. Clients are typically shielded from paying 50% of an employee’s pay if they file for unemployment, as the agency assumes this responsibility.
High Turnover Rates
Employee turnover is a costly challenge, with 33% of all employee turnover occurring within the first 90 days. High turnover rates lead to increased hiring and training costs, disrupting operational continuity. Staffing firms can alleviate this burden by providing a steady supply of qualified candidates, reducing the impact of turnover on your operations.
Why Choose Percipio Workforce Solutions?
With over 30 years of industry experience, Percipio Workforce Solutions is dedicated to partnering with ambitious company change-makers to shape the future of the industrial workforce. We specialize in temporary employment services, workforce consulting, direct hire, and staffing, focusing on creating valuable connections and enhancing workforce opportunities.
Our team understands the unique challenges faced by the industrial sector and is committed to delivering tailored solutions that enhance productivity, safety, and cost efficiency. By choosing Percipio Workforce Solutions, you gain a trusted partner dedicated to optimizing your workforce and driving your business forward.
In Conclusion
The decision to hire directly or through a staffing firm has far-reaching implications for your business. By understanding and mitigating the soft costs associated with direct hiring, companies can enhance their operational efficiency and safeguard their bottom line. At Percipio Workforce Solutions, we are here to support you every step of the way, ensuring your workforce is prepared, protected, and productive.
For more information on how Percipio Workforce Solutions can help you navigate the complexities of workforce management, visit our website or contact us today. Together, we can build a safer, more efficient, and more profitable future for your business.