Scalability is about agility. It’s a test of your organization’s ability to react in-the-moment to changes and demands in a fluctuating marketing, and your ability to grow into new markets quickly and profitably. The organizations that scale don’t only make top 10 lists, they redefine them.
In order for your organization to continue to level-up your products and services to better serve your customers, you’ll need to ensure specific departments have the required tools for scalability. Departments such as sales, operations, admin assistants, and accounting/finance need to be flexible to stretch with the needs of the day. Software scales in the cloud, but how does that translate to human capital?
In our e-book Find. Filter. Fit. Recruiting How-To’s, we help you determine the real cost of hiring a new employee. For our purposes, let’s discuss four ways you can leverage types of talent to increase profits while cutting costs for non-core functions.
1) Contract / Temporary Hiring: Extra Manpower Assistance
Being able to bring in contract employees is great for productivity and employee morale. It’s also a benefit for those inconvenient yet understandable circumstances when an employee is out of the office temporarily due to family leave, vacation, or long-term illness.
Some organizations also bring in a temp/contract workforce when the workload has temporarily increased or critical milestones have to be met in short order. Temporary contracting allows companies to meet deadlines with special assistance such as software migrations, tax season, end-of-quarter accounting, inventory, or a major event coming up with less than sufficient staff.
Fundamentally, contract staffing is about defining and outsourcing the hiring needs for a condensed contract and can help increase your confidence to make your goals easier to attain.
2) Payrolling: An Alternative to Direct Hire Employment
Employee costs collect quickly and can get out of control. Even if there is a higher-than-average cost for payrolling, it often makes sense for organizations that aren’t looking to increase their total FTE staff count. Payrolling is when a staffing company is responsible for paying all the employer taxes and any local payroll taxes. A company that leverages payrolling lays the foundation for a contingent workforce, seasonal employees, and project-based employees where the staffing companies are the official employer.
It’s the shared responsibility of payrolling that allows smart decisions to be made based on the hiring needs and available talent. This allows staffing companies to act as a co-employer for your staff; this allows your key decision makers to focus resources in other areas.
3) Contract to Hire: Try Before You Buy
Between the categories of contracting and direct hire staffing is the sweet spot to truly understand a candidate’s personality and capabilities. Contract to Hire gives you the chance to do a trial run to ensure your candidate is living up to their resume.
Now you can take your talent for a test drive by following the best practices of short-term opportunities typically varying from three months to a year, with the opportunity to become full-time, permanent positions at the end of the contract.
Contract to Hire empower organizations to scale faster with fewer resources. Essentially no strings attached, you can hire the help you need without having to maintain taxes, benefits, or vacation time. This model of hiring, which usually would require several months of planning can now be done with a simple contract through a local staffing company.
Event planning has been privy to this type of staffing for years. Event planners have been able to execute high impact event that demonstrates their utility in a practical manner without having to commit – a benefit to both parties.
4) Permanent / Full Time: Direct Hire Placement
By combining the benefits of Temp, Contract to Hire, and Payrolling services to gain a competitive advantage, you’ll soon have the ability to scale with the growth of your direct hires. Strategic use of human capital and the flexibility it offers is what sets scalable companies apart from companies that rely on outdated practices and hiring procedures.
Direct Hire Placement often includes sourcing, screening, negotiating salary and presenting candidates for consideration. Fees are flexible based on the hiring model and job orders requested. Full-time staffing is opportune when you want to increase the value of a risk-sharing relationship with a staffing company or your need for an employee exceeds the scope of standard contract employee positions.
While there are many costs associated with hiring a full-time employee, there are many intermediate steps you can take to remedy some of the common reasons why you might not be reaching potential when scaling in your vertical. Successful companies, regardless of their industry, understand the importance of scalable staffing.
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