Posted on January 25th, 2021
The price of losing talent is always higher than the price of hiring and the price of retaining talent. Perhaps, this fact is bitter to digest for all business owners. Irrespective of how much effort an employer puts in to retain the talent it may not be fruitful at times. Every talent that leaves takes away more than what’s invested in him/her/them. Despite this bitter truth, there is nothing to worry about as contract staffing is one way to minimize this loss.
Said this, let us now look into what is contract staffing, why it is important for an employer, why hiring and retaining talent are expensive fairs. Above all let us also dwell on how an employer can cut down expenses and yet maintain standards and quality of running an organization.
To know why hiring an employee is a costly business we should know the process of recruitment.
Finding talent: Although many employers wish to have the best talent occupy their workspace the reality is easier said than done. The reason: employees are very much picky and calculated in choosing their coming 2 or 3 years. This forces the businesses to increase their advertising expenditure. To find better talent using the best advertisement methods and platforms is a minimum ask. This eventually leads to increased costs of finding talent.
Advertising on social media platforms, employee referral programs, payment for job portals and outsourcing are only just a few of the costly means to fetch talent.
Recruitment team: The ages of 1 HR for all activities are no more. HR employees these days are many and each one is specialized. While an HR recruiter finds a talent, the HR operations specialist takes from there, again the HR talent retention person is responsible to see that a good employee doesn’t leave the firm. All these simply put a burden on the employer. The costs incurred on these HR members are nothing less to the costs spent on any IT team.
Signing on personnel: Employee relocation, sign-on bonuses are very much common when a company fills a position of high-level capacity. All these shoots up the expenses.
Remember, all these are only expenses to pull talent and nothing comes back on these investments.
The real challenge is now-retaining talent. You may not have given consideration to this, but the costs are extremely high.
Payroll: In case the person has the experience, then he/she will definitely look at a raise from the past role. So, the payroll should hold this besides regular benefits and others.
Training: Irrespective of experience, industry and position every new employee needs some sort of training and this is one way of cost again.
Engagement: When you have an in-house team as an employer you should be pushing that extra mile to keep them engaged, motivated and perform better. Beginning with small perks to annual hikes, everything adds to expenditure.
Despite all these, still there is no guarantee that the talent will stay back. So, on any given day, Cost of losing talent + Cost of appointing (hiring) + Cost of retaining talent. Why we say this…
When a person leaves, hiring and retention works begin again. Besides, there is no proof that the next-in-line person who joins will be as capable and good as the one who left.
The replaced employee needs to spend time building relationships with internal and external teams or individuals. Probably, the present team may not be happy losing the past employee or is not ready to welcome a new team member so quickly. When such a situation arises, as an employer there is a loss of repute to you.
Probably the more damage is this.....shift in the organization culture, you may be forced to come up with new rules as far as leaving (relieving)the company is concerned or the other way round, present employees may begin to second-guess and lose the trust.
So, now you know why talent finding and talent retention are herculean tasks. Ok, despite this, let us not worry and see…
The company in contract staffing outsources short-term positions to staffing agencies and this without any special mention takes off many costs from your shoulder. All the employee-related grievances once which were your headache are now the headache of the staffing agency. Besides, you are only concerned with the performance and nothing less. So, what more do you want?
The other benefits include:
This is how temporary, or contract staffing helps you. You can hire a temporary staff here.
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