Priority Personnel Blog.

Seasonal Help: Why You Should Plan Your Staffing Needs Now

October 5th, 2010

Admittedly, it may be a little early to light a Yule log. 

But if you’re in the customer service, administrative/clerical, hospitality, shipping/delivery, inventory or technology/finance industries, you’re probably headed for a busy – if not your busiest – time of year.  If you’re going to require extra help this holiday season, it’s definitely not too early to plan for your staffing needs.

Here are just a few reasons why:

  • Prevent rash hiring decisions.  If you wait until the last minute to recruit and hire, you may find yourself “up against a wall” when business suddenly surges.  Waiting until your needs are urgent may force you to make hasty hiring decisions.
  • Get a jump on your competitors.  Many companies will wait until next month to gear-up.  Why not start your efforts now and reach the most qualified candidates before other seasonal employers get them?
  • Avoid being overwhelmed.  This year’s seasonal job market will be flooded with applicants.  With so many job seekers competing for positions, the sheer volume of résumés and applications may bog you down.  Give yourself as much time as possible to find the best candidates by starting the search process early.

If just reading about seasonal hiring makes your stomach churn, relax – you don’t have to do it alone.  Staffing firms specialize in helping companies like yours effectively manage the highs and lows of business cycles.  Plan your workforce needs now with your staffing partner to:

  • Get the flexibility you need.  Seasonal temporaries can handle surges in demand without impacting fixed expenses.
  • Say “goodbye” to post-holiday layoffs.  Since the staffing service is the seasonal employees’ employer of record, you can avoid the hassle and expense of letting workers go once things slow down.
  • Access the talent you need, right when you need it.  Planning your workforce needs now gives your staffing firm time to locate the most qualified staff for you, especially when you require a large number of workers – so they’re available right when you need them.
  • Shorten learning curves.  Your staffing provider will recruit seasonal workers with the specific skills and experience you require.  The provider can also, at your request, develop customized orientation materials to help reduce training costs and get workers up-to-speed more quickly.
  • Eliminate additional administrative and legal burdens.  By using temporary employees, you avoid the social security, payroll and other tax and legal burdens associated with seasonal employees.  Freedom from these hassles will give you more time to focus on other important priorities.
  • Cut back on overtime.  Temporary employees help you minimize the additional cost and burnout overtime causes.

Plan Your Workforce Needs with Priority Personnel

If your business has frequent or predictable surges in demand, a planned staffing option may be right for you.  Planned staffing is the strategic use of temporaries to accommodate workloads known to vary in seasons or other cycles.

First, a Priority Personnel staffing expert will work with you to examine year-round fluctuations in workload and identify peak demand periods.  Next, we will create a customized staffing plan for your business that: provides temporary employees to handle your busiest times; reduces or eliminates your need to lay off employees during slow periods; frees you to focus on the most critical parts of your job.

Remember, the early bird gets the worm – it’s never too early to discuss your staffing needs with Priority Personnel.

Overtime vs. Temporary Staffing – A Cost Analysis

July 20th, 2010

You’ve just won a three-month contract with a major new client – congratulations!  Now, you need to figure out how to get the extra work done.

Should you pay your current employees overtime, or bring in temporary help?  Consider the following sample cost analysis.  It is based on an annual salary of $40,000 ($20.51/hr.), vs. time-and-one-half overtime, for one employee:

Cost Analysis

Expenses Paying Overtime Using a Temporary
Hourly Wage $30.77 $32.82*
Fringe Benefits** $9.54 $0
Administrative/Payroll*** $3.69 $0
Over 3 months x 450 hours x 450 hours
Total Cost $19,802.00 $14,767.20

Although this is just a sample exercise for illustration purposes, it clearly demonstrates the economic rationale for using temporary employees.  When you need additional productive hours on a temporary basis, staffing services can lower costs, reduce burnout and improve the productivity of your direct staff.

Priority Personnel – Central Texas’ Staffing Economics Experts

Need help assessing the cost of a staffing strategy? Contact Priority Personnel. Our experts will work with you to determine the most productive and cost-effective way to get your work done.

Cost Analysis Assumptions

* Temporary staffing rates vary by market, but the relationship (ratio) between pay rates remains the same.

** Fringe benefits include:  holiday pay, sick leave, vacation pay, personal days, insurance, F.I.C.A., S.U.I., F.U.T.A., worker’s compensation, etc., based on a national average of 31%.

*** Based on U.S. Chamber of Commerce national average statistic of 12%, which includes firms that pay no benefits.  For small firms with moderate benefits programs, this cost is typically 40-45% of payroll, and for larger firms with extensive benefits programs, the cost can be up to 100% or more of payroll.

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