Understanding the New Labor Paradigm

January 22, 2012

Not everyone understands the idea of outsourcing staffing needs, but more and more people are beginning to understand the benefits of saving opportunity cost through outsourcing labor. Rolling out a requirement to a 3rd party isn’t a sign of weakness. It’s a sign that an organization is expanding, or an organization is getting enough projects to increase their manpower. Few people outside of the realm of staffing and recruiting fully understand the industry, but the industry receives widespread criticism even though it is incredibly important to almost all facets of business in America. Manpower is crucial to completing projects and the most important asset a company creates other than its products. I’ve always said, “Do what you do best, and source out the rest.” I accredit that statement with a great degree of the successful projects I have completed on time. The proper staff will always dictate the success of any project, and an understaffed project is destined to fall short.

For Staffing as a whole the economy is simple: In the grand scheme of things, a sales person that cost you $10,000 and carries their target of $4M is worth every penny. Hiring anything less than the best candidate available is a false economy. The same goes for light industrial staffing. If your production lines can’t function, because there aren’t enough workers to staff all three shifts, then you might find yourself standing in the unemployment line when your deliverables are not met.

Positive points to thank about when considering a move to contingent labor are:

When you employ an agency, it – not you – becomes the temp worker’s employer. The agency is responsible for and bears the financial burden of recruiting, screening, testing and hiring workers; payroll expenses and paperwork; payroll and withholding taxes; unemployment and workers’ compensation insurance; and any employee benefits they may wish to provide. Some agencies even provide training such as software application tutorials and orientation. To that end, production is the true cause of business. Every business function needs a plan to be effective. A sourcing plan should include all the possible sources for candidates and indicate where, how, and at what cost those resources will be utilized. The best choice is the most educated choice. If you would like to explore the possibilities of moving to a contingent labor model, then please contact us at 855-243-5562.