• Sally Eubanks

Recovering from the Great Resignation



It's no secret that the employees of the twenty-first century aren’t the same as the employees of thirty years ago. Employees were already struggling to maintain a work-life balance before the outbreak, and the emotionally exhausting events of the pandemic only exacerbated those concerns leading to The Great Resignation. The Great Resignation, also known as the Big Quit or the Great Reshuffle, is an ongoing economic movement that began in early 2021, predominantly in the United States, in which employees willingly departed from their positions en masse.


The Challenges Created by the Great Resignation

Many companies have begun to address issues that have caused high attrition rates by adding more flexible scheduling; adding more remote-work opportunities; improving employee benefits and increasing up-training and development. Even so, 63% of businesses reported hiring new workers to be their biggest challenge this year! There are millions more jobs than there are employees to fill them.

As companies struggle to fill these positions, their employees are taking on extra work to make up for lower staffing. This means more money paid out in overtime wages and increased employee burn-out, which despite efforts to improve work-life balance, can lead to more attrition.

More time and money than ever are being spent on recruiting. According to a recent poll conducted by the Society of Human Resource Management (SHRM), the average cost per new hire is around $4,000. This cost includes job boards posts, assessments, background checks, and other internal recruitment costs. During The Great Resignation, there are more roles than ever to fill. Imagine having 10 roles, that’s $40,000 spent on recruitment! In a time when employees are quitting faster than their positions can be filled, these costs and the burden on existing employees will only grow.

The Solution

One way to mitigate the costs of recruitment and the burden on existing staff is to work hand in hand with a staffing agency. Using a staffing agency can mitigate the costs of recruitment. This means that you do not pay for marketing, assessments, or background checks. Most staffing agencies will review all documents belonging to potential documents, conduct a background check, and any other assessments your company requires. At Frontline Staffing Group, there is no charge for this process. You don’t pay anything until your new employee walks through the door and begins working.

There are additional ways that employment firms may save money. For example, suppose your organization has only one project to complete, such as a software launch. You can employ a staffing firm to temporarily address the demand rather than hiring a coder who will be paid for years but may not be needed in the future. You won't have to pay for an employee who is no longer needed after the project is over.

Staffing agencies will also work closely with you to ensure any candidates that come your way are a good fit for your company culture. This means you are not hiring someone just to fire them a few weeks later unless, of course, the need to fill the position is only temporary.

Established staffing agencies often have a ready-made database of qualified candidates across multiple industries. This means that the time from job opening to job fulfillment is drastically cut down, saving your company money on existing employee overtime. It also means that if you have multiple positions to fill, you have a one-stop-shop for doing so.


The Cost

While it is true that a staffing agency can save you money, you may be wondering what the actual costs of using a staffing agency will be. A staffing agency normally earns a predetermined percentage fee depending on the position and earnings of the candidate they supplied. This can vary by skill level and length of the contract. Permanent positions generally pay 15–25% of the first-year wage. Depending on the assignment and engagement model, a temp or hourly worker's fee might range from 25% to 100%. The company will pay the staffing agency and then the staffing agency will payout their candidates, keeping residual earnings for themselves.


Due to expanded need or exceptional performance, you may decide you want to hire a temporary staff member you hired through an agency. In that case, you would pay a buy-out fee. A buy-out plan allows a corporation to pay a fee to terminate a contract with a staffing agency for a specific employee. That person is then allowed to come in and work full-time for the organization. The average buy-out cost charged by staffing agencies is 25% of the employee’s first-year salary.


At Frontline Staffing Group, our buy-out plans are discounted. Instead of a 25% fee, buy-out plans start at only 20% of the first year’s income. We’ve also introduced a one-of-a-kind promotion within the industry, the diminishing buy-out! Most companies will charge the same percentage rate no matter if your employee has been under contract for three months or nine.


This cannot be said of Frontline Staffing Group. If an employee has worked under contract with you for at least 90 days then at Frontline Staffing Group, the cost to buy-out the contract will lower every 30 days until you pay nothing at all! So, no matter if you want an employee for three months or decide to hire them on a more permanent basis, you will save both time and money! With so many positions open and waiting to be filled thanks to the Great Resignation, this is one tool you cannot afford to be missing in your arsenal.




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