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  • Writer's pictureSally Eubanks

The True Cost of Staffing

Robert Half, a renowned staffing agency is known for saying that “time spent on hiring is time well spent” and the same can be said of money. The single most important thing any company will invest its money in is its people. The hiring of staff can make or break a company. This is why one of the best things you can do is to partner with the experts at a staffing agency.

Staffing agencies are the recruitment experts. Their sole purpose is to hire top-notch candidates. For more than a century, staffing agencies have honed their skills in recruitment. From seasoned professional positions like Marketing Director and Computer Engineer to general labor roles; agencies can and have staffed them all.

Nobody gets into a recruiting agency's database without having their applications and all relevant documentation thoroughly reviewed and a comprehensive background check is usually performed. A candidate will only be considered for a position when all of the above has transpired. So, you can bet that with a staffing agency, you can avoid under-qualified individuals ever coming through your door.

While most companies have a general understanding of the important role a staffing agency can have on their success, many are concerned about the cost.

Using a staffing agency reduces employer overhead expenses by removing benefits, boosting cash flow, and decreasing overtime costs involved with everyday operations for regular workers, as well as cutting upfront expenditures connected with marketing, discovering, and attracting talent.

Staffing agencies tend to charge companies a fixed percentage rate for each employee hired through them. This rate is dependent upon the employee's wages. While temporary positions are usually charged at a markup of 25% to 100%, more permanent positions might cost 15%-25% of the employee's first-year wages.

While many companies also charge a finder’s fee, at Frontline Staffing Group there are no hidden fees or upfront costs. There is no charge for services until the candidate sent over is hired and begins working. With our one-of-a-kind diminishing buy-out, the savings are even greater!

Regardless of how long an employee has been engaged to work for you, most staffing firms will charge the same buy-out fee Your buy-out cost will remain the same whether you are three months, six months, or nine months into a contract. Frontline Staffing Group, on the other hand, offers a diminishing fee.

This means that after an employee has worked for your company for 90 days, the cost of buying out their contract will begin to decrease and continue to do so every 30 days. The contract can eventually be bought out at no cost to you. Furthermore, our buy-out programs begin at just 20% of the employee's first-year compensation, rather than the 25%-35% cost of most other companies. This means that Frontline Staffing Group saves your firm money from start to finish!

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