Staffing Economics: You Get What You Pay For

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“If you pay peanuts, you get monkeys.”

—James Goldsmith, businessman, publisher, politician

Years of belt tightening and budget slashing have conditioned employers to look for the cheapest option when it comes to staffing.  Although you may be tempted to choose a staffing firm based solely on price, it’s important to remember that the lowest price doesn’t always equal the best value for your company.  Here’s why:

The budget staffing service has to cut corners somewhere. To offer you lower hourly rates, the cost leader is forced to spend less on things like screening and recruiting.  As a result, you may not get the best match for your specific needs, or you may experience higher turnover rates.

The budget staffing firm may pay its employees less. If you think logically, you realize that top job candidates (not to mention internal recruiters and staffing personnel) want to work through a staffing firm that pays better.  As a result, the cost leader may not be able to consistently deliver the most experienced, skilled and reliable people.

Choosing the cheapest staffing option may have expensive consequences for your business. Not getting the right person for your needs can have costly ramifications.  For example, consider an administrative temporary who can’t keep up with the requirements of his assignment.  While you may have saved a few cents on his hourly rate, this unsuccessful match can cause the following unforeseen expenses:

  • additional training and orientation time – to get the initial sub-par temporary up-to-speed, as well as his replacement;
  • the cost of mistakes the unqualified temporary makes;
  • the productivity loss due to the individual’s poor performance;
  • the negative impact this temporary may have on direct employee’s productivity and morale.

Undoubtedly, even the lowest priced staffing firm can provide you with a “warm body.”  But when the difference between getting a monkey and a top performer may only be a few cents per hour – peanuts, really – isn’t it worth the extra investment?

At Snelling Staffing Services, we believe that you get what you pay for when it comes to staffing.  For over 60 years, we’ve prided ourselves on the quality of our candidates, the matches we create, and the service we deliver.  Learn more about our workforce solutions.