Understanding Types of Staffing in Industry Suppliers 

The Bureau of National Affairs revealed that the U.S. businesses lose $11 billion annually due to employee turnover. Between the time it takes to find new talents and the productivity business loses while they are learning the ropes, the costs can be astronomical and put a serious wrench in a business’s growth. One study also suggested the cost of replacing a mid-level employee is 150 percent of their annual salary. Meanwhile, the cost of replacing high-level or highly specialised employees could cost up to 400 percent of their annual salary. These data indicate that there should be strong measurements before hiring talents in order to minimise the cost of employee turnover. 

Who should you hire? 

As mentioned earlier, to avoid bad hiring, managers or recruiters should learn what kind of candidates suit their needs. This candidate should be qualified enough to do the job roles required. Below are types of staffing that could help hiring managers and recruiters decide what kind of candidates meet their hiring needs: 

• Contract employment / short-term staffing is generally used when demand exceeds the number of core positions needed to accommodate minimum production goals. This staffing type helps save hiring managers the trouble of layoffs and unemployment after the extra help is no longer needed. 

• Contract-to-hire is like buying a new car. You would not spend all the money without test-driving it first. Hiring the right person the first time saves your company the time and expense that comes with advertising, interviewing, and possibly hiring the wrong person. Contract-to-hire gives you the chance to take your potential new-hire for a spin. When the contract ends, companies have the option to hire the employee, or move on to the next.

• Direct placement hire is when a third party agency is utilised to carry out the recruitment processes and administrative management of an open role, including posting the job, sourcing and reviewing resumes, screening and presenting candidates. This type of hiring helps save times of hiring managers. 

• Succession planning allows employers to fully understand the duties and responsibilities of management staff, thus hiring managers can train internal candidates to be ready to step into a promotion. This helps save the cost of bad external hiring.

See also: 3 Trends Affecting Recruitment Landscape 

When you need help for staffing 

Some companies, especially those that scale fast, might not have time to select candidates themselves. Therefore, there should be a third party involved: recruitment agency. 

Industry suppliers (recruitment agency) generally have several staffing types for their clients, including hourly workers, contractors, full-time workers, etc. Industry suppliers that can offer various staffing resources can provide solutions to various vacancies at once. For instance, they can offer an immediate short-term temp while they recruit a longer-term interim candidate; followed by a longer-term hire for whom they might be able to get their client a comprehensive assessment service.

Recruitment procurement 

As recruitment becomes more important to organisations, and takes up more time, businesses are often taking advantage of the option to outsource all of their staffing provision to a specialist RPO (recruitment process outsourcing) provider.

A managed service company or RPO aims to outsource the responsibility of the full recruitment process from one client. This puts the administrative responsibility firmly for the managed service company. It is also important, for the success of the relationship, that this is seen as a partnership rather than a pure supplier relationship on both sides. Typically the service company will have recruiters ready, so clients and contracts could negotiate for three or more years with a six-month option to terminate. 

If you still have questions about staffing and procurement, don’t hesitate to contact us. 

Next read: The Value of Recruitment Industry, Challenges, and Trends: Survey