Hiring temporary workers through staffing agencies can seem like a convenient and cost-effective solution for businesses in need of extra help. However, there are several reasons why this approach can actually be a bad idea.
First, staffing agencies often charge high fees for their services, which can add up quickly and eat into your bottom line. In addition, these agencies often have little incentive to provide high-quality workers, which means that you may end up with employees who are not adequately trained or experienced. This can lead to lower productivity and a higher rate of errors, which can ultimately harm your business.
Another issue with hiring temporary workers through staffing agencies is that you have little control over the workers you receive. Because you are not directly hiring these employees, you may not have the opportunity to properly vet them and ensure that they are the right fit for your company. This can lead to a lack of consistency and cohesion within your team, which can be detrimental to your business.
Additionally, hiring temporary workers through staffing agencies can create problems with morale and team dynamics. Your permanent employees may feel resentful that the temporary workers are not being held to the same standards or being offered the same benefits. This can lead to friction and animosity within your team, which can have a negative impact on overall productivity.
Overall, while hiring temporary workers through staffing agencies may seem like an easy solution, it can actually create a host of problems for your business. Instead, it is often better to directly hire temporary workers or invest in training and development for your existing team. This will give you greater control over the quality of your workforce and help to foster a positive and productive work environment.
Work flexibility has become an increasingly important aspect of the modern workplace, as it can help employees balance their personal and professional lives. In the retail industry, where employees often work long hours and weekends, work flexibility can be especially beneficial.
One way to implement work flexibility in retail is through the use of flexible scheduling. This means allowing employees to choose their own schedules, within certain parameters set by the company. For example, a retail store might allow employees to choose their own start and end times for their shifts, as long as they work a certain number of hours each week. This can help employees balance their work with their other commitments, such as taking care of their families or attending school.
Another way to implement work flexibility in retail is through the use of remote work options. This can be particularly beneficial for employees who live far from the store, or for those who have difficulty commuting due to traffic or other factors. By allowing employees to work from home, or from a remote location, retailers can help them save time and money on commuting, and give them more control over their work-life balance.
In addition to flexible scheduling and remote work options, retailers can also implement work flexibility by offering employees the option to take time off when they need it. This could include paid time off, unpaid time off, or a combination of the two. By giving employees the ability to take time off when they need it, retailers can help them reduce stress and burnout, and improve their overall well-being.
Overall, implementing work flexibility in retail can have many benefits for both employees and employers. By offering flexible scheduling, remote work options, and time off, retailers can help employees balance their personal and professional lives, and create a more positive and productive work environment. In turn, this can lead to improved employee morale and retention, and better customer service.
Employee turnover is a common challenge faced by many businesses, and it can have significant costs. That’s why it’s important for companies to measure their employee turnover rates and understand the reasons behind it.
One of the main reasons why employee turnover cost must be measured is that it can help a company identify areas of concern and implement strategies to improve retention. By measuring employee turnover, a company can determine which departments, job positions, or locations are experiencing the highest turnover rates, and take steps to address the underlying issues. For example, if a high turnover rate is seen among entry-level employees, the company might need to provide more training or support to help those employees succeed in their roles.
Another reason why employee turnover cost must be measured is that it can help a company track the financial impact of losing employees. When an employee leaves a company, there are costs associated with hiring and training a replacement, as well as the potential loss of productivity and customer service. By measuring employee turnover, a company can calculate the total cost of losing an employee, and determine whether it’s worth investing in retention strategies to reduce that cost.
Additionally, measuring employee turnover can help a company understand the reasons why employees are leaving. This can be done through exit interviews, surveys, or other methods. By understanding the reasons behind employee turnover, a company can take steps to address those issues and improve retention. For example, if employees are leaving due to lack of career development opportunities, the company might need to provide more training and support to help employees advance in their careers.
Overall, measuring employee turnover cost is an important part of managing and improving a company’s workforce. By understanding the reasons behind employee turnover and the financial impact of losing employees, a company can take steps to reduce turnover and improve retention. This can ultimately lead to a more stable and productive workforce, which can benefit both the company and its employees.
If 80% of operational jobs in companies were filled by flexible on-demand staff, the world would likely look quite different. For one, there would be a significant shift in the way that companies approach staffing and operations. Instead of hiring full-time employees to handle operational tasks, companies would instead rely on a pool of on-demand workers who can be called upon as needed to handle specific tasks or projects.
This shift would likely have a number of impacts on both companies and workers. For companies, the use of on-demand staff would likely lead to increased flexibility and cost savings. Because they wouldn’t be tied to a set of full-time employees, companies would be able to quickly adjust their staffing levels to meet changing demands, reducing the need for costly layoffs or hiring freezes. Additionally, by using on-demand staff, companies would only need to pay for the labor they actually need, rather than maintaining a full-time workforce even during slow periods.
For workers, the use of on-demand staff would likely lead to increased opportunities for flexible work arrangements. Instead of being tied to a single employer, workers would be able to pick and choose the tasks and projects they want to work on, allowing them to create their own schedules and work on a variety of different projects. This could be particularly beneficial for workers who value flexibility and autonomy, as it would allow them to create a work-life balance that works for them.
Overall, the use of on-demand staff in operational roles would likely lead to a more dynamic and flexible labor market, with both companies and workers benefiting from the increased flexibility and opportunities it provides. While there may be some challenges and adjustments along the way, the shift towards a more on-demand workforce has the potential to create a more dynamic and flexible economy that can better meet the changing needs of both businesses and workers.
A recent report published by Gallup showed the serious problem of voluntary employee turnover. According to the study, In 2022, the overall cost of voluntary employee turnover amounted to over $1 Trillion. Yes, that’s right it’s $1 Trillion.
You might be stuck with a daily work routine and didn’t have time to re-evaluate your hiring strategy, which is the beating heart of your business. So we did it on your behalf:
EMPLOYEE TURNOVER STATISTICS BY INDUSTRY
The high turnover rate is a huge cost for your business and many companies underestimate it. It makes your business unstable, makes you deal with uncertainty, and holds you back from growth. A 100%+ turnover rate means you are technically changing your whole team every year, and dealing with costs associated with recruiting, training, permits, and benefits.
Many of the job functions in industries mentioned above like cashiers, waiters, receptionists, and more are becoming less appealing to talents and are perceived as temporary jobs.
Despite the increasing demand for highly skilled gig workers—Most companies fail to realize the full potential of this new working arrangement. Adapting a flexible on-demand staffing strategy is a good way to reduce your hiring cost and avoid dealing with a high turnover rate. The sooner you adapt to a flexible on-demand hiring strategy, the faster you can accumulate savings and minimize losses. You might ask, what would be the potential savings you can accumulate?
Salary & Benefits Saving:
When you hire flexible on-demand staff, you are not required to pay other benefits like Social Security, reimbursement for transportation, housing, and other benefits. So we deducted the company’s Social Security payment percentage of 11%.
Health Insurance Saving:
You are legally required to provide Health Insurance to your full-time employees and their spouses and children. However, you are not required legally to provide health benefits which is a good potential saving. In our calculation, we multiplied the number of employees and number of new employees a year by the yearly health care plan cost per year.
Vacation Saving:
Vacations are more costly than most businesses realize. Having flexible on-demand employees won’t require you to offer any vacations to flexible hourly workers. We calculated a daily rate for your full-time employees and multiplied it by the number of vacation days and the number of employees. This is a high cost most businesses underestimate.
Admin & Turnover Saving:
When you are running a business with a 50%+ turnover rate, your company is in endless recruiting, training, and hiring. Doing all this manually requires a full-time dedicated recruiter. Using Workhint, the process of finding, hiring, and paying will all be automated. This automation will not require you to have a full-time dedicated HR person because Workhint will bring Autonomy to these processes. Plus, having a network of trained and vetted talents in your network will cut your training and onboarding expenses.
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The good news, we have a calculator you can use to estimate the potential saving that could be accumulated in your business by adapting the on-demand staffing strategy to your high turnover functions. You can see below an example of potential savings for a company with 50 employees and dealing with a 60% turnover rate.
The strategy based on the numbers presented above looks so appealing, but how appealing is it to talents?
Work Flexibility is one the most appealing incentive many people seeks especially after Covid. According to Pew research center, 49% of gig workers said the ability to set their own hours is the most important factor when working in the gig economy. 48% of new freelancers said they view freelancing as a long-term career choice. 70% of freelancers claim that they choose to work in a gig economy for an improved work-life balance.
The gig on-demand staffing model is getting more attractive with time as more resources are offered to talents. For examples, many companies now tailoring services for gig workers like Banking for gig workers that offer loans, and accounts without requiring monthly deposits. And Healthcare plans tailored for gig workers. In addition, the ability to add a 401K or retirement plan.
In conclusion, the on-demand gig work hiring model is the future of work and the early adapters will accumulate a high competitive advantage. To get started, press here to request a demo
Softeq Development Corporation (Softeq), a Houston-based global full-stack development company serving Fortune 500 companies, welcomed the third group of early-stage startups for its Venture Studio Q2 2022 summer cohort. The group is the largest since the launch of the Softeq Venture Studio, a unique accelerator program that de-risks investments by combining engineering with startup formation services to help founders build real, scalable, and investable technologies. The addition of 14 companies from across the world brings the total portfolio to 27 companies. The $40 million Softeq Venture Fund also welcomes a new Limited Partner in Royal Eagle Capital Partners, a Houston-based investment firm, making a $3 million commitment.
Workhint had the pleasure to be part of the demo day and present the solution to potential investors. To see the full demo day video, please find below the video:
It’s no secret that the world is changing, and many companies are allowing their employees more control over how they work. Also, as technology changes, work patterns and business needs also change. Since the workforce market is constantly evolving, your company must be prepared. Many companies trying to implement more flexible approach to their workforce management. Flexible work hours is important because it can have a positive impact on an employee’s well-being and quality of life, as well as the organization’s success. If employees are able to work at times that are more convenient for them, they are able to make time for other activities and obligations. This allows them to feel like they have a better balance between life and work, which may lead to increased productivity in the workplace because employees feel happier. But Flexible Work is a term that has been thrown around for a few years now. So, the question is what’s a real flexible work looks like inside an organization? A flexible work environment means that employees have the opportunity to choose when to work, where to work, and what type of hours or tasks to work on each day. This means working remotely from 8 to 5 doesn’t make the job flexible. Some examples of a fully flexible jobs; an independent consultant working on projects by project basis, a copy-writer working on writing gigs, and a programmer working on different gigs. How can your organization bring real flexible work environment ? To answer this question, we came up with 4 principles any organization can use as a checklist:
Location:
Workers are no longer required to stay in a single location. Employees can complete their work online or travel wherever they must go to finish their projects.
Time:
Flexible work hours are critical because they can positively impact an employee’s well-being and quality of life and the organization’s success.
Community:
Creating a community for employees to be involved in company matters allows employees to feel connected and gives them an interest in the organization’s success
Communication:
Work collocation tools, such as video conferencing tools, and Workhint make it possible for companies to bring autonomy and simplify working on the same goals
Once all these 4 principles are met, you can claim a real flexible work
