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Free Human Resource Information
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TEMPORARIES...CONTRACT EMPLOYEES...
PER DIEMS...HOURLIES...
What Do All These Terms Mean?
and
Real Cost Comparisons To Traditional Hires |
How can this type of hiring reduce my cost per hire and still get the job done
right?
When should I use this approach?
Not too long ago, temporary
hiring brought to mind Manpower, which you probably thought of as a
temporary service for the down-and-out, hard-core unemployable. Many of my clients want to find a place for
temporaries in their business, but they're confused by the language of temporary hiring
and have trouble figuring out when to use temporary or independent contractors to support
their resource needs.
If this sounds like you, let me clear up the terms for you. By now, they're used so
interchangeably that they all refer to the same thing - an outsider who works for you on a
particular project with or without the possibility of becoming a full-time employee.
In the current market, you can hire virtually anyone as an independent contractor, as
long as you both agree to terms and you are within the prescribed government guidelines.
You can also hire a temporary employee - a person who may do the same task but is
an employee of the temporary firm. These approaches may work for you if you have
a high turnover position or a special project, if your industry experiences peak periods,
or if you're developing a new market or territory. It also can serve as a means for you
and the independent contractor or the temporary to test the working relationship in order
to determine whether you want to make it full-time.
These decisions are all outsourcing decisions. The crucial first step in this
process lies in completing a thorough needs analysis. The second step, after you have
clearly identified your need, is to create an effective strategy...one that fits your
particular situation. Hiring independent contractors and temporaries can be confusing, yet
must be handled correctly so you can reduce your hiring cost and get the job done
right.
Please call us with any questions you have so we can assist you in creating the best
strategy to fit your particular situation. We always promise direct or indirect
assistance.
Support Available Through
The Human Resource Store
Outsourcing Options:
Initial FREE Phone Coaching
Cost: Please
contact us
One-on-One Coaching:
How To Recruit, Interview and Hire In Today's Market
Cost: Please
contact us
Customized Group Workshop:
How To Recruit, Interview and Hire More Effectively
Cost: Based on size of group, materials and time
Real Cost Comparisons To
Traditional Hires
According to Sue Hegland of Hegland and Associates, benefit costs range
from 30% to 40% of a person's annual salary, excluding additional costs, and many experts
say you should project $7,500 to hire and train a new employee. To get an accurate picture
of your real costs, fill in your benefit costs and see the difference yourself.
The following is a comparison of your actual cost if you were to pay
$25,000 annually for HR work by:
- Hiring a full-time employee
- Hiring a Temp to Perm
- Hiring The Human Resource Store (outsource the work)
DARE TO COMPARE!!!
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Traditional Hire
$25,000 Salary
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Temp To Full-Time Hire
$25,000 Salary
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A Store Specialist
at $25,000
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| Insurance |
?
|
?
|
0
|
| Life |
(your figure)
|
(your figure)
|
0
|
| Health |
(your figure) |
(your figure) |
0
|
| Dental |
(your figure) |
(your figure) |
0
|
| Workman's Comp. |
(your figure) |
(your figure) |
0
|
| Errors, Omissions |
(your figure) |
(your figure) |
0
|
| Disability |
(your figure) |
(your figure) |
0
|
| Taxes |
?
|
?
|
0
|
| State |
(your figure) |
(your figure) |
0
|
| Federal |
(your figure) |
(your figure) |
0
|
| Social Security |
(your figure) |
(your figure) |
0
|
| Others |
(your figure) |
(your figure) |
0
|
| Unemployment |
(your figure) |
(your figure) |
0
|
| Vacation |
?
|
?
|
0
|
| Profit Sharing/Pension |
?
|
?
|
0
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| Benefit Costs: 30-40% |
$7,500 - $10,000
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$5,625 - $7,500*
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0
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| SUBTOTAL (projected) |
$32,500 - $35,000
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$30,625 - $32,500
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0
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| Additional Costs |
(your figure) |
(your figure) |
0
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| Recruitment Fee |
$7,000
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$10,400**
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0
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| Advertising Costs |
?
|
?
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0
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| Interviewer's Time |
$300***
|
?
|
Minimal
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| Training Cost |
?
|
?
|
0
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| TOTAL COST |
$39,500 -
$42,050
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$41,025 - $42,900
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$25,000
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*39-week cost /
**13-week cost / ***10 hours
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