Top 6 Benefits of Contract Staffing

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Making the decision to hire is the easy part. Whether you have a busy season that calls for increased workloads, are starting a new project, or have a hole in your ranks - it’s easy to tell when it’s time to bring new talent on board. The hard part? Deciding how to make this hire. After ironing out your budget, the role’s responsibilities, and the timeline you need to hit to match your urgency, you’ll have to decide the type of hire you want to make.

There are several benefits to making a permanent hire - but what you don’t often hear about is the benefits of hiring someone on a temporary basis. What is it you want to accomplish with this hire? Leverage this list of top 6 benefits to find out if contract staffing is right for this position, and prioritize what it is your organization needs from this addition to the team. 

1. "Try out” new hires - without the risk

In some cases, making a new hire might impose a great risk on your organization. Maybe you have never hired someone for this role before, or perhaps the business needs the help but is in a precarious financial situation. Bad hires can cost organizations up to 30% of the employee’s first-year earnings, according to the US Department of Labor. CareerBuilder found that this averaged around $14,900 per poor hire. While the ultimate goal is to find an amazing fit for the organization and need, sometimes the candidate just isn’t suitable for the role. By hiring on a temporary or contract basis before fully committing to a permanent hire, you are limiting your risk and exposure. 

The temp-to-hire model gives the best insight into the success of the role and/or the employee! Better yet, it gives you time to build out your organization in the event of a new reporting structure or team. Say you were creating an entirely new business unit and trying to decide whether or not a job function should be split into two roles - having a temporary contractor on board could give you insight into the role’s bandwidth. The contractor can give their honest feedback without fear of it hurting their position, and it protects future full-time employees from taking on too much of the strain of growing pains. The insight is endless! 

 

2. Access highly skilled, niche experience 

Contractors generally have more of a project-based background. While the typical hiring model gives preference to years of experience, it really leaves out the advantage that these contractors possess. They were brought into organizations for their expertise - and in a shorter time frame have touched more software and variables, while gaining more insight into that area of focus than the usual full-time employee. They didn’t have to be taught overall company processes, the ins and outs of the business, and so on - they spent their time handling the issues at hand. By having shorter job stints, with more focus on the project than the overall organization, you are able to tap into niche experience without the looming price tag of a long-term salary contract. 

Consultants are a superb resource for project-based initiatives. Say you have a large systems conversion that is estimated to take 1-2 years to complete. A consultant can bring hyper-specialized expertise to the organization and get the project done right. In the end, you aren’t stuck with a specialist on a W2 when moving forward, a generalist would be more beneficial. 

Fast Facts_ Benefits of Contract Staffing Graphic

3. Gain an immediate impact 

If you are looking to make a hire to complete a particular project or short-term job function, hiring a temp makes it easier to assign job duties and manage the scope of the role. You can easily narrow the role to fit the particular venture. Whether your need comes from last-minute projects, increased workloads in a busy season, newly awarded contracts, and even employee absences - the temp hiring model can help bridge the gap. No team building, culture fit, company onboarding, or non-role related training required - especially when working with a staffing company or talent acquisition firm. 

Recruiters can help qualify candidates on skillset and conduct background checks, making the hiring process virtually hands free. Contractors typically require little to no supervision or training, giving time back into the pockets of those managers and trainers you would otherwise need to schedule into the mix. This saves you time and effort - but protects candidates as well! They are able to jump into a position, build their skills, and not have to worry about the politics of a long-term role. They get to fast forward to the reason they are there - to build their skillset, utilize their knowledge, and make an immediate impact on an organization. 

 

4. Secure mutually beneficial flexibility 

Hiring temporary employees gives companies the ability to respond to market changes and business needs as they happen. As mentioned, contract workers can help bridge gaps and provide flexible coverage for a variety of needs. Hire when you need it, and don’t continue contracts when you don’t. The best part? This adaptability is beneficial to candidates as well. 

One misconception of staffing is that it provides no job security on the employees’ end. However, with contracting they are able to truly select their work environment and choose which projects they would like to participate in. They can take roles based on the skills they want to gain, the expertise they hold - and if they get all they want out of a role, they can move to the next with no concern for “job hopping”. Contractors take advantage of this freedom by gaining marketable skills as the industry evolves - and achieve job security by staying ahead of the curve on the newest trends and technologies, while expanding their skillset portfolio. 

 

5. Lead with ease of management 

When working with talent acquisition agencies, the general management of the employee is usually left to those outside groups. You would only ever work with one recruiter - spelling out your requirements and leaving the discovery and qualification of candidates up to them. The recruiter will conduct the background checks, interviewing, qualification matching, and reference checks. Then, even after signing a contract and bringing them on board, most agencies will manage the candidate’s benefits administration, payroll, time-off requests, and insurance. For those publicly traded companies, this avoids the risk of finances and lowers your official headcount. 

Further still, if the candidate isn’t working out, the end of the contract gives an easy way out without the emotional stress of a fire, and with no explanation needed. The contractor has these expectations set early. Worst case, they finish out what they were brought in to do then leave. Best case, you found a potential temp-to-hire without assuming any risk of making a blind full-time hire. 

6. Reduce hiring costs 

With contract staffing you only pay for what you want, when you need it. You pay for their hours worked, and the agency fee would cover their benefits and other finances. This fee is always much lower than the cost of a new permanent employee. The Society of Human Resource Management found that the average cost to onboard a new employee in 2020 is $4,129 - with 42 days to fill the position. That doesn’t factor in the cost of leaving a position open while looking for the right candidate. In 2019, the average cost per open role was $18,000 per month. Can you afford to wait 42 days - at $18,000 per 30 days - and then pay to onboard? Before a perm hire can make an impact on an organization, it’s likely that you’ve lost over $20K just in the process of getting them into a desk. 

Cost of Bad Hire Case Study Graphic

With staffing, you can drastically reduce that price tag. And with Blue Signal, our Staffing Division offers a 48-hour turnaround to get contractors hired fast. We match your level of urgency and can get staffing for your open roles quicker than it’d take to onboard a full-time employee. Contact us today to discuss your options, and see if contract staffing is right for your business. As your partner in the process, we specialize in a business’ most important aspect - talent. 

New Hire Checklist, Ensuring Retention and Engagement

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Ever thought that there ought to be some sort of guide on hiring? No one truly prepares you for the responsibilities you will undertake after finding a good candidate. You’ve made the right hire, but now what? Blue Signal might have your solution! Read on for a comprehensive new hire checklist that can help take the guesswork out of the first 90 days. If you’re more of the visual learning type, follow the link below to download the infographic and get back to what’s most important - securing top talent! 

Download the Infographic Here

Before They Start

Get ahead and prepare. 

  • Prepare a list of expectations for the role.
  • Re-evaluate your current on-boarding process by getting feedback from staff. 
  • Gather essential items and equipment - set up computers and download relevant software.

 

On the First Day 

Assimilate them into company culture. 

  • Have everyone meet the new staff member. 
  • Get them acquainted with their team and management. 
  • Arrange a team lunch. 
  • Ensure they have all relevant paperwork complete. 
  • Ensure their workstation is functioning properly.

 

The First Week on the Job 

Get them acquainted with the role and business. 

  • Begin the job training. 
  • Wrap up every day with an end of day review, encouraging them to ask questions. 
  • Give them an assignment they can do on their own. Use this to gauge how their work ethic will be moving forward.
New Hire Checklist Blog Graphic

Throughout the First Month 

Ramp them up to meet their goals. 

  • Check in to review their progress towards goals and team cohesion.
  • Gradually increase their responsibilities. 
  • Do a deep dive into big picture business goals, and explain how each department and role plays into it. 
  • Give them all relevant materials and reference documents.

 

The First 90 Days 

Gauging performance and success. 

  • Schedule out monthly check-ins to give a forum to ask questions and measure progress. 
  • Check up on larger projects. 
  • Hand off several projects at once and see how they manage time and prioritize tasks. 
  • Get feedback on the on-boarding process.

 

After 90 Days 

Evaluate their fit by measuring progress via numbers and the team feedback. 

 

More about Blue Signal: 

Blue Signal was founded in Chicago in 2012, and since then, has grown into a multimillion-dollar executive placement firm with offices in the Phoenix and Chicago areas. Blue Signal has established itself as the premier executive search firm within wireless/telecom, IoT, cloud and managed services, medical & healthcare, manufacturing, emerging technology, and related industry niches.

At Blue Signal, we know that talent is a business’ best asset - and we are skilled in finding the exact professionals you need to reach your goals. Our targeted, specialized searches deliver highly qualified professionals to meet every hiring need. With over 120 combined years of recruiting experience, we can help your company find the right people for every unique company culture and industry niche. Our team works with both job seeking candidates and talent seeking hiring managers to find the perfect fit. Contact us today to explore your options, and jumpstart your team toward success.

Keeping Candidates Engaged During COVID-19

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Despite hard times, many companies are still hiring because two things are certain:

  1. Top talent is always hard to find, no matter the situation.
  2. Right now, people are working from home – with a lot of time to look at new opportunities!

In order to stay on top of the market and keep your company thriving throughout these difficult market conditions, follow these steps to ensure that your candidate pipeline is profitable.

Keeping Candidates Engaged - Infographic

Run Business as Usual with Interviews

If you want to stay competitive when the market begins to strengthen, your pipeline has to be strong. While there’s no need to worry about onboarding, you should be keeping your open roles active, so that when the time comes to fill them you are not left struggling. Continuing to conduct interviews as normal is beneficial to your business because it shows you care. Showing concern and acknowledging your candidate’s priorities like family, health, and their overall schedule gives a good indication on how you would treat them as an employee as well.

“53% of employees say a role that allows them to have greater work-life balance and better personal well-being is “very important” to them,” says a Gallup survey. They believe, “it's critical for employees to know an organization "walks the talk" on greater work-life balance and well-being.”

 

Stay In-Touch with Candidates

Recruiters need to keep qualified candidates “warm” in order to maintain the relationship and line of communication. Make sure to contact them once every 7-10 days to see if their job status has changed. Become their career consultant and try offering them coaching on other roles, so they learn to contact you first before accepting another job. If possible, offer them tools to develop their skills through online courses, professional interview prep, resume building, and more.

 

Get Creative

HR professionals should meet with internal teams to see where the standing needs still are. Depending on the role, there may be opportunity for remote work, contracting for projects, and other small support positions that can keep the candidate engaged with the company and the prospective role. An added bonus with this strategy – you get to see some samples of their skills as it directly applies to your business.

 

Maintain the Human Connection

With phone calls and emails, it’s hard to feel connected to the culture of a company, let alone coworkers, management, and other team members. Try utilizing video chats rather than phone calls whenever possible – whether that be in an interview, in a follow up, or for a check-in. This way, the candidate will feel more personally connected to you, the company, and the role. Better yet – when you’re able to look them in the eye without meeting in person, you will have a better read on their interest through facial expressions and level of engagement.

 

Keep it Positive

Be honest with candidates throughout the process of interviewing and prospecting – but keep it positive! Regardless of whether or not the relationship ends in a hire, you can never take back your tone once communication begins. According to a survey by Digitate, “organizations with poorly-handled onboarding are twice as likely to cause new hires to seek new opportunities ‘in the near future’.” Of course, when in difficult times, there are aspects of any organization that are strained. Rather than share the negative flat out – display how your organization is combating the hardship with optimism and employee care.

Click Here to Download the Candidate Engagement Guide

If you or your business are struggling with giving candidates the proper attention they need during this pandemic, a recruiter can help. At Blue Signal, we specialize in candidate engagement. We market your business, keep in contact with prospects, can provide talent market insights, and are your key to keeping your pipeline robust. Give us a call today to explore how we can support your hiring needs.

You’ve Lost Your Star Employee, Now What?

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Losing a star employee is one of the most challenging things employers have to face. Top performers are typically among the most engaged in a company and when they make an unforeseen departure, this makes their leaving even more difficult to swallow. While no company is immune, (particularly in today’s competitive market), there are ways to ensure you’re better equipped to handle the situation when it does. Read on for best practices on how to recover from the loss of a top employee.

Think before extending a counter-offer.

Assuming there is still time to counter, your initial thought might be to do so in hopes of retaining a top performer. However, you have to consider the long-term implications of this. It’s possible that compensation may be the main driver behind their departure, but your star employees will likely have addressed this concern prior to making a decision to leave. Whether they have or not, this leaves both parties in an awkward spot. Your employee will be left wondering why it had to come to this point for them to get a raise, and you will feel that it took a form of blackmail in order to keep them on-board. 

Make sure their departure is as positive as possible.

While emotions are still likely running high, it’s important that you treat your employee’s departure as professionally as possible. Conducting exit interviews that allow them to speak to any frustrations should be a regular practice. Even if their reasons for leaving have no bearing on their experience at your organization, they’ll appreciate the opportunity to be heard. In turn, they’re much more likely to leave with a positive view of their time spent with you and will be more likely to recommend future candidates to your organization. In fact, employees that leave with a positive experience are 2.9 x more likely to recommend their former employer to their network.

Take your time in finding a replacement.

Losing a top performer is a tough blow, so it’s important to take a step back and not act on emotion. It may be your first instinct to try and find a replacement as soon as possible, especially if you’re going to be hiring from outside of your organization. This could be an excellent opportunity to hire an executive placement firm. Let them know what your former employee did well, and possibly where they fell short. They can often be an invaluable resource in finding your next big star, and you can continue to focus on business as usual.

Show a little extra appreciation for your current employees.

When any employee leaves, it can start a chain reaction. Present employees wonder what caused the departure and may reassess their own place internally. When a top performer leaves, however, this is doubly concerning. This can cause worries around lack of stability or merely open people’s eyes to greener pastures. While the feeling will likely be fleeting, it’s important to re-address why each individual employee is valuable. 

So how do you go about that? It could be something as simple as having conversations with individuals about their career paths within your company. Another option that’s mutually beneficial is to identify opportunities for development. If employees have expressed an interest in training in a specific area or skill and you have the resources, invest time in doing just that. The bottom line is that your people want to feel that their work is valued and that there is room for growth and learning within your organization.