For healthcare companies vacancies or low staff count equate to lost productivity and revenues. Over working your medical staff can also lead to a high turnover rate in your office. Managing your workforce via medical staffing is critical in today’s competitive job market. One of the leading factors in jobs creation has been identifying a ready labor pool of qualified candidates. There are many benefits of working temp assignments as it allows the company to assess the many experiences and qualities the employee has to offer.
While larger companies and government agencies have long capitalized on this ready labor pool smaller businesses are joining the game. Companies are now looking at medical staffing as one of the available solutions. Depending on your industry the turnover rate can be as high as 75% and the real labor costs to be in excess of 50% of the employee’s compensation. Medical staffing is the answer for many offices.
Employees are the most expensive investment a business can make.
Hiring the wrong employee can be costly to a company’s bottom line if not using medical staffing.The cost of hiring the wrong person becomes incrementally more expensive the shorter period of time they have been with you. The first 90 days are typically the most expensive to have an employee on board.
The Flexibility Factor
The right medical staffing solution provides workforce flexibility and access to qualified talent. This is also an assessment period to determine if the employee is a great behavioral or motivational fit for your company. Staffing allows companies to avoid the burden of employer costs associating with hiring and training an employee. The employers so called “loaded rate” for each employee adds up to about 40% more than their pay rate? Example, for a $14 per hour worker their true cost would be $19.63 per hour or about 40% more than their base pay. Included in this so called “loaded rate” would be the costs you would pay as an employer each pay period. You will not be responsible for paying taxes, health insurance, workers compensation and job training etc.
The Jobs People
Because the employee is actually an employee of staffing firm and not the employer the employer costs are solely the responsibility of the staffing firm. Many business owners don’t know that the total costs of using a medical staffing firm is a businesses write off.
The staffing firm is responsible for paying the payroll taxes and the costs of benefits. As an employer you are reimbursed for these costs which are included in the hourly billing rate. In addition, they charge somewhat more than that because they must cover their overhead and make a profit. You pay that as well. You can deduct as an ordinary business expense what you pay the staffing firm. The deductions are likely somewhat higher than if you do it yourself. You will benefit from having the employee and are able to write off the costs you paid to the medical staffing firm.