In the business world, the only constant is change. Between upward mobility, layoffs and employee satisfaction, some companies can become a revolving door of employees. While this isn’t always a bad thing, it can become costly and inefficient for the HR department and the company as a whole. When it comes to doing business, there is no time or money to waste. To avoid inflated costs and lost time, more and more companies are choosing to outsource their procurement management and payroll.
To get a better idea of how time-consuming and costly the hiring and payroll process can be, let’s take a look at some statistics:
- One in four companies who handle payroll on their own report spending more than six hours per month on this one task.
- On average, most companies will spend around $3,500 on recruiting for each candidate.
- On average, recruiters will receive 144 resumes for each entry level position and 89 resumes for each professional position.
- It takes employers longer to fill vacant positions (around 25 working days on average), which translates to less work produced and more money spent.
Whether a company is looking for a permanent or contingent employee, a third-party procurement management company can help cut costs of recruiting dramatically. These companies specialize in workforce management solutions and strategic sourcing. Their goal is to save companies their two most valued resources: time and money.
By utilizing strategic sourcing and contingent payroll management, companies are able to save time and money that an HR employee would otherwise have to spend sifting through resumes and tallying hours worked. The numbers may seem minimal to some, but they add up over time.
The good news for companies breaking into the contingent employee realm is that it’s easier than ever to find a reputable labor management company. By taking the time to do research and read reviews, employers can weed out sub-par agencies and focus on ones with a positive work history.
Would you consider using a third-party labor management company? Have you used one in the past? Are you a contingent employee who has found job placement with the help of a procurement management company? Sound off in the comments below!