Every week we comb through the news to find employment trends affecting the hospitality industry so you don’t have to. This week’s topic: how working with a staffing partner can lower hiring costs and company risks.
In our first Hospitality in the News article, we talked about how making a bad hiring decision can cost companies thousands of dollars, even for temporary or contracted positions. But what about a good hiring decision? Yes, those have costs too.
Some financiers estimate that it can cost around $5,000 to make a new hire, which includes factors such as paying a hiring team, recruiting fees, background checks, and onboarding. This number doesn’t include additional fees such as workers comp or unemployment, making the actual cost much higher.
Thankfully, there’s a way to lower these costs; by working with a staffing agency. While you’ll likely still be asked to pay a fee, the longtime cost is much lower when partnering with an organization who can assist with the standard hiring processes. For example, when utilizing LGC’s on-demand staffing solution, businesses don’t have to worry about recruiting, interviewing/vetting, hiring, onboarding, or offboarding employees because LGC handles that internally.
Not only are there lower costs associated with working with a staffing agency, but often there are lower risks as well. In LGC’s case, because we fully hire our staff before they’re deployed to an event or shift, LGC is responsible for workers comp, unemployment claims, and benefits. This takes a huge burden away from the company partnering with us. Especially for the hospitality industry, which sees “higher rates of injury than any other service worker”, having the staffing partner be responsible for claims will save a lot of headache on the clients side.
Working with a staffing company can help take the challenges out of hiring. You’ll see lower costs and risks by delegating many of the standard hiring processes to a third party. LGC, who focuses solely on hospitality staffing, has several solutions that provide talented staff to a wide arrange of clients. Contact us today to learn about a solution that’s right for you.