Good partners understand each other’s business model. They know they can carry their part of the mutual beneficial partnership best by knowing how their partner’s business works. If one partner does not, the partnership is not sustainable. Savvy clients build a sustainable staffing agency partnership to ensure their operation runs smoothly across business demand and fluctuation. Make no mistake, savvy staffing agencies are open and ready to discuss business from this perspective and depth. Savvy staffing agencies ALSO build sustainable client partnerships.
Some call this “win-win,” when in balance. Some operations professionals will say: “who cares if my partner goes out of business? We can always find another.” In reality, that’s a poor reputation to build, and eventually takes its toll on your company’s perception in terms of an employer, and ultimately it will erode business brand value measured at the bottom line.
Staffing agencies know that they provide a flexible, effective alternative to building a large organization when the work load fluctuates. Their clients rely on them to deliver these variable levels of skilled resources. It enables them to consistently meet seasonable production and quality goals to sustain their business profitably. In return, staffing agencies manage all the employee overhead costs from the aspect of both operations and risk.
Operationally, the staffing firm performs all recruiting, screening, hiring, training, payroll, resignation, reassignment, sometimes benefits and more. Risk aspects include training and maintaining a qualified human resource pool that meets forecast levels for their clients. Significant cost is then offloaded from the client including verifying eligibility to work (E-Verify), initial and random drug testing, unemployment insurance, workers compensation insurance, and the long-term management of claims and other labor regulatory issues.
Clients who use reputable temporary staffing agencies like Barton Staffing Solutions, benefit considerably. They save financial costs from their own internal balance sheet by leveraging economies of scale and seasonal fluctuations that the staffing firm can manage through reassignment of resources only possible as an outsource partner.
Savvy clients are aware of the economic and regulatory climate of federal, state and local governments. They know the effort and cost required to deliver a staffing service has increased considerably in recent years. Many of these cost increases are parallel to costs hikes for full-time employees. They also know visibility has increased, as government agencies apply the law equally across the entire workforce in a facility, and both company and staffing firm share responsibility.
This inevitable new trend requires clients and staffing agencies to work more closely than ever to sustain a win-win partnership. At a minimum, sharing of each other’s corporate goals, growth objectives, and planning calendar is a partnership requirement. More effective is to share information about the balance sheet and cost models for the business. Know where the markup you pay as a client, goes. Don’t assume that it’s all profit for your staffing agency. Understand that it’s your work comp code that drives “cost of good” in financial terms, for your staffing agency. Let the staffing agency know how your budget allows for a win-win mutually beneficial business relationship.
Both partner’s exchange of information enables more predictable temporary staffing supply to meet demand throughout the year. Additionally, a savvy client will know how market breaks down to cover agency risk and operations. They will know they have been assessed by the insurance industry, and scrutinized by the insurer such that a unique risk rate drives specific markups for every company. They also know that it takes 3 years for an accident affecting cost of risk to clear from the rates of their partner. Think both short and long term when building a partnership. Most importantly, savvy companies also recognize that their temporary agency must also make a profit, to continue to be their “win-win” partner.
Barton Staffing Solutions is available to help you understand how to build a sustainable staffing agency partnership with us. Our goal is to be cost effective to your balance sheet, competitive in the marketplace, effective at delivering safe and well trained temporary employees. It sets a sustainable foundation of trust for both partners to win.