In the staffing world, ‘markup’ refers to the percentage added to a candidate’s pay rate that the company charges its client. As an example, if a temporary employee/associate is paid $10 per hour and the markup is 50 percent, then the client is charged $15 per hour.

Profit always carries a weight, but with each agency being the employer so much goes into that “fifteen dollars an hour”. Payroll taxes, temp worker benefits, staffing company labor, temporary associate pay and any other costs make up the majority. Some employers look to control costs by trying to find a staffing company with the lowest markup. This can be a strategy that can backfire as it disincentives the staffing company. The investment in recruiting, safety training, customized orientations, retention plans and around-the-clock service have to be factored in all orders worked by the staffing entity. In a true partnership, proper markup is justified by the value that a staffing company brings to the table in the form of best-fit candidates.

In addition to markup, there are a number of other considerations related to choosing a staffing company. Consider the following concerns.

Find a Company that Fits Your Company

While there is an abundance of staffing companies, your company should put in significant time and effort to identify one that suits your needs. If you have a particular need or staffing mandate, aim to partner with an agency that specializes in that field. The key will always be for your partner to provide the right candidate pool for your needs. Even if the workforce just needs “quality employees who are trainable”, continuing to aim for a partner that has the same values as your company is key.

Referrals and word of mouth can be the best avenues towards identifying whom to align with. Talk to others in your industry to see which staffing company they recommend. Talk to your current staff members to see if they have worked for any staffing companies and what their experiences were like. The American Staffing Association (ASA) is an industry trade organization that is capable of supply you with a list of local staffing companies and their various specializations.

Have a Time Frame in Mind

If you’re able to provide a potential staffing partner with a realistic time frame for filling open positions, you can set yourself up for a productive partnership and boost the odds of getting the best candidates, as opposed to the first available candidates.

As reasonable as this sounds, many organizations don’t follow this advice. This happens due to the reactive nature of having a need, and one this is typically needed quickly. In fact, some desperate businesses will take a spray-and-pray approach to finding a staffing partner; contacting a handful of staffing companies and partnering with the company that responds the quickest. While this approach certainly can get someone into a position as soon as possible, it is not ideal for effective long-lasting partnerships and long-term success.

Let Us Be Your Company’s Talent Acquisition Provider

At Cornerstone, our goal evolves into a “client for life” scenario. That includes providing best-fit candidates to our clients after mutually agreeing upon the parameters of a service-oriented partnership. In winning Best of Staffing 4 years in a row, we would love to engage you to see if we can provide a valued benefit your workforce organization.

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