Making sure your team has enough hands on deck can present challenges of all kinds. Namely, the expense involved with traditional ways of hiring. Traditionally, a recruiter could spend a couple of weeks hiring for just one position. All things considered (things being salary, onboarding costs, and the plan ahead), hiring often comes with a hefty fee attached.
Read on to learn the monetary effects of traditional hiring practices, and how relying on updated technology to connect you to independent contractors could be the solution your business needs.
Salary and Benefits:
The typical salaried warehouse worker is entitled to a suite of benefits just like any other employee. This means PTO, 401k, and insurance. Even full-time employees working for an hourly rate are often entitled to overtime. This creates the potential for total compensation to be anywhere from 10-40% higher than your employee’s standard salary. Paying independent contractors daily does not allow businesses to incur these costs, as the hourly rate is the only fee being paid to the contractor.
Costs of Hiring:
We’ve talked about this topic before. Read our previous blog here.
To sum it up:
There are visible and invisible costs associated with hiring full-time employees. The hourly rate of a recruiter is going to add up when their time involves sorting through resumes, phone screenings, scheduling several interview rounds, and setting up benefits packages. Let’s not forget the costs associated with drug screenings and background checks if the employer chooses to go this route.
When the employee gets started, they might not go full speed ahead right away. There’s training time involved, onboarding meetings they have to spend valuable hours sitting through, and a general learning curve if they are new to the industry. Selecting an experienced operator’s bid ensures that your resources will be well spent, and the learning curve will be less severe.
The Career Ladder:
Most full-time employees come with an ambiguous, dollar-shaped cloud hanging above their heads that only grows the longer they are meeting or exceeding expectations while employed at your company. Over time, promotions, raises, and additional compensation will be asked for or expected over a full-time employee’s tenure. While it’s true that good work should be rewarded, the looming question of compensation can be avoided completely by short-term solutions.
Independent contractor’s rates are negotiated upfront. In Veryable’s case, operators are the ones creating the bid in the first place, and know what to expect in terms of compensation. As they upskill, it is their right to price themselves accordingly.
Veryable provides immediate access to the best independent contractors in the manufacturing, logistics, and warehousing industry. Sign up for a free business profile today to learn more about how you can get started with on-demand labor for your business.