Contract Staffing - The New Black in Strategic Hiring

Staffing needs can arise from any number of situations:  business growth, cycles in demand, technology change-overs, mergers and acquisitions. As companies ramp up for 2010, evaluating staffing options and taking a hard look at bottom-line costs is their number one priority.

In assessing hard costs in staffing, near the top of the list is WorkSafe BC premiums. Many companies are at the upper end of Worksafe premiums due to being in an industry with high accident rates. Their basic (minimum) payroll costs run as high as 28% with Worksafe premiums at a whopping $12.60 per $100.

The bare bones minimum employer payroll cost (minimum holiday pay, stat pay, EI, CPP and WorkSafe premiums) in a non-union position is 16.4% times employee pay rate – at that’s only if they’re at the lowest rate for WorkSafe premiums ($0.12 per $100). 

Many companies get around escalating payroll costs by contracting through a third party. Outsourcing to a staffing or payroll services firm is common practice in the Canadian transportation and trucking and industry, and while many Western Canadian companies are slow seeing the benefits, it is widely accepted practice leading employers in Central Canada and the US.

The benefits of contract staffing are too numerous to include them all but here are a few to consider: 

•  No payroll or administration costs – simply pay one invoice once a month
•  No impact on your Worksafe premiums – contractor assumes all premiums and coverage liability
•  Have ready access to premium talent on an as-needed basis
•  Better manage project overflow, peak periods and special assignments
•  Keep your permanent staff focused on more challenging, interesting and substantive work
•  Minimize staff turnover and associated productivity costs of employee burn-out by supplementing with contract employees
•  No recruitment advertising and minimum on-boarding /ramp up costs -  contractors arrive fully pre-screened and tested
•  Get maximum bang for your dollar – pay only for time worked, no sick leave or paid personal leave costs
•  Try-hire potential employees without incurring employer commitments

Whether it’s a growth spurt, new project or basic coverage for maternity or sick leave, temporary or contract staffing can be your best option.  Excel Personnel has been in the business of temporary staffing and permanent recruitment since 1992.

For information on whether it's good a financial strategy for your company to try temporary or contract staffing, call us today: 250-374-3853  toll free 1-877-374-3853