Think about how ridiculous it is to buy or sell services based on a markup (i.e., the seller’s profit). When you go into a Starbucks, do you ask the staff how much the shareholders will profit from your cup of joe? Of course not. You gladly hand over your money for because you know that in return you’ll get some of the best coffee in town.
Recently, I was talking with a contact who told me that he’s been hearing a few people use the term “Subcontractor” when referring to “Independent Contractors (IC).” My contact said this confused him at first because he’s always considered Subcontractors as small businesses with W-2 employees. He was told that it’s common for an enterprise organization to not do business with “Independent Contractors” (IC) because of the risk factors, but they will do business with a “Subcontractor” that is an S Corp or C Corp, thinking this protects the company from worker misclassification risk.
he staffing industry is a unique beast where the people are the product. With all the quality control tactics known to man there will always be one that’s uncontrollable, the human element. Now more than ever, the quality of the relationships you have in place with your clients needs to be continuously maintained and strengthened. As you both struggle with the challenges of finding qualified candidates, it’s tempting to lower standards and cut corners. But, remember that keeping your focus on quality over quantity can pay off in droves for you both.
A few years ago, I wrote a post titled “Do You Provide Temps—or a Contingent Workforce?” and was reminded recently of the power and impact of the words we use. Sales, recruiting, and marketing are all about positioning. Now that we’re in a time where there are more jobs than candidates, this same philosophy can be used in recruiting. So, are you providing your employees with temporary jobs or are you helping them join a company as part of their contingent workforce with the potential to for flexibility and growth?
Many moons ago, when I was selling staffing services, I would use math to help prospective clients understand the value of the service my company would provide. The eye-opening moment for my prospects was when they started to understand the fact that a 90-day temp-to-hire strategy would increase long-term employee retention and ultimately lower their SUI rate and experience rating for workers comp. Although the ROI was/is real, it can often be difficult for someone to fully appreciate the potential savings since the business case focusing on improving employee retention is based on some hypothetical assumptions.