There are times when your labor needs grow faster than your ability to bring on additional employees. Bringing on new employees takes time, effort, and money. The average cost-per-hire in the U.S. is estimated to be over $4,000.00 dollars and can take more than a month to complete. You start the process by putting the word out that you are looking for a new employee and then interview the top applicants. Once you have the person who is the best fit, you then have to train them and maintain all the costs related to having an employee. Keeping an employee on is a major financial commitment that can continue to increase year after year. Compensation costs, employer costs for health benefits and other types of benefits can continue to increase as you keep on a full-time employee.
If the growth of your business continues at the same pace, you may find yourself perpetually in the process of searching, interviewing, hiring, and training new people. This can become a problem when you do not have the finances or time available to keep up with the pace. If you need additional labor support quickly, then this traditional model of bringing on new hires may not work for your situation. You have to find another way to get the labor support you need within your timeline. There are some options available for businesses that need additional labor support quickly. We are going to look at two of those options below: temporary labor and outsourcing.