All companies know that the total cost of hiring an employee runs far higher than the actual wages paid. In certain fields, such as construction, the cost of Worker’s Compensation Insurance can take a big bite out of the Human Resources budget. Sometimes the high cost of Worker’s Compensation Insurance can even prevent a small to medium sized company from hiring when it needs to.
The solution is to use a well-qualified staffing company. A staffing company specializes in human resources for many different fields and industries. This allows your company to benefit from lower overall employment costs.
Here is the reason why: using the construction field as an example, workers’ exposure to potential risk, as well as previous claims and patterns, give the industry a higher than average Worker’s Compensation Insurance Modification, (or ”Mod”) rate. A well-established staffing firm offers a big advantage with a lower “Mod” rate, because with a large number of employees in several industries, risk levels , and therefore costs, are significantly reduced. A good staffing company will save you money over hiring someone off the street. It is a smart and cost-effective way to manage human resources.