3 Dangerous Employment Trends
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3 Dangerous Employment Trends “How to Avoid Them”
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3 Dangerous Employment Trends. “How to Avoid Them”. State of the Economy. Controlling costs in our current business climate is more important than ever. Costs of doing business are rising while companies are being asked to reduce selling prices in order to remain competitive. - PowerPoint PPT Presentation
Transcript of 3 Dangerous Employment Trends
3 Dangerous Employment Trends
“How to Avoid Them”
State of the Economy• Controlling costs in our
current business climate is more important than ever.
• Costs of doing business are rising while companies are being asked to reduce selling prices in order to remain competitive.
• This makes it very difficult to maintain good profit margins.
Shrinking Profits
3 Dangerous Employment Trends1. Healthcare costs
2. Payroll costs
3. Cost associated with an ineffective employee or a bad hire.
Healthcare is Our Biggest Challenge in the 21st Century
• How will your company respond?
Out of Control Healthcare Costs
• Inefficiencies in our healthcare industry along with an increase in the amount of people that can not pay their bills have created a skyrocket effect for healthcare costs.
20 Year Look
Unemployment Claims Effect on Payroll Tax Rates
With the number of unemployed increasing dramatically these past two years. Many company’s unemployment tax rates have risen substantially.
How can employers mitigate unemployment claims?
Payroll Costs on the Rise
• Unemployment claims drive up your unemployment tax rate.
• The new unemployment tax rate affects the payroll cost for your entire company.
Unemployment Claims Affect on Payroll Tax Rates
* Even a 1% rate increase can be big bucks once you spread this out over the entire payroll of the company.
Example: 1% increase in your rate x $5,000,000 = $50,000!
Hidden Cost • Unemployment tax
rates - tend to be a hidden cost within a company’s cost structure, but can be a significant contributor to increases in payroll costs.
Costs Associated with a Bad Hire
• How can companies avoid throwing there money away by making bad hires?
Cost of a Bad Hire
• Costs associated with a bad hire or an ineffective employee vary from company to company but the national average is $60,000!
• This bad hire doesn’t just
have a monetary effect but also a huge effect on the morale of the department that this person was working in.
Additional Costs of a Bad Hire• Recruiting costs.• Retraining costs.• Unemployment claim’s
affect on your company’s rate.
• Opportunity cost of not having an effective employee in that position to begin with.
Where We Are So Far Three dangerous employment trends:
1. Healthcare. 2. Payroll costs associated with
unemployment claims.
3. The costs associated with a bad hire.
All 3 chip away at the profitability of a company.
So how can a company minimize the risks associated with these dangerous trends?
Action Staffing, an Extension of Your Human Resource Department As an extension of
your human resource department, we eliminate the risks associated with:
1. Rising healthcare costs2. Rising payroll taxes3. The costs associated
with a bad hire
Healthcare We provide a
benefit package that is very comprehensive and includes:
• Medical • Dental • Vision • Short term
disability• Term Life Insurance
No Need to Take Employees Permanent Anymore
The two main reasons that companies transitioned employees from temporary to permanent was for:
1. Benefits 2. Retain good
employees This is no longer necessary since Action Staffing can provide the benefit package that so many employees desire.
Payroll Taxes Covered• We pay the payroll taxes.• We pay the unemployment
claims. • This allows you to have
seasonal increases or decreases in your staff without feeling the pain of your unemployment tax rate increasing.
• These unemployment costs can be significant.
• We are experts at managing them effectively.
Bad Hires are Eliminated
Ineffective workers can be replaced overnight without missing a beat.
Action Staffing Bundle of Service Offerings
• Short term temporary• Long term temporary (remember our benefits
package) • Temporary to Permanent • Permanent Placement• Customize a plan for
your business
About Action Staffing
• Founded in 1959• Still a family owned
business• Experienced staff• Personalized service• Quality guarantee
Rate Structure Our markup is a function
of five key elements:
1. Number of temporaries utilized.
2. Workers compensation rates in your business category.
3. Type of workers needed.4. Your payment terms.5. Your budget for the
temporary workforce.
Comprehensive Insurance Package
-Workers compensation
-General liability-Umbrella policy
We are Not an Employee Leasing Company
• We are so much more• Full service recruiting• Advertising for your
specific positions• Employee selection from
our data base of over 3,000 candidates
• Outstanding personalized client services
Back to Basics by Action Staffing• Understanding your needs• Advertising for your positions• Continuous recruiting• In-depth interviews• Customized testing• Extensive Reference checks• Criminal background checks• Drug testing• Prepare each candidate before
they arrive at your facility• Replacements within 24 hours
Our Team of Experts• Passion for staffing• Repeat the “Back to
Basics” of staffing each day
• As a result we are experts in our field
• Go the extra mile to provide staffing excellence to our clients
Reduction in Risk with Efficient Productivity
• Tremendous flexibility as you manage your overall staffing strategy
• Eliminate your risk of exposure for workers compensation claims
• Maximize your efficiency by adjusting the number of employees needed for each project
Summary
1. Healthcare costs can be stabilized
2. Payroll costs will go down since we cover all taxes and unemployment claims
3. Costs of bad hires are eliminated
Increase Potential for Profit
• Please contact us today:• 770-645-6300 • [email protected] or
[email protected]• Action Staffing• 918 Holcomb Bridge Rd. Suite 100• Roswell, GA 30076
