Hiring warehouse employees can be challenging. A shrinking labor pool already makes it hard to find the workers you need. It can prove very costly to hire on temporary help to manage your warehouse needs. Using a workforce solution provider may have several advantages over hiring directly.
1. As a workforce solution provider, we take over insurance, liability, and workers' compensation.
Paying warehouse employees' salary is just the tip of the iceberg when it comes to the cost of maintaining your employee base. You may also have to worry about ongoing expenses, including insurance, liability concerns, and workers' comp.
Insurance Savings
Average premiums for employer-sponsored insurance for a family are more than $22,000 annually. On average, employers will pay about 70% of the premiums for that family plan. Paying for the insurance your employees need can place a substantial burden on you, as an employer. At Eclipse Advantage, however, those workers are our employees. Instead of leaving the burden of that care on your shoulders, we take care of insurance premiums for our employees.
Workers' Comp Savings
The transportation and warehousing industry saw more than 253,000 accidents and illnesses in 2021, a number that jumped substantially from 2020. That can mean a number of devastating workers' comp claims, which can mean an immense strain on your business as a whole. Furthermore, workers' comp can be very expensive. On average, businesses will pay $1 in workers' comp premiums for every $100 of payroll.
At Eclipse Advantage, however, we take care of the costs associated with workers' comp and insurance payments for you. Not only does that make staffing your warehouse more affordable, it can make it easier to scale your staff during busy times of the year.
2. Save time, stress, and money.
Keeping your warehouse fully staffed can be expensive, not just in terms of your financial investment, but in terms of managing recruiting and retaining employees on top of the many other responsibilities that operations and HR managers have.
Time
It takes an average of 24 days in the warehouse industry between opening up a position and moving someone into that position. During those 24 days, hiring managers and other team members will have to spend a great deal of time dealing with the hiring process: time that they could otherwise spend on tasks actually required to keep the business moving smoothly. Team members may have to:
- Review resumes
- Authorize background checks
- Talk to candidates
- Conduct interviews
And many other tasks, all related to filling that open position. At Eclipse Advantage, on the other hand, we take care of many of those steps for you. Instead of having to spend days of your time dealing with a vacant position, you can put the hiring process in our hands. Then, we'll make sure that you have the right candidate to move forward. Furthermore, we can help reduce time to hire and get employees in those new roles sooner, which means that you won't have as much lost labor while you wait to fill a new role.
Money
It can cost thousands of dollars, or around 25% of the warehouse worker's salary, to bring in a new warehouse worker for your company. If your workers are making around $32,000 per year, that can mean an average $8,000 to replace one employee. Not only that, you're paying salary hours of the people involved in the hiring process to take care of recruitment, interviewing, and more. Bringing a new employee on board can be costly. Not only that, you may find yourself experiencing higher costs due to the high turnover rate in many warehouse positions. Handling those tasks alone, with direct hiring processes, can end up costing your company substantially. By working with a supply chain workforce solution, on the other hand, you'll get access to a team of industrial athletes who are ready to jump into their new positions at a much lower cost than hiring your own employees directly. Because of our team-based CPU model, our industrial athletes are also less likely to leave those jobs quickly, which means lower turnover and ultimately lower costs for your company.
Stress
There can be a lot of stress involved in bringing in new warehouse employees. The clock is ticking on your warehouse staffing efforts, and pressure mounts as you struggle to get employees in those positions. Then there's the worry over whether you have hired the right employee. Will that employee stick around long enough to justify the cost of hiring? Will the employee be a good culture fit for the team and get the job done, or will you find yourself struggling to fill that position before you even get your new worker fully trained? On top of that, you may have to deal with the hiring process while juggling all the other job tasks on your list. That stress can mount quickly, often before you have a chance to fully deal with it. When you work with a supply chain workforce solution like Eclipse Advantage, on the other hand, we take that stress off your shoulders so that you can focus on other job-critical tasks.
3. The operations manager doesn't have to pay for recruiting or hiring.
The recruiting and hiring processes are some of the most expensive when it comes to getting a new employee onboard. A supply chain workforce solution, on the other hand, can help take some of those costs away from your business. Instead of worrying about extensive, expensive recruiting process, you can place those tasks in the hands of your recruiting agency.
You don't have to pay anything during the recruiting or interview process. Instead, our customers pay once the employee starts work. This model can make hiring and working with a supply chain workforce solution much more affordable for many businesses than taking care of the cost of hiring on their own.
Are you ready to experience the benefits of using a supply chain workforce solution?
If you've found yourself struggling to hire and retain warehouse employees, or you're just looking for a better industrial staffing solution, Eclipse Advantage can help. Contact us today to learn more about how we can streamline the recruiting process, get new employees in your warehouse faster, and decrease your overall hiring costs.
