The blue-collar workforce has different expectations after the Covid-19 pandemic. They helped jumpstart the Great Resignation, citing low pay, poor treatment, and no growth opportunities. The resulting labor shortage now finds approximately 10 million open positions across many industries, but only 8.6 million workers to fill them. It’s a job seeker’s market and employers must offer higher wages and more benefits to attract and retain the workers they need. Teaming with staffing experts can help you find the support you need while keeping overall costs down. Here’s how.
A staffing partnership supports your long-term future
The first thing to keep in mind: It takes time and money to recruit, interview and onboard new workers. The process draws your attention away from other important duties. Given that the labor shortage has also introduced further backlogs, delays and supply chain issues, efficiency needs to be prioritized.
Working with a staffing agency is an investment in your business, helping you to streamline the staffing process. They provide reliable and vetted workers while also taking on other employment tasks, allowing you to focus on the rest of your business. While temporary staffing may involve some upfront costs, there are significant rewards as well.
Breaking down your staffing company’s bill rate
Understanding your staffing partner’s bill rate structure can seem challenging at first. This breakdown will clarify how your money is used and why partnering with a staffing agency is worth the investment. First, let’s distinguish between your bill rate and your pay rate. The hourly bill rate is the amount charged to your business. The hourly pay rate is the amount paid to the worker.
Local, state and federally mandated taxes and expenses also impact the bill rate. Some of these statistics will vary by state or mitigating factors, while others are altered by changes in the law. As of May 2022, the taxes and fees are:
- Federal Insurance Contributions Act (FICA): Social Security 6.20% and Medicare 1.45% for a 7.65% total.
- Federal Unemployment Tax Authority (FUTA): FUTA taxes account for the first $7,000 paid to each worker at a 6% rate.
- General and Administrative Expenses (G&A): These expenses account for your daily overhead and operating costs, including corporate payroll, taxes, benefits, rent
,and equipment, along with any advertising or marketing campaigns, and more. The range varies depending on the industry. - State Employment Tax Authority (SUTA): Varies by your home state.
- Workers’ Compensation (WC): This figure will vary by the type of job and the state.
These taxes and fees into folded into your PeopleReady bill rate so that your payroll process is more streamlined. Meanwhile, your company can get access to the workforce you need quickly and efficiently.
Staffing solutions that will help you find the right workforce
PeopleReady is here to guide you with staffing solutions that can save you time spent on recruitment, onboarding and other distracting tasks. Our process also helps save you money that can be used to increase wages and attract the next generation of workers.
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