What Are the Benefits of Contract-To-Hire Placements in Warehouse Staffing?
The Growth and Protection Your Warehouse Needs
Providing adequate warehouse staffing for your business is a priority in a turbulent environment. Could contract-to-hire placements be the solution?
Such staffing contracts have proved beneficial to both warehouse workers and companies alike for years. A poll by NPR discovered one in five Americans were working under contracts. Within a decade, it’s predicted that the rise of contracts and freelance positions will account for half the American workforce.
The U.S. economy is regaining momentum in the climb from the pandemic. But with volatility still ever present for the warehousing industry, your staffing challenges include:
- Ensuring you have enough manpower to deliver
- Keeping employment costs justifiable
- Avoiding costly hires that are poor or no longer required
- Maintaining an adaptable workforce with the skills you currently need
- Protecting tomorrow while surging for growth today
Your solution may be contract-to-hire placements. Here’s why.
What Is Contract-To-Hire?
If you onboard a candidate as a contract-to-hire, it’s on a short-term basis for an assigned duration, with the view to consider a permanent placement on completion of the contract. The contractual duration usually is assigned from between three months to a year, depending on business needs.
Payroll structure is the biggest differentiator between permanent employment and contract-to-hire. While the individual is on a contract basis, they are on the staffing agency’s payroll. At the end of this period, you then decide whether to let the candidate go, or employ them in a permanent role. The latter will mean the individual is directly hired by you and moved to your payroll, with other employee benefits added.
The Benefits
Here are the major reasons many companies – including your competitors – are turning to contract-to-hire warehouse staffing.
Budget Flexibility
You need skills and manpower, but you also need to control expenditure. With fluctuating demand for your services or products, contract-to-hire placements allow you to control output while monitoring your budget and adjusting staffing expenditure.
You’re not obliged to provide employee benefits to those on contract-to-hire placements, and they’re typically paid per hour. If at the end of the contract you can justify the cost of a permanent placement, the hiring process will already have been eliminated. This is also beneficial when trialing a new role before committing to it long term.
Test Candidates’ True Ability
Most companies have experienced hiring a candidate they thought would fit in or had the right skills, only to discover a difference in true ability, or cultural clash.
With contract-to-hire, you discover how an individual provides the skills you need, their work ethic, and how they work within your company culture’s expectations.
Bring in Specialist Warehouse Skills
You may require specialist skills to deliver time-restricted workloads or projects. Such skills are in demand, and come at a cost.
Bringing in staff on contract-to-hire placements gets the work done, keeps your permanent team happy and productive, and gives you time to evaluate the need for long-term hire. If costly skills are no longer required, you avoid the financial burden of permanent employment.
Adaptability
In a volatile landscape, demand may rise and fall. We’ve learned to prepare. And protection is key. Today you may be in high demand. But next month? You may:
- have lost a client (another business victim to the pandemic)
- need to onboard new equipment to complete a project, requiring financial focus to bring in certain skills that will pay dividends the following month on completion
We can only predict what’s ahead. Contract-to-hires can fill potentially damaging gaps, fast.
Partner with a Staffing Agency for Contract-To-Hire Warehouse Staffing
It’s clear there’s an array of exceptional benefits contract-to-hire placements can provide. Here at Everest Recruiting, we have a pool of quality candidates with the skills you need, now. It won’t take long to outline:
- How candidates will be evaluated to ensure they’re a great solution to your warehouse staffing
- How long you need them on contract for
- How we transition them to permanent placement, should you feel a permanent placement will be beneficial to business growth
To keep your warehouse team working at full capacity, experience growth with the best skills on board, and feel reassured that your future is further protected, contact Everest Recruiting today.
