Many Americans are striking out into the business world to start their own small business. Small businesses sometimes find success, but poor strategic sourcing tactics can cripple the budget of any company. Nearly one out of every four businesses that handle their payroll processing internally report spending more than six hours every month on payroll. Following these strategic sourcing tips can help secure your company’s future in a time when businesses rise and fall at increasing rates.
A business’ employees are the lifeblood of any good company; businesses that treat their employees well typically do better than the competition. From a financial standpoint, businesses ought to spend between 15-30% of their gross revenue in payroll expenses — anything beyond 30% is generally a barrier for an effective workforce management system. In addition to payroll companies must also consider employer contributions to pensions, insurance, and retirement plans which make up an average of 29.6% of employer costs. Vacations and other employee benefits can leave business owners overwhelmed and in the red. Hiring a third-party workforce management solutions company can help small businesses owners budget expenses and employ smart strategic sourcing tactics.
Keeping employees and finding employees are two of a business’ greatest expenses; knowing where to find the right employees for your company is essential to producing a consistent workforce. Up to 37% of global recruiting leaders utilize social media to hire new employees: 33% use employer brands and 26% use passive candidate recruiting as the most essential recruiting trends for 2015. LinkedIn Talent Solutions reports that 44% of global recruiting leaders believe that quality of hire is the single most important metric for measuring the performance of a recruiting team. Data suggests that companies spend an average of $3,500 per candidate on recruitment: hiring a third party recruitment service can make it easier for businesses to find the employees they were already looking for. Don’t let your business become a forgotten relic, ensure the longevity of your business by employing trusted strategic sourcing tactics.