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- How to Save Money by Choosing the Right Staffing Partner (Part 2)
How to Save Money by Choosing the Right Staffing Partner (Part 2)
By Nathan Brown
- St. Cloud, MN
A combination of factors has led companies to demand higher expectations of their key suppliers. In the staffing industry, that has led to companies no longer expecting JUST to have positions filled in a timely manner, with quality employees, at a competitive bill rate. Of course, companies do and should still have those expectations, but they want and need more.
Companies want and need to partner with a company that can utilize its experience and expertise to help get them to the next level by improving efficiency and reducing labor expenses. A few months ago, I wrote a piece about how companies can control labor costs by partnering with a staffing company to help them improve employee retention. Today, I am going to write about an area of HR that is often overlooked, but if handled effectively, can have a major, positive impact on your company’s bottom line.
Whether your company has a near-spotless safety record or has experienced some incidents that are proving costly on an ongoing basis, your staffing vendor should be working with you to reduce your Workers’ Compensation Mod Factor, which will likely save your company thousands of dollars every year.
How is your staffing supplier working with you to create a safer work environment and help you drive down your Mod Factor and expenses? What are they doing in their screening and on-boarding process to promote a culture of working safely? Do they provide expertise and resources to help implement safety initiatives, safety training, safety reward programs and safety audits? Do they carry adequate coverage to ensure that your company is protected in the event of an accident?
You may be saying that your company has a great safety record and this is simply not an area to potentially save money. Did you know that according to recent audits, approximately 65 percent of Experience Mod factors are calculated incorrectly?
No matter where you fall on the spectrum of workplace safety history, there is a good chance that you along with assistance from a savvy staffing partner can find ways to save money on your Workers’ Comp. expenses. If your company emphasizes safety and is looking for ways to drive down cost, these are conversations you should be having with your staffing provider on a regular basis.
We would like to hear about your company’s success stories. Have you discovered errors on your Experience Modification Worksheet that led to cost savings? Have you implemented various initiatives that have led to a reduced Experience Mod? Please share your story.