For healthcare companies, vacancies or low head counts equate to lost productivity and revenue. Overworking your medical staff can also lead to a high turnover rate in your practice. Managing your workforce through medical staff is critical in today’s competitive job market. One of the major factors in job creation has been the identification of a ready workforce of qualified candidates. There are many benefits to temporary work assignments as it allows the company to assess the many experiences and qualities the employee has to offer.

While larger companies and government agencies have long capitalized on this pool of skilled labor, smaller companies are joining the game. Companies are now looking at medical staffing as one of the available solutions. Depending on your industry, the turnover rate can be as high as 75% and actual labor costs can exceed 50% of the employee’s compensation. Medical staff is the answer for many offices.

Employees are the most expensive investment a company can make.

Hiring the wrong employee can be costly to a company’s bottom line if medical personnel are not used. The first 90 days are usually the most expensive to have an employee on board.

The flexibility factor

The right medical staffing solution provides workforce flexibility and access to qualified talent. This is also an evaluation period to determine if the employee is a great behavioral or motivational fit for your company. Staffing allows businesses to avoid burdening the employer with costs associated with hiring and training an employee. Does the employers’ so-called “loaded rate” for each employee add up to about 40% more than their rate of pay? For example, for a $14 per hour worker, your actual cost would be $19.63 per hour or about 40% more than your base pay. Included in this so-called “loaded rate” would be the costs you would pay as an employer each pay period. He will not be responsible for paying taxes, health insurance, workers’ compensation, and job training, etc.

the people of works

Because the employee is actually an employee of the staffing company and not the employer, the employer’s costs are the sole responsibility of the staffing company. Many business owners are unaware that the full cost of using a medical staffing business is business write-off.

The staffing company is responsible for paying payroll taxes and benefit costs. As an employer, you are reimbursed for these costs that are included in the hourly billing rate. Also, they charge a bit more than that because they have to cover their overhead and make a profit. You pay for that too. You can deduct as an ordinary business expense what you pay to the staffing company. The deductions are likely to be slightly higher than if you do it yourself. You will benefit from having the employee and you will be able to write off the costs you paid to the medical staffing company.