Human resources departments see issues in the workplace on a regular basis. These issues can lead to poor employee retention rates, loss in profit and productivity, and potential legal problems. As a recruiter, you can help solve some of these human resources issues.
If you offer contract staffing, you could help solve some human resources issues. Contract staffing is a great alternative to hiring permanent employees for many businesses.
Human resources issues in the workplace
From hiring to keeping employees, many human resource management issues can arise. Take a look at some of the human resource issues in the workplace and how a recruiter can help.
1. Difficulty attracting talent
Attracting talent can be difficult for many businesses. Human resources can get bogged down with applications and resumes from unqualified candidates, costing time and energy into trying to place the perfect person.
According to one study, a corporate job opening attracts about 250 resumes. But, only four to six candidates will be interviewed. Since businesses receive so many resumes, narrowing candidates down takes a long time. Applicant tracking spreadsheets are frequently used by companies on a budget, but they will only take hiring departments so far.
Because the process takes so long, HR departments face losing out on the best talent. If a talented candidate waits too long to hear if they got the job, they might take a job elsewhere.
How a recruiter can help
As a recruiter, you know exactly how to attract talent. And, you can use tools like recruiting software and applicant tracking systems to make the process easier.
HR departments can save significant time and cut recruiting costs down by hiring talent you provide.
2. Having trouble retaining employees
When HR hires high-performing employees, they are faced with the inevitable problem of keeping them. Only 13% of millennials want to stay with an employer at least five years, one study reports. With that low of a statistic, HR departments have their work cut out for them when it comes to retaining employees.
High turnover can be one of the biggest human resources challenges in the workplace. The HR department expects employees to stay on for years before the recruitment process needs to be repeated. When new hires consistently job-hop, it costs businesses significant time and money to recruit, onboard, and train more employees.
How a recruiter can help
With contract staffing, businesses get to test employees. They are guaranteed to have that employee for a certain amount of time. The employment ends once the contract is up. But, if the business likes the employee enough to want to retain them, they can hire them full-time. This provision is called a contract-to-perm agreement and is an option in most contract staffing agreements.
3. Wasted time and money on bad fits
When a business hires an employee who is a poor fit for the company, they risk losing time and money on productivity. In fact, a business that hires a bad fit loses at least 30% of that employee’s first-year salary. That means if the employee is paid $30,000 their first year, the business loses $9,000 in lost productivity.
An HR department also spends money onboarding new employees for the job. One study indicated that businesses spend an average of $1,208 per employee on training and development. With proper training and the right employee, a business predicts to gain the money back from the employee’s productivity.
However, if the HR department does not properly vet the employee during the interview process, they risk lost employee productivity. The employee might end up incapable of doing the job, which could cost the business time and money. Bad cultural fit can also lead to personnel issues in the workplace that involve surrounding employees.
How a recruiter can help
If you’re a recruiter, you can help reduce the likelihood of these HR issues in the workplace. Through contract placement services, you can offer employees who fit the bill to your clients.
Because the employees you offer are in your applicant tracking database, you know their work ethic, qualifications, and experience. You can proudly refer an employee you know would be a good fit for the business. That way, you help prevent human resources issues, like hiring the wrong person for the job, from coming up.
The contract employee is temporary. And, the employee is able to tackle the specific issues of the job, so the business could save money on training.
4. Facing payroll problems
HR is responsible for keeping accurate records about each employee. These records include compensation, benefits information, employee information, various IRS forms (Forms W-4 and I-9), performance reviews, and any other documents related to the employee.
A business must comply with the Fair Labor Standards Act (FLSA), which includes laws on minimum wage, overtime, and equal pay for equal work. Businesses must comply with the Equal Employment Opportunity Commission (EEOC), meaning they cannot discriminate based on race, sex, religion, national origin, physical disability, or age.
Without proper documentation, a business could be exposed to lawsuits. HR must keep records for each employee to comply with the law.
HR must also keep records on employee classification. Exempt employees are not paid overtime wages, which are time and one half for any hours worked over 40 in a workweek. If an employee is misclassified as exempt vs. nonexempt, the business could face a lawsuit.
How a recruiter can help
A contract employee has a separate employer of record from the client’s company. The business does not need to worry about running payroll for their contract employee— they only worry about providing the employer of record money to pay the employee.
Sometimes, a business does not want to pay overtime wages to an employee. If the business does not want to pay overtime wages, it can be added to their contract. But, if a nonexempt contract employee does work overtime, the employer of record is responsible for paying the correct contractor overtime rate.
5. Lost time on discipline
HR is responsible for disciplining employees when problems come up. Not only is this uncomfortable for HR workers, but it takes up unnecessary time. And, handling the problem incorrectly can open the door for lawsuits, meaning HR must keep records detailing the disciplinary action.
How a recruiter can help
With contract staffing, the employee is on the employer of record’s payroll, not the business’s payroll. As a result, the employer of record is required to discipline a contract employee. That way, HR does not lose time.
