Why Outsourcing Your Hiring Will Substantially Save You Time & Money


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While it may seem like a no-brainer to take care of hiring internally, many companies find that this actually costs them more money, takes longer, and often results in lower-quality candidates.

This isn’t a new challenge for businesses. But it’s even more difficult now due to workforce trends, leaner organizations, and a historical candidate shortage.

When it comes to money and time, loss of cash flow can have an immense impact on your business. One way to reduce costs while keeping your business productive is outsourcing hiring. An effective staffing partner will decrease time and financial expenditures while bringing in quality employees.  

The 3 Risks of Managing Hiring In-House

Increased Turnover

While it may seem easier and more cost-effective to handle hiring internally, studies show this may result in lower-quality candidates and hires who are not the right fit for the role. A single bad hire can impact team morale and ultimately increase employee turnover.

One study found that the average cost to replace just one employee can have a huge financial impact on your business: 

  • $1,500 for hourly employees
  • 100% – 150% of an employee’s salary for technical positions
  • Up to 213% of an employee’s salary for C-suite positions

Loss in Productivity

When companies handle hiring internally, the responsibility often falls on a current employee — all while continuing to do their “day job”. Inevitably, this requires a significant investment of their time, as broken down below:

  • Choosing where to spend money to post the position. There are several sites candidates use to job hunt. Which ones are best? It takes time to do the research and decide which sites make the most sense for your role(s). Time: 3-4 hours
  • Posting the job. From crafting the job description to going through the steps to post it, it’s not as simple as one click of a button. Time: 1 hour
  • Applicant review. The employee will be weeding through hundreds of applicants and resumes in hopes of finding a needle in the haystack. And while posting the job to various online boards may garner several hundred applicants, it still doesn’t guarantee finding the perfect match. In fact, in today’s job market, the “spray and pray” method is just one tool in the recruitment arsenal, not the only tool. Time: 20 hours (based on 300 connections)
  • Interviewing. Scheduling and conducting interviews, reference checks, and required pre-screenings. Time: 20 hours

    Total time: 45 hours

Significant Financial Investment

The cost of a new hire does not stop with getting them interviewed, onboarded, and paid. You’re adding another person to your payroll and benefits — not to mention the exposure to worker’s compensation and any unemployment costs. 

workers discussing cost savings in front of laptop showing positive trend graphs

Five Reasons To Outsource Your Manufacturing and Warehouse Staffing

By outsourcing your manufacturing, warehouse, and skilled workforce, your organization can save time and money, make better use of your resources, and — most importantly — achieve your business goals.

That’s because when you work with a manufacturing and logistics staffing agency, you gain access to networks, expertise, and processes that you might not have in-house.

Below, discover the top five reasons to outsource your manufacturing workforce with a specialized agency.

1. Hire Manufacturing & Logistics Candidates Faster

Think of everything you have to do to recruit new skilled labor candidates. Advertising positions, screening resumes, conducting interviews, negotiating contracts. It’s time-consuming, right?

There’s a long checklist that needs to be completed in a short amount of time — and that’s before you can even get the new hire onboarded and working. 

Staffing agencies have a pool of pre-vetted candidates ready to work. This means that the time to fill your position(s) can be drastically reduced, ensuring that production isn’t delayed due to staffing shortages or turnover of unqualified talent.

Quick Tip: Look for recruitment firms who have the technology and specialized expertise to efficiently guide you through hiring and onboarding. This can save you time and effort in the long run — all while you focus on core business.

Outsourcing That Resulted in 48 hours Time-To-fill And Lower Turnover

2. Lower Overhead Costs

When you outsource staffing, you’re not responsible for the numerous costs associated with full-time employees, such as:

  • Health benefits
  • 401K
  • Sick days and PTO
  • Workers compensation
  • Unemployment
  • All employer taxes

3. Improved Workforce Flexibility

Outsourcing offers unparalleled flexibility, allowing your business to quickly scale its workforce up or down based on current needs — without the complexities associated with hiring or laying off employees.

This agility is crucial in adapting to market demands, seasonal fluctuations, and unexpected challenges. In turn, you’ll be running at top efficiency no matter the forecast.

4. Try Before You Buy

When internal HR teams hire new employees, there’s always a risk involved. Aside from the financial costs and time invested in onboarding and training, there’s no way to tell if they will be a qualified or reliable employee.

And if they don’t work out, your HR is burdened with unemployment filings and other required termination procedures.

Outsourcing with a temp-to-hire strategy provides flexibility, allowing your business to assess workers temporarily before committing to permanent positions. If the candidate doesn’t work out, your staffing partner handles the entire process from there.

This reduces your hiring risk and ensures a good candidate fit with company culture and requirements.

5. Reduce Training Costs

According to the Association for Talent Development, organizations spend an average of $1,252 training each employee. That’s because every time you make a new hire, there is a certain learning curve or training that has to take place for the employee to successfully perform their everyday duties.

This is especially true when hiring entry-level candidates who have little to no manufacturing or warehouse experience.

But it doesn’t have to be that way — especially if you outsource hiring to an agency that specializes in manufacturing and distribution staffing.

These agencies supply skilled and experienced candidates, reducing the need for extensive training. This leads to cost savings, as workers can immediately contribute to projects without the expense and time of lengthy training and onboarding.

The Strategic Advantage of Outsourcing Hiring

I don’t know about you, but we have never met a hiring manager who doesn’t like hiring qualified candidates faster, lowering overhead and training costs, reducing hiring risks, and having an agile, scalable workforce.

When it comes to handling hiring internally, there are many more hidden costs than simply posting the job and the employee’s salary. Shift the time, costs, responsibility, and hiring inefficiencies to recruiting experts who specialize in manufacturing and industrial staffing

contact AIS and let the manufacturing and logistics staffing experts handle your hiring

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Hire a fully charged workforce!

We’ll provide the right temp, temp-to-hire, or direct-hire candidates that align with your company quickly and efficiently.

Hire a fully charged workforce!

We’ll provide the right temp, temp-to-hire, or direct-hire candidates that align with your company quickly and efficiently.