How the Right IT Staffing Solution Can Increase Your Bottom Line

How the Right IT Staffing Solution Can Increase Your Bottom Line

Does your in-house IT staffing solution result in a “hire, fire, repeat” trend?

If you’ve answered, “Yes,” take an objective look at how working with the right technology staffing agency to find a better IT staffing solution, can help you increase your bottom line.

Let’s explore the why and how.

A Sharp Increase in Demand for IT Talent

In the five years that followed the recession, one in five U.S. workers were laid off, according to Jim Puzzanghera writing for the Los Angeles Times.

It was an unfortunate but logical consequence of organizations having to cut costs where possible in order to remain operational. And ever since 2009, organizations across the nation are looking to make their talent acquisition and retention processes as streamlined as possible.

Fortunately, the U.S. economy is picking up again.

The Bureau of Economic Analysis reports that the Gross Domestic Product increased by 2.0 percent in the 3rd quarter and by 0.2 percent in the 4th quarter of 2015.

Moreover, the Bureau of Labor Statistics projects that tech occupations will be one of the fastest growing occupational groups until 2024.

Hyperconnectivity, cyber security, and cloud computing are three main drivers behind the increase in IT jobs.

Companies in practically every sector will need more IT talent, whether it’s to:

  • maintain company networks;
  • manage cloud backups, storage and communications;
  • collect and analyze big data;
  • or adapt applications to their organizations’ unique demands.

For employers in many sectors, this means they’ll need to increase their IT divisions in order to remain competitive.

However, it’s important to note that the exact amount of talent a company needs isn’t always consistent.

For example, a regional healthcare clinic that’s creating and implementing an online patient portal will need an initial influx of IT talent to set up the system and instruct employees on secure use. But once that’s accomplished, fewer IT people will be needed, and the clinic can likely make do with a smaller team that concentrates on system management, updates, and troubleshooting.

Likewise, an app development company could patent a new product and need to temporarily amp up its workforce in order to finalize the app and bring it to market.

The “Hire, Fire, Repeat” Cycle: More Costly Than You Think

As many organizations learned during the recession, laying off workers is expensive. Because the employees aren’t at fault, severance pay and benefits apply.

When it’s time to ramp operations up again, employers are faced with the costs involved with hiring new employees.

In the Inc. article The Real Costs of Layoffs, Carole Matthews quotes a workforce expert, N. Fredric Crandall, who states that most companies that lay off employees ramp up their workforces to pre-layoff levels within one and a half years.

Considering the months of severance pay and benefits continuance, as well as the amount of time and labor involved with hiring new talent, in many cases, there’s barely any financial advantage to be gained. This is compounded when layoffs have resulted in lower revenue.

It’s critical to understand that these are just the most apparent costs.

The impact of laying people off on your company’s reputation can also be costly. With employees around the globe sharing information about employers on sites like Glassdoor (as well as on social media), getting one person upset can lead to a whole host of negative online posts about your company.

With candidates immediately going online to find information about potential employers, it’s clear this can make your company seem less attractive. As a result, you might have trouble attracting top talent, without a staffing solution.

The Right IT Staffing Solution: A Cost-Effective Alternative

For any forward-thinking employer, there’s a straightforward, cost-effective alternative to the “hire, fire, repeat” cycle: working with a trustworthy IT staffing agency. This has a number of benefits:

First, the agency has a large pool of already screened, contingent talent. They know which candidates possess the qualifications for the open position, so they can suggest a number of likely matches. This spares your HR department the effort of screening a much larger number of résumés in the first round.

Second, the agency can take on more of the selection process, for example the first phone interview, as well as any aptitude or personality testing necessary, again unburdening your HR department.

Third, the agency can contract the talent for a limited period of time only, for example for three months during the transition to a new administrative platform or for the duration of a development project. It’s critical to understand that a third of the U.S. workforce is now contingent, meaning they’re temporary workers, part-timers, contract consultants, or SOW workers.

What’s more: they’re contingent by choice because they want flexible work arrangements and autonomy over their career paths. And many of these workers are highly skilled, especially in the IT space. That means you can find short-term IT specialists who are satisfied with a limited contract, so you’re not liable for all of the expenses associated with layoffs.

Fourth, if a contingent worker has a good experience with your company, he or she is likely to return when you have another opening. As a result, you can build strong relationships with top talent whom you can engage when the need arises.


Of course, there are costs associated with working with an agency IT staffing solution.

But they’re likely far lower than those involved with the “hire, fire, repeat” cycle.

Plus, because you’ll have the expertise of specialized recruiters, the entire process is likely smoother and shorter.

The bottom line: partnering with a workforce agency to determine the right IT staffing solution for your company’s ongoing needs can be cost-effective, while simultaneously giving you access to top IT talent.

And by providing top talent with a good work experience at your company, you’re also enhancing your employer brand.

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