Will Hiring Giggers Save You Money?
Hiring giggers can give your company many benefits, but you may be wondering if it will truly save you money. The short answer is yes. In fact, 57% of businesses said they are saving costs using gig workers. However, you need to follow the best practices to get the most out of the gig economy.
We've outlined how hiring giggers can save you money and how you should use it to cut costs.
Costs of Traditional Hiring
First, to understand how the gig economy can save you money, you need to know the true costs of traditional hiring. The average hiring process has eight steps:
Create a job posting
Advertise the job
Go through applications
Phone or video screening
In-person interviews (sometimes many)
Vetting the candidate (reference checks, background checks, etc.)
Make decision
Send a job offer
This method takes an average of 36 days. The time-to-fill costs your business money every day with the salary of the Hiring Manager. Plus, if you're short-staffed, your business is less efficient during that time.
The largest cost you can face in this time is opportunity cost. In this case, consider the cost of not getting an on-demand worker in place. For example, if you don’t have a Production Associate it could lead to an idle production line. Or, if you don’t have a Customer Service Representative it could lead to lack of service or negative customer perception.
Within the process, consider the recruiting costs. These are the costs dedicated to attracting candidates. This could include a recruitment agency, job boards, career fairs, flyers, and ads.
Then, after you hire, there are training and onboarding costs that arise. These are the costs needed for the employee to do their job. This could be a training program, computer, desk space, software, cellphone, and uniform.
Overall, the average cost of hiring an employee is $4000 (excluding salary), but it depends on the role. An employee doesn't usually reach full productivity until twelve weeks. If they leave before then, it costs your business money.
How Hiring Gig Workers Saves Money
Reduced Acquisition Costs
Gigging apps allow you to streamline your job postings in one mobile platform. This means you don't need to pay for multiple sourcing methods. Therefore, reducing your sourcing channels will reduce your costs.
A bonus of AmbiMi is that it's completely free to download and use. You only pay if you hire a professional!
Reduced Time-to-Fill
You can hire a gig worker on the same day and have them come in the next day. You could save 35 days of hiring compared to the 36 days the traditional process takes. Then, the Hiring Managers can focus on other aspects of their job.
Hire as You Need
Hiring temporary staff gives you the flexibility to hire when you want. You don't need to commit to a 40-hour workweek. Create a flexible roster of giggers, and schedule them when you need them. This can be the difference between paying an individual 20 hours a week instead of 40.
Reduced Payroll Costs
Since giggers aren't traditional employees, their pay cheques look different. By being self-employed, they trade many statutory benefits for flexibility. You save on payroll costs such as worker's compensation, vacation time, and benefits.
Turnover Decreases
Because you are hiring on a temporary contract, there is less turnover. If an employee leaves, it's less of a burden on your bottom line since they were never permanent. If you hire a gigger permanently, they're less likely to leave since they know what to expect from the role.
Temp-to-Perm Conversions
Treat gigs as a working interview if your goal is to get a permanent employee. You can get employees in and assess their fit before making a permanent offer. This will save you time and money compared to the traditional approach. If you're interested in working interviews, you can learn more about them here.
Best Practices
You can learn about introducing the gig economy to your business in our recent blog. Additionally, some of our best practices to save money are:
Start with One Platform
Sometimes, it can be a good idea to spread job postings to reach more people and get more candidates. That also leads to a lot more manual recruiting. We recommend starting with one platform to streamline hiring (and reduce recruiting costs). Then, if you haven't found anyone, you can introduce another resource.
Skip the Traditional Vetting Process
Interviewing and vetting is the most time-consuming part of the recruiting process. If you're looking for a permanent employee, try the working interview instead. You can get employees on site right away and find a permanent hire faster.
Hire When You Want
You don't need to commit to hiring a full-time employee if that's not what you need. Hire gig workers until a permanent need arises. Then, you have an on-demand workforce ready and trained.
Use a Platform that Suits Your Needs
Find a platform that best fits your hiring needs. Consider factors like what type of employee you need and how often you want to hire. Then, choose a platform that meets those needs.
If you're looking for an on-demand staffing app that saves you time and money, download AmbiMi below!
