Personnel Service Provider - Effectively Finding Good Personnel
Unfilled positions cost a company a lot of money. Therefore, if you want to run your company well, you must not save at the wrong end. In this situation, personnel service providers come into play, bringing together qualified personnel and companies.
What Is a Personnel Service Provider?
Personnel service providers bring entrepreneurs and potential employees together. It doesn’t matter whether freelance workers are being placed or employees are being recruited to fill a position on a permanent basis.
If a position remains unfilled, the turnover that should be provided by the employee is missing. At the same time, other employees have to take on work for which they are sometimes not qualified, and which keeps them from their actual tasks. Personnel service providers, therefore, see to it that a company obtains the right skilled workers.
They can be seen as an intermediary between the two parties. Personnel service providers relieve a company of the time-consuming and cost-intensive search for qualified personnel by studying the company structure and thus finding the employees who are ideally suited to the vacant position.
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How Quickly Are Positions Filled?
If positions in a company remain unfilled, this seems unproblematic to the layman. The employer saves on wage payments and the work is distributed among all shoulders. But this calculation does not add up. Until a vacant position can be filled, a company in Germany incurs average costs of up to 29,000 euros.
According to the German Federal Employment Agency, the average vacancy period is 121 days. This is the time it takes to fill a vacancy with a new employee. In the IT sector, there are figures of 37,301 euros in lost revenue, based on 118 vacant days.
These figures make it clear that no employer can afford to take the issue of recruitment lightly. The more demanding a position is, the greater the loss of revenue if this job remains unfilled. Therefore, as an entrepreneur, you should keep in mind the costs that arise when part of the potential company turnover is not generated.
What Are the Tasks of a Personnel Service Provider?
- Finding and approaching potential employees
- Inspire interested parties to join the company
- Conducting job interviews
- Drawing up and concluding employment contracts and contracts for work and services
- Career coaching in order to effectively manage the start in the new environment
- Advising employees and entrepreneurs
- Planning the deployment of personnel
The search for suitable personnel is time-consuming and costly for a company, but necessary. Personnel service providers take over these steps and can often deliver better and, above all, faster results. Personnel service providers who have chosen information technology and the associated job descriptions make a specific offer. Here, only employees from the IT sector can find job offers, while a limited but qualitatively suitable pool of potential employees is available for companies. Both sides are put in touch by the recruitment agency, which also ensures that only the best applicants are considered for are considered for the vacant position.
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What Is Recruitment?
A company exists only through its employees, so all necessary positions should be filled. If this is not the case, a suitable employee must be actively found. This process and all related activities are called recruitment. In this regard, every company’s HR manager can place advertisements, search for qualified specialists on job boards, or ensure that vacancies are posted on the company’s website. If you want to complete your team more quickly, you can call in personnel service providers.
Thanks to their own contacts in specific industries, they are able to bring together people with the right training and companies. Instead of sifting through countless job applications every day and posting job ads that are not noticed by qualified specialists, personnel service providers take care of the time-consuming search.
Every entrepreneur can calculate for himself the loss of turnover caused by vacancies. The cost of a vacancy is calculated by dividing the annual salary paid for the vacant position by the annual number of working days. The result represents the salary per working day. This is multiplied by a factor of 1, 2, or 3, which describes the economic significance of the vacancy. The resulting value is then multiplied by the average number of days it takes to fill a vacancy in the relevant industry.
Every day that an unfilled position has to be filled by other employees costs the company money and causes dissatisfaction in the team due to overload. If effective recruitment measures are not invested in this situation, the company’s ability to act and its competitiveness are at stake.
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What Types of Recruitment Are There?
Recruitment is divided into the above-mentioned external and internal measures. The advantage of internal reshuffling is that the team is not expanded by a person who is foreign and needs to be guided. All employees know each other and know what to expect from each other.
With external recruiting, “fresh blood” comes into the company. The new employee may bring creative ideas that have come from his or her previous experience. Such addition can be very useful when structures seem stuck and new employees look at the company and the work from a different perspective.
Internal and External Recruitment
Internal recruitment is cost-effective because all the measures involved in an external employee search are eliminated. Internal recruitment means that vacancies in the company are filled with employees who are already working in the company. All that happens is that jobs and employees are restructured.
However, this is only possible if the vacant job can be “shared out” to the other employees without the additional work taken over leading to additional workloads. Internal reassignments can cause a job to disappear while other employees permanently take on additional work steps. It is important to consider what is more cost-effective. The wage costs for a new employee or the training costs for several employees who must first qualify before they can take on additional activities.
External recruitment involves hiring employees who are new to the company. These can be found through traditional advertising, trade fairs, word-of-mouth, or job board searches. In this case, more time and resources must be budgeted until a vacant position is filled.
The first step is to clarify the need for employees in a company and which positions need to be filled. This is followed by job advertisements, which are offered through various channels. Applicants who are potential employees must be screened and assessed by the personnel service provider in terms of their skills. Once the pre-selection has been completed, interviews are held to decide which candidate best meets expectations.
In order to meet these requirements, a personnel service provider must be informed about the company, know the processes there and be able to correctly assess the employees in terms of their ability to work in a team and cooperate. Whether a potential employee fits into the company depends not only on the relevant qualifications.
Here, the character of the person in question should also be taken into account and it should be seen whether the vacant position requires a personality structure that is very independent, open, self-reliant or extroverted. If instead an employee is hired who, despite perfect qualifications, has the opposite character traits, the vacant position will be wrongly filled.
What Are the Tasks of Recruitment?
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FAQs
What Is a Personnel Service Provider?
Personnel service providers bring companies and job seekers together. In most cases, staffing agencies act as intermediaries within a specific industry. This makes the search for suitable personnel very effective and potential applicants can be placed quickly.
What Is Recruitment?
As the name suggests, it is about finding and contracting the right personnel for the company, both professionally and personally. This can be done on a freelance basis to work on a specific assignment or in the form of permanent employment to fill open positions on a permanent basis.
What Types of Recruitment Are There?
To find personnel for vacant positions, there is the external and the internal way. Internal recruitment means that there is reshuffling within the team. In external
recruitment, a new employee is added who can bring in new potential.
Personnel service providers bring companies and job seekers together. In most cases, staffing agencies act as intermediaries within a specific industry. This makes the search for suitable personnel very effective and potential applicants can be placed quickly.
As the name suggests, it is about finding and contracting the right personnel for the company, both professionally and personally. This can be done on a freelance basis to work on a specific assignment or in the form of permanent employment to fill open positions on a permanent basis.
To find personnel for vacant positions, there is the external and the internal way. Internal recruitment means that there is reshuffling within the team. In external recruitment, a new employee is added who can bring in new potential.
