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Best Wishes for a Prosperous New Year

December 30th, 2010

As we look ahead to the promise of a new year, we also hope that 2011 presents a lot more opportunities for us to work together. 

From all of us at UNITEMP, we’d like to wish you a happy, healthy and successful year ahead.

Overtime vs. Temporary Staffing – A Cost Analysis

July 13th, 2010

You’ve just won a three-month contract with a major new client – congratulations!  Now, you need to figure out how to get the extra work done. 

Should you pay your current employees overtime, or bring in temporary help?  Consider the following sample cost analysis.  It is based on an annual salary of $40,000 ($20.51/hr.), vs. time-and-one-half overtime, for one employee:

Cost Analysis

Expenses Paying Overtime Using a Temporary
Hourly Wage $30.77 $32.82*
Fringe Benefits** $9.54 $0
Administrative/Payroll*** $3.69 $0
Over 3 months x 450 hours x 450 hours
Total Cost $19,802.00 $14,767.20


Although this is just a sample exercise for illustration purposes, it clearly demonstrates the economic rationale for using temporary employees.  When you need additional productive hours on a temporary basis, staffing services can lower costs, reduce burnout and improve the productivity of your direct staff.

UNITEMP – New Jersey’s Staffing Economics Experts

Need help assessing the cost of a staffing strategy?  Contact UNITEMP.  Our experts will work with you to determine the most productive and cost-effective way to get your work done.

Cost Analysis Assumptions

* Temporary staffing rates vary by market, but the relationship (ratio) between pay rates remains the same.

** Fringe benefits include:  holiday pay, sick leave, vacation pay, personal days, insurance, F.I.C.A., S.U.I., F.U.T.A., worker’s compensation, etc., based on a national average of 31%.

*** Based on U.S. Chamber of Commerce national average statistic of 12%, which includes firms that pay no benefits.  For small firms with moderate benefits programs, this cost is typically 40-45% of payroll, and for larger firms with extensive benefits programs, the cost can be up to 100% or more of payroll.

Talent Gap Looms as Global Economy Improves

May 11th, 2010

According to a worldwide survey of senior managers, years of staff cutbacks have undermined trust in the workplace.

The Economist Intelligence Unit’s new report, titled “Companies at the Crossroads,” recommends that to restore that trust, companies must put their employees first  - or risk experiencing deep talent erosion and sustained underperformance as the global economy recovers.

Here are some key statistics from the December 2009 report:

  • 29% of business executives surveyed said employee engagement is low – and that they expect to lose key people as talent demand grows.
  • 41% of respondents cite a shortage of talent in their organization.
  • 44% of executives surveyed said they find it increasingly difficult to recruit talented employees.
  • 50% of respondents plan to ramp up recruitment in 2010, with only 18% freezing headcounts.

The survey found that while executives understand the need to focus on their talent, greater action is needed to develop sound talent management strategies for the future.  Low trust among mid-level employees, coupled with low graduate recruitment and an ongoing demand for senior executive talent, is creating a perfect storm for businesses:  the most talented employees may be headed out the door, with fresh talent not yet recruited.

Bottom line, these trends can have a serious impact on your business as the economy recovers.  UNITEMP is prepared to help.  We proactively recruit to ensure you always have immediate access to the skilled, talented and reliable individuals you need – especially when that talent becomes hard to find.  Visit our website to find out what we can do for you.

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