To and requires careful thought and consideration.

To follow-up our meetingwith Mr. Jacoby from Flexible Staffing Services (FSS), I have reviewed my notesand would like to share my findings with you about how FSS could help theKaiser Manufacturing Company (KMC).

As with any business decision, there arepros and cons that must be considered. This decision is no different, andrequires careful thought and consideration. I have summarized what I believeare the strengths and weaknesses of using a flexible staffing company, alongwith the use of FSS below.

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            There are many advantages and disadvantages of using aflexible staffing company. Advantages include having temporary employees whenthe production level increases suddenly and is not predicted to last long,reducing the amount of overtime, filling positions while searching for apermanent employee, and it can accommodate employee’s lifestyles. KMC is amanufacturing company and like other manufacturing companies, there are certaintimes when demand is increased. When this occurs, it would be beneficial to usea flexible staffing option. Without adding employees during this increaseddemand time, current employees can get fatigued with overtime or the demand isgreater than the supply and customers either have to wait for a backorder to befilled or cancel their order in leu of a faster company.

Thus, the addition ofemployees in the production department, for example, can increase the number ofproducts that are made without having to place stress or time crunches on thecurrent employees, who there are not enough of to complete the order. Beingable to hire more employees when the product demand is increased can alsocreate a work environment that is not overstaffed with the addition of newpermanent employees. Some flexible staffing companies have an option wheretemporary employees can turn into regular employees if the company wants tohire them. This is a wonderful way to see how an individual works and fits inwith a company’s environment and client before offering them a full-timeposition.

Flexible staffing companies can also accommodate employee’s lifestyleby being more flexible. The employees of flexible staffing companies can spendmore time with their families and personal life as it is not a permanentfull-time job.             The disadvantages of using a flexible staffing companyinclude employees who need to be trained to work efficiently, lower wages,fewer benefits, and working for two different companies.

The employees of aflexible staffing company might be in various categories, such as production,sales, or management; but this does not mean they will know how to do every jobthey are sent to. This could result in lost production time as they need to betrained in order to work safely and effectively in the new company. Employeesof flexible staffing companies often earn lower wages than people in similarjob categories. In addition to lower wages, the employees earn fewer benefitsas they are usually not considered full-time employees and are not normallyoffered health insurance or retirement plans. Lastly, employees of flexiblestaffing companies have a division of supervision. They technically work forthe staffing company and are hired by the other company. This can lead toconfusion on who to contact for personal requests and who to bring work relateddiscrepancies to.             FSS has its own advantages and disadvantages that must beconsidered if KMC were to select them as a service provider.

Advantages of FSSinclude having employees on an as-needed basis, provides employees in four maingroups and employees can be full-time or part-time, and employees can bestrictly temporary or can move to a permanent position after a 90-day trialperiod. Having employees on an as-needed basis would result in reduced downtimeas the changing production demands can be constantly met. Since these changesare often unknown, no prior knowledge of the change in demands or request tohave extra employees is required. The four main groups would allow KMC to staffprofessional or administrative, secretarial, technical, and manufacture jobsthrough the same company. This would benefit KMC as they would only need tocontact FSS to gain employees for those tasks.

The employees being full-time orpart-time is another benefit. This allows for more flexible scheduling and thenumber of employees that would be required. Having the option to make temporaryemployees permanent employees is another advantage. This can reduce the amountof time that a company spends on recruiting an employee for the job and allowsthe employee a chance to perform the job before deciding to make it permanent.             FSS takes care of the recruit, selecting, and hiringpeople which would reduce the amount of monetary and time resources that KMCdevotes towards these activities. Since employees work through FSS, FSS isresponsible for their wages, vacation time, retirement plans, and healthinsurance. This reduces the costs that KMC would incur if it were to hireadditional permanent employees.

Thus, FSS could save KMC money when it comes tothe recruitment and hiring process, along with the benefits that are associatedwith jobs.             Disadvantages of using FSS include having a smaller poolof future employees to hire from, KMC might be charged a higher rate thanfull-time employees in order to cover FSS’s costs, and additional costs forpersonalized services. If KMC used FSS, then all of the employees KMC receivedwould be reduced. There might be talented people who would excel in a positionat KMC, but they might be missed if they are not employed by FSS. Someemployees are not comfortable with working for a flexible staffing company,they search for jobs that are permanent and full-time to support themselves ortheir families and to have stability. Therefore, people with this mindset wouldnot be available through a flexible staffing company like FSS. FSS is providinga service to other companies, and this can be costly.

Costs such as building,utilities, staffing, benefits, and insurance go into the calculation costs for theemployees that are supplied by FSS. This can be costly, and analysis needs tobe conducted to see how this will affect profits. In addition to these costs,FSS charges an extra fee if personalized services are used.             To determine what decision should be made regardingflexible staffing companies and specifically FSS, further information andresearch must be conducted in an effort to make an informed decision. In orderto make an informed decision, KMC should receive a model of the types ofquestions that are used to determine knowledge, skills, abilities, and othercharacteristics (KSAOs). This will assist the HR department in determining ifthe candidates will be able to meet the values that KMC has established.

Totake this another step, KMC should request to input their most desired KSAOsinto the questions to increase the chances of having a temporary employee thatis more aligned to KMC from the beginning. As with most production companies,KMC might experience transformations, the FSS employees might not be currentwith the updates. This will hinder the success of KMC as it will have toallocate resources to training the flexible employees that might not be withthe company for very long.            KMC must review federal and state laws and regulationsthat regard temporary employees. This can lead to disastrous consequences forKMC if they are not followed. This can also lead to a negative public imagewhich will have many negative effects as well. KMC must be well versed on howto treat temporary employees, how to handle situations, and that they arecompensated fairly just like any other employee.

This will lead to a greaterworkload on the HR staff at KMC who must research and learn the new laws andregulations since the company has never dealt with temporary employees beforeand therefore might not have the latest knowledge on it.             Another concern that needs to be carefully considered isthe fact that FSS is a newer company. This will make past performancesdifficult or impossible to review.

A company that has been around longer wouldbe able to provide references and statistics on how it saved companies moneyand time, how well the flexible employees integrated with permanent employees,and other factors. Because FSS is new to this industry, KMC should researchmore established firms before deciding to choose FSS. This additional researchcould lead KMC to choosing a more established flexible staffing company.             There are many advantages and disadvantages to using aflexible staffing company. With the current demands of KMC I would advise theuse of a flexible staffing company in order to keep up with demand while notcreating an overstaffed situation. With that being said, I think additionalresearch is required before blindly choosing FSS.

FSS is a new company and Ithink our firm would be better suited with a more established flexible staffingfirm. 

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