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Staffing reduces margins, eliminates shortages

Posted on April 15th, 2014 Read time: 1 minutes

According to Staffing Industry Analysts, margins in the business world have declined significantly over the past decade due to the use of vendor management systems (VMS). In other words, staffing has made the world run more efficiently than it has before, due to the benefits of temporary workers. Such benefits include flexibility to grow and expand the workforce in response to shifts in the economy, as well as the ability to hire through an employer of record, which reduces the overhead on workers because the company responsible for paying for taxes and health insurance is the employer of record instead of the company that hires the temp.

Another benefit of hiring temp workers is the elimination of staffing shortages. One such shortage is affecting Litchfield County in Connecticut. According to the Litchfield County Times, there is a shortage of nurses at hospitals in Milford and Danbury, among other towns in Litchfield. Such shortages are resulting in nurses being stuck with "eight or nine patients" during a single shift.

"You cannot access and monitor the status of patients as well as you could do if you had five patients," Ms. Consoli, a local nurse, said.

A possible solution to this problem would be hiring a temporary staff of nurses who could help out while the shortage is happening and then be reduced as permanent nurses are gradually hired on to the workforce.  The same is true for any industry with a shortage of workers.

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