I speak to dozens of staffing company owners each month. All size companies and all niches. Almost all of them are seeing their payroll costs increasing and are not sure what to do about them. There are 3 reasons that this is happening now:
- Increased healthcare costs
- Higher workers compensation insurance rates
- Increased state unemployment rates
As a former staffing owner, I know the last thing I ever wanted to do was to talk about having to increase my prices to a client. But as an industry, we are at that “tipping point” where workers compensation and other key payroll costs like Obamacare and unemployment costs are forcing staffing owners to have that tough conversation about raising prices.
Having managed many of these “sensitive ” client conversations successfully in the past, I have found some great ways to delicately talk about pricing issues- especially when it comes to workers compensation insurance rates and overall payroll costs. The key is to use hard data to reflect what is going on in the market place.
Below is a good article with hard data describing the trends for workers compensation insurance rates.
http://www.iii.org/facts_statistics/workplace-safety-workers-comp.html
Please feel free to call me at 202 302-1212 or visit us at www.StaffingCompSolutions.com so we can discuss this very important issue and ways to make you more profitable.
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association