Josephine's Personnel Services, Inc.

Employees & Subcontracting – Battling the Rising Cost of Labor

February 25th, 2014
Are you utilizing subcontracting?

Are you utilizing subcontracting?

In business today, the rising costs of labor can be overwhelming. Not only are wages getting higher, but employees want more benefits to go with a higher pay grade. These demands can easily break a smaller company; even large companies can feel the pinch. Subcontracting out a position to a temporary staffer can easily solve this problem. In this blog post, we identify 3 ways in which subcontracting can keep you from breaking the bank during a time when rising costs can cost a company much more than dollars.

Three way subcontracting can cut labor costs with employees: 

Benefits: Full time employees often require benefits in addition to their wages, and as the demand for higher wages rises, the demand for an increase in all other employment benefits rises just the same. By subcontracting out to a temporary staffer, you are essentially garnering a high quality staffer at a portion of the cost.

Specialized expertise: Throughout the year, your company may have specific employment goals in mind that your current employees can’t achieve on their own. Instead of creating a full time position for an employee that may only be necessary for a short period of time, consider subcontracting a temporary staff member with a distinct set of skills and expertise that will aid in creating the quality of work you desire.

Insurance costs: In most cases you are not required to carry liability insurance on subcontracted temporary workers, but as always, be sure that the staffer comes equipped with their own liability insurance plan in case of an accident.

The rising costs of labor can be debilitating to businesses, but these three reasons show the basic ways in which subcontracting can help lessen the financial hardship of the times. Keep in mind that temporary staffing solutions can make all the difference and agencies like JPS Inc. are ready to help you find the perfect temporary worker for the job. Give us a call today, we are ready to help!

About Josephine’s Professional Staffing 

Founded in 1988, Josephine’s Professional Staffing has nearly 25 years of business success and is continuously committed to providing superior quality staffing solutions to companies in the Bay Area. We proactively and consistently search for avenues to provide staffing solutions in the field of administrative, accounting, healthcare, light industrial, technical and professional services while taking pride in each of our employees. Josephine’s Professional Staffing is a Certified Small Business Enterprise (SBE), Underutilized Disadvantaged Business Enterprise (UDBE), and Minority Woman-Owned Business Enterprise (MWOBE). We can be reached at or 408.943.0111 and are located at 2158 Ringwood Avenue, San Jose, CA 95131

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