Trial Hiring: Your Secret Weapon to Cut Costs

Trial Hiring, employer of record service, eor

Hiring a new employee remains a significant risk for any business, with costs associated with training, equipment, and healthcare on the rise. In 2024 adaptability is key, employers are exploring innovative approaches to mitigate risks and find the perfect fit for their teams. The Solution? Trial Hiring or Employer of Record (EOR) Services.

Current Trends in Turnover Rates

As of 2021, the Bureau of Labor Statistics reported an overall turnover rate of 57.3%. However, when breaking it down, voluntary turnover stands at 25%, involuntary turnover at 29%, and high-performer turnover at just 3%. The average cost-per-hire for a new employee is $4,129, with an exit costing employers around 33% of the employee’s yearly salary.

The Shift to Trial Hiring

Recognizing the financial impact of turnover, employers are increasingly turning to trial employment solutions. With a turnover rate close to 19% across industries, trial employment offers a way to ‘test out’ a new staff member before committing to a full-time position with a salary, 401k, and benefits.

Pros of Trial Hiring in 2024

When recruiting potential employees for trial employment, both parties are essentially taking a test spin. Key advantages include:

  • Real-world Evaluation: Businesses can assess candidates’ strengths and weaknesses in an actual work environment, moving beyond what’s on paper.
  • Flexibility: Trial agreements can be terminated at any point without cause, providing adaptability in uncertain times.
  • Cost Savings: Trial workers do not receive the benefits and salary of a full-time employee, resulting in financial savings for employers.
  • Efficient Recruitment: The time spent recruiting a trial worker is typically less than recruiting a full-time employee.
  • Easy Exit: Trial employees can leave more easily if they feel the job or company isn’t the right fit.

Understanding Trial Employment

Trial employees, akin to full-time employees, are considered at-will workers, allowing employers to terminate them for any legal reason without warning. Employers need to understand their state’s at-will employment regulations. Drafting a clear written contract is crucial, specifying trial terms, job duties, title, pay, etc.

Terminating a trial employee doesn’t necessitate providing a reason, though doing so can prevent potential discrimination claims. Despite minor drawbacks, hiring on a trial basis offers significant benefits to both employers and candidates.

Simplifying the Process with Workforce Management Companies

Consider engaging workforce solution companies like Employnet for trial employment. These firms streamline the process by conducting interviews and reference checks for temporary professionals. Their seasoned recruiting teams bring industry expertise and individualized attention to connect businesses with high-quality talent that aligns with their brand, culture, and vision.

Elevate your employee hiring process in 2024 – explore the advantages of trial employment with Employnet!