Recently, RCG polled 50 staffing companies and 77% responded that risk management was a core focus for their business. Furthermore, 89% responded that the primary driver in this business decision was the cost of workers' compensation insurance. There is little doubt that virtually any staffing company stands to benefit when this important cost of doing business is controlled. However, the benefits transcend insurance rates. Successful implementation of the WRC standards delivers financial and operational rewards.
Industry leading companies maintain organizational commitment to quality control and operational excellence. Staffing companies that practice best-in-class risk management enjoy higher margins, more dependable and safety conscious employees, and increased client satisfaction. Risk management impacts all the areas that define operational excellence in the staffing industry.
Often, legislative attacks against staffing are based on the misconception that staffing companies are "irresponsible employers". As an industry, staffing has been falsely alleged of placing employees in working environments without concern for their safety and well-being. WRC certified companies play an important role in the collaborative effort to promote the industry by pronouncing their commitment to fulfill their legal and ethical obligations as a primary employer.
Margins are tightening as client companies become more educated on the services offered by staffing companies. Consultative selling strategies and value-added benefits can make the difference in getting job orders. In one survey, 32% of staffing companies revealed that their clients respond enthusiastically to safety related questions. Clients concerned with safety represent profitable business partners. WRC certified companies offer preservation of the client's safety record (OSHA 300 log), superior matching of talent, and increased productivity among the other benefits of working with a safety conscious staffing service. The WRC Certified logo distinguishes staffing services whose commitment to risk management is fundamental and supported by best practices.
A WRC certified designation can assist in underwriting negotiations with insurance carriers by providing a third party verification of a staffing company's operational commitment to risk management. This leverage can impact risk financing calculations, such as a “loss pic”, or even the decision to evaluate a risk. In a workers' compensation market, where opportunities are limited for staffing companies, the WRC designation provides a valuable edge.
Workers' compensation related expenses represent the most significant cost after payroll for most staffing firms. The WRC standard is based on risk management strategies proven effective within the staffing industry. Through the WRC certification process, staffing firms will be introduced to concepts and methodologies that have helped RCG clients reduce operating costs and increase profitability since its inception in 1990.