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1 Convert
Fixed Cost to Variable
If your company is like most, staff is the biggest line item on
your P&L. To minimize that expense, implement a planned staffing
model. Reduce core staff to levels necessary to maintain normal
operations. Then partner with qualified temporary staffing vendors
to supplement your staff with trained temporary personnel to meet
peak production demands as needed. This strategy is particularly
effective for office staff, as well as for technical, creative and
professional projects.
2 Eliminate
Overtime
Overtime is an extremely expensive way to get work done. Using
temporary employees in place of overtime can reduce labor costs
by 20% or more.
3 Limit
Benefits Expense
On average, benefits cost 20% - 25% in excess of payroll expenses.
Where appropriate, use temporary and payrolled employees (employees
who are paid through a staffing firm or professional employment
service) to eliminate benefits expense. This option is most often
used for interns, project professionals, and other short-term employees.
Using temporary and payrolled employees in place of independent
contractors will also reduce your employment risks.
4 Reduce
Training Costs, Scrap & Rework
Training is expensive—and not just the hard dollar cost of
the training program. There are also the soft costs of lower productivity
and poorer quality that result from employing novice staff. Cut
training costs and improve quality and productivity by employing
skilled temporary employees. By working closely with your staffing
partner, you can gain access to candidates who are well-trained
and have experience in the skills you need. To enhance productivity
further, partner with your staffing firm to create an initial orientation
and training program for new hires.
5 Shift
Administrative Burden
When you use temporary staff instead of direct hires, all costs
associated with processing and administering payroll and benefits
are transferred from your company to the staffing firm.
6 Prevent
Unemployment Claims
Unlike short-term direct employees, temporary personnel work for
your staffing partner—not you. Consequently, their unemployment
claims don’t affect your rating or your bottom line.
7 Reduce
the Risk of Hiring Mistakes
A bad hire can cost you between two and seven times the employee’s
annual salary. Staffing firms follow rigorous screening procedures
for both temporary personnel and direct hires, which increases your
chances of getting the right person. They will most often provide
candidates who not only possess the skills and experience you require,
but who also have the personality traits needed to thrive in your
work environment. To further reduce your hiring risk, you can also
take advantage of your partner’s temp-to-hire services and
direct placement guarantees.
8 Take
Advantage of a Staffing Firm’s HR Capabilities
If hiring duties are sidetracking your key employees, use your
staffing partner to handle screening, testing, interviewing, and
reference checking. Their expertise can free your personnel to concentrate
on critical activities, and can reduce your time to hire.
9 Cut
Costs by Hiring
Capacity constraints are a significant source of cost. Constraints
may affect the throughput of a plant or the productivity of an executive.
To eliminate the bottlenecks, consider adding temporary or full-time
staff. Bringing in administrative support frees key personnel to
focus on core job duties (not only do you get a more productive
employee, but the administrative work gets done for significantly
less cost). Add labor to relieve process constraints and improve
productivity. Use technical and professional temps to keep projects
on track. By adding the right people, work will get done more efficiently,
with less administrative headache, and for less cost.
10 Avert
Costs Associated with Burnout
Many companies may take the concept of "lean thinking" too far.
They push direct staff to produce more with fewer resources. And
as the stress increases, so do problems with quality, productivity,
absenteeism, and turnover. Take the pressure off by using temporary
employees. The additional personnel will help your staff avoid burnout,
reduce the cost of defects, avoid productivity losses, and limit
turnover expense.
© Haley Marketing
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