7 Ways Staffing Agencies Can Save You MONEY
March 11, 2013 By Summit PA
One of the many benefits of using a staffing company is to reduce your operating costs. Here are 7 ways your small business can reduce your costs directly or indirectly.
1) Convert Fixed Costs to Variable Costs:
For some positions in your company you could save money by converting your “Fixed Employee Cost” to “Variable Employee Cost” for example, if your business has very little room for overhead costs but you still need employees to respond to customer orders. You could use a staffing agency only when you had orders to fill. Even though you pay a markup on the hourly rate you wouldn’t have to carry the fixed employee costs when you didn’t have the work.
2) Efficiency costs:
Recruiting, screening and hiring a candidate takes a lot of time. Delegating these tasks to an expert will reduce the amount of time you spend on the hiring process. Allowing you to onboard your new team member quickly and reducing down time.
3) Eliminating Advertising dollars:
Recruiting for top talent takes an investment in advertising dollars to reach your talent pool. Staffing companies have already set aside advertising dollars for recruiting and are already reaching the talent you need. You can leverage their dollars and save yours.
4) Eliminate Overtime:
Reduce your core staff to levels necessary to maintain normal operations and use temporary staff from an agency when you exceed capacity. Hiring temporary workers saves you more money than paying your current workers over-time.
5) Avoid costs associated with burnout:
Pushing your full time employees to work longer hours or to produce more with limited resources will increase their stress levels. This leads to problems with work quality, low morale, absenteeism and turnover. Use temporary employees to take the pressure off your salaried employees.
6) Get maximum productivity from your current staff:
Free-up your experienced staff by using temps for mundane and time-consuming jobs. Don’t slow the productivity of your top-performing staff with tasks that could be handled by low paid temporary employee.
7) Ramp up with staffing agency employees:
Larger companies are already taking advantage of using contingent workforce to ramp up or down. As a small business owner you can use the agency’s employees as much or little as you need and have the flexibility to discontinue them once your work is complete. During slow times of the year you can downsize without going through painful layoffs. During busy times you will have access to great workers who can fill a vacancy in a matter of days.