Cut costs. Find new sources of revenue. Improve productivity.

Even though some positive economic signs begin to emerge, these three goals will still ring true for nearly every business throughout the country.

Through using a planned approach to staffing, companies are saving an average of roughly 10% (and in some cases up to 30%) of labor costs with temporary staffing and reducing financial risk.  Here are some ways you can have similar results:

1. Better Contain Costs – All businesses need to control expenses. When used effectively, staffing services can save far more than they cost. Staffing solutions can reduce overhead and manage operating costs in several areas:

Fixed Expenses–By using temporary employees for special projects or during peak workload periods, you get the experience and skills you need without increasing your fixed payroll costs.

Benefit Expenses–Using staffing services can limit your benefit expenses. Most temporary employees receive only limited benefits paid by the staffing firm.

Overtime Costs–By using temporary employees, you can reduce the amount of overtime you pay your direct staff.

Unemployment Claims–Because staffing companies provide temporary employees, none of the unemployment claims affect your rating.

2. Reduce Your Financial Risk – Staffing firms can help your business thrive by reducing the risks inherent in hiring and human resource management:

Bad Hires–All hiring decisions are risky because bad ones are so costly. To help protect yourself, consider a temp-to-hire option to try out a new employee. If you’re pleased with the temporary employee’s performance, you can offer him or her a direct position. If you’re not, you can terminate the assignment without consequence.

Burnout–As the workload increases, tension in the workplace rises, and so do absenteeism, workers’ compensation claims, and the need for more management. Adding temporary employees during peak work periods can help relax the demand on your direct staff.

Legal Issues–Staffing firms are well-versed in employment law, so they comply with all federal, state, and local regulations. They can also help ensure that you’re following non-discriminatory hiring practices.

Layoffs–By using temporary employees on an as needed basis, companies that experience frequent variations in workload can reduce or eliminate the need to lay off direct personnel during slow periods.

3. Increase Flexibility – Today’s organizations are challenged to meet market demands quickly, without committing to long-term expense. Staffing firms can provide the support and expertise you need to get your work done within time and budget constraints.
Operating Efficiency–Business functions outside of your core competencies can be outsourced to staffing companies. Outsourcing normally translates to decreased expense and increased efficiency.

Staffing Options–Temporary employees are an ideal answer to situations with short-term staffing requirements, including special projects, seasonal work, vacation and maternity leaves, and tight deadlines.

Hiring Restrictions–If your municipality has instituted a hiring freeze, temporary employees can help you with the workload without increasing your direct hire headcount.

Immediate Placement Needs–Most staffing companies maintain robust applicant databases. They can often identify candidates who have the skills, experience, and personality traits that match your work environment. They can also supply competent temporary employees who can fill in until you’ve found the right people for direct positions.

In Part II of this series, we’ll cover a few additional tips on driving performance and lowering cost in your organization.

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