Are employment-related expenses among the biggest line items on your company’s P & L?
If so, the more actively you manage these expenses, the more profitable you can become.
A few months ago, I wrote a brief post on how staffing can lower your long-term expenses. Today, I’d like to shift focus a bit and provide a few examples of how smart staffing can help you save money immediately:
Lower turnover. As you well know, certain job functions come with inherently high turnover rates. A “revolving door” carries high direct replacement costs for your company. Beyond this, however, turnover also has significant “soft” expenses such as quality issues, project delays, employee moral problems and reduced productivity. Using temporary employees in high turnover positions can alleviate the stress and expense you incur by having to constantly find replacements.
Make better hires. Temp-to-hire services allow you to see how a potential employee performs on the job for an extended period – before making an offer for employment. Additionally, the direct hire services that staffing firms provide come with replacement guarantees to ensure the quality of candidates they place. As a result, both temp-to-hire and direct hire services can dramatically reduce the risk and expense of a bad hire.
Reduce the number of unemployment claims. Try using temporaries instead of short-term employees to keep unemployment claims from affecting your company. Since the staffing firm is the temporaries’ employer of record, all unemployment claims impact the staffing service’s unemployment rating – not yours.
Staff discrete projects cost-effectively. Contract staff allow you to access the talented experts your business needs, but pay for their expertise only as long as you need it. By using contract professionals for discrete projects, you can eliminate the recruiting, training, benefits and administration costs of acquiring staff who aren’t critical to your long-term success.
Save money on training. Need a worker with a specific skill set? Call a staffing service! Your staffing provider can shorten learning curves and lower your training costs by assigning temporary or contract workers who are already trained and have experience using the skills you need. These workers can step in and be immediately productive for your company.
Smart staffing isn’t rocket science, but it does require careful planning and a partner you can trust. As you begin workforce planning for 2013, Wood Personnel can help you create a staffing plan that saves you money and ultimately makes your company more profitable. Contact us today to learn more about our: