Every successful business constantly looks at how to improve its bottom line. Company owners and managers need to make the right decisions that reduce costs and maximize profits without affecting customer service and shareholder confidence. Temporary staffing agencies help clients save money in many ways. Here are three of the most significant ones.
Reduce In-House Human Resource Needs
Human resource departments are stretched to their limits these days. This department has to deal with workers’ compensation claims, never-ending employee issues, government regulations, and benefits. On top of this, they have to be constantly vigilant that the company doesn’t face employee lawsuits or government investigations. With so many responsibilities, many HR departments can barely keep their heads above water. Screening, hiring, and training new employees can be too much.
Temporary staffing agencies can help alleviate some of the burden on a company’s HR department. The agency can handle the entire process of recruiting, interviewing, screening, and placing workers for open positions within the client company. They can bring a few candidates in for the client to review, or place someone directly into the position. This reduces the effort required by the client significantly.
On the other end, if a temporary worker does not meet the client’s expectations, the burden of firing that person falls to the staffing agency, not the client. This can be a big relief to client HR departments.
Without the extra burden, a client’s HR costs can be reduced, or at least maintained at a minimal level. The reduction in costs can include less payroll, fewer benefits, less office space, and fewer equipment/supply needs. This can add up to thousands in savings for some companies over the course of a year.
Reduce In-House Training Requirements
A staffing agency can reduce the training needs for a client.
It starts with finding the right candidate to fill the open position. The right candidate will already have previous experience in a similar position. That person will bring already developed skills into play on the first day. While some training will still be required, it will be far less than would be required for a less qualified candidate.
The agency can also provide basic training for the temporary employees. Whether it is safety training for warehouse workers, or orientation for office workers, the agency can handle this traditional HR function. This further alleviates the burden on the HR department while ensuring the temporary employee can step into the client’s business ready to go.
Reduce Overtime, Employee Error and Worker’s Compensation Costs
When a company does not have enough staff to do the work on hand, overtime becomes the norm instead of the exception. And overtime can cost a company a lot of money. The company has to pay time-and-a-half to have an hourly employee work overtime to keep up with business demands. On top of this is added benefits and added supervision costs.
Most workers can handle an occasional overtime. Continuous overtime, however, can lead to employee fatigue, stress, and burnout. And this can lead to employee errors, which can cost the company a lot of money. Having someone to cover the extra work can drastically reduce the chances of stress and fatigue-related errors from occurring in the first place.
Fatigue, stress, and burnout can also cost a client company in the way of workers’ compensation claims for related illnesses and injuries. This kind of claim includes lost work time, which the company has to cover as well.
Each of these reductions will improve your clients’ bottom lines. It will also give them the ability to meet any employee needs they might have, whether short-term cyclical or long-term permanent. Highlighting these cost reduction opportunities is a significant marketing lever your business needs to use.
