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How Employers Can Contain Costs with Staffing

September 29th, 2011

What business isn’t looking to control expenses? Staffing firms offer many effective solutions for reducing overhead, managing operating costs and improving organizational performance. Used effectively, staffing services can save you more than they cost.

Here are some key ways you can use staffing to reduce costs in your organization:

Convert fixed expenses to variable.
Develop a plan to staff your business strategically. Minimize the number of permanent employees on your staff to the level needed to sustain your core volume of work. Proactively plan to bring in extra help when it’s needed.

Bring in expertise on an as-needed basis.
Temporaries can deliver the experience and skills you need without impacting fixed expenses. As an added benefit, temporary “experts” are often less expensive than consultants.

Lower benefits costs.
Limit benefits expense by using temporary employees. Most temporary employees receive only limited benefits which are paid by the temporary staffing service. Companies with extensive benefits programs may not want to offer full benefits to all employees. Using a temporary staffing, payrolling or employee leasing service may make it possible to offer more limited and cost effective benefits programs to these employees.

Eliminate overtime.
Use temporary employees to reduce the amount of overtime worked by your permanent staff.

Reduce training costs.
Reduce training costs and learning curves by bringing in temporary employees who are trained and have experience using the skills you need.

Streamline recruiting.
Use a permanent placement service to eliminate the cost and time involvement associated with advertising, screening resumes, interviewing, testing and reference checking applicants.

Lower payroll expenses.
Eliminate the costs associated with processing and administering your company’s payroll and benefits by using a payroll or employee leasing service.

Reduce unemployment claims.
Using a temporary in place of a short-term employee prevents an unemployment claim from affecting the client company.  Legally, payrolled or leased employees work for the company providing the payrolling or employee leasing service. All claims affect the staffing service’s unemployment rating, not yours.

Eliminate operating inefficiencies.
Inefficient functions can be outsourced to services that can perform the work more effectively. The outsourcing service should be able to reduce expenses and improve performance while allowing your company to focus on its core competencies.

Develop a Strategic Staffing Plan for Your Organization
At SMR Group Ltd, we help clients evaluate their current workforce and develop a strategic staffing model to help lower overall employment costs and access the skilled talent they need.  Discover more about SMR Group Ltd’s strategic solutions.

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