Convert Fixed Cost to Variable
If your organization is like most, labor is the biggest line item in your operating
budget. To minimize that expense, implement a planned staffing model.
Reduce core staff to levels necessary to maintain normal operations. Then
partner with qualified temporary staffing vendors to supplement your staff to
meet peak programmatic and operational demands as needed.
Eliminate Overtime
Overtime is an extremely expensive way to get work done. Using temporary
employees in place of overtime can reduce labor costs by 20% or more.
Limit Benefits Expense
On average, benefits cost 25% – 30% in excess of payroll expenses.
Where appropriate, use temporary and payrolled employees (employees
who are paid through a staffing firm or professional employment service)
to eliminate benefits expenses. This option is most often used for interns,
project professionals, and other short-term employees. Using temporary and
payrolled employees in place of independent contractors will also reduce your
employment risks.
Reduce Training Costs, Scrap & Rework
Training is expensive—and not just the hard dollar cost of the training program.
There are also the soft costs of lower productivity and poorer quality that result
from employing novice staff. Cut training costs and improve productivity by
employing skilled temporary employees. By working closely with your staffing
partner, you can gain access to candidates who are well trained and have
experience in the skills you need. To enhance productivity further, partner with
your staffing firm to create an initial orientation and training program for new
hires.
Shift Administrative Burden
When you use temporary staff instead of direct hires, all costs associated with
processing and administering payroll and benefits are transferred from your
organization to the staffing firm.
