10 Staffing Strategies For Controlling Costs Suggested by Recruitment Agencies

May 10, 2017

10 Staffing Strategies For Controlling Costs Suggested by Recruitment Agencies

In today’s scenario Recruitment agencies have gained a great expertise about the prevailing job market conditions. Taking their services works best for a business just starting to make its presence felt as for them managing and recovering costs is a task in itself. In order to keep yourself afloat in these circumstances, it is imperative that you pay attention to the way you are staffing.

With appropriate steps you can reduce overtime, payroll and benefits cost and even manage to improve the flexibility and quality of your service. To guide you better read on to find our take on staffing strategies suggested by recruitment services agency that will help in controlling costs.

 

  1. Recruitment agencies can reduce training costs

     

Getting your employees trained is an expensive proposition. This coupled with the fact that hiring novice staff leads to loss of productivity which is also an expense in itself. If you are still unable to handle the same then outsourcing the hiring part to a reputed service provider can come as a solution to your problem. While working closely with the staffing agency you will get access to candidates who are previously trained and have the kind of skills that you require for the job.

 

  1. Converting your fixed costs to a variables 

 

For any business or company just making a foothold, labor can be an unmanageable cost. However, implementing a planned staffing model will help you in curbing the costs. Not only that a planned model will let you hire the staff needed to manage your peak production work. This strategy works well for normal labor plus even for project-based opportunities in Finance, IT, engineering etc. For better results, team up with a recruitment consultant who can handle these responsibilities well.

 

  1. Cutting overtime expenses

Once your business starts showing signs of surging then recruit temporary employees to handle the extra work. Doing that you would be able to reduce the overtime costs plus you won’t have to pay the benefits and even the payroll administration costs. This contingent staff can help you in reducing employee burnout and hence reduce your costs by nearly 20%. In case confused over how to do so consult recruitment agencies to guide you better.

 

  1. Hire Recruitment agencies to reduce the turnover

 

There are some jobs which come with high turnover costs. These not only involve high replacement costs but also insignificant costs of project delays, quality issues and hampered productivity. However recruiting temporary employees at such high turnover posts can reduce the expense you would have to incur while looking for replacements.

 

  1. Improve your hiring accuracy

Hiring the wrong person can lead you to spend from two to seven times the cost of a regular employee. A hiring and staffing agency will use principles of technology and economics to reduce the amount of time you take to hire. Such recruitment companies also reduce your costs associated with resume searching, signing recruitment services contract, screening, interviewing, testing and finally reference checking. This in turn also reduces disruption if any to your business and you can divert your energies to doing something productive.

 

  1. Cut on the legal expenses

Any employment related lawsuit can be vastly expensive and even hamper with the execution of your other important tasks. Staffing services firms ensure that proper paperwork is followed while getting employees on board. Not only that those recruitment agencies manage all the financial and legal regulations related to payroll, benefits, taxes and government set rules. You, in turn, save your money by limiting the liabilities that are associated with hiring your employees.

 

  1. Remove your administrative burden

Instead of direct hires if you are able to hand over recruitment of temporary staff to an external agency then all the burden associated with administrating payroll and other benefits automatically get shifted to them. Implementing the right staffing solutions will ensure that you are able to comfortably reduce the administrative expense of hiring people.

 

  1. Limit your expense on benefits

One of the very high expenses in staffing the benefits is also an opportunity to save some extra bucks. When you hire temporary employees from a staffing firm then all the costs of such benefits provided to them falls back on the agencies shoulders. If your small business head count is near about 50 people then hiring contract employees becomes the least expensive way to manage the growth of your business. However, hiring the best staffing firm to get the job done is also critical at this stage.

 

  1. Preventing employee claims

The temporary employees that your recruitment firm hires for you work for them and hence any issues from their side will be handled by the agency itself. Hence if they have any issues with the working of the company they will raise it with the agency itself. This, in turn, reduces your business performance getting affected by this. However, it is required that you finalize these terms and conditions with your recruitment services agency beforehand.

  1. Cut hiring costs

Constraining the capacity of an employee is a method of ensuring better productivity and also saving up on some extra costs. Free up your efficient employees to do jobs which need better focus. The rest of the tasks can be handled well by contract employees hired by you. You could also hire up professional temps who can handle your simple projects and keep them on the right track. If you are able to recruit the right kind of people to be sure that your work will be done efficiently and even reduce your administrative costs.

 

For any upcoming business surviving in the cutthroat industry is not possible until unless the costs are kept under control. Using staffing to do so is not a very tough job provided you have the correct agency to guide you in doing so. Reducing the company’s bottom line need not have to cost you time, efficiency and productivity. Look for reputed recruitment services firms, to handle these responsibilities for you and even prepare a staffing strategy which helps you in saving on all fronts. Searching on the internet with your required information is most likely lead you to connect with the correct service providers.

 

 

 

 

 

 

 

Image source:Social Security Report
May 10, 2017

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