Clearly, it’s a competitive marketplace, and the companies who are best able to be strategically priced, while maintaining suitable profit levels, are leading the way. Your company’s Human Resource/Staffing strategy plays a key role in driving the bottom line. Industry leaders know, beyond doubt, from the assembly line to the executive office, the incorporation of strategic staffing solutions can lead to increased efficiency and profit. Below are 10 solid ways the services WorkSource provides to its clients can help you.
These are not “fairy dust” ideas, or “grand illusions”. They’re practical, real-world strategies that today’s best companies are using, and have come to rely on, to drive greater profits.
Converting Fixed Costs to Variable Costs
For most companies, labor is the biggest line item on your P&L. A planned staffing model can minimize that expense. Companies reduce their core staff levels to a point necessary to maintain normal operations, and partner with WorkSource to supplement operations with skilled temporary personnel to meet peak production demands, as needed. The strategy is particularly effective for industrial labor, seasonal positions, and technical/professional projects.
Eliminating Overtime Costs
Overtime is an extremely expensive way to get work done; a 50% increase in labor costs eats your profits. Using WorkSource temporary or temp-to-hire employees in place of higher paid workers earning overtime can significantly reduce your labor costs, typically by 20% or more. When the staff is no longer needed, you end the worker assignments and walk away clean. This is a solid way WorkSource can help you to control costs, improve throughput, and mitigate risks.
Limiting Benefits Expense
On average, company benefits cost 20%-25% above standard payroll expenses. Using WorkSource temporary and temp-to-hire employees, and delaying or eliminating benefits expenses can improve the bottom line. Often, the savings from this facet alone, can cover all or part of the costs associated with WorkSource’ services. It’s an effective strategy for on-boarding new employees, interns, project professionals, and other short-term employees.
Reducing Training Costs, Scrap & Rework
Training is expensive in terms of hard and soft costs, including reduced productivity and quality. WorkSource can work with you to map out and apply effective orientation and training programs for new hires, before they start working. That way, when they arrive at your worksite, they can hit the ground running. – In times of high demand, allocating veteran staff to handle complex functions, and bringing in temporary or temp-to hire employees to handle more basic processes is an effective way to maximize throughput.
Shifting Administrative Burden
With a WorkSource staffing plan, as opposed to your company absorbing all of the costs associated with administering payroll and taxes, maintaining employee documentation, and managing benefits are transferred from your company to WorkSource. This includes all the follow-up that comes later on… W2, unemployment hearings, attendance documentation, etc. –
Preventing Unemployment Claims
WorkSource temporary or temp-to-hire employees, during the contract term, are employed by WorkSource —not you. Consequently, any resulting unemployment claims don’t affect your rating, your bottom line, or have you obligated to participation unemployment hearings, or maintaining the paperwork required to effectively fight potential claims. An increase in your unemployment rate, due to high the turnover related to demand fluctuations or revolving door type short term workers can easily surpass the annual costs of WorkSource services. Why not save some money, and reduce your headaches at the same time?
Reducing the Risk of Hiring Mistakes
Studies show that a “bad hire” can cost between two and seven times an employee’s annual salary. WorkSource utilizes the following screening tools: background screen, E-verify, attitude profile, job fit profile, and drug screening. Those screening processes, paired with a temp-to-hire strategy, can virtually eliminate the possibility of a bad hire. Being able to observe a worker’s attitude, performance, teamwork, cultural fit, and attendance for a period of time, prior to making a formal employment offer, virtually guarantees success.
Take Advantage of a Staffing Firm’s HR & Recruiting Capabilities
If hiring duties are sidetracking key employees from focusing on their standard roles, it’s costing you a lot of money. Also, if an internal HR team is overwhelmed, unable to meet demand or to manage things from a higher strategic level, it’s costing you money. WorkSource is in the business of screening, testing, interviewing, and reference checking. We’re skilled at what we do, and whether we’re freeing up your key managers to focus on their core functions, or working along-side your internal HR team, the added capacity can lead to increased profits, and reduced
Cut Total Costs by Increasing Staff
Using WorkSource employees can relieve capacity constraints and save money. Capacity constraints are a significant source of cost, and affect the throughput of a plant or the productivity levels of admin support and executives. To eliminate the bottlenecks, consider adding temporary or full-time temp-to-hire staff. Bringing in support frees key personnel to focus on core job duties (not only do you get a more work done, but the work can get done for significantly less cost), and more hands relieve process constraints and improve productivity. Technical and professional temps can be used to keep projects on track. By adding the right people, work will get done more efficiently, with less administrative headache, and for less cost.
Avert Costs Associated with Burnout
Many companies may take the concept of “lean thinking” too far. They push direct staff to produce more with fewer resources. As the stress increases, so do problems with quality, productivity, absenteeism, injury, and turnover. Take the pressure off by using temporary employees. The additional personnel will help your staff avoid burnout, reduce the cost of defects, avoid productivity losses, and limit turnover expense. There are countless studies proving that persistent overtime yields a variety of negative, costly, adverse impacts.
Every business has its own unique set of circumstances and challenges, but as with anything, it pays to evaluate options. If we can be of service to you, or answer any questions, simply click the “contact us” link below. –