How Can Contingent Staff Boost Your Company's Profitability?
Looking for ways to improve your company’s bottom line? Smart use of contingent labor may be one of your best options.
According to industry statistics shared at the 2011 Staffing Industry Analysts Executive Forum, the largest users of staffing services (companies using 1,000+ temporary and/or contract employees) report a labor cost savings of roughly 13%. While your company may not use nearly as many temporary workers, this statistic illustrates an important point – namely, that staffing services can help decrease your fixed expenses, improving the R-E=P equation (revenue-expense=profit) for your organization.
As I’ve said before, Snelling Staffing Services can do so much more for your business than “fill gaps.” Used intelligently, our staffing services can save money, drive revenues and boost your company’s overall profitability. Here’s how:
Lower labor costs. Contingent staff provide labor savings in two key areas. First, they allow you to convert fixed costs to variable. When the work isn’t there, you don’t have to pay idle direct employees. Second, using temporary workers to handle heavier workloads can reduce or even eliminate your need to pay high overtime rates to your core employees.
Efficiently staff high turnover positions. By design, some job functions have inherently high turnover rates. Using temporaries to staff these positions can alleviate the stress and expense that come from the constant recruit-train-replace cycle characteristic of high turnover positions.
Access expertise for projects. Temporaries are not just for clerical and light industrial applications anymore. Today, you can use contract professionals and technical experts to successfully implement critical projects. You only have to pay for their expertise as long as you need it.
Capture missed opportunities. Never miss out on a business opportunity due to a lack of resources again. Use highly skilled and qualified temporaries to provide the talent needed to capitalize on these opportunities without adding overhead. Alternately, you can use contingent labor to handle non-essential work functions, freeing your core staff to focus on revenue-generating activities, business prospecting or other key priorities.
Cost-effectively manage business highs and lows. If your company experiences seasonal or other predictable changes in business levels, you can control personnel costs by using temporaries to supplement direct staff during peak work periods. Even if you require a large number of temporaries on short notice, planning your needs with Snelling Staffing Services allows you to keep your workforce lean, yet flexible enough to quickly ramp-up for surges in volume.
Now more than ever, your business needs a partner like Snelling to deliver the right talent in the face of greater pressures, fewer resources and an economic environment where every job counts. Our in-house staffing experts, temporaries and contract employees all have that “little something extra,” to help make an immediate and profitable impact on your bottom line. Contact your local Snelling Staffing Services office today.
