Staffing Resource Center:
HR Essentials
Looking to get
the greatest return on your staffing investment? Turn to the Staffing Resource
Center!
The Staffing Resource Center offers access to a wide-variety of information,
organized into six topics:
- Best Practices
- HR Essentials
- Employment Law
- Tools
- Book Reviews
- Best of the
Web
The Staffing Resource
Center was created to help you save time getting answers to your HR questions
and provide ideas for driving more profit out of your staffing function.
Here's a sample
of one of the articles from the HR Essentials section of the SRC:
10
Strategies for
CONTROLLING COSTS WITH STAFFING
Looking to improve
operating margins in your business? Then take a look at your staffing strategy.
From the assembly line to the executive office, effective staffing is essential
to maximizing profitability.
Below are 10 practical strategies for using staffing to reduce overhead, manage
operating costs, and improve organizational performance.
Convert
Fixed Cost to Variable
If your company
is like most, labor is the biggest line item on your P&L. 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 with trained temporary personnel to meet peak
production demands as needed. This strategy is particularly effective for industrial
labor, as well as for technical and professional projects.
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 20% - 25% 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 expense. 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 quality and 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 company to the staffing firm.
Prevent
Unemployment Claims
Unlike short-term
direct employees, temporary personnel work for your staffing partner--not you.
Consequently, their unemployment claims don't affect your rating or your bottom
line.
Reduce
the Risk of Hiring Mistakes
A bad hire can cost
you between two and seven times the employee's annual salary. Staffing firms
follow rigorous screening procedures for both temporary personnel and direct
hires, which increases your chances of getting the right person.
They will most often provide candidates who not only possess the skills and
experience you require, but who also have the personality traits needed to thrive
in your work environment. To further reduce your hiring risk, you can also take
advantage of your partner's temp-to-hire services and direct placement guarantees.
Take
Advantage of a Staffing Firm's HR Capabilities
If hiring duties
are sidetracking your key employees, use your staffing partner to handle screening,
testing, interviewing, and reference checking. Their expertise can free your
personnel to concentrate on critical activities, and can reduce your time to
hire.
Cut
Costs by Hiring
Capacity constraints
are a significant source of cost. Constraints may affect the throughput of a
plant or the productivity of an executive. To eliminate the bottlenecks, consider
adding temporary or full-time staff. Bringing in administrative support frees
key personnel to focus on core job duties (not only do you get a more productive
employee, but the administrative work gets done for significantly less cost).
Add labor to relieve process constraints and improve productivity. Use technical
and professional temps 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. And as the stress increases, so do problems
with quality, productivity, absenteeism, 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.