Staffing Strategies For Controlling Costs
Staffing is an important aspect for any organization or firm, as its growth and development is greatly linked to the companies overall health. If staffing is carried out improperly, you may experience several problems like increased costs, unsatisfied customers overall leading to a reduced bottom line. In order to deal with problems arising due to staffing, you can apply certain strategies to avoid them. Discussed here are four strategies or staffing solutions that you can apply and control your cost.
1. Converting fixed cost into variable cost
For most companies, labor is one of the biggest cost centers on their P&L sheet. This expense can be minimized by reducing your core employees to an extent that your normal operations can be run smoothly. For meeting with your peak production demands, you can outsource your requirements to a staffing firm. The vendor can provide you with the required qualified staff on a temporary basis, thus reducing your expenses on additional staffing. This will not only cut down your cost on staffing, but also take care of your normal operations in addition to your peak production demands.
2. Eliminating the policy of overtime
Many companies offer ‘overtime pay’ to their employees, so as to meet the excess production demands. However, overtime can prove to be extremely expensive for companies. This cost can be reduced by nearly 20% on employing temporary staff.
3. Reducing the training cost
Training could be a costly affair that companies have to involve in after hiring new employees. The cost bearing not only includes the hard core training cost, but also the ones you have to bear because of low productivity and poor quality of the work produced by novice staff. In order to avoid this expense, working closely with your partner providing staffing services can help choose the candidates who are well-trained and have the necessary skills you require for your business. You can also ask your staffing partner to provide training and an initial orientation to the newly hired staff.
4. Eliminating the risk of hiring mistakes
An employee who proves to be an improper addition to your company may cost you nearly two to seven times of the employee’s salary. Staffing solutions provided by your outsourcing partner can ensure that you get the right personnel through strict screening processes, may it be for a temporary hire or direct hires. The employees screened by staffing partners are often skilled in the areas you need them to be and also have the necessary personality traits required to succeed in your work environment.
Talking to our experts may help you better understand how you can control costs while hiring new staff. Call 1-877-RISHABH (1-877-747-4224) or fill in the contact form to talk to our RPO experts.