How to Reduce Temporary Staffing for Your Business
Temp Workers: A Core Asset
Workers at all levels are the heart of every business and a core asset. Hiring the best candidates — even for temporary roles — is crucial to the success of every company. To find temporary staffing agencies with a worker database that matches your business needs is crucial to that success. ACC’s subject matter experts can help you find and select those vendors that can provide the right works to meet your needs, at the most competitive mark-ups, all while delivering the quality customer service you would expect from a key partner.
For many companies, temporary staffing plays an important role in their day-to-day operations and overall success. As supply and demand fluctuate in these uncertain economic times, the ability to easily onboard and manage a temporary work force is crucial.
ACC’s subject matter experts can help you finds partners providing quality workers in a multitude of industries:
- Manufacturing Operations
- Warehousing / Distribution Centers
- Industrial Services
- Call Centers
- Office / Administrative Roles
- Financial Services
- Drivers (local & over-the-road)
- Customer Service
Cost Savings Strategy with the right Temporary Staffing Agency
Avg. temp staffing cost reduction of 15%
ACC does the heavy lifting requiring only minimal time from internal teams
Large-scale process improvement, reduced temp staffing expenses and quality candidates
A temporary workforce can help your company save on fix costs normally found with FTE’s like paid vacation, sick days, extra benefits, bonuses, etc. This gives employers complete control over the size of their workforce at any given time, depending on current orders and market demand. When unexpected purchase orders or larger than usual workloads come in, having a temporary workforce process in place can be the difference between additional revenue and lost business (or late orders!). When you need shifts covered, or additional projects are assigned from customers, your worker body can easily expand to the required capacity. Temporary staffing also helps employees who may be between jobs or who would like to get a feel for working at particular company before committing full-time.
Alliance Cost Containment specializes in paring private equity owned businesses, manufacturing companies and corporations with temp staffing agencies nationwide. When companies have access to top agencies in their areas with qualified temporary workers already on hand for the require job, it can shave off weeks or months of valuable time. Naturally, this also cuts down on the cost of obtaining a temporary workforce — as well as reduces stress — for employers trying to expand their talent.
Customer Benefits to Temp Staffing
Temporary workers don’t just help on the business side — customers are able to benefit from the more productive services they are receiving. When companies find themselves understaffed and overworked, it has a negative effect on the customer side, because customers are unable to get the proper attention that they need, making it bad for business. Easily avoidable mistakes can occur when companies are understaffed. Employees can lose track of their assignments if they’re trying to juggle too much at once, so bringing in temporary workers to help with the workload may just be the solution.
Negotiating with Your Current Temp Staffing Partner
This important indirect procurement category is slightly different than the 35+ other savings areas that ACC reviews for private equity sponsored businesses and corporations.
We understand that many companies prefer to stay with their incumbent temp staffing or recruiting agency. And for good reason. Many companies have solid, good working relationships with their current suppliers and do not wish to change agencies. Temporary staffing vendors that consistently provide effective customer service and top-quality talent is clearly good for a company’s overall productivity.
ACC’s in-depth analysis determines if your incumbent suppliers provide the best economic solution for the current marketplace at equal or better levels of customer service, or, if there are other options to increase ROI.
Because of the inherent need for these temp staffing agencies to be local to the businesses they serve, we have trusted subject matter experts with decades of industry knowledge around current temp staffing market trends, mark-ups and costs, local regulations, and contract provisions. Alliance Cost Containment works with our temporary staffing experts to guide your business through developing a temporary workforce strategy and the entire hiring process.
Frequently Asked Questions About Temp Staffing
What companies typically utilize temporary staffing agencies?
Companies in any vertical use temporary staffing services, however, companies with seasonal products or services and call centers typically utilize this method of hiring more often than others. The industrial and manufacturing field is a job sector that uses the most temp workers. Having both skilled and unskilled workers, the temp staffing field covers many jobs that can range from assembly line workers to welders and pipe fitters and much more.
If a company was solely interested in optimizing Temp Staffing procurement expenses and none of the other indirect procurement areas ACC reviews, is that something you help with?
For a cost reduction engagement to make sense for our clients as well as for ACC, our team typically reviews several expense areas at one time. With that in mind, there are exceptions which depend on the size of the procurement category and spend amount in that particular area. If you are interested in working with ACC on reducing the cost of your temp staffing expenses, please get in touch with your recent invoices from your temporary staffing vendor(s), your temp staffing contracts, and job descriptions.
How much time is required for a company to work with ACC on reducing Temp Staffing bills?
Every engagement is different, but reducing costs in the temp worker category would require roughly 10 hours of an internal stakeholder’s time over the course of 4 months.
Temp Staffing is a required / necessary indirect expense for many companies. How challenging is it to reduce costs in this area?
Some companies need to use a temp staffing workforce rather than hire personnel directly. The best way to optimize costs is to reduce the markup charged by the supplier. This is not often realistic when working directly with vendors. ACC has subject matter experts, leveraged spend, contract negotiation tactics and established relationships to reduce temp staffing expenses, though the current market and supply and demand for workforce will vary the expense reduction outcome.
Does location play a role in a company’s decision to hire temporary workers?
Yes, the rate of pay for temp workers is directly related to cost of living in the area where temp staffing agency and jobs are located. Agencies are often located in the same city as the company who wishes to hire a temp workforce, however, larger national vendors can often service many, if not all locations.
What are the best practices to keeping quality of labor high but pricing at market level?
Periodically compare current staffing markups with the going market rate. Negotiate with agencies accordingly to stay on top of rate fluctuations. We often come across clients who are unaware that their rates have increased because they’ve been with the same vendor for so long. ACC is often successful in achieving temp staffing price holds for two years.