As a leader, you may encounter many barriers to growing your business while you keep the bottom line in check. Contingent labor can be incredibly helpful in order to grow your business, but managing the costs can be tricky. Use the following five tips to help you get a grip on your contingent labor costs.
1. Watch Indirect Costs
Contingent labor can be expensive. Assigning work to temporary staff can ease the load, but those indirect costs add up. Analyze what you’re spending on them, and consider where you can cut back in areas like compliance and risk management. Look carefully at costs that fall through the cracks, and eliminate them to streamline your team.
2. Team Up to Consolidate
Consider your options when it comes to outsourcing and where you’re getting your staff from. Lower pricing by volume is a great strategy to cut costs. Is it possible to team up with a larger agency, or use the same firm for multiple sources for purchases like drug and background investigations and insurance coverage? Don’t forget that allies are an asset in the business world.
3. Hire Wisely
Be smart about who you are hiring and why. Temporary staffing is a great solution to many workplace issues, but be tactical. Hire the right people right off the bat so you don’t have to worry about turnover, and take a careful look at the volume of workers. Maybe you’re paying five temps to do the work of three, or perhaps there’s one duty that’s better suited to permanent staff.
4. Extend Tenure
It’s costly to fund temp workers, especially if you have a high turnover rate. No manager looks forward to replacing, rehiring, and re-training. Think about extending the tenure of your temporary staff, and see if you can make your contingent workers long-term employees.
Creating a partnership with a reliable staffing agency, like CCS Construction Staffing, that recognizes the needs of your business can also help with the cost of adding temporary workers.
5. Look at Suppliers
Examine what you might be able to do about your supplier relations. Negotiating your contracts to seek out a discount or a better deal can be a great way to reduce your costs. Open discussions in your field to reduce competition and see where you can work together to benefit all parties.
Cutting costs may seem impossible, but these five tips show that you can always find the money somewhere. For more advice on how to bring your business to the top, look no further than CCS Construction Staffing.