How to Save Money on Temporary Staffing Without Compromising on Quality

Many organisations grapple with the belief that cutting costs on temporary staff inevitably leads to a compromise in supply or quality. However, this need not be the case. By leveraging the right strategies and partners, organisations (whether private sector, public sector or not-for-profit) can reduce their spend on temporary staff while maintaining, or even enhancing, the quality of their workforce.

Here are some key strategies to achieve cost savings without sacrificing quality:

1. Optimise the Opportunity for Key Suppliers

One effective way to reduce temporary staffing costs is by consolidating your business with a few key suppliers. When you increase the volume of business you provide to these suppliers, they are often willing to lower their unit prices. This volume-based discount can lead to significant savings. By developing strong relationships with these suppliers, you can also ensure they understand your specific needs and can provide a better quality of service.

2. Eliminate Overpriced or Premium Agencies

Not all staffing agencies offer the same value for their charges. Some agencies may have premium pricing that does not necessarily translate into higher quality staff. It’s important to critically assess the value each agency brings to the table. If you find that certain agencies are overpriced and do not provide additional value compared to others, it’s time to cut ties with them. Focus on agencies that deliver quality at a fair price.

3. Have an Expert Assess Statutory Charges

Staffing agencies often include statutory charges in their invoices, which cover taxes, insurance, and other legal requirements. However, these charges can sometimes be inflated. Engaging an expert to review these charges can uncover potential overcharges. By ensuring these costs are accurate and fair, you can avoid unnecessary expenses.

4. Source Directly Using Your Brand and Value Proposition

Another cost-saving measure is to work with an expert company that can source temporary staff directly using your brand and value proposition. When candidates see your brand as the employer, it can be more attractive compared to an agency’s branding. This direct sourcing can often be more cost-effective and allow you to tap into a higher calibre of candidates who are genuinely interested in your company and its values.

5. Reduce the Commission You Pay

Lastly, it’s crucial to examine the commission rates you are paying to your staffing agencies. High commission rates can significantly inflate your temporary staffing costs. Negotiating lower commission rates, especially if you are providing a substantial volume of business, can lead to considerable savings. Some expert companies specialise in negotiating these rates on behalf of organisations, ensuring you get the best deal possible.

Conclusion

Reducing costs on temporary staff doesn’t have to mean compromising on quality. By optimising supplier opportunities, eliminating overpriced agencies, ensuring fair statutory charges, sourcing directly, and negotiating lower commission rates, your organisation can achieve substantial savings. Partnering with the right experts can make a significant difference in managing these costs effectively, allowing you to maintain a high-quality temporary workforce without breaking the bank.

If you’d like to understand how Retinue activate these strategies for the best organisations, please contact us here.

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