Cost Effective Staffing

4 Ways to Control Costs Using Temporary Staffing

Cost control is one of the top priorities for many companies to improve their operating margins. Many resources are simply wasted due to inefficient processes within the company, and Human Resources can be one of the major leak holes. To maximize the profitability of your company, we have prepared 5 strategies to control costs using temporary staffing. These strategies may not be applicable in all cases; however, we want to show you that HR costs, when managed with care, can contribute a lot to the effectiveness of the whole organization.

Convert Fixed Costs to Variable

Labor expense is usually one of biggest items on the Income Statement. Revising your company structure can help seeing, which of the positions can be transferred to part-time. This particularly works for industrial and services companies, especially for those, which have distinct peak seasons. Temporary workers are easy to hire & fire.

Reduce or Eliminate Overtime

Overtime is hugely expensive, so it makes much more sense to hire temporary workers to deal with job overload rather than having your regular workers do it. It can reduce the labor costs by as much as 20%, and at the same time increase the morale of your core employees, because they could spend more time out of work and therefore work more productively when they are at work.

Reduce Training Costs

Training and employee orientation is usually rather expensive and resource-demanding. However, temporary employment agencies usually look for candidates, which have skills and experience in their field. By working closely with the agency, you get the opportunity to hire skilled candidates and reduce or eliminate training costs for your company.

Minimize Hiring Mistakes

Firing process is even more difficult than hiring, so you want to make sure you hire the right people. Temporary labor agencies have strict procedures for screening and interviewing the candidates to select only the ones suitable for the job. Also, they try to work closely with the client to understand their needs and expectations, along with all specific requests.


All in all, these strategies in most cases are the cost control opportunities that many companies tend to miss. There are many more others, which will be discussed in future articles. What labor cost control strategies does your company use? Tell us in the comments section, and we will share our comments on your strategies!

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