Any business looking to improve operating margins within their organization will inevitably need to look at their current staffing strategy. From entry-level positions to the CEO, maximizing profitability begins with ensuring that effective staffing is being utilized as best as possible. In this article, we will look at 5 ways to control costs with staffing to reduce overhead, improve performance, and control operating costs.

1. Stop Overtime Hours

Overtime can become incredibly expensive for any business, especially if they are attempting to cut labor costs and implement effective staffing strategies. On average, using temporary employees to fill needed positions instead of offering overtime to existing employees can reduce labor costs by up to 20%. Instead of relying on expensive overtime labor to complete your weekly job requirements, instead, consider hiring temporary employees to fill the time gaps.

2. Improve Your Pre-Hire Research

Making a bad hire can cost businesses a lot of unnecessary expenses between benefits and training. For this reason, it is recommended that all businesses work to tighten their screening procedures to ensure a candidate is the right fit before offering them a position with the organization. Working with a staffing agency to utilize temp to hire employees can help alleviate this burden and ensure you aren’t making bad hires that could cost your business long term.

3. Utilize External HR Partners

If you don’t have dedicated hiring managers at your business, there’s a good chance you are taking critical employees away from other duties they could be focusing on. Through a staffing partner, all screening, testing, reference checking, and interviewing can be done through an external group to ensure your employees are focusing on key aspects of their jobs. One other benefit this provides is the ability to reduce hiring times for positions that may need to be filled.

4. Minimize Employee Burnout

Many modern businesses have developed a mentality that they may be able to get just as much work done with a smaller crew as they would with a larger employee base. However, this often leads to employee churn and productivity issues as the stress and job duties these employees have attributed to burnout. By using temporary employees through a staffing agency, you can alleviate these work-related burdens and decrease employee stress to create a better work environment for long-term success.

5. Reduce Administrative Burden

Dedicating time each week to running payroll and administering employee benefits can quickly drain employee time that could be used in other areas while also draining money on unnecessary tasks that could be outsourced. By working with a staffing agency and using temporary workers, all benefits and payroll requirements are handled by a third-party. That means the business only has to focus on doing what benefits their bottom line while the rest is taken care of for them.

Why Certified?

At Certified Source, we go above and beyond to make sure our clients are protected and experience service excellence. All of our staff members are Certified Staffing Professionals credentialed by the American Staffing Association. For more information, view all current job positions available.