Temporary staffing agencies have struggled for decades to place a large number of temporary staff in a limited number of positions. If the current economic downturn has had any benefit it has helped employers understand the value of staffing. A tailored, strategic approach to temporary staffing has many benefits for employers and can help reduce overheads and manage payroll costs. The overall performance of temporary staffing practices can be vastly improved by the flexibility of scheduling staff only when they are needed, reducing risk and saving time.
“The opportunity to concentrate on core areas as non-core areas are taken care by experts, benefits of scale, long-term cost benefits and a responsible employer image,” states Rohit Mathur, general manager, workforce solutions India, Manpower. “There is flexibility of employment, and ease of recruitment and replacements,” adds Gandhi of Mafoi. He also reminds us that the many legal complexities are taken care of by the staffing agencies.
It is obvious why companies have become so fond of temporary staffing solutions. Temporary staffing can be used to increase service levels, when needed, at a fraction of the cost of keeping those employees full-time. Because temporary employees work for the staffing agencies, the company is not responsible for benefits or other costs. The rate for temporary staff can includes legally required expenses such as PAYE and UIF, and discretionary expenses such as medical, bonuses and annual leave. In general the average benefits package equals about 30-40 percent of the employee’s income. Therefore using temporary staffing saves around 30-40 percent on payroll. In addition, the company saves money on training because the temporary staffing agencies will ensure the candidates have adequate skills and training for the job.
The flexibility that temporary staffing provides has a dual benefit which helps avoid being overstaffed or understaffed depending on the amount of work at the time. Staff levels can be managed to ensure efficiency and optimal productivity levels all year. In addition, temporary staffing can be employed to handle routine business functions while full-time employees can concentrate on core outputs of the business.
The time spent on recruitment and placement of temporary staff is a function conducted by the staffing agency. The staffing agencies perform all the advertising, screening, interviewing and reference checking needed to attract and vet potential employees. The company saves time and money by not having to sift through piles of unqualified candidates. Time spent on training will be minimal because the staffing agencies have already pre-screened for the necessary skills. The temporary staff is ready to work and are productive almost immediately.
In addition, the staffing agency usually takes care of the temporary staff’s payroll processing, benefits administration and statutory requirements, which saves you time and money.
The benefits of using temporary staffing solutions allow you to boost productivity when required while keeping your payroll in check. It also allows you to keep your staff at optimal levels, which you can afford, while gaining flexibility to meet work demands quickly and efficiently.