If you’re trying to manage your company’s cost containment in this job market, it can be hard to limit your spending on new hires and staffing agencies without risking fall-offs or being outbid. That’s why it’s important to practice cost containment on the items within your control, one of which is how you’re managing a contingent workforce.
How much are your contingent workers actually costing you?
With many companies dealing with reduced budgets and high turnover, contingent work is on the rise, bringing new opportunities as well as challenges. When managed appropriately, it’s a cost-effective alternative to regular full-time workers; when poorly executed, it can be costly—both in terms of overhead and mismanaged talent.
That’s why it’s important to ensure that you’re working with a staffing partner that has your best interests in mind, not the amount of money they can make placing a candidate.
Why is managing a contingent workforce important?
A company’s contingent workforce is one of its most valuable assets, enabling you to manage workloads without committing to long-term salaries or benefits. But when poorly managed, you can have staff working past term, unnoticed for weeks or even a year. Additional consequences of a poorly managed contingent workforce include rehiring workers on short notice and high costs to replace termed workers. You can prevent these common issues by working with the right staffing partner.
How can my staffing partner help with cost containment?
An ethical and invested staffing partner has your best interests in mind, providing transparent information about contract terms and dates, anticipating your staffing needs, and finding top talent that fits your needs and culture. When it comes to your contingent workforce, your staffing partner helps contain costs through the advance notice of expiring contracts, allowing management time to extend contracts or begin the transition of power, avoiding unnecessary headaches and overhead costs.
At Enterprise EQ, we created the SOW Light Model to ensure our clients are never taken by surprise when the contract period comes to an end. We notify our clients a month in advance to provide ample time for the transition of power or an extension of the contract period. If you’re tired of losing money due to poor contingent workforce management, speak with one of our experts today to start working with a staffing agency that cares about your bottom line.