How to save money without putting pressure on your personnel service providers
Nowadays; temporary employment projects are under constant pressure to reduce costs. One significant cost center is expenditure on personnel service providers. Rising recruitment costs and increased absenteeism costs (see my other LinkedIn posts) are limiting the scope for negotiation. Although the current difficult market situation is leading to "cut-throat prices" in tenders.
But how can companies in the temporary staffing sector reduce their costs without increasing the pressure on suppliers? Here are some simple but effective strategies for reducing costs while maintaining a strong partnership with your suppliers:
1. Reviewing requirement profiles
Companies often overestimate the qualifications that are really necessary for a temporary role. Higher requirements than actually needed lead to higher remuneration claims. Adjusting qualifications more realistically to actual needs can significantly reduce costs.
2. More efficient induction
Inducting new employees is a hidden cost factor. Standardised processes and the development of role-specific induction plans can help temporary workers become productive more quickly. For example; basic safety training or an aptitude test can be carried out before the employee starts work; which reduces the induction period. Workplace visits before the first day of work also increase the loyalty of temporary workers and reduce the risk of absenteeism in the initial phase.
3. Data analysis
Data and analysis can be used to identify patterns and trends. An analysis of departments with high turnover can also reveal hidden problems.
4. Forecasting; early enquiries and fast processing
The days when recruitment agencies could provide 10 skilled workers overnight are over. Temporary work is fast-paced; and a candidate's profile does not improve if it is left lying around for two weeks!
5. Improved selection process / aptitude testing
Early staff turnover is expensive. The causes are not always clear at first glance. Reducing it leads to a significant reduction in onboarding and training costs! Applicant rounds are time-consuming; and job interviews are and remain subjective. Specialist knowledge and skills can be assessed quite well in an interview. Cultural fit is more difficult to assess. Aptitude diagnostics can speed up the process; make it more objective and minimise the risk of misjudgement.
6. Use of VMS tools
A vendor management system (VMS) can improve efficiency through automation and standardisation; thereby eliminating hidden costs. VMS solutions also provide valuable analyzes for cost control.
Despite the current economic crisis; the biggest challenge remains the shortage of skilled workers! Lean; stable and needs-based processes offer considerable savings potential that goes beyond mere price reductions. Cooperation between the agency and the client is the key to a cost-efficient temporary employment process that benefits both sides.
