Temporary Staffing = Hard Cost Savings

Last year we wrote about building a business case for a temp-to-hire staffing strategy. The focus of the exercise was to target companies that fit your ideal client profile but were not convinced that a temporary or contract staffing model was right for them.

When going through this exercise in my sales career in the staffing industry, the eye opening moment for my prospects was when they started to understand the fact that a 90 day temp-to-hire strategy would increase long term employee retention and ultimately lower their SUI rate and experience rating for workers comp. Although the ROI is real, it can often be difficult for someone to fully appreciate the potential savings since the business case focusing on improving employee retention is based on some hypothetical assumptions.

To combat this challenge, we decided to bring the focus back to hard cost/bottom line savings by directing our attention to the Total Productive Hours of a Temporary vs. Permanent employee. In addition to outlining the true cost of an employee, this calculator takes into account the fact that a staffing agency only bills its clients for the hours an employee actually works.

Click here to view our calculator and feel free to contact us if you’d like some help running through some examples.


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