How to reduce the complexity and cost of temporary labour
Some ways for reducing the complexity and cost of temporary labour include:
When performing this, keep the following things in mind:
- Determine which skills are in high demand.
- Make a list of the skills you already have (in your reserves, or amongst staff you can transition to your reserves).
- To understand peaks and dispersion, map the talents you require against your operational hours.
- Compare your operating requirements to your available skills and time.
- Recruit for skill gaps or availability gaps, and give preference to those who can execute numerous tasks.
- Hire people who are looking for dynamic/flexible employment and whose desired availability suits your shift needs.
- Work with a MSP/Neutral Vendor
Can a third party help you manage the complexities and risks of temporary labour?
A managed service provider (MSP)/Neutral Vendor can assist you in managing various agency relationships and negotiating with agencies to ensure costs are competitive, avoiding the requirement for you to assess agency mark-ups on a regular basis.
A MSP can also advise on opportunities such as wage rate harmonisation and whether temporary workers should be utilised instead of permanent employees or consultants. Greater volume through the MSP pool will bring down costs when adopting an MSP model.
Set KPIs to encourage MSPs to use their own resource pool: the mark-up for candidates sourced directly should be significantly lower. Rates should fall after three to six months if margins continue to shrink as tenure grows
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