5 Key Benefits of Flexible Staffing for Cost Reduction

Reducing costs without impacting productivity is a goal within every organization and flexible staffing is a great way to achieve this. With that said, it’s essential to understand which areas of your business will see the biggest benefit from flexible employees in order to get the highest return on income (ROI) from your investment.

In this article, we’ll explore 5 key ways that flexible staffing can help you lower costs and improve profitability in your organization. 

1. Lower Payroll and Overtime Costs

The first and most obvious way that flexible staffing can improve your profitability is by helping you lower payroll and overtime costs. 

If you’re thinking about flexible staffing, there’s a strong chance you have more volume than you can handle at the moment. In these cases, it’s common to have to pay overtime to your current employees just to keep up, but this can be more expensive and less productive than having a new team member. 

Rather than hiring an employee, temporary staffing can help manage your workload without having to commit fully to a long-term contract. 

2. Ability to Scale Temporarily

If you’re in a seasonal industry, you’re no stranger to huge demand fluctuations. The problem is that these are not steady so companies that see these spikes don’t have the budget to hire full-time employees.

The good news is temporary staffing can help scale and dramatically increase the volume you can handle without having to add permanent staff.

3. Lower Training Costs

If you rely on flexible workers, there’s a good chance that your training costs will remain low. The reasoning behind this is that you can recycle a lot of the materials, so even if you have to create a new resource it will likely be used later on. 

You can also work with your flexible staffing agency to suggest candidates who require less training due to their skills or profile. 

4. Access to Specialized Skills

Adding a technically skilled team member can cost a lot more than growing your base staff. While it’s true that you can charge more for your services, the financial burden is enough to make you hesitate. 

With flexible staffing, you can add the same level of technical expertise without having to put a huge amount of pressure on the financial side of your business. 

5. Better Budget Decision-Making

Temporary staffing can help you get the most from your investment because a part of your labor costs become variable. This means that you can adjust them based on the amount of business you receive at certain points of the year. 

Likewise, it allows you to see what type of impact certain roles have and help you decide where you’d like to see funds invested. 

What is Flexible Staffing?

Flexible staffing is a model that consists of using full-time, part-time, and temporary employees as well as contractors to adjust the size and capacity of a workforce. 

In 2023, more than 2.4 million temporary employees assisted at US companies every single week. This means that hundreds of thousands of companies rely on flexible staffing to be successful. 

Flexible staffing is easy to understand, but implementing it is another story. For this reason, it’s necessary to have a partner that helps you find the right employees to play the roles and contribute to your success the way you need them to. 

How to Set the Right Tone with Temporary Workers

Temporary staffing can play a crucial role in your company, especially if your industry is impacted heavily by seasonality. With that said, there are still many challenges that companies have to address in order to successfully implement temporary team members. These include:

• Setting the right expectations
• Fitting seamlessly into the company culture
• Managing communications
• Workload expectations
• Unsuitable onboarding and training

There are a few different ways to set up flexible working arrangements, so the best method depends on your specific circumstances. 

In most cases, identifying, interviewing, and vetting candidates can become burdensome, especially for smaller companies and startups. Here, the most common alternative is to work with a temporary staffing agency that handles the heavy lifting and allows you to hit the ground running. 

It’s actually a common occurrence to add temporary workers and eventually transform them into full time employees. 

While this is not to be utilized as your main recruitment process, it’s definitely a good idea to observe temporary workers to determine whether or not they would be a good long-term fit for your business. 

Most Important Pattern of the Flexible Staffing Industry

Finding the right volume of skilled temporary workers is one of the major issues that companies face. This is the reason why many turn to companies like LG Resources, which does the heavy lifting and provides highly skilled, dedicated temporary workers for different industries. 

The Biggest Challenge With Flexible Staffing

Temporary staffing is difficult because identifying and vetting potential employees with great potential who are interested in a short-term contract requires a huge amount of time. 

However, it’s necessary to find dedicated, and highly-skilled individuals to play an interim role in your business. 

As such, your best bet is to find a partner that focuses on solving your temporary staffing needs and allows you to focus on training temporary staff as well as activities that generate revenue. 

Can Your Company Benefit from Flexible Staffing?

Here are some signs that it may be beneficial to adopt flexible staffing for your company. 

• Elevated overtime costs
• Delayed projects
• Huge workload fluctuations
• High employee turnover
• Limited internal technical knowledge and skills

To Wrap Up

Temporary staffing can be an effective resource to help lower costs in your business. With the right tool, you can lower payroll costs, scale according to your organization, and unlock specialized technical skills without skyrocketing your expenses. 

With that said, it’s also important to find the right temporary staffing partner. To learn more about finding the best temporary employees for your business contact LG Resources and book a consultation today. 

FAQ

What are the key benefits of using Flexible Staffing?

The key benefits of using a flexible workforce include:

• Lower overtime costs: If you’re having trouble keeping up with the volume of work, you’re likely paying overtime. Temporary staffing can help keep this to a minimum and give you more value for your money. 
• Increase productivity in key moments: Is there a particular time of the year where you need to ramp up productivity? A temporary workforce can help you meet these deadlines without increasing your costs permanently. 
• Inject talent without the financial pressure: Technically skilled individuals can take your business to the next level, but adding these talented individuals can also put a huge amount of financial pressure on your business. A great alternative is to add them as flexible workers that don’t require you to pay a full salary.