From insurance to upskilling: How temp work saves money

Navigating today's competitive economy requires innovative solutions. One option that’s gaining traction is the use of temporary workers. But how can leveraging temp work lead to big cost savings, improved operations, happier employees, and a more flexible workforce? Learn all the key components to thriving in a rapidly changing market.

Manage the size of your workforce

Temporary workers offer an ideal solution for companies looking to maintain their adaptability in a competitive market. Temp workers let your organization respond swiftly to unexpected demands, seasonal surges, or even sudden dips in business. On Black Friday, for example, demand in warehouse and shipping companies can be 14 times higher than usual. Rather than scrambling to hire new staff or overworking your current team during peak periods, you can lean on temporary workers to meet increased demand.

Conversely, during quieter periods or downturns, you can scale back without the need for layoffs or underutilized staff. This ability to quickly adjust your staff size is not only a strategic move, but it's also a smart way to manage costs, leading to significant savings in the long run.

Save on worker benefits and insurance

One of the most overlooked aspects of hiring is the cost associated with employee benefits and insurance. Government data shows that employee benefits account for 31% of compensation costs. Traditional hiring processes often entail substantial overheads due to health benefits, workers' compensation insurance, and continual upskilling or training opportunities.

When you hire Adecco associates, these expenses are completely covered on our end, leading to huge cost savings for your business. We even prioritize the professional development of our associates, offering free upskilling opportunities to help them build long, successful careers. By offloading these responsibilities to Adecco, you can focus on your core operations, knowing your temp staff are thriving.

Free up your internal HR team

The hiring process can be time-consuming and costly, often tying up your recruiters, HR team, and hiring managers with the tricky management of the temp staff hiring process. Research indicates that hiring a candidate can even cost up to 3 or 4 times their salary in hard and soft expenses.

By handing your temp hiring process to a staffing expert like Adecco, these pressures and expenses are significantly reduced. We manage the entire hiring journey, from screening potential candidates to onboarding them effectively. By handling these labor-intensive tasks, we free up your internal team to focus on more critical, strategic activities – like talent management, employee engagement, and driving your company culture. This strategic redistribution of HR resources can lead to improvements in your overall business operations. 

Use temp staff to benefit your full-time employees

Overworking your full-time staff can lead to high turnover rates, and that can be very expensive. Replacing an employee could cost you 30% of their annual salary, so retention should be one of your organization’s top priorities. By leveraging temporary workers, you can provide the necessary support and cut the excessive workload from your full-time staff. This not only ensures your projects are completed on time but also enhances job satisfaction and retention among your permanent employees.

Your temporary staff can also be a valuable talent pool for direct-hire candidates. This approach allows you to assess a candidate's skills, cultural fit, and contribution to the company before offering a role at your company. By effectively leveraging temporary staff, you can reduce turnover, maintain a motivated workforce, and discover potential hires – all of which benefit your bottom line.

Whether you’re considering a direct-hire, contingent, or combination workforce, we can help you decide which solution would work best for your organization. To learn more about how Adecco could transform your approach to staffing, contact us today.