Tuesday, June 2, 2009

How recent layoffs may be costing you

In this tough economy, firms have been cutting their staffs to a bare minimum level to reduce expenses. Recent layoffs have left many employees doing the work of two people or more.

Working overtime, however, is an expensive way to get work done - often costing companies approximately 20-25% excess of payroll.

In addition, there are also indirect costs associated with understaffing, such as employee burnout, lower morale, operation/production defects, and turnover.

One cost effective solution is to utilize temporary staffing. Temporary staffing allows firms to quickly add and reduce people based on fluctuating/seasonal market demands. This flexibility helps firms keep productivity at more efficient levels by eliminating unnecessary overstaffing.

Because the temps work for the staffing agency, you are also not responsible for their payroll, benefits or unemployment claims. Therefore, these expenses do not affect your firm's bottom line.

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