It seems an economic downturn lurks right around the corner, driven by global unrest and the aftereffects of COVID-19. This situation places the onus on businesses to batten down the hatches to ensure their continued growth. Reducing labor costs offers one method to help any company survive (and even thrive) during a recession.
With a goal of a thriving business during a slow economy, check out these insights on contingent workforce management. It provides the means to reduce labor costs without lowering employee engagement or productivity. Partnering with a managed staffing services provider for contingent workers offers the opportunity for success no matter the economy.
What are the Benefits of Using a Contingent Workforce?
Simply stated, a contingent workforce uses contract or temporary workers. They provide businesses with a supply of talented professionals without making the commitment of a full-time hire. Your company enjoys many benefits from adopting this strategy, including quickly closing a skills gap on an important project.
Let’s take a closer look at some of the other advantages gained by considering contingent workforce solutions. In short, they keep your business productive and profitable during a recession.
Contingent Labor Maintains Productivity
Maintaining high productivity levels remains the goal of any modern business. However, when a recession takes hold, this goal becomes much more difficult to achieve. Job markets tighten, hampering the ability to find the talent you need.
Adopting a contingent workforce management approach keeps your talent pipeline flowing. You quickly onboard the professionals you need to keep projects on schedule, while also maintaining operational efficiency.
Reduce Payroll Costs
A contingent workforce also provides the means to reduce payroll costs, an important consideration during any recession. Your company saves money on the exorbitant benefits packages necessary to hire and retain modern professionals. Additionally, expect to also spend less in HR and administrative costs when adopting this staffing strategy.
Your business also gains the ability to right-size teams based on the specific skills and size needed for a project. When the work completes, those workers move onto their next gig, and your salary spend returns to normal.
Leveraging contract workers also significantly boosts your company’s staffing flexibility. You aren’t employing too many workers when the number of projects dries up during a recession. At the same time, you always have the ability to add contingent workers as needed.
This flexibility especially matters during an economic downturn. Too many businesses fail because their staffing costs and project work fails to synchronize. So don’t let a recession impact your ultimate business success.
Manage Your Contingent Workforce with a Staffing MSP
Partnering with a managed services provider focused on staffing helps your business continue to grow during a recession. Finding one focused on contingent workforce solutions helps your business save money and improve flexibility, as noted earlier. So let’s analyze managed staffing services providers and the other benefits they provide businesses operating during a recession.
What is a Managed Staffing Services Provider?
Managed staffing services providers offer many benefits to business, especially those relying on a contingent workforce. For smaller companies without a separate HR team, a staffing MSP effectively fills this function. They manage the entire contingent workforce lifecycle from the first request to the completed assignment. Critically, this includes all invoicing and payments.
MSPs focused on staffing also help businesses maintain compliance with labor regulations and other governance requirements. They understand the complexities of local labor laws related to a contingent workforce. Ultimately, this lets you focus more on running your business and maintaining its profitability during a recession.
The best staffing MSPs boast significant expertise in multiple business sectors, letting you choose one matching your industry. They understand the importance of process efficiency, providing your business with a flexible and scalable staffing approach. Once again, a partnership with a managed staffing service provider lets your business thrive during a recession.
3 Ways to Save Money in a Recession with Contingent Workforce Management
Cost savings obviously matter during any economic downturn, especially when job markets tighten as a result. Adopting a contingent workforce solution for your business’s staffing needs provide the means to reduce expenses at a critical time. Check out this exploration of how to save money in a recession by leveraging a managed staffing service provider.
#1 Managed Staffing Services Improves Resilience
Employing a resilient workforce provides your company with the means to thrive during a recession. Partnering with a staffing MSP helps your business achieve this goal. Notably, when a project completes you no longer need to pay the salaries of employees sitting on the bench.
Once again, this flexible staffing strategy ensures your staffing expenses match your project work. It lets you save money at a crucial time, positioning you for even higher growth when the economy turns around.
#2 Enhance Customer Satisfaction with a Staffing MSP
One easy way to tank your company’s profits involves missing deadlines on a critical project. Word about your organization’s reputation quickly travels around the grapevine, leading to fewer opportunities in the future. You are then faced with a difficult choice: lay off permanent employees or lose money.
As noted earlier, contingent workforce solutions prevent this kind of dilemma. Your company onboards the professionals it needs to successfully complete a project and nothing more. This leads to happy customers and more project work in the future.
#3 Access Skilled Talent On-Demand
In many cases, you need a specific skill set to complete a project on schedule. Hiring a permanent employee with these abilities might cost you in the end when the project completes. It’s another scenario where partnering with a staffing MSP providing contingent workers on a temporary basis saves money.
Recession-Proof Your Business with Contingent Workforce Management
When searching for contingent workforce solutions, look no further than the experts at Anserteam. As one of the top managed staffing service provides in Dallas and Texas, we provide the professionals you need at the right time. Our industry expertise ensures the understanding of your business’s specific talent needs.
Connect with us as soon as possible to discuss your business’s current and future hiring plans. We provide the experience and wide-ranging talent supply to right-size your company’s workforce.