4 Ways Hiring Temporary Professionals Helps You Save Money
As the person in charge of hiring, you know that staffing costs can quickly add up. Between salaries, benefits, and other expenses, the cost of hiring and retaining full-time employees can be significant. But have you considered the financial benefits of using temporary staff?
Hiring temporary professionals can help your organization save money by cutting unnecessary costs.
We'll explore the top four ways hiring temporary staff can help your business save money and boost your bottom line.
How Temporary Staff Saves You Money
Lower Labor Costs
Specific cost savings will depend on how you employ your temporary staff. We go into more detail about the different types of professionals here, but for the sake of this article, you’ll just need to understand two simple terms: independent contractors and payrolled staff.
The good news? AmbiMi can help you hire both types of employees, and both offer significant savings!
Independent contractors take on all associated employment expenses themselves, including EI, holiday pay, and sick days. In this case, as the employer, you are only responsible for paying their wage rate.
Whereas payrolled employees are on the payroll of you, a staffing agency, or a professional employer organization, and they are the employer of record. The employer of record is responsible for all taxes, deductions, benefits, etc.
If you opt to use a platform like AmbiMi, it will take care of many of these responsibilities and administrative tasks with Payrolled Professionals. Leaving you free to focus on building your business. Specifically, they usually cover:
Liability insurance & WSIB coverage
All payroll burdens, including 14-day credit, T4 and accounting
Scheduling and dispatching of Pros (aka staff)
Site safety inspection and PPE provided (if applicable)
Injury investigation reporting and coverage
One of the most significant financial benefits of hiring temporary staff is lower labour costs. Temporary employees are not eligible for benefits such as health insurance or retirement plans. So, you can save a significant amount of money on each employee. Plus, you save on the administrative costs associated with onboarding and managing full-time employees.
Greater Flexibility
Temporary employees provide greater flexibility for businesses with fluctuating staffing needs. Whether you need seasonal staff, contractors, or temp-to-perm employees, temporary professionals can help you meet your hiring needs without committing to long-term employment contracts. This can help you avoid the costs associated with overstaffing or understaffing, such as lost productivity and low morale.
Reduced Risk
Hiring temporary staff can also help you reduce risk in your business. For example, if you do need to hire for a permanent position, hiring temp staff first can give you the chance to evaluate skillsets and cultural fit before making a permanent job offer. This can result in both time and money savings for your organization.
Decreased Overtime Costs
Finally, hiring temporary staff can help you decrease overtime costs. When you have a temporary employee to cover shifts or handle peak workload periods, you avoid paying overtime to full-time employees. This can help you save money and prevent burnout among your staff.
Hiring temporary staff can be a smart financial move for businesses of all sizes. From lower labour costs to greater flexibility and reduced risk, temporary staff can help you save money and boost your bottom line. So, the next time you're considering your staffing needs, consider the financial benefits of hiring temporary staff.