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5 Tips for Achieving Sustainable Cost Savings With Your Temporary Staffing Provider
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Almost every one of our clients, whether engaged in manufacturing, distribution, or logistics, comes to us on a regular basis asking for help in reducing costs, generating savings, or improving productivity.
Savvy clients realize that reducing markup alone cannot provide the long-term, sustainable savings that are necessary to remain competitive.
As a client, what can you do to help your temporary staffing firm achieve the cost savings goals that you have established?
- Communicate: As with just about any initiative that you want to succeed, you must set clear, realistic expectations. It is important for your staffing firm to understand exactly what you want and when you want it. Then you must be willing to listen to their concerns and provide access to the data, information and resources needed to make them successful. Conduct regular progress meetings with key stakeholders and be willing to remove barriers and obstacles that are impeding progress.
- Share responsibility: Temporary staffing firms can’t do it alone. In most cases, we are operating in your building, using your equipment and processes, and your employees and supervisors are involved at some point. Our most successful cost reduction efforts had tremendous high-level client leadership support. Those leaders made it very clear that they expected their team to work with us and that shared responsibility fostered a successful relationship.
- Recognize/Reward success: Typically, when your contingent labor supplier is successful at improving productivity, they are reducing their revenue. You should be willing to provide an incentive that represents a portion of the savings you have derived from the firm’s efforts. Otherwise, you are asking your staffing partner to focus on ways they can reduce their revenue and profits. How many successful businesses do that? But, if it is set up as a “win-win” proposition, the effort is more likely to be highly successful.
- Solicit ideas from all levels: Our on-site management teams have generated more cost savings ideas than efficiency experts from the outside. The internal service teams have been successful because they are on-site with the client every day and are intimately familiar with the processes. They also “get” the culture and have a realistic understanding of how to get an idea implemented. Some of our best ideas have come straight from our direct labor associates. Make sure that there is a formal process in place that encourages suggestions from all levels.
- Move quickly and be flexible: Don’t let bureaucracy slow things down. Nothing stifles creative suggestions more than a huge gap between idea generation and implementation. Generating savings will require change – you must be flexible to accommodate. Be willing to test out ideas even if it means changing processes. Some ideas may fail, and many will have to be adjusted to work effectively, but many will be a huge success!
How do you work with your temporary staffing provider to produce cost savings initiatives in your organization?