How Will a Workforce Solutions Engagement Reduce Operational Costs?

Ashley Platt – Marketing Coordinator

Reducing costs has always been a key component to a Workforce Solutions Engagement, especially in today’s uncertain economy. Although cost reduction matters, it should never come at the expense of sound and steady operational performance.

The sole rationale for outsourcing as a means to improve on the performance of non-core functions makes for a sound strategy, regardless of financial savings. We have said it before and we will say it again, asking an expert to do these functions better than you makes good business sense.

Outsourcing non-core functions reduces a company’s headcount, and the HR and line management costs of sourcing, screening, selecting, training, reporting and termination of employees. The national median cost per employee for the first four steps in the process is $7,300. Every time you need to replace a worker, you are faced with the cost over and over again. This is but one of the indirect cost elements associated with staffing. It makes sense to incur these costs when staffing for the primary business functions that define the core product or fulfillment. Companies invest in technology, process improvement, and training because if they do not, they will lose their competitive advantage.

‘Expertise’ means looking at the way a function is presently done and, using best practices and experience, improve on process required to perform the function. Workforce Solutions is the application of specialized expertise and experience to these functions, delivering a better performance at a lower cost.

The expertise that we have gained in many markets and continuous improvements in our team training over the years, all have a cost. Since we have many customers, we can effectively reduce the cost of expertise in any one customer’s engagement.

The elimination of recurring indirect staffing costs, labor overhead costs, training, and supervision that is achieved when outsourcing non-core functions results in cost avoidance benefit flows to your bottom line. This will take place through a Workforce Solutions Engagement, yielding cost savings and performance improvements.