RAS President Tim Ryan Gives 6 Tips On How To Up Production

When the economy picks up (and it will) using a contingent workforce strategy can be a cost effective way to amp up production levels. Here are a few things to think about:

1. Hiring permanent workers has many hidden costs. Not all of these costs are easy to put a dollar figure on. One example is the cost of recruiting that includes such things as placing ads, interviewing, running drug and background checks, verifying references, etc.

2. The cost of hiring mistakes can be minimized by using a "temp to perm" approach. We've all had the new employee that worked like gangbusters the first thirty days only to become that permanent problem you could never get rid of after the probationary period passed. And you should be able to negotiate away liquidation fees from your staffing supplier (see December tip) using this approach.

3. In most cases there are significant savings on wages and fringe benefits costs. Using temporaries can save you on health care and retirement plan costs. It also creates an opportunity for you to create a two tier/entry level wage that is lower than what you might pay a permanent hire. To get an idea of these savings you can request a "Salary and Fringe Benefit Conversion Guide" by sending us an e-mail at tryan@ryanstaffing.com.

4. The costs of layoffs and terminations of permanent employees can be felt for years. Just a 2% increase in your UC payroll tax will cost you $20,000 per million in payroll taxes. And these increases can stay with you for years. Using temporaries can help lower your UC costs and you avoid all the administrative headaches these claims bring.

5. Payrolling contingent staff coming out of a slowdown can save you even more bucks. With unemployment high you may already have identified qualified people that you want working at your facility. At Ryan Alternative Staffing you can use our payrolling service for these people and save up to 20% off the conventional bill rate. And you have all the other saving benefits already discussed.

For more information on how payrolling can benefit your company visit RyanStaffing.com.

6. Using contingent /temporary staffing as part of your overall staffing strategy provides an added level of security to your permanent workforce. This can lead to lower turnover, less absenteeism and higher productivity.

So, when things get better you may want to consider using Ryan Alternative Staffing to help build your workforce.