SpendEdge’s recent cost modeling analysis of the temporary staffing services helps companies in the IT industry to gain visibility on key cost drivers, supplier cost structure, and cost saving aspects of procurement.
Understanding the cost drivers for temporary staffing services
Temporary staffing is contractual based hiring for unforeseen circumstances such as maternity leave, sick leave, peaks in workload, and staff shortage. The flexibility in managing the workforce during peak business and organizations’ need for good quality and cost-effective staffing solutions with shorter TATs is driving the growth in this market. This form of recruiting is advantageous during specific periods and provides an opportunity to the organizations to test new employees before hiring. The service providers in the market are focusing on technological innovations such as ATS and CRM systems to manage the large pool of talent base that suits the requirements of the customers. The suppliers are also bundling core recruiting services with corollary services such as testing, background checks, and contracting to save costs and offer better services to the clients. The team of research experts at SpendEdge offer a clear understanding of the cost drivers, along with valuable information on ways to facilitate judicious price negotiations.
The integration of applicant tracking system (ATS) will help automate the recruitment processes and reduce the amount of paperwork. Many recruitment agencies are adopting ATS technologies to gain a competitive advantage in the recruitment services market. The adoption of integrated ATS will streamline the resume sorting process, which will result in saving time consumed by going through every single resume. An ATS system is designed to help track candidates’ activity to ensure placement quantity, and screens resume to ensure placement quality.
Growing importance of branding
Promoting businesses on social media platforms and focusing on relationship management will help companies build a stronger foothold in the market. The easiest way to source talented candidates is by increasing brand awareness and networking activities. Many companies are adopting branding strategies to help them streamline the recruitment process by aligning its goals, values, and culture and eliminate the need to interview people who may not be the best fit for the organization. By implanting these strategies around 91% of firms saw about 10% growth in 2016, according to the latest market surveys.
Technology is driving innovation across different industries and recruitment is using it to source talented candidates from varied locations. Mobile-based applications are gaining precedence over desktop or laptop-based web portals. Recruitment apps aids companies connect with job seekers virtually from anywhere in the world and establish a direct connection between job seekers and recruiters. The use of mobile-friendly landing pages, social media, and mobile applications are the most common strategies adopted by temporary staffing services.
Solutions SpendEdge offer to businesses
The latest project by SpendEdge on the temporary staffing services market indicates cost modeling to be extremely effective when developed in collaboration with suppliers. Some of the solutions offered are listed below:
- Validate the cost model by conducting primary research with industry experts
- Provide comprehensive overview of the cost model and key cost drivers such as increase in payroll taxes and complexity of services
- Design cost models and price negotiation strategies to reduce the dependence on physical offices for service delivery
- Offer information on strategic selection of suppliers, procurement best practices, cost-saving and cost reduction, and insights that led to optimization of the category spend
Read our complete case study titled – Cost Modeling Helps a Leading Conglomerate with Better Negotiation of IT Temporary Staffing Services
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