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Cost saving strategies for slow economic cycles

April 23, 2008
The continued dismal economic news from the MEDIA harpies is definitely becoming a reality. Things are getting really tough out there!
We have some answers for you-  Flex Staffing – It saves hard cash by allowing you to pay for labor when you need it and not a second longer.
Imagine if your press payment or office lease payment was like that.
How does Flex Staffing work? You call us when you have a need and we send skilled professionals out. We bill you for the hours worked. The bill rate includes Work Comp, all payroll taxes and benefits. Many clients call us for the hourly rate and use that information to help bid jobs.
The idea is to treat Staffing as a flexible cost. Over time, it can save your company huge dollars. Even when the economy is slow, you get demand spikes. This is when we can help – Semper = Always. We will Always work our best to help you meet your clients demands. With many firms cutting back, the need for extra staff is even more critical and keeping clients satisfied is ever more important to your success. 
Last week we had an interesting experience with a Sir Speedy in the Southern California area. They needed a Docutech operator for a four week assignment.  The bill rate per hour was quoted as 23.50, which included all Payroll costs and insurance. The client told us he normally pays 16 per hour to his worker and had trouble paying us more then that amount. Believe it our not we run into this fairly frequently with clients. In this case we pointed out that there are costs associated with payroll above and beyond the base rate. These costs include Work Comp., Unemployment insurance, benefit costs (Health, Dental, 401 K, LTD, Vacation and Holiday- these usually add on 30 % in most states, but at least 35% in California. And this doesn’t include liability, Theft Bond or Professional errors and omission insurance costs we provide for each of our workers). So the client was realistically paying a minimum of 16 x 1.30 = 20.80 already and was unwilling to pay the additional 2.70 (108.00 per week) that would cover our additional costs and charge per hour.  The client felt they would try covering the period with over time and  having other workers try and keep the machine running with a monthly cost of $297.61. It could be bringing in a contribution significantly higher per week.

We honestly do our best trying to explain but sometimes we fail – the is a reason they have that famous saying about throwing the baby out with the bath water – Some people are under so much stress to save a penny they definitely can hurt themselves which likely is part of the reason they are under so much stress in the first place.

So please, if your unsure ,  feel free to describe your unique situation and we can continue this discussion
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