In This Article
It's very common that your sales volume fluctuates in certain seasons. Every business faces it. To keep it up to order, businesses often need temporary employees. For example, in peak time, they hire temporary people to scale up and in the off-season, they scale down. The temporary labor cost is negligible, compared to the cost of any fixed employees.
Hiring temporary employees to take off your load is a great short-term solution. But it may involve some hidden costs if you are unaware of those. This blog has been created to tell you how you can easily minimize labor costs for temporary employees positively.
Before we begin, we must understand why businesses like yours need temporary workers.
Benefits of temporary workers
Generally speaking, businesses often hire temporary workers to meet the following needs. And they avail of the following benefits from them.
- Fill the absence of a permanent worker
- Assist during high-demand
- Flexible work schedule
- Pay less than a permanent employee
Picture this: you're a small business owner and you have the work sending emails to your customers for your product promotion. You have the list of email IDs of your customers but not in arranged manner. Suddenly you realize, you need to send all the emails quickly because one of your competitors has prepared to launch the same product you sell within the next few hours.
Can you send emails randomly to your customers just to be ahead of that competitor? Absolutely NOT!
Now, you're smart enough to hire someone for a few hours to rearrange the email listing. These are the temporary workers and you can avail them on outsourcing. For this, you just need to pay their hourly charges and get your work done on time. This is the best option to cut temporary labor costs up to a certain level.
Simple right?
Paying fixed salaries to permanent employees can be financially stressful. Especially, when your business is going through a tough phase.
Even if your workflow decreases, you have to pay for these things if you engage people in your organization for permanent roles;
- Regular fixed salaries
- Office overheads
- Paying out employee benefits
- Maintenance and retention costs
Plus, your organizations have to engage with a continuous hiring process to build a strong network with the professional world to get the best talent.
Additional employee = additional help
Let's look beyond the surface of temporary labor costs.
Selection of the right employee, even if for temporary roles, is important. In this sense, you have two options to get temporary employees. One, hiring freelancers; and second, outsourcing to a company.
Think of FREELANCERS?
Let me draw you a perspective when you get freelancers to perform your temporary work.
The cost to hire freelancers for your tasks is almost the same as other options like outsourcing. Anyway, you need to put some extra effort here. Hiring freelancers is more like the original recruitment process. Here, you need to spend time reading the resume, contacting the person, talking to them, negotiating charges, and making the final contract.
If you're looking for some specific skill sets to get your special project done then freelancing could be your best option. Mind that, the duration of the project must be for a short time only. Because in the long run, the freelancers might not be available for you.
Have You Explored OUTSOUCING Before?
Now, explore the benefits of outsourcing, which freelancers would never provide.
Suppose you need a specific task to be done at a specific time, in each quarter. Let's say, you need to fill in your invoice data to prepare a financial report in each quarter. That's a fixed task. You cannot ignore this task. However, you cannot hire a fixed number of people for this task because you only need it in every quarter.
Imagine you hired a freelancer to get your job done for this quarter but she is not available in the next quarter. You really appreciated her work but could not fix her dates. So it can build an issue here, right?
Nothing to worry! Outsourcing can solve all your issues. Generally, outsourcing companies are there to serve you for a long time. They are committed to helping businesses throughout their span of time. Plus, you can get the same quality of expertise, each time you approach them. To get the best out of outsourcing, you need to choose a country where you actually can minimize short-term labor costs.
India is an excellent choice for outsourcing. You can get the best experts, the right skills, and in an affordable price range. The top 100 global companies prefer India to outsource their needs because of all these reasons. AskDataEntry is an Indian outsourcing company that can help you minimize temporary labor costs. It is based in India and operates your data entry tasks from there.
