Taking control of temporary agency labour spend
Managing temporary agency labour spend is never easy. Indirect costs need to be considered along with those of a direct nature when gathering marketplace spend data. Implementing effective recruitment agency management strategies is paramount in an economy that is still struggling with recession and sustainability issues to prevent even further businesses going into administration.
Cutting costs therefore is the number one priority for UK firms, but in order to reduce costs control needs to be obtained when it comes to spend. To highlight the necessity of keeping track of spend, statistics have shown companies spend as much as £20 million a year on temporary agency workers with the national total spend in excess of £20 billion. Many businesses do not know their exact agency labour spend, as well as how and where it is allocated and calculated. Firms need to move towards a planned centralised control notion and away from localised ad-hoc approach.
Organisations need to optimise their temporary agency worker spend, efficiently allocate resource and avoid incurring unnecessary extra spending.