Costs vs Benefits Analysis of Using Temporary Employees to Fulfill Employment Needs

cost benefit analysis temp employee

Organizations across the globe are under pressure to do more with less. In today’s business climate, it is not unusual for companies to be asked to increase output while simultaneously reducing costs. One way that organizations have attempted to meet these conflicting demands is by using temporary employees to fill some of their employment needs.

But first, you may be required by your company to do a Cost-Benefit Analysis to see if using temporary workers is the best choice for filling openings at your company.

Why Do Cost-Benefit Analyses (CBA)?

Businesses use cost-benefit analyses (CBA) to examine the feasibility of a proposed project or policy change. A CBA weighs the total estimated costs of a project against the total expected benefits to determine whether the project is “worth it.”

In other words, a cost-benefit analysis is a tool that helps businesses make decisions by systematically weighing the pros and cons of a potential investment or course of action.

The advantages of CBA’s include:

1. Helps businesses avoid costly mistakes: By carefully considering all the potential costs and benefits of a proposed project, businesses can avoid making expensive errors.

2. Facilitates informed decision-making: A cost-benefit analysis forces businesses to consider all the relevant factors involved in a decision, which can help them make better-informed choices.

3. Encourages thinking about long-term effects: A cost-benefit analysis often requires businesses to think about the long-term consequences of a project or policy change, which can help them make more sustainable decisions.

Why Temporary Employees?

Did you know that over 85% of businesses now utilize temporary workers to meet various employment demands? This proportion has increased dramatically since the early 1990s, and it is continuously rising.

The biggest reason businesses choose to use temporary employees to fill some of their employment needs? Using temporary employees saves you money!

Using temporary employees can be a more cost-effective way to meet certain staffing needs. For example, if a company only needs a temporary employee for a short period of time, it is more economical to hire a temporary worker than to hire a full-time employee.

Another advantage of using temporary employees is that it can allow businesses to test out potential employees before making a decision to hire them full-time. This can be helpful, especially if the business is unsure about the candidate’s skills or if the position is new and has not been filled before.

You can use temporary workers is to fill gaps in your workforce created by employee absences. For instance, if an employee takes an extended leave of absence (e.g., maternity leave, paternity leave, sick leave), you can use a temporary worker to fill this vacancy until the regular employee returns.

MGR Workforce Is The Solution

Using MGR WORKFORCE for your temporary and permanent staffing needs is a cost effective way to staff your company affordably, while saving time.

We offer a variety of staffing solutions to meet your specific needs. We have a wide range of temporary and permanent employees available, and our team will work with you to find the best candidates for your open positions.

To learn more about how MGR WORKFORCE can help you save money on your staffing needs, contact us today!

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