Oct 05, 2022 Wayne Alcock, Quyn International Outsourcing, TES provider
Focus on the money
Opinion piece by Wayne Alcock, Managing Director at Quyn International Outsourcing -
how using a TES provider can help boost productivity and cash flow for business
The concept of permanent employment is dwindling and for most businesses, labour is not their core function. Labour is necessary to run the business, but it is not the business itself. Where labour resources to run production and operate the business were traditionally acquired through permanent employment, organisations now have other options. Given that up to 90% of business overheads can be attributed to employment-related functions such as wages and payroll administration and HR management, there is an opportunity to outsource the entire spectrum of the company’s staffing requirements.
By partnering with a Temporary Employment Service (TES) provider, businesses can effectively hand over the burden of all their non-core functions to a specialist.
Focus on the money - For companies with employees split between weekly, bi-monthly, and monthly payment schedules, the administration of these processes can become overwhelming because it diverts focus from day-to-day operations and other functions that require resources and time. Instead of hiring more people to handle these processes, it’s smarter to outsource them entirely. TES providers have made it their core business to take over the responsibility of handling employment-related functions for their clients. These include remuneration, legal disputes, strike mitigation, employee wellness, interactions with unions, and all other Human Resources (HR) / Industrial Relations (IR) concerns which can be extremely resource intensive. By entrusting all non-core labour requirements to a TES provider, organisations can return their focus to revenue-generating activities, giving their time and attention to the business growth and innovation that brings in the money.
Business growth support - Here, TES providers can play a supporting role in the growth of businesses by being able to meet an increasing demand for flexible resources. With the ability to manage the scaling quickly and efficiently up or down of the staff component based on changing business needs, TES providers can help their clients ensure that they are never over or understaffed. By having a database of candidates that have already been interviewed, screened, and vetted, a TES provider can quickly source the right candidate for any position.
From fixed to flexible costs - In having their labour needs met through a TES provider, businesses gain the benefit of flexible staffing solutions at a variable cost as opposed to a fixed salary overhead expenditure, which can provide businesses with much-needed financial relief, especially in the current tough economic environment. Pair this flexibility with the fact that payroll responsibility is shifted to the TES provider, and this gives businesses a lot more breathing room from a cash flow perspective. The TES provider ensures that their workers are paid on time, usually allowing for a 30-day payment agreement with their clients if they meet the qualifying criteria.
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