Labor costs are one of the most
sizeable line items in a small business budget and, typically, the more a
business can automate its processes, the lower labor rates will be. Automation
can increase output factors like quality and turnaround time at a lower cost.
But what happens with those tasks and processes that can’t be automated or
don’t make economic sense to automate?
For these tasks, instead of hiring
specialized in-house employees to address the issue, it could be a shrewd move
to outsource. Here are several ways contract labor services can help save your
Get more cost-effective use of your
When you outsource your specialized
tasks or business processes, particularly when those services are non-mission
critical and time-consuming, your existing employees will have more time to
focus on the jobs for which they were hired and trained. They will work more
efficiently and effectively on their customary tasks while the contract labor
performs with the specific skills necessary for the job. This allows them to do
it for less cost than your higher-value, permanent employees.
Minimize labor costs on
Business owners recognize that
their employees cost more than their wages. Employers will often need to pay more
above base wages when all payroll costs are loaded in. Now add in the
unaccounted-for costs of paying for downtime when employees have slow periods,
and the costs can really add up! However, keep in mind that downtime is
unavoidable and even reasonable in any job position and with the most exemplary
When you hire an outsourcing firm,
you are paying a pre-negotiated rate for work that is promised with a specific
delivery date – whether or not 100% of their working time was productive. By outsourcing,
you can minimize these additional labor costs and get a better value on quality
Outsourcing makes you more agile
Peaks and valleys occur in most any business. Either situation presents
a challenge, i.e., how do you get the work done most cost-effectively.
Outsourcing can be the answer in either scenario. In high-demand times, you can
ramp up without having to hire and train new people that may not have enough to
do when the down times inevitably come.
Another issue that commonly comes up is when customers ask for
changes—which they often do—and you’re suddenly faced with gaps in your
workforce’s ability to handle them. No problem. You can outsource to a capable
team with a variety of skills that already knows how to perform that work.
Lower your costs and outsource the right way with Ohio
As much economic sense as contracting out makes, there’s no win in
trading lower labor costs for additional spending to fix mistakes. Check out
our testimonials and you will
discover that small business owners in the Cincinnati area choose us for our
reliability and quality work as well as our cost-effectiveness.
Contact Ohio Valley Goodwill’s
Industrial Services Division for a quote on your next contract labor
project and receive a free tour of our facilities. We would be happy to speak