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Controlling Costs and Creating Efficiencies

19 Jul 2017

According to a recent REC report, there has been “a sustained and marked increase in demand for staff” whilst also stating “the availability of both permanent and temporary workers continued to fall sharply”. This is coupled with blue collar work seeing the quickest upturn in temporary demand, with the Hotel & Catering and Nursing/Medical/Care sectors seeing huge upturns in July 2017.

So with an environment of increased demand and falling supply, how can companies keep their temporary labour costs under control?

Visibility is one of the key elements to keeping your costs low, how can you control what you can’t see? This can often be hard when using a number of different recruitment agencies, potentially on a national basis, who are all providing separate invoices each week. This not only creates a huge administrative burden, but can make it difficult to contrast and compare various aspects of their supply.

Different agencies may be charging the same amount of money for a worker, but paying them different rates, creating the scenario where two workers doing the same job, at the same location, are being paid differently. This is not only unethical, it can cause huge amounts of friction between workers if and when they find out.

Invoices can also be made intentionally vague, protecting an agencies hidden margins and ensuring that clients are kept in the dark.

Reduce Administration – One of the biggest ‘soft costs’ to recruitment is the amount of time administrators spend processing various aspects, be that worker timesheets, agency payments or trying to resolve worker issues. Streamlining processes and saving time can generate huge savings without damaging a worker’s pay or an agencies margin.

With Neuven’s Venneu® system clients can not only benefit from Consolidated invoicing and built in compliance functions, but a whole suite of Management Information which give clients real time visibility and control over their temporary workforce. This system not only saves companies up to 15% on their temporary agency labour, but generates huge time and administrative savings which allows time to be invested in progressing the business, not to mention the peace of mind the compliance functionality offers clients.