Volatility and the Staffing Industry – A Match Made in Heaven

Like a box of dynamite, companies are treating overhead as though it were a volatile entity that must be dealt with very carefully. And why wouldn’t they, given the precarious recovery that has progressed slowly with fits and starts. The Great Recession permanently changed the psyche of leaders across the globe, right-sizing priorities and downsizing expenditures.


One of the key areas of reduction continues to be the overhead costs of employees. Yet, work still needs to be done. An increasing number companies are finding that the staffing industry allows for the flexibility necessary for high levels of productivity combined with lower sustained overhead. Here are four of the eleven current best practices that are being employed by customers of staffing firms that are maximizing their return on investment:


  1. Rapid Mobilization. Running lean necessitates having quick and easy access to talent that can hit the ground running. One of my staffing industry clients recently recruited and deployed 132 IT professionals in just four days for a company that has eliminated over 70 percent of its payroll overhead.


  1. 2.  Unloading Contributory Roles. Rather than doing without support and internal service-oriented roles, frugal leaders are outsourcing these functions to their trusted staffing providers. This allows for required overhead to be spent on core functions while supportive roles are handled in a more flexible manner.


  1. Building Firewalls. Fearing additional unemployment, workers’ compensation, and other costs, thousands of companies are payrolling entire departments through staffing services. A program I helped a staffing firm on the West Coast establish for a client has not only served as a firewall for the customer, it has also reduced turnover by 31 percent in just the first eight weeks.


The staffing industry has been the equivalent of a highly skilled explosives disposal unit for the business world as it has reduced the need for payroll overhead. We will see more of this type of partnership in the years to come as an increasing number of companies focus on their areas of expertise while leaving the recruiting, hiring, onboarding, and engagement management to the experts — staffing firms.

Scott Wintrip

Scott Wintrip
Scott Wintrip is the president of the Wintrip Consulting Group. He was named to the Staffing 100 by Staffing Industry Analysts in 2011-2016 and was among the first class of the Staffing 100 Hall of Fame in 2017. He can be reached at scott (at) ScottWintrip (dot) com.

Scott Wintrip

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