Blog 26.09.2020

How to reduce staff retention costs

The coronavirus pandemic has caused many negative effects. Unfortunately, for many, it has become the cause of bankruptcy and job loss. In view of the uncertain future, it is difficult to plan the right actions, especially in industries that are particularly vulnerable to another lockdown. For many entrepreneurs, it is precisely the reduction of employment costs that may be crucial to getting out of the crisis.

The crisis is what it is

Tourism and hospitality, catering sector, cosmetic sector and the fitness industry lost a lot of money due to the spring restrictions that were supposed to help in the fight against the pandemic. What’s more, no one is sure if a lockdown will affect them again, as shown by gyms and swimming pools, which have been closed overnight. For many, a lockdown means the end of companies, but it also affects domestic industry and large corporations.

Employee savings

For months, a search for savings has been one of the main ways of fighting the crisis, used by the heads of smaller and larger companies. Of course, costs can be cut at many levels, but it is often the cost of job retention that is the greatest burden on employers. So how can we look for workers on terms that will be beneficial and satisfactory to both parties?

Three sides of the coin

People say that every stick has two ends, and yet there are situations where three parties can establish terms that will satisfy literally everyone. We are talking about employee outsourcing, which turns out to be an excellent solution for the pandemic and constitutes a kind of contract between an entrepreneur, an outsourcing agency and an employee. The list of benefits for business owners is truly impressive and includes:

  • relieving the entrepreneur of the burden of having to conduct expensive and often ineffective recruitment processes, which the outsourcing agency will take care of,
  • easy acquisition of candidates to work according to the entrepreneur’s expectations,
  • relieving the human resources department of the burden of formalities related to hiring a new employee, who is de facto recruited by the outsourcing agency,
  • exemption of the entrepreneur from the need to comply with unfavourable provisions of the Labour Code (as the entrepreneur is not the employer in this case),
  • retaining a job without unnecessary downtime (the role of the agency is to provide a replacement for an employee who resigns or fails to perform the job),
  • flexible terms and conditions of cooperation with an outsourcing agency, which are adapted to the company’s needs each time.

Outsourcing as a response to the crisis

An economic crisis is a time when all business owners can feel unstable and fear for the future. Employee outsourcing fits in perfectly with this situation, because it is flexible and allows for a real reduction in staff costs, which in uncertain times gains additional significance. If you are running a company and you do not know this solution yet, or you simply want to see how many benefits outsourcing can bring to your company, ask about our service.

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