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It should be the goal of every business to be smart when it comes to staffing costs. At times, it’s necessary for regular employees to work overtime to complete time-sensitive projects. These types of situations are basically unavoidable. With some careful planning, companies can save money and time by hiring temporary employees to augment current teams. In this way they can reduce the costs of paying overtime to regular employees.

But the question you may have on your mind is if it’s actually more cost-effective to hire temporary employees or to pay out occasional overtime? If you only have to pay an hour or two of overtime, then it’s not the best decision to bring temporary workers on board. However, there is always a break-even point where temporary workers will be the more cost-effective (and better) solution.

Here’s some simple math:

Employee A: Regular works 46 hours in one week at $15/hour. The regular salary is $600 and the overtime is a cost of $135, for a total salary of $735.

Employee B: If your company hires a temporary worker at $10/hour, the break-even point in salary comes around 13-14 hours.

Your company will have to onboard the employee and provide some training, but you can bring a talented, skilled employee to your team for 13-14 hours instead of getting six hours of overtime from your current employee.

A Better Way of Staffing Your Company

Once you see the above figures and the way hiring a temp worker makes better sense than paying overtime on a regular basis, it’s easy to understand there are better ways of managing staffing costs. Making the smart decision to augment your current workforce with temps has many benefits, including:

* Upfront administrative and other recruitment tasks handled by the agency
* Payroll and benefits managed by the agency allows your company not to worry about ACA compliance or providing vacation time.
* No overtime costs to your company since the staffing agency monitors work hours
* The temp worker improves productivity from day one due to experience and skills
* On-demand staff available for seasonal peaks and replacements of regular employees

If you have developed a great relationship with a staffing company, in those times of stress when you need to augment your staff quickly, the staffing agency can provide temporary help quickly. A boost in your business is great, and you shouldn’t have to worry about turning away revenue because you don’t have the staff to handle the additional workload or don’t want to tax your existing staff with long hours.

Remember to always consider the attitude and morale of your team. If some employees want to pick up extra shifts or hours, then that might be the best decision. However, you don’t want to work your team too hard where productivity drops and attitude becomes poor.

Whatever challenges you face, Davis Staffing has the experience and flexibility to help you overcome them. Contact a leading staffing agency in Chicago today to work with our great team of recruiters!