Top 6 Cost-Reduction Strategies for Industrial Agencies in 2024

With a slower economic market on our hands, finding effective cost-reduction strategies is more crucial than ever.

As the economic outlook remains uncertain, with GDP growth forecasted at a modest 0.7% by the Office for Budgetary Responsibility and the Bank of England predicting zero growth in 2024, the pressure on industrial temp agencies to control costs and maintain profitability is immense.

Against this backdrop, the transition to net-zero emissions by 2050 is set to reshape the labour market, further complicating the landscape. As the demand for green jobs grow, agencies must navigate these changes while keeping costs in check.

In this post, we’ll explore 6 practical and impactful strategies that can help industrial temp agencies reduce costs and stay competitive in 2024. From leveraging technology to optimising workforce management, these approaches will provide the tools needed to thrive in a challenging economic environment.

Reducing your overhead costs is perhaps one of the first things you think of when considering how you can save money in your business.

First of all, we’d recommend conducting a thorough review of your overheads—sit down and examine all your bank statements as well as invoices, recurring subscriptions, and other financial commitments. You need to know exactly where you’re spending money to identify areas for potential savings.

Secondly, review your biggest costs and consider how you might be able to reduce them. One of these larger costs could possibly be office space. In 2023, 44% of UK workers worked in some form of remote capacity, with 16% being full-time remote workers and 28% being hybrid workers. So it’s never too late to consider remote working as an option, which could lead to significant savings on rent, utilities, and other associated expenses.

Thirdly, look into the types of expenses you can claim against your business in the UK. This might include business rates relief, tax-deductible expenses, or specific grants that can alleviate some of the financial pressure on your agency. By optimising your overheads and taking advantage of available resources, you can significantly reduce your overall business costs.

Optimising your workforce management means getting secure processes in place that allow you to ensure you are neither overstaffed nor understaffed, leading to significant cost savings and operational efficiency. Effective workforce management is crucial in reducing labour costs, especially in the fast-paced environment of industrial temp agencies.

One of the most important tactics you’ll need to have in place is a CRM that can allow you to easily select the workers you need for the bookings you need to fill. This is a feature that most recruitment software providers offer, but you’ll need to make sure it allows you to mass communicate with your temp workers too, so you can ask them quickly if they’re free for a shift.

Another vital aspect is automated time tracking. Tools like PrimePRO’s built-in time and attendance software simplify the process of monitoring candidate hours. This system automatically updates the timesheet, ready for agency or client approval, drastically reducing the risk of payroll errors.

Have you ever thought about how you can find and onboard temp candidates at a quicker rate? Well, there are a few things you can try to save time and money on time spent finding candidates:

• Referral Programmes: Encourage your existing temps to refer friends or colleagues by offering incentives such as bonuses, gift cards, or priority placements. Referral programmes not only help you tap into a trusted network of candidates but also speed up the recruitment process by bringing in pre-vetted individuals who are more likely to be a good fit.
  
• Job Fairs and Recruitment Events: Participate in or host industry-specific job fairs and recruitment events. These gatherings allow you to meet a large number of potential candidates in a short period, enabling you to quickly identify and onboard suitable temps.
  
• Social Media Recruitment: Use social media platforms to advertise job openings and engage with potential candidates directly. Quick, targeted social media campaigns can reach a broader audience and attract candidates who are actively looking for temporary work. Platforms like LinkedIn, Facebook and Instagram will have who you’re looking for.
  
• Streamlined Online Applications: Simplify your application process by using a user-friendly, mobile-optimised platform like PrimePRO. Allow candidates to quickly register and complete their application forms online. Integrating this with automated follow-ups and reminders ensures that candidates complete their onboarding swiftly, reducing the time it takes to fill open positions.

More than 86% of recruiters say that using an ATS has reduced their time-to-hire, which results fortunately results in cost-savings too.

For optimum efficiency and time-saving benefits, choose an ATS or an end-to-end recruitment software solution that can streamline the entire temp recruitment process, from candidate management, and onboarding to payroll (using tools like PrimePAY – payroll software for recruitment agencies).

Having the option of being able to automate repetitive tasks—such as sending out application forms, managing compliance documents, and tracking temp candidate progress, ensures that your recruitment team can focus on more strategic activities like building client relationships and sourcing high-quality candidates.

For example, with PrimePRO, you can streamline the candidate onboarding process by allowing candidates to swiftly register online through a convenient email link. With customisable application forms that include tailored questions and compliance requirements specific to your agency’s needs, the flexibility ensures that you collect the right information from the start, reducing the need for follow-up and making the process smoother for both candidates and recruiters.

Negotiating contracts with clients is a crucial strategy for securing better rates and reducing costs, particularly in the competitive industry of temp recruitment.

To successfully negotiate, it’s essential to first understand your client’s specific needs and budget. By thoroughly researching their pain points, goals, and constraints, you can tailor your proposal to highlight the value your agency offers, making it easier to justify your rates. Emphasising the high quality of your temp workers and the efficiency your service brings to their operations can turn the negotiation into a discussion about shared success rather than just pricing.

Flexibility is another key element in negotiations. Instead of sticking rigidly to your proposed rates, consider offering creative solutions like volume discounts or extended contracts. This approach shows that you are willing to work with the client to meet their needs, creating a sense of partnership.

Putting a stop to your temp workers going to other agencies and learning how to retain them will enable you to maintain a stable and reliable workforce, ultimately reducing turnover-related costs and increasing overall productivity.

There are several benefits and ways you can engage your temp workforce so they don’t even consider another agency, such as:

• Offer Competitive Pay and Benefits: Make sure your temp workers are receiving fair compensation for their work, and consider offering benefits like bonuses, flexible schedules, or health perks. This can make your agency more attractive than others.
  
• Provide Career Development Opportunities: Offer training, upskilling, and pathways to permanent roles. When temp workers see a clear path for growth, they’re more likely to stay loyal to your agency.
  
• Ensure Clear Communication: Keep open lines of communication about job expectations, assignments, and feedback. When workers feel informed and supported, they’re less likely to seek opportunities elsewhere.

As the economic landscape remains challenging in 2024, industrial temp agencies must be more strategic than ever in managing costs while maintaining high service standards.

By implementing the six cost-reduction strategies outlined in this post, agencies can navigate the pressures of slow economic growth, increasing competition, and the evolving job market.

In a year where every penny counts, adopting these strategies will not only help you stay competitive but also ensure your agency remains resilient and profitable, even in uncertain times.

The key is to be proactive, continuously assess your operations, and adapt to the changing market conditions, positioning your agency for long-term success.

If you’re looking to streamline your temporary recruitment processes, saving you time and money, then get in touch with the team at PrimePRO to book a demo and see how they can help.