HR Managers urged to count the hidden cost of temporary workforce

The hidden costs of hiring temporary staff could be costing companies 300,000 a year. Thatís the warning for HR managers from transport and logistics sector recruitment specialist Driver Hire.

Many national companies arrange temporary labour locally, using hundreds of different providers, says Driver Hire Chief Executive Chris Chidley. This generates huge volumes of paperwork and associated back office time, from raising a purchase order to approving payment, handling invoice queries, coding to cost centres and processing final payment.

In fact, it has been estimated that taking these processes into account, the hidden cost of every temporary staff member - over and above the hire cost - is in the region of 60 per assignment. Itís not unusual to find national firms - especially those involved in business deliveries and the fast-growing home shopping sector - processing hundreds of invoices from many different providers of temporary staff. On the basis of only 100 invoices a week, the hidden cost could amount to some 300,000 per year.

The obvious way to cut that cost was to avoid using temporary laboubour, he added, but in the real world, many companies depend on the flexibility of temporary labour to provide cover for holidays, sickness and seasonal spikes in demand.

Weíve been working closely with transport and logistics HR managers to develop a procurement model that delivers the quality workforce required while minimising these hidden costs, said Chris.

As a truly national supplier, Driver Hire is uniquely placed to meet the needs of national transport and logistics companies. We can also reduce significantly the back office costs of supply, by providing one complete and validated weekly invoice, covering all the temporary labour we supply and incorporating full cost centre analysis.

If they are to optimise cost efficiency in the use of temporary labour, companies have to understand what they are spending, where they are spending it and why. HR managers are therefore demanding detailed analysis of spend on temporary workforce with comprehensive management reports, available on the web as necessary.

One potential hidden cost which could devastate a company, would be liability for non-compliance, added Chris. In the highly regulated transport and logistics sector, that would cover a host of safety issues, from use of mobile phones whilst driving, to not driving when tired, to lifting and handling heavy or hazardous products and extensive compliance issues governed by Road Transport Regulations and the European Working Time Directive.

This is such a crucial area and not something, in my view, which should be entrusted to managed service providers or other middle men, who supply the service but donít control the quality and compliance of the temporary staff they provide, said Chris.

Directly engaging the services of an ISO quality accredited company is the safer option. All Driver Hire drivers have been through a 150-point skills check, a face to face interview, are fully referenced and have their licences checked on a regular basis. Cur customers know they are getting a driver who is fully informed about the importance of observing driversí hours, road safety and all relevant industry legislation - delivering the peace of mind of completely quality-assured workforce.