spending more than you think…
temporary workers or contingent employees – more and more
of today’s large businesses need their services regularly.
The total amount spent on these services, along with the
administrative expenses associated with sourcing them, lies
buried within “indirect expenses.” Indirect expenses – the
cost of external goods and services – can be half of a company’s
total expenses, with 30 to 70 percent of those expenses
attributed to services.
For a company with $1 billion in annual revenues, spending
on services could be $150 million or more.You’re saving
less than you could…Multiple suppliers, multiple contacts,
and multiple invoices just multiply your costs. No matter
what kind of discount you negotiate with each supplier,
you will give it all back in administrative overhead. Studies
have shown that hiring managers – typically among the higher
paid employees – spend almost 25 percent of their time searching
for resources. The indirect expense of too many phone calls,
too many interviews and too much paperwork equals an all-too
tangible loss in productivity and a direct effect on the
company’s bottom line.