Minimize staffing costs; maximize results!

by Janet Rice Keene

If you’re wondering where I’m coming from in writing this article, here it is: I’m just about as tight as a tightwad can be.  This tightness has gained me financial independence before age 40.  I have never held a highly paid position, have never been given money as an inheritance or a gift, and indeed have not been paid much cumulatively speaking in my lifetime if you consider my age.  Instead, I’ve traveled the world (cheaply), gotten advanced degrees and had lots of children.  

With that said, here is why I’m in the business I’m in and what philosophies drive me to think this way.

I’m in the staffing business and it’s not because I ever wanted to get into human resources.  As any human resource professional will tell you, staffing can be a pain.  But I knew there was a way for businesses to have office assistance without spending a whole lot.  After all, since I don’t like to spend money, I can only empathize with companies that have exorbitant staffing expenses.

Pay less

There is another type of employee in the workforce: the part-time, “virtual” worker.  They are not lower in quality, I might stress, but lower in price and equal or greater than in productivity to the highly-paid consultant, contractor or full time staff that a company might ordinarily use. 

These people, who are educated and experienced, realize they will not earn the same amount as those who are employed full time.  Still, they know that a full time position can prove costly for them in many ways (schedules, child-care, car and wardrobe expenses, office politics, etc.).

These part-time, “virtual” workers appreciate that an under-market pay rate is appropriate compensation for the flexibility and freedom to work from home.   Indeed it’s been proven that these people often are happier and more productive in their work than full time paid staff. 

Get more

For a small company to consider a “virtual” staff, it should stop to consider its staffing costs.  Ask yourself: How much do I pay for staffing, and what do I get in return?

If you have a one-person company, and you are your own secretary, bookkeeper, graphic artist, tax advisor, etc., then you’re paying nothing and getting nothing in return.  Perhaps you could pay for something – four hours per week for a marketing assistant.  In return, perhaps you’d get six or eight hours of your own energy back to re-invest in your company.  Remember, you’d only pay for time used; you would not pay for hardware, software, idle time and coffee.

If you have a small to medium company with several full time staff, then you’re paying for payroll plus 30 percent for benefits, plus taxes and other perks. In return you may get some very productive people, but you may also get headaches such as managing vacation time, 401(k) plans, office policies, etc.  It’s sad but true that many companies have a huge amount of paid time wasted in office gossip, lateness, sick time and on-site pilferage.

Some of these costs can be reduced through using remote personnel.  The best way for a small company to capitalize on this resource is to have a remote team in place.  For example, you may have one person to handle Web site work (when and only when it’s needed), one person to handle bookkeeping, and one person to handle the marketing letters, database upkeep and answering your phones one day per week.  These people will learn your business.  They’ll know your contacts and your style just as if they worked on the premises with you.  But you’d only be paying for them when they’re needed!

You may think there’s less accountability because a remote person will not be directly supervised.  But there’s actually more accountability because the worker will have to show you work product or at least provide a detailed account of work performed before being remunerated. 

Minimal costs plus maximum productivity; it’s a very smart way to do business.

Janet Rice Keene is the founder of Keeneteam, an agency providing virtual a-la-carte office staffing and small business office staffing packages.  Her Atlanta company has virtual staff all over the English speaking western world.