What is the compromise for taking a lower quote?
In today’s highly competitive business environment, cost efficiency is a top priority for many companies.
Choosing a cheaper labor provider might seem like a cost-effective decision at first glance, but it often comes with hidden downsides that can impact your business. Lower quotes can lead to compromises in service quality, resulting in inefficiencies, higher turnover rates and potential distruptions. In this article, we explore the common pitfalls and poorer levels of service you should be aware of when opting for the most budget-friendly labor provider. Understanding these risks can help you make a more informed decision that safeguards your business’s productivity and reputation.
Consequences can include:
- You risk receiving poorer levels of service
- You may be supplied a lower quality and calibre of candidate
- You may experience a lack of extra support
- Poorer levels of communication may be provided by your labour provider
- There may be a lack of a good working relationship between you and your labour provider
- There may be a lack of aftercare from your labour provider after supplying staff
- You may experience hidden costs or additional fees
- You may risk experiencing missed deadlines with your end user as a result of a poor service
- Your company reputation may be affected in association with the poor service supplied
- You may find there are higher long term costs
A huge risk associated with using a labour provider with a cheaper rate is the standard of the level of service they will provide. Labour providers who offer a higher fee will generally be offering a better quality of service, therefore charging a higher rate.
When a labor provider is managing multiple clients, you may become victim to being underserviced to a higher paying client. Those who pay higher rates often receive priority service. This can result in your company being underserviced, with less attention and fewer resources allocated to your needs.
Risks you may experience are:
- Being supplied a less qualified or less experienced candidate, due to higher skilled workers being put forward to other clients first
- Poor vetting and screening of the candidates supplied, leading to unsuitable hires
- Poor customer service levels leading to delayed responses and unresolved issues, plus getting in touch with your agency may prove more difficult
- Increased need for finding new candidates frequently, causing disruptions in the workplace
- Unprepared candidates who may start without proper orientation or understanding of their roles
- Inadequate safety measures and training can lead to workplace accidents and liabilities
- Cheaper providers might not offer tailored solutions to meet specific company needs
- Limited ability to adapt to unique or changing requirements
- Inconsistent quality of candidates and services, leading to unpredictable performance
- Unreliable candidates who may not show up on time or meet job expectations
While it’s natural to seek cost-effective solutions, the risks associated with choosing the cheapest labor provider can far outweigh the initial savings. Compromised quality, inconsistent workforce, hidden costs, poor customer service and potential underservice are significant issues that can impact your business’s operations and reputation.
By being aware of these potential pitfalls, companies can make more informed decisions and weigh the true cost of opting for a cheaper labor provider against the potential risks to their operations and overall productivity.
Please get in touch if you’d like to assess your costs, but don’t want to compromise on the service and calibre of candidate you’re receiving.
We can discuss and work out an agreement that suits both parties, where neither party needs to compromise.