Magazine article Workforce

Everyone Can Win When Negotiating Rates

Magazine article Workforce

Everyone Can Win When Negotiating Rates

Article excerpt

Managing temporaryhelp expenses involves negotiating a pricing agreement that creates a win-win situation for three parties: the organization, the temporary-staffing company and the temporary workers.

It's important to keep in mind that the agreement you negotiate with the temporarystaffing service will have a direct impact on what they pay temporary workers assigned to your company. Though it's important to negotiate a fair deal for your organization, if you negotiate rates that are below market average, you'll likely end up with secondchoice candidates who are lacking the skills, commitment and quality you need.

One way to determine if the rates you're being quoted are competitive is to compare pricing between services. Keep in mind, however, that rates will vary depending on the volume of temporary workers you use (higher volume creates more negotiating power) and the skill set you require.

For instance, highly specialized skills in the technical area are in great demand, command high rates and leave little room for negotiation. Although some companies prefer to negotiate based on the markup the temporary-staffing company adds to the pay rate, temporary-staff-mg services discourage this practice because they believe it undermines their ability to control pay-rate decisions, and treats the service as a commodity versus a professional resource. …

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