Reducing Temp Staff Costs
Reduce Your Temp Staff Costs with Grafter
Grafter uses a new model for hiring temporary workers which can dramatically reduce your temp staff costs. Grafter only charges 7.5% (+ VAT) where traditional temp agencies can charge anything up to 50%.
You may not even know your traditional agency is charging you this much, as it probably won’t be disclosed, but hidden in the day rate they charge you. They probably pay the worker in the region of £10 an hour, but charge you more like £15 an hour, or even more depending on the work.
To put this in perspective, if you are hiring someone for £150 a day, with Grafter you would only pay £161.25 ex VAT or £163.50 with VAT including Grafter's platform fee. Through an agency, charging 50% commission, you would pay £225. That is a difference of £64 per day which is £320 a week - money you could keep in your pocket!
How does Grafter do it?
Traditional temp agencies have to pay the staff’s holiday and sick pay, National Insurance and PAYE. Whereas all Grafters on our platform can be engaged as self-employed and take care of their own tax affairs. You can pay Grafters through our secure payments processing system, pay them directly as self-employed or put them on your payroll. Either-way we don’t have to include these extra costs and don’t add margin on top of them. More importantly we don’t have big teams of people managing these processes and transactions, so don’t have to pass the additional cost on to you.
Grafter keeps management costs to a minimum by employing a self-service model. Traditional agencies have offices, phones, computer systems, and lots of people to pay to manage the engagement process. Because of the big teams, they also need additional layers of management, lawyers, accountants, HR professionals etc etc. All adding costs which ultimately they pass onto you.
Because Grafter is online only, we don’t have a huge team of staff. In fact, we have a virtual team with very limited overhead costs. We don’t even have an office or it's associated costs. We work as a virtual business with minimal overheads. This keep costs to a minimum, which means we can keep our fees very low and save you lots of money!
Why is This So Relevant for Temp Labour?
Lower skilled temp jobs yield a lower day rate but the traditional agencies still have the same level of business costs to recover and hence the mark up relative to the day rate is higher. This means the amount a traditional agency have to charge is proportionally higher for lower killed temp workers.
Grafter breaks this model. By keeping our costs so low we avoid having to cover large business costs out of your fees. You agree the rate directly with the Grafter and we only charge a small platform fee.
If you are running a business that deploys low skilled temp workers you could be paying 50% more costs than you need to. Grafter offers a range of benefits when finding local labour however from a financial perspective using Grafter to meet you low skilled temp needs means more of your revenue in your pocket and not paying the temp agency's large costs!
If you would like to find out more, or to find workers with Grafter and save loads of money, go to: Hire a Grafter