Cost control in the use of external personnel: What companies should know in 2025

Introduction

In times of persistent inflation and growing cost pressure, the efficient use of external resources is becoming increasingly important. Especially in the area of external staffing, it is crucial for companies to identify cost drivers and strategically exploit savings potential. 

The white paper "Cost Control in an Inflationary Market 2025," developed by Hays, provides well-founded and practical approaches to how companies can systematically optimize their spending on external resources through a Managed Service Program (MSP), including concrete KPIs and best practices from real-life implementations. 

This article offers valuable insights, especially for those responsible for HR cost control, to make better decisions at the strategic level. 

This article provides a concise summary of the most important strategic approaches. If you would like to delve deeper into specific implementation steps, savings potential, and case studies, you will find further insights and practical instructions in the full white paper. 

Reducing Costs vs. Avoiding Costs 

Before considering specific cost control tactics, it is important to distinguish between two fundamental approaches: cost reduction and cost avoidance. 

This distinction forms the methodological basis of the white paper. 

Effective cost management in the use of external personnel requires both components in a coordinated combination. 

Strategies at a glance 

The white paper identifies six concrete levers that companies can use within an MSP to reduce external personnel costs or avoid potential overspending. These strategies can be flexibly combined and adapted to individual organizational structures. The following approaches provide practical guidance, particularly for HR cost controllers who want to combine operational measures with strategic impact. 
The white paper not only describes the following strategies but also explains them using concrete project examples, including savings potential, implementation time, and complexity assessment. 

1. Supply Chain Optimization
   By consolidating the supplier base, volumes can be pooled and better terms achieved. A clearly structured tiering model and regular performance feedback promote quality and efficiency.
2. Strengthen Direct Sourcing
   Direct staffing by an MSP team reduces dependence on third-party providers. Prerequisites include reliable skill forecasts, a good contract model, and technologically supported talent pools. Direct sourcing in recruitment can not only reduce costs but also increase the quality of placement.
3. Establish Rate Card Management
   Uniform, market-based hourly rates ensure transparency, prevent overpayment, and ensure comparability. Regular updates and the inclusion of social security costs create planning security. Structured Rate Card Management is therefore a key tool in HR cost controlling.
4. Regulate the Handling of Pre-Identified Workers
   When departments bring in their own candidates, this can undermine cost control. Clear processes for integrating these cases into the MSP process are essential.
5. Tenure discounting
   Longer assignments offer the opportunity to reduce margins and explore alternative staffing options. A well-managed MSP recognizes such opportunities early on.
6. Use Furlough models
   Targeted breaks for external employees during low-utilization periods, such as holidays or the New Year, can result in significant savings. A contractual basis and clear communication are required.

Conclusion

Effectively managing costs in the area of external talent requires a strategic combination of preventive and corrective measures. The Hays white paper "Cost Control in an Inflationary Market" demonstrates how an MSP model can serve as a structural framework with concrete practical examples for systematically implementing these measures. 

Download the whitepaper for free