Hidden Costs of Temp Labor

By
Productiv

Using temps? Don’t use wages and mark-ups alone to calculate ROI.With unemployment rates at historical lows, many warehouse, shipping and fulfillment operations are forced to use temp labor to get work out the door and into customers’ hands. If this sounds like your organization, we would like to offer one word of caution: there are often huge hidden costs associated with using temp labor.In his new eBook, Man vs Machine: How to Maximize Human Productivity Before the Next Wave of Automation, author Paul Baker spends Chapters 2 and 3 shedding light on those direct and indirect hidden costs such as continuous training, supervisory time, HR processing time, quality errors and lost productivity.Through specific examples and tools, you’ll be able to see that in addition to wages and mark-ups, most organizations pay an additional 50% (or higher) in hidden costs.Productivity and profitability solutions are within reach As the pinch on labor gets tighter, there are several solutions to explore – keeping your temps, building a part-time labor pool, hiring FTEs, or outsourcing to a group like Productiv. Whichever path you take, there are several ways to keep profitability up and labor costs down. The following three concepts are explored in Chapters 2 and 3:

  • Lean Principles – a continuous improvement mindset that strives to reduce the many types of waste in an operation
  • Servant Leadership – a management philosophy focused on removing obstacles and empowering employees
  • Gainshare Programs – motivating performance and boosting outcomes by sharing corporate profits with frequency

In future chapters, Paul will expound on these concepts with more examples, showing how to use this mix to maximize productivity.For a quick yet substantive exploration of real temp labor costs and solutions, we invite you to download the first three chapters of this new eBook.[Download the eBook]

Share:

Related Content

July 19, 2024

Problem and Solution: Leveraging Kitting and Assembly Services in the Modern Supply Chain

To address (supply chain) challenges, many businesses are turning to innovative strategies, including kitting and assembly … (to) improve inventory management and increase (their) ability to adapt to change in a volatile market.

June 27, 2024

Changing Tides: Kitting and Assembly Services in the Modern Supply Chain

Market trends and the need to drive greater supply chain efficiency are leading more companies to look for a strong kitting and assembly services partner.

What We Do

warehousing

Warehousing & 3PL Solutions

value-added-services

Value-Added Services

piece-rate-teams

Client Embed Programs

Subscribe to Updates

Get ideas on how to delight your customers with delivery on their timeline.

You've been subscribed to receive updates!
Oops! Something went wrong while submitting the form.

Explore

How to bring efficiency to your operations with Productiv