Hidden Costs of Temp Labor

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]