Operations Payoff

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How Can Your Business Benefit From Temporary Workers?

The use of temporary workers is on the rise in the United States. Manufacturers and other companies are using temps to help contain expenses and supplement the workforce, creating a boom in the staffing industry. A recent WSJ article points out that temp jobs represent a large portion (over 25%) of all job gains in March 2014. One of the reasons is the increased flexibility that temps provide.

In the short run, labor is a fixed cost. Companies that lay off permanent workers for short periods of time in response to demand variability risk losing those workers and getting a reputation as a bad place to work. Using overtime and temps creates a variable cost, which allows companies to better balance their labor costs with market place demand. Using temps as one means of managing costs and output allows companies to increase service levels and profitability.

Many companies won’t use temps due to a fear of decreased quality and productivity. However, when you work in partnership with the temp agencies to prescreen and pre-train workers on basic skills such as teamwork, Lean, quality and basic technical skills, the workers can enter the workplace at a level of competence that equals that of lower level permanent workers. Using internal mentors can bring them up to speed even faster.

Don’t overlook temps as an effective supplement to your workforce. Contact me find out how you can develop a strategy to use this key resource without compromising quality.

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