You also address a range of issues, from safety to productivity. These demands combine to create an increasingly difficult environment for proactive management. Controlling costs in your variable demand environment has increased the demand for flexible workforce. While your staffing provider is intended to help with these issues, it often falls short.
Balancing Service and Budget
While none of this is news to you, some of the solutions might be. Reliance on hourly temporary workers leaves you with many inherent problems. Moving beyond those difficulties of such staffing is an important step in maintaining competitiveness in today’s markets.
As you rely on your LMS for daily performance metrics, the difficulties introduced by high turnover, low productivity and inadequately trained workers all too often leave those metrics unattainable. While your LMS is specifically designed to provide visibility to those problems and concerns, there remains the challenge of holding your staffing partner accountable for falling short. Creating accountability for attaining the metrics defined in your LMS, results in immediate benefits that are not often realized in an hourly staffing partnership.
Focusing on Solutions
When working to meet the demands of this balancing act, it’s especially important to get the ROI you want and need from your LMS. Measuring your flexible labor partner’s performance and invoicing directly from your LMS can help you get the job done on time and on budget.
The alignment of such a qualified flexible labor provider is dealing with the very problems created by using a variable and part-time workforce. Their purpose is to reinforce and facilitate the goals of management while meeting tight budget constraints.
This solution orientation provides you with a number of day-to-day and shift-by-shift advantages that help make the distribution function operate as intended. These include:
1. Real-time Data Management
Instead of having to rely on historical information and assumptions, this approach allows you evaluate your provider throughout the work period. The analysis is available by the entire shift or by individuals. Most importantly, such a relationship also provides you with early identification of performance concerns.
2. Budget Control
One of the promised advantages of any LMS is the ability to properly forecast and manage costs. When you use a third-party labor source that rigidly complies with the budgeted categories, it gives you that control on the floor and in each area of performance.
3. Cost Reduction
Alignment between a performance-based labor partner and your LMS create opportunities for productivity improvements. By managing, training, and incentivizing workers towards key metrics, your flexible labor partner becomes a catalyst for attaining the budget goals of the operation. A number of companies report increases of 20-25 percent in productivity, resulting in annual labor cost savings of 10 to 15 percent.
4. Control of Overtime
Overtime is a frequent source of budget issues. With a flexible labor partner responsible for optimizing workforce levels in the face of seasonal work demands and maximizing productivity of each worker, overtime is minimized. The removal of workforce level management, illustrates additional advantage of a flexible labor partner being interconnected with your LMS.
5. Maintaining Standards
When all your flexible labor costs are billed directly from your LMS, the direct correlation to the work produced against the engineered standards is visible on each invoice. This holds the labor partners responsible for maintaining productivity level to meet budgeted labor costs.
While specifics of the benefits will vary based on your unique circumstances, you’ll find the many advantages of working with a qualified flexible labor partner provide a greater ability to maintain that critical balance between customer service and your budget.