It’s a brand new year, and you likely have a whole new budget and new plans to navigate. So, are you going to stick with business as usual or are you going to considering making some changes and improvements to your operations?
Enhancing the actual operation of a distribution center isn’t all that easy since a large chunk of your cost structure is fixed or outside of your control. However, there is one piece of the puzzle that you can change – it’s easy to implement, and can also have a significant impact on your bottom line. Make a resolution this year to solve the challenges that come with flex labor and temp workers, and reduce labor costs.
The Drawbacks of Temp Labor
Bringing temp labor in to match peak demand is typical practice, but the reality is that these workers are very costly to your company. Temps have little loyalty to your company. Time-based temp workers are driven by a paycheck, not your company’s overall well being. As a result, mistakes and productivity misfires are bound to occur. And of course, you need to factor in the no-show rate, leaving you in even more of a bind.
The Benefits of a Performance-based Flexible Workforce
There is another, more cost-effective option to consider.
While temp workers are contracted for their hours, a performance-based flexible workforce is motivated because their actions impact their pay. This cost-per-unit approach reduces your overall labor costs and increases production and performance, which is in stark contrast to traditional temporary labor.
Make investigating Insource one of your New Year’s resolutions. If you solve your flexible labor needs, you’ll not only reduce your overall labor costs, but also increase efficiency, ensuring that the demands of your company’s production are met and often exceeded. Insource allows you to focus your time and energy on running your business, and managing temps.