Turnover rates can be devastating to a company's morale and budget so it would be wise to take the proper precautions to avoid a constantly changing workforce.
Here's how performance-based flexible labor can reduce high turnover rates.
Turnover is a natural experience that all companies must face, however, if not handled properly or seen to frequently, it can create major problems for a business. Turnover arises when companies need separate from certain employees while taking on others. This can occur if a company is experiencing a seasonal surge in business, like a retail company during the holidays, or when a business such as a manufacturing company has a particularly large project and needs assistance. While these employment surges are natural, when temporary hiring services are improperly employed, costs and productivity can suffer greatly.
The Problem with Turnover
According to an article by Training Zone, when temporary workers are constantly coming and going in a company, permanent employees often have to make up for the work that is left behind, which hurts both morale and productivity in the company. Additionally, high turnover rates can cost companies large amounts of money in having to hire, train, and equip a new staff member with the proper skills necessary for the specific job.
According to the most recent Job Opening and Labor Turnover report by the U.S. Bureau of Labor Statistics, there were 4.4 million hires in the United States in May, while there were 4.3 million separations. These figures reveal that while turnover can be costly, it is an inevitable component of the American workplace. This means that it would be in a company's best interest to effectively manage the type of labor that they take on.
Performance-based Flexible Labor a More Consistent Alternative
Temporary staffing agencies can be inconsistent with the labor they provide, often drawing from an untrained employment pool that could change by the day. However, there are ways to address seasonal and market demands with performance-based flexible employment that will minimize the negative effects of turnover.
This solution provides long-term employment opportunities for workers and compensates them based on their performance, giving them incentive to perform at their highest level. If the employee is untrained, these staffing agencies can provide training on the job so that the hiring company can avoid the costs of training and equipping the employee like the Training Zone article discussed.