Finding good workers in this labor market is difficult. There are more open positions than people looking for work, which means in today’s environment, your workforce is a valuable commodity.
So, how many workers do you need? Each year, when setting up operating plans and annual budgets, companies use labor standards to set expectations of worker output and then use those calculations to project their staffing plan for the year.
But what happens when the workforce is dragged down because new hires and temps perform below the overall planned productivity? Well, you’ll need more workers.
We recently met with an executive of a Fortune 500 consumer products company. When asked the headcount in his DC, he said, after a long pause, “That’s a sore subject. Currently, it’s 600. But it should be 500.”
Unfortunately, he’s not alone. Insource has conducted hundreds of labor studies focused on the temporary labor portion of the overall workforce on behalf of companies in manufacturing and distribution environments. The results of those studies consistently show that temps average only 70% efficiency.
Here’s how that loss of productivity affects your staffing plan: at 70% efficiency, it takes 143 workers to do the work of 100 workers at standard efficiency. That’s 43 additional workers to hire and train. Forty-three more workers you shouldn’t even need.
If you have trouble finding good workers or if your workers don’t meet performance standards, it’s time to consider another approach. Insource has a Performance Management program proven to improve productivity – and we guarantee results.
Let Insource show you how our Performance Management program would work in your operation. Let’s talk.