Wage pressure is being applied at every level. Amazon’s announcement of a $15.00/hour minimum wage gained the most attention, but they’re not alone. Walmart has an $11.00/hour minimum, Costco is at $14.00/hour, and Target has announced plans to raise its minimum to $15.00/hour by 2020. Yes, wages are going up everywhere.
For your company, your distribution center, this probably means increased costs that will have to be passed down the chain or absorbed by your profit margin – unless you can find an alternative way of getting the work done.
Temp workers aren’t an answer. The agencies you use have to pay more to find workers, so they’ll just charge you more.
Insource has an answer. Our performance-based approach focuses on training and efficiency, which means you’ll need fewer people, and our performance-pay model means the most productive workers earn more (and stay). Less productive ones earn less (and those other guys can have them).
This proven approach typically lowers labor costs by about 15%; with wages rising across the board, that’s never been more valuable.
If you’d like to learn more about our solution to your labor, productivity, training, and safety challenges, contact us here.