A recent survey suggest that businesses in the U.S. have the potential to thrive, but could also stand to improve.
The economy is still not out of the woods yet when it comes to damage from the economic recession, but there are encouraging signs that business will thrive again. A recent report from research company Grant Thorton indicates that the U.S. ranks 11th in its Global Dynamism Index, which compiles findings from a number of categories regarding business growth and innovation.
Finding Room for Improvement
"Encouragingly, U.S. business growth fundamentals are improving, particularly in the areas of science and technology, operating environment, and economic expansion," said Grant Thornton's CEO Stephen Chipman. "However, there continues to be a perception of an increasingly difficult U.S. financing environment, with this year's respondents citing private sector debt, corporate tax burden, and a decline in inward investment growth as the factors weighing us down."
One of the categories in which the U.S. could stand to improve is "Labor and Human Capital." The U.S. ranked 21st, being beaten out by countries such as China, Australia and New Zealand.
Addressing Turnover and Productivity
While there are numerous ways in which the country can help improve its economic standing, employment is one that can benefit both U.S. citizens and businesses as a whole. The key is being able to make sure that workers stay satisfied so that they are producing at their highest levels.
A number of companies have turned to contract labor to address these issues while also keeping their operating budgets low, but not every solution has worked to the same degree.
Logistics Viewpoints examines the situation of one company that looked to logistics staffing in order to meet demands of its warehouse. For a long time, the company had a temporary staff turnover of about 50 percent. This was due in large part to workers being frustrated in not knowing what was expected of them when they arrived on the job site.
The hiring company attempted to create its own training program, but because the company specialized in other areas besides just logistics, it was not the most effective strategy.
Employing Contract Labor Solutions
After seeking out the services of an external staffing solution, the company was able to see strong improvements with the performance of its contingent labor force. Staff turnover fell to about 6 percent, while employees operated at a 95 percent efficiency level.
Such a solution was highly effective and minimized the amount of workers that the company needed to take on as a whole by limiting employee turnover.
The effects of employee turnover are well known. When laborers are seeing new faces in the workplace every day, it can have negative effects on the morale of other people in the office. On top of this, turnover decreases productivity as many of the people who remain with the workplace have to make up for the extra tasks that the former employees have left behind.
Addressing Issues Through Performance-based Labor
Improving productivity in the workplace is not only good for the company, but also the economy as a whole, as indicated by the Grant Thorton Index. Many companies have turned to performance-based flexible labor solutions to address these issues.
In these scenarios, the staffing company provides on-site training designed to get workers up to speed with the company operations, while at the same time focusing on productivity. By being able to keep workers on longer, turnover is minimized, and in doing so productivity also increases. With business operations picking up in the U.S. it is important that businesses maintain a lean but productive workforce to spur economic growth.