Manufacturing companies are always searching for new ways to increase their profit margins. While some do this by charging more for their products, a more sustainable strategy is to manufacture the products more efficiently. By lowering your product’s manufacturing costs, you can increase your profit margins and build a more efficient business. And one of the most significant factors in product manufacturing costs is the cost of labor and manufacturing staffing.
Some manufacturers try to control labor costs by paying their employees less, but this may cause them to seek employment elsewhere. Another option is to hire less experienced, or unskilled, workers who receive a lower hourly rate than skilled workers—but hiring inexperienced employees will likely make your business less efficient in the long run.
One of the best ways manufacturers can cut staffing costs while maintaining productivity is by partnering with a manufacturing temp agency. These staffing agencies handle all the responsibilities and associated costs of hiring and maintaining a workforce: recruitment expenses, payroll expenses, training costs, and more. But manufacturing staffing services provide employers with many additional cost-saving benefits. This article will explore how working with a light industrial staffing agency in Cincinnati can help your company control labor costs, increase profit margins, and be more productive.
Drive Down Costs by Partnering with a Manufacturing Temp Agency
When it comes to controlling labor costs, partnering with a manufacturing temp agency can be a game-changer. These expert teams specialize in providing flexible temporary staffing solutions to employers who want to access quality workers without incurring high labor expenses. From eliminating training costs to boosting retention to increasing flexibility and productivity, a manufacturing temp agency can provide your business with a variety of cost-saving benefits.
Temporary Employees Cost Less to Train
For manufacturing companies to operate safely and productively, it’s essential that all employees be properly trained. Ensuring that all your employees have undergone comprehensive training will increase your efficiency in the long run; unfortunately, it can cost your business significant time and money in the short run. Training programs can cost hundreds or thousands of dollars per employee. And if a new employee hasn’t worked in a similar role before, it can take weeks or even months before they’re up to speed and able to contribute to efficient production.
Employers can avoid this conundrum by partnering with a manufacturing temp agency. These agencies fill open roles with pre-qualified candidates who typically already have experience with similar manufacturing roles. This means that in nearly all cases, the temporary employees you receive from a staffing agency will already be trained and experienced with the skills they need to perform their jobs. Manufacturing staffing services allow Cincinnati employers to eliminate the high costs associated with training new employees.
If your manufacturing business uses unique processes or technologies that require specific training, you can also collaborate with your staffing partner to create orientation programs for temporary workers. Temporary employees can complete these training programs through the staffing agency before their assignment begins, ensuring that they’ll be fully prepared to work efficiently and productively their first day on-site.
Use Manufacturing Staffing Services When Needed
Another cost-saving advantage that manufacturing temp agencies offer is a flexible workforce that businesses can scale to fit their needs. This is essential for manufacturing companies that often experience significant fluctuations in workload. Many manufacturing employers hire based on how many employees they need during seasons of peak production, only to find themselves overstaffed during slow periods. This causes employers to either continue paying for full-time staff they don’t need or implement layoffs and then pay severance and unemployment costs.
A better solution is to maintain a core staff of direct employees based on the number of people you need to meet average business demands. Then, during times of peak demand, supplement that core staff with temporary employees from a light industrial staffing agency. When demand slows down again, you can discontinue the temporary staffing service. By using this strategy, you can ensure you have the workforce to get your company through your busiest seasons without needing to pay for that full workforce year-round.
Many manufacturing temp agencies also offer temp-to-hire staffing services. If you think one of your temporary employees would be a worthwhile addition to your full-time staff, or if one of your core staff decides to leave your company and needs to be replaced, you can typically transfer a temporary employee to your direct staff at no additional cost.
Manufacturing Staffing Agency Helps with Employee Retention
Employee retention is crucial to the success of any business. For manufacturing companies, retaining quality employees is not only cost-effective but also necessary to maintain productivity.
A key piece of retaining great employees is hiring great employees to begin with. This is where a manufacturing staffing agency comes in. Staffing agencies have years of expertise in sourcing, attracting, and hiring quality employees and in accurately matching them with companies with similar cultures and work ethics. Companies that use manufacturing staffing services can be confident that the employees they receive are skilled, trustworthy, and dedicated, allowing employers to avoid costly and disruptive high turnover rates.
Partnering with a manufacturing temp agency can also boost employee retention because some of the money your company will save on hiring can go toward the cost of retaining your current full-time staff. By investing in ongoing training and professional development, additional or improved benefits like comprehensive health care coverage or paid time off, and new technologies that help your employees do their jobs more efficiently, you can create a positive work culture that your best employees won’t want to leave.
Prioritize Assignments to Avoid Overtime
For many manufacturing businesses, it’s not unusual for the size of their workload to exceed the size of their staff. To avoid the costs of hiring and maintaining new employees, some employers rely on paying overtime to their existing team to work additional hours and accomplish everything that needs to be done.
Overtime can work well as a short-term solution for exceptional circumstances, but using it regularly can come at a serious cost. Since overtime is typically 1.5 or even 2 times an employee’s regular hourly rate, overtime costs can quickly add up and significantly cut into a manufacturing company’s profit margins. There’s a cost to your employees as well—working overtime consistently can cause even your best team members to experience burnout, decreasing their productivity and making it more likely that they’ll search for other jobs.
One way manufacturing businesses can avoid the costs of overtime is by prioritizing assignments. Have your employees complete critical business tasks first during normal business hours. As much as you can, try to eliminate busy work or unnecessary processes that take up your employees’ time and cut back on production.
Manufacturing temp agencies can also help you avoid overtime and better manage and prioritize your employees’ workloads. Typically, you’ll want your most experienced and trusted core staff to focus on critical or high-priority tasks. You can outsource your non-essential business functions to temporary employees, letting your in-house staff focus on your business’s core competencies without getting burnt out. This allows your company to complete both critical and non-critical tasks simultaneously, making you more efficient. It also prevents you from paying your core staff overtime to do everything, allowing you to better control labor costs.
Access to Top Manufacturing Candidates
A final benefit of partnering with a manufacturing temp agency is that agencies can provide access to hard-to-find candidates. Locating top-quality candidates is challenging, and typically requires large investments of time and money. But manufacturing staffing agencies have access to pools of pre-qualified workers, some of whom may not be easily accessible through typical hiring avenues. Staffing agencies usually have talent networks that are more extensive and varied than those of most employers, giving your business a wider selection of qualified candidates.
Of course, even if a candidate has all the practical and technical skills you need, it doesn’t necessarily mean they’ll be the right fit for your company. That’s why staffing agencies have developed expertise in matching the right people with the right roles based not only on their skills and experience but on their personal qualities, values, and goals. Most agencies also have rigorous screening processes for their candidates, meaning the employees you receive will have already undergone thorough background checks, reference checks, and drug screens. These manufacturing staffing services combine to eliminate the costs associated with a bad hire.
Partner with a Light Industrial Staffing Agency in Cincinnati to Control Costs for Your Manufacturing Facility
Controlling labor costs is essential for manufacturing companies—and leveraging manufacturing staffing services in Cincinnati can help. Partnering with a light industrial staffing agency in Cincinnati like Precision Staffing Services can be a cost-effective solution for companies looking to control their labor costs while maintaining productivity. From temporary and temp-to-hire to direct hire and payrolling, Precision Staffing Services offers a range of benefits that can help companies save money and be more productive. Ready to partner with manufacturing staffing experts in Cincinnati and Northern Kentucky? Reach out to Precision Staffing today to request an employee.