As the economy continues to evolve in the wake of the COVID-19 pandemic, businesses need to adopt their approach to labor management and adopt a variable-cost labor model to supplement their permanent workforce. Staying nimble, flexible, and scalable remains critical, especially for businesses in the manufacturing, warehousing, and distribution arenas. A variable-cost labor model offers the best opportunity to foster operational efficiency while also delivering the highest ROI on your operations investment.
This approach provides a mix of permanent FTEs and contingent employees, bolstering your workforce in a cost-effective manner. Let’s take a closer look at this employment approach to examine its potential suitability for your business.
A Flexible Staffing Approach to Handle an Evolving Economic Climate
Supply chain businesses tend to thrive when they stay nimble. This approach gives them the flexibility to handle a changing economic world without missing a beat. Maintaining operational efficiency and productivity needs to be the goal of your business and its leadership.
Adopting a scalable staffing partner strategy definitely helps your business stay flexible and able to handle new challenges. For example, you want the ability to scale your operations to handle unexpected downturns and upturns in business. However, always hiring full-time employees to manage peak volume talent needs might be the wrong approach. After all, why make a permanent hire to meet a short-term or seasonal need?
This scenario is where adopting a variable-cost operational labor model helps businesses with their evolving talent demands. Leveraging the contingent workforce approach provides your supply chain or manufacturing business with the flexibility for success. You scale your headcount to meet current needs, like a challenging project that must be completed on schedule. After the work finishes, reduce your contingent labor utilization back to normal operating levels.
Contingent workers also close any skills gap if your current team lacks experience with a new tool or technology. Having your current team gain experience in this manner also broadens the skill set and production culture of your organization.
Partner with a Staffing Agency for Access to Variable Cost Labor Models
The best staffing agencies offer tailored workforce solutions for their clients. These include mapping staffing needs to annualized business and seasonal volume fluctuations to optimize production and profitability. Adopting this variable cost operational labor model ultimately helps your company achieve the best ROI on its talent acquisition investments.
If your business needs seamlessly scalable talent solutions, connect with the experts at Primero Staffing.
As one of the top supply chain staffing agencies in the Southeast, we provide the talent necessary for success. Schedule some time with us to discuss your current and future hiring plans.
