One of the services we are most proud of here at LACOSTA is our proprietary insourced managed labor solution. However, in order to truly understand the value of our managed labor solution, one must first understand the alternatives that the market currently offers businesses needing to solve labor shortages.  The most common solution to labor shortages is temp workers provided by temp agencies. In this article, we will cover why our managed labor solution is the superior alternative to this service, and how it could help your business smooth out your business’ labor needs!

How Temp Workers Operate

Temp workers are provided to businesses through temp agencies. These agencies send workers to your business to help you fill labor shortages and increase the efficiency of your business’ operations.  These workers typically work for a temp agency, which acts as an intermediary. 

Upsides of Using of Temp Workers

Using temp workers can help a business increase productivity, enabling them to plug assembly line or production gaps, fill short-term roles, and smooth out operations.  Sometimes, when temp workers perform extremely well, they can be converted into full-time or part-time employees with your company, assisting and improving your overall recruiting process.  Using temp workers can also save your business valuable time and money since you don’t have to invest in recruiting employees for short-term roles. Meanwhile, temp workers, since they are recruited by a temp agency, can reduce your business’s need for a large and expansive HR Recruiting department.  At the same time, your business is not responsible for providing temp workers with benefits, enabling your business to save on some of the more expensive aspects of having a full-time employee. 

What are the Downsides of Working with Temp Workers?

While we certainly mean no disrespect to temp workers, there are a number of downsides that come with using temp workers through temp agencies. For starters, temp agencies have incredibly high turnover rates. This means that they are constantly hiring new temp workers, usually with very little experience and expertise, and they invest little in employee training.  As such, when temp workers arrive at your warehouse, factory, etc., they typically have to be trained on the job, often by your own employees. The problem with this is that, because of the high turnover rate, odds are they won’t be around for long. This results in your business constantly having to train new temp employees on the job.  Additionally, temp workers typically are provided very few, if any, benefits from temp agencies. Without a long-term, stable job, they are typically not very driven to perform, since they know their temp agency views them as largely expendable. This leads to performance issues. Temp agencies also often send far too many workers to each job, meaning if a job needs five workers, oftentimes they will send ten or more. This not only costs your business more money since you typically have to pay any employee that shows up for work for at least 4 or more hours of work even if they don’t perform any tasks, but it can also lead to tensions between temp workers and impact their on-the-job performance. 

Where Does LACOSTA Come In? 

On account of the numerous downsides that come with temp workers, it is not uncommon for the cons to outweigh the pros. That is where we come in. At LACOSTA, we have developed a specialized managed labor solution, which allows us to provide our clients with a program that is very similar to that of a temp agency, but which eliminates many of the aforementioned cons. For starters, our managed labor solution provides our clients with employees who are considerably more skilled than traditional temp workers. At LACOSTA, we invest time and money in training and developing our employees.. The end result – you don’t have to spend time training employees who may move on to another job the next day.  At the same time, our managed labor solution employee turnover rates are drastically lower than temp agencies. This is because we provide our employees with benefits, training, and long-term career advancement and development options. Indeed, each and every one of our employees is a valued member of the LACOSTA team. The result is a team of employees who are dedicated to their jobs and enjoy their work. On account of these factors and more, we often increase productivity by 25% or more! The results are always incredibly exciting to see. 

Client Site Manager

One of the key aspects of our managed labor solution that sets us apart from temp agencies and temp workers is that we place a site manager at each of our clients’ locations. This site manager is responsible for monitoring our employees’ work and progress, evaluating and researching new options to increase overall efficiency and improve performance, and coordinating with our clients to ensure that everyone is on the same page with regards to operating schedules and procedures.  This is a fundamental component of our managed labor solution, as it allows us to bring a high level of attention and coordination to our service. Temp workers almost never have a site manager, and it really makes a big difference. 

Industry Focus and Expertise 

Temp workers are typically low-skilled labor generalists who lack specialized knowledge surrounding specific tasks and industries. Our employees, on the other hand, are trained for specific industries and roles,  like working in manufacturing, pharmaceuticals, warehouse management, and more. This means that we bring a highly qualified team of trained specialists to each and every one of our clients, enabling us to not only fill their needs but also increase their productivity and efficiency from day one. 

What Are the Results? 

We are incredibly pleased by the results we are able to yield for our customers with our managed labor solution. Indeed, we are so incredibly confident in our solution that, if your business currently uses a temp staffing agency, we will provide you with a guarantee that we will reduce your “all-in” labor cost by at least 15%. In fact, it is not uncommon for “all-in” labor costs to be cut by up to 30%!

Want to Learn More?

We can’t stress enough how much of a difference there is between temp workers and our managed labor solutions employees – it is really a night and day difference. Please don’t hesitate to reach out if you would like to learn more about how our managed labor solutions could serve your business in particular. Each business is different, and we tailor our services and our solutions to each and every one of our clients. We would be happy to discuss how our services may apply to the specific needs of your business’ operations.