What Is Managed Labor?July 24, 2020
At LACOSTA, one of the business solutions we offer our clients is managed labor, which enables manufacturers, warehouses, and production facilities to minimize labor shortages.
In this article, we will explore the unique aspects of our managed labor offerings, how they can help your business, and how they compare to other labor shortage solutions currently offered in the market.
Insourced Managed Labor versus Temp Staffing
Insourced managed labor is often confused with temporary staffing, a commonly used solution for labor shortages. While the overall goal of the two solutions is similar – namely to provide optimal staffing levels and increase business efficiency – the two could not be any more different when it comes to effectiveness and value.
At LACOSTA, our insourced managed labor staffing model is wholly different from the typical outsourced temporary staffing solutions.
The first difference comes about when we look at who comes first in the relationship: the agency or the client. With temp agencies, the agency almost always comes first. Their principal priority is to provide as many temporary staffers to your business as possible, regardless of whether or not you need them, since this is how they drive their profits. Indeed, it is not uncommon for temp agencies to send 15 to 25 employees when you only need 10. Each of these employees then has to be paid for at least four hours of work – even if you send them home – when they show up.
This is the opposite of our approach at LACOSTA, where we focus on efficiency through the use of key performance indicators (KPIs), minimizing excess staffing and smoothing out your labor resources. For businesses that switch over from a temp agency to our insourced managed labor staffing model, it is not uncommon for them to see reductions in “all-in” labor costs upwards of 30% – and we even guarantee a reduction of at least 15%.
And the differences don’t end there. Under our model, we provide onsite management through a dedicated site supervisor who partners with your current team, something you will never receive from a temp agency.
Other differences include our advanced, high-level reporting procedures, which provide you with monthly KPI scorecards and daily report cards. Plus, temp agency employees have turnover rates bordering on revolving door levels, often well over 100%. LACOSTA’s turnover rates are less than 20% because of the higher pay we offer our employees and the advanced training and skill sets we provide them with. In fact, all of our employees are fully trained, cross-trained and managed by LACOSTA personnel and management, minimizing your need to constantly retrain workers.
Why is LACOSTA’s Managed Labor Rate Higher than Most Temp Agencies?
While our hourly labor rate is higher than most temp agencies, our employees possess a higher level of training, benefits, and more, all of which help us minimize our turnover rate and reduce your total cost.
That said, the key dollar amount to look at is not the hourly rate, but the “all in” labor cost. As previously mentioned, we guarantee at least a 15% reduction in your “all in” labor costs when switching to our managed labor methodology from a temp agency.
How Exactly Does LACOSTA’s Managed Labor Staffing Model Work?
Our current managed labor staffing model is the product of over 32 years of pioneering, research, and experience! Over that time, we have been able to refine and hone in our methodology to its leanest and most effective form.
The model we use can be broken down into three easy to understand and basic steps:
Step 1: Managed Labor Audit
In this step, our team visits your facilities to develop and define a clear plan of action, analyzing how to eliminate your current labor shortage problems and how to turn important KPIs from red to green.
Step 2: Staffing Transition
In step 2, we finish identifying all of the KPI’s and processes we need to implement. Our hiring, training and management oversight are put into action. From there, we complete the transitioning of in-house staff and/or temp staffing.
Step 3: KPI Reporting
Our final step is a continuous process that goes on as long as your corporation is a LACOSTA client. It is also the most exciting step! We closely watch and analyze our mutually agreed upon KPIs, ensuring they turn from red to green. We also file daily reports, schedule monthly partnership meetings, conduct quarterly site visits, and provide detailed annual reviews of our progress. With these different metrics and reviews, we are able to constantly refine our process, ensuring that we are providing you with the best possible service.
Before you know it, your business will begin to see the amazing benefits our methodology provides through our core values of efficiency and value.
What Sorts of Roles and Industries can LACOSTA’s Model Serve In?
Our model is designed to serve plant managers who struggle with frequent labor shortages in production lines, warehouses, shipping & receiving, industrial manufacturing, pharmaceutical manufacturing, consumer goods manufacturing, and more.
The goal of our model is to provide both efficiency and value to our clients through supporting their operations with laborers who possess tier 1-4 skills sets, are cross-trained, and ready to adapt to any working environment.
We do all of this while being committed to high safety and environmental standards, mitigating risks in the workplace for both our own personnel and our client’s personnel.
Plus, we have the capacity and sophisticated infrastructure to enable us to grow with your corporation, continually adapting and up-sizing to meet your needs. We’re able to build relationships with our clients that last decades!
What Specific Tasks and Services Can LACOSTA’s Team Fulfill?
Some of the specific tasks and services we can provide your business with include, but are not limited to:
- Assembly line production
- Container unloading and loading
- Forklift operations
- Material handling
- Order input
- Recycle and reclaim
- Warehouse and inventory management
What Types of Skill Sets Do Our Employees Have?
We have broken the skill set offerings of our employees into four different levels. Our clients can choose from these levels based on their needs and the complexity of their operations.
If your business continually struggles with labor management issues, suffering from shortages and other mishaps, our model could be just what you need.
Over the past 32 years we have been providing these services, we have seen innumerable success stories, and our tried and true method has enabled businesses time and time again to take their operations to the next level.
If you feel your business could benefit from these services or would like to learn more about how our services are applicable to your specific operations, please don’t hesitate to reach out. If you are ready to take the next step and begin the process of implementing our program, we will be happy to provide you with an audit and quote.
Plus, be sure to continue to check back on our blog. We are excited to be offering tons of new content and information for businesses about both the services we offer as well as general knowledge about the latest cutting-edge methodologies in the facility support services industry.