Whitepaper: A New Approach for Ending Manufacturing Labor Shortages

June 10, 2019
Whitepaper: Temp Staffing vs. Managed Labor

According to the results of a global 2018 talent shortage survey, more employers than ever are struggling to fill open jobs. Of the more than 39,000 employers who were polled, 45% said that they couldn’t find the skills they needed. They also said that skilled trade positions were the hardest to fill.

Low Unemployment Challenges

With low unemployment, it’s harder than ever to find qualified candidates for these trade positions, especially in the manufacturing sector. Most manufacturers try to bridge the gap with temporary workers to fill the void. But these workers often don’t have the skill sets needed for the work nor the support in terms of training, supervision and development, causing turnover rates of 100-400%. In those cases, companies might need to look for solutions outside of the traditional temping agency.

Temp Staffing vs. Managed Labor: A Whitepaper

Read our whitepaper to learn why managed labor staffing has emerged as a compelling alternative to temp staffing in large manufacturing plants.

Here are some of the whitepaper highlights:

  • Managed service providers are responsible for recruiting, screening, hiring, training and managing the workers they provide, who are their employees
  • Managed labor employees are 25% more productive than temps
  • Even though managed labor is paid more per hour than temps, they typically reduce outsource costs by 30% because they are better trained with more skills
  • There’s a much lower turnover rate with managed labor versus temp workers: 0-20% for managed labor versus 100-400% for temp workers
  • Because managed labor receives benefits like healthcare and 401(k) plans from their employer, they are more invested in the work that they do – as a result, they often discover process efficiencies that lead to additional cost savings
  • Managed labor has fewer safety incidents

Consider Managed Labor as an Alternative to Temp Staffing

As part of our managed labor approach to staffing, LACOSTA does the recruiting, hiring, training and supervising of our employees, reducing training costs to almost zero. These workers become LACOSTA employees with healthcare, 401(k) matching and vacation time, which dramatically reduces turnover and accidents. Managed labor staffing also frees up HR and production supervisors while increasing productivity.

Request a Managed Labor Audit Today

If your temp-to-hire strategy isn’t providing you with the labor you need, request a managed labor audit of your facility today. We will conduct an initial discovery call to understand your needs, then conduct a site visit to determine what we can provide and the potential return on investment (ROI) for you.

Download our Managed Labor vs. Temps whitepaper