Temp Staffing vs. Managed Labor in Manufacturing

End staffing shortages, increase plant output by 25% and reduce “all-in” labor costs by up to 30% – at least 15%, guaranteed

If we had a dime for every time we heard a plant manager complain about temps and turnover, we could buy our own private island.

Why then do plant managers put up with all the problems and pitfalls associated with the temp staffing model? Because they don’t know that a better solution exists: LACOSTA managed labor staffing solves problems that temp agencies create, and help plant managers achieve more KPIs.

Temp Staffing vs. Managed Labor in Manufacturing

Whose Interest Comes First?

Temp agencies are driven to place as many people as possible at your site, even if you don’t really need them. They focus on “fill rates” and “fill times” but have turnover rates of 100% to 400%. With our managed labor approach, our KPIs are aligned and our employees are incentivized to end staffing shortages, increase your plant’s output, flex up and down based on need, and to find additional ways to cut costs and add value.

Temp Staffing vs. Managed Labor

LACOSTA’s managed labor staffing model is fundamentally different that temporary staffing. Since our model focuses on meeting specific KPIs related to the processes and output of your plant, our employees are cross trained with efficiency and “flow to the work” in mind. This often translates to a productivity increase of 20-30%.

Rather than simply dropping off bodies at your door for your team to train, re-train and manage (which can also lead to concerns with co-employment), LACOSTA employees are fully trained, cross-trained and managed by onsite LACOSTA managers who are invested in improving the flow and output of your plant

Though our hourly rates are higher than that of temporary providers, we guarantee at least a 15% savings versus your current temporary services spend because of our well honed processes and LEAN methodology.

Request a Managed Labor Audit or Quote

Point of Comparison
Temp Staffing
LACOSTA Managed Labor
Employment Type
Paid per Day, Sometimes Even 1099s
Full-Time Employees Paid by W-2
Consistency of Employment
Variable, maybe onsite next day maybe not; if onsite for 30-90 days, either transition to you with conversion fees, or terminated; temp employees will leave if can make $0.10/hr. elsewhere because they have no benefits, no future and no career path
Permanent employee to the job, site and LACOSTA with upward mobility and a career path
Skill Level
Low and medium (skills 1 & 2)
Low to high with onsite supervisors and managers (skills 1-4)
Industry Focus
Labor generalists
Manufacturing labor experts: heavy, light and pharmaceuticals
Impact Focus
Provide warm bodies to plug holes
End labor shortages, increase output, achieve plant KPIs
# Workers Provided When 10 Are Needed
15-25 (if more show up than are needed, have to pay additional employees at least four hours even if you send them home; several don’t show up the next day/week; staff for 100% and fail)
7-10 (we typically increase productivity by 25%+ and need less people with cross-training; we staff for 115-120% and succeed)
Ownership
Unless you’re working with a small temp agency, you’ll never meet the owners
Owners Rob and Karla Johnson personally conduct internal site audits and you can call them, anytime
Onsite Management
None
Dedicated site supervisor and management that partners with you to support your operation and find new efficiencies to improve it
Benefits Provided
None
Healthcare, dental and 401(k) with matching, 2+ weeks of vacation
Risk of Co-Employment
High, which could lead to significant financial risk
Zero risk
Safety
Temps watch your safety video; any accident increases your EMR, worker compensation rate
We complete OSHA logs reduce accidents by providing safety training and guarantee compliance; any accidents increases our EMR and worker compensation rates (though ours are extremely low)
Reporting
Just your invoice
Daily shift reports and monthly KPI scorecards and partnership meetings
Turnover
High (150-200%, like a revolving door)
Low (0-20% because of higher pay, benefits, training, and advancement opportunities)
Workers Provide Suggestions for Improvement
No
Yes: they know your business and we incentivize them to improve your SOPs