We are all feeling the labor crunch. It’s hard to recruit, train, retain and make progress all at the same time. All of these labor challenges boil down to the fact that we are tasked with developing a rapport AND a system of accountability with the workers that ultimately determine our success. At nGROUP we have taken on such challenges and created a labor model with specific tools and competencies that maintains flexible staffing while delivering the performance and quality that companies seek – with less sweat.
Contemporary Labor Challenges
- You need a flexible workforce that is productive and effective. Companies have long used temporary staffing to meet the ebbs and flows of their business to control their labor cost. Using temporary staffing allows the client to match labor supply with production demands but at a cost. A temporary worker lacks the loyalty, commitment and training of a full time worker and companies become frustrated with the turnover dilemma. The dilemma is many temps are not qualified or dependable and are terminated for poor performance and the better temps leave for fulltime work.
- You need to recruit and retain a workforce in a competitive labor environment while controlling cost. Record low unemployment levels have made recruiting and retaining a quality workforce extremely challenging and costly.
- You need continuous productivity and quality improvement. Utilizing temporary staffing, losing quality employees and a lack of internal engineering/improvement resources creates gaps to continuously improve the processes.
nGROUP’s highbred workforce model delivers the performance and quality that you need without the cost and risk of traditional staffing. Simply put, we hire, train and retain a productive workforce that is managed by lean six sigma experts that make progress possible and immediate.
Our team of Certified Lean Six Sigma experts and industrial engineers optimize complex processes, systems and organizations by eliminating waste of time, money, materials, man-hours, machine time, energy and other resources that do not generate value to your overall objectives.
In such, it takes more than just managing HR to make the significant impact we deliver to our clients. We are able to recruit and retain high performance workers with competitive pay and benefits and help them with their career growth. This bottom up approach delivers a workforce that skilled, recognized, rewarded, consistent and productive.
A Case Study
A large automotive tier one supplier in the Southeast was being challenged to meet their clients’ needs. They were having difficulty keeping up with demand because of labor supply and subsequent shortfall in headcount and their margins had eroded significantly due to labor cost.
They were being squeezed to increase pay to improve recruiting but the higher wage rate would erase what little profit margins were there. They utilized staffing companies because the markup and hourly cost was much lower than the loaded hourly rate of full time employees but the productivity suffered and turnover was high.
We collaborated with the client to design an approach that would address the labor challenges they were experiencing. The client gave us the responsibility of managing one building. We brought in our engineers and management team to develop and document best practices within the facility and create an incentive pay program that rewarded performance, attendance and attitude.
In addition, we developed a comprehensive worker engagement program that worked to assist in better recruitment and retention. Workers began earning more money through the incentive program and individual productivity increased 36%. Attendance and retention also dramatically improved.
The net result for the client was a sharp improvement in meeting client service levels and a 9% cost reduction in unit labor cost.
For a discussion about your labor, production and cost challenges please contact Ryan Cates, VP, nGROUP performance partners at 803-367-2469 or email@example.com.
nGROUP performance partners are specialists in labor intensive process management for fresh produce processors and packers. To learn more please visit www.nGROUP.biz.