To protect the apparel retailer that nGroup had the honor of working with, we will not list their name on the blog. But here’s the story…
Within one year, productivity increased more than 30% and cost per unit decreased by 17%. Productivity improvements are projected to increase to 100% above baseline with a corresponding cost per unit reduction estimated to be 50% of original costs.
The project helped create a performance-focused culture. Supervisors transformed their perspective to focus on achieving throughput goals by improving the efficiency and effectiveness of individual associates by using real-time, software based reporting tools to help performance incentives reward individuals for their performance as determined by engineered labor standards, improving the link between performance and compensation.
The company also implemented actionable activity-based costing. Process costs can tracked by product category, channel based on processing and special handling requirements. Data capture and reporting supports budgeting, standard costs, variance, and profitability analysis.
In order to increase productivity I simply spend more one-on-one time with new hires. In doing so, I find it important to provide feedback on what goals are to be achieved on a daily and weekly basis. I’m forthcoming in what obstacles and road blocks they may encounter and how to overcome these road blocks.
-Chirs Aquino, nGROUP
Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of operations and responsibilities of specific business functions (or processes) to a third-party service provider.
Most people are familiar with the more common subsets of BPO such as RPO (recruitment), LPO (legal), KPO (knowledge), logistics (3pl) and of course ITO (information technology). BPO is typically categorized into back office outsourcing – which includes internal business functions such as human resources or finance and accounting, and front office outsourcing – which includes customer-related services such as contact center services.
Temporary staffing is on the rise. The question is whether or not your temporary staffing arrangement provides you with cost effective staffing AND an increase in productivity. Learn more about “pay for performance” and nGroup’s solutions by visiting www.nGroupWorkforce.com
The Federal Reserve Beige Book Report indicates the demand for temporary staffing “remained on an upward trend” from mid-July through the end of August. The report was released Wednesday.
Federal Reserve Districts in Boston, Philadelphia, Richmond VA and Minneapolis noted increases in temporary staffing. However, the Chicago district reported a slight softening in demand for the period. Wage pressure remained modest, according to the report.
“Dallas reported that wage pressures were ‘generally nonexistent,’ with the exceptions of some airline and temporary workers,” according to the report. “Hiring of permanent employees was held down in part by employers’ reliance on temporary and contract workers, as reported by Philadelphia and Atlanta, although Boston noted that conversions from temporary to permanent staff picked up.”
Overall, the Beige Book reported growth in economic activity from mid-July through the end of August. However, there were widespread signs of economic deceleration.
To improve productivity, I swap or move key individuals to other shifts on a temporary basis. This allows Leads, Supervisors, and high producing employees to share ideas and offer suggestions that boost performance or efficiencies. This ultimately standardizes methods for all shifts. This also results in uniform productivity across the shits. When shifts do not share their methods or tactics one-on-one, I find that one shift will become dominant and out produce the other shifts.
-Chirs Aquino, nGROUP
Want to improve efficiency? Simply ask and LISTEN. Whether you need to create a formula for measuring productivity or you are seeking to find methods for increasing your productivity, ask the “front line,” the “top line,” and everyone in the middle. If you want your team to work as a team, act like a member of the team by listening to your team.
Track teams per week, month, and year. Anyone or any team can have a slow day, but by accumulating a team’s monthly average productivity, we give the teams time to improve their efficiency and productivity numbers.
By tracking AND posting productivity results on a consistent basis, our teams can visually see and understand where they stand in relation to their goals. Only through consistently posting their productivity results, are workers able to see results and reestablish goals. By showcasing results, we are able to motivate and hold workers and teams accountable – often times without speaking one negative word. The results speak for themselves.
– Anthony Coon, nGROUP