Fall is in full swing and that means the holidays are just around the corner. Have you started planning your staffing needs for the holiday season? It’s never too soon to focus on staffing your distribution center, and Q4 is always a busy time of year for supply chains. Add in continuing COVID-19 concerns, a nationwide talent shortage, and ongoing supply chain issues, and suddenly the holidays don’t look so merry and bright.
Avoid staffing challenges all together with these supply chain staffing solutions to keep your distribution center operating efficiently no matter what the season brings.
Option 1: The Hourly Temporary Workforce Model
How it works
With a temporary workforce model, a staffing partner manages the recruitment, screening, and onboarding of temporary workers for your warehouse, manufacturing, or packaging environment. The onboarding program is tailored to your company, so associates understand your requirements, policies, and procedures. Onsite Managers help you manage the workforce, and deal with any issues that arise to keep associates motivated and engaged so you retain top talent.
Benefits of a Temporary Workforce Model
One of the main benefits to using a temporary workforce to staff your supply chain is you get time back in your day to focus on the business itself. This is especially important during the holiday season when there is already a lot happening in your distribution center. With a staffing partner handling the recruitment, screening, and onboarding of new workers, you reclaim time you can use to make sure the rest of your operations are running smoothly.
In addition to regaining crucial time, a temporary workforce model helps you improve efficiency and increase your return on investment. With On Time Staffing’s Onsite program, for example, overtime spend is 10-20% less on average. Employee retention is also up to 30% higher, and time to fill is nearly 50% faster.
Partnering with a staffing company in a temporary workforce model can even improve safety and compliance, two areas that are especially important during a global pandemic. At On Time Staffing, we have a safety team including certified professionals with experience in loss prevention and risk mitigation. Our team can help with everything from managing COVID and creating site safety plans to OSHA compliant hazard assessments, accident investigations, and new hire orientations. After all, the more you can avoid risk the greater the likelihood of increased profits for your business.
Option 2: The Managed Cost Per Unit Model
How it works
A cost per unit model is an embedded supply chain workforce solution that uses a team-pay structure. This might also be referred to as productivity pay, pool pay, or a managed piece rate. Under this model, all team members (we call them our Industrial Athletes) are paid equally based on the performance of the team and they’re overseen by an experienced manager. The entire team is incentivized to work collectively toward their productivity goal while operating efficiently and safely, and day-to-day management of the team is outsourced to a trusted workforce solutions partner. This team-pay structure ensures the supply chain employees work toward your distribution focused goals while allowing you and your team the opportunity to focus on more strategic priorities, especially during the busy holiday season.
Benefits of a Cost Per Unit Model
With an embedded workforce solution, team-pay has the potential to both grow employee wages and keep labor costs static, a major benefit to both you and your workforce. With a productivity goal motivating workers to hit their target in return for increased wages, leaders will naturally step up to help the team succeed. Employees are also more likely to actively help new hires get up to speed, creating harmonious, successful supply chain teams.
With a workforce operating on a cost per unit model, companies also experience improved retention. At Eclipse IA, we’ve seen a 20% gain in retention when our clients tie wages to performance. Morale among the workforce also increases, creating a stronger culture within your distribution center. The end result? At Eclipse IA, we’ve moved dozens of distribution centers from traditional pay models to a cost per unit program and, in all cases, we’ve seen at least a 35% boost in wages without increased labor costs.
Whatever model you choose, don’t let supply chain staffing challenges take away from the holiday cheer. Explore supply chain staffing solutions ahead of the holiday rush with Eclipse Advantage’s flexible people solutions. Contact us to get started today!