Boost your competitive edge with the flexible labor optionCentral to the numerous strategies companies must synthesize for long-terms success is the variable of whether or not they’ve hired the right people for the team, including everyone from the board room to the late-night line operator. Attracting and retaining the right people is an ongoing process, and most organizations work hard to keep the talent factor as stable as possible.

A recent Randstad study of nearly 2,800 manufacturing and logistics professionals highlights the “people” challenge. When asked to identify their top three business challenges, 41% of respondents indicate that talent acquisition and retention is an issue.

2014 Workplace Trends

What three challenges most impacted your company over the past year?

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39%35%

31%

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42% 41%38%

25%22%

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Overall responses Manufacturing and logistics responses

Issues related to the economy, talent/retention and operating costs appear to have greater impact on the manufacturing and logistics sector than other industries. While executives in many companies indicate some easing of economic stress on their business outcomes, manufacturing and logistics organizations remain susceptible to the slowly growing economy and fluctuating consumer spending. Manufacturers are also strongly impacted by the skills gap and their ability to attract qualified candidates for today’s technology-driven manufacturing and logistics careers. With regard to operating cost challenges, manufacturing and logistics entities are particularly impacted by expenses associated with employee health benefits, facility upgrades, and rising tax and regulatory compliance expenses.

Manufacturing and logistics executives mirror the sentiments of other industry professionals, but send a bit stronger signal that economic pressures (42% as compared to 39%) and talent acquisition/retention (41% as compared to 35%) are the top challenges for their companies. Maintaining control of operating costs ranks third, being a top issue of concern to 38% of manufacturing and logistics respondents as compared to 31% of overall respondents.

Building flexibility into every shiftThe variable workforce phenomenon continues to grow full-tilt as companies across the spectrum recognize the benefits that contingent employees offer. Statistics abound on the strength of this trend, and a 2012 Staffing Industry Analysts report 1 measured contingent labor at 16 percent of the nation’s workforce. A report published by Intuit 2 suggests that the number could reach 40 percent by 2020.

Flexibility as strategyMany companies now incorporate contingent labor into their overall employment strategy, which allows for proactively staffing up or down to meet cyclical needs and more seamlessly bridging unanticipated workforce changes. When shift supervisors have an established relationship with an efficient and results-oriented staffing provider, they can easily tap into their contingent workforce plan to accommodate fluctuating market conditions, internal employee transitions and just-in-time workplace dynamics.

80%use some level of flexible workforce

51%place high priority on co-employment issues related to contract labor

52%are increasingly using contract labor vs. direct hires

A recent Randstad study of nearly 2,800 manufacturing and logistics professionals emphasizes the popularity of contingent employment.

For example, nearly four-fifths say they use variable labor and over one-third increasingly use contract employees.

1 http://cwsolutions.ca/cws2/tag/contingent-workforce-solutions/

2 http://http-download.intuit.com/http.intuit/CMO/intuit/futureofsmallbusiness/intuit_2020_report.pdf

Flexibility promotes stabilityThe improved economy has pushed many companies to increase headcount, and the contingent model provides a less-risky option for easing back into hiring without committing to a permanent placement. Strong staffing partners with excellent talent resources help organizations quickly find the right manufacturing and logistics personnel with the specific skills to help teams function more smoothly during periods of growth or change. And temp-to-hire arrangements allow both employers and employees to work through a trial period and assure the fit is right.

Flexibility across the enterpriseThe economic downturn ignited a call for enterprise-wide flexibility to minimize exposure to volatile market conditions. Today’s business climate demands that organizations remain nimble to quickly changing technology and more complex and time-sensitive customer demands. Fixed cost models are giving way to those that promote financial flexibility and workforce scalability, and an established contingent labor plan significantly enhances organizational agility.

Flexibility and co-employment Accompanying growth of the flexible labor market are increasing co-employment regulations that can cloud even the best-intentioned contingent employee relationship. Compliance is a time-consuming issue that effectively transfers to the staffing provider when a contingent contract is in place. Additionally, evolving trends within contingent labor, such as managed labor, leased employees and human resources outsourcing, give employers both innovative and customized options for flexing their workforce while complying with co-employment protocols.

With the right staffing partner anticipating and fulfilling your talent needs, hiring managers can maximize their flexible labor strategy on every shift and help the organization sustain a competitive edge.