For many warehouses, temporary staffing is utilized to compensate for a heavy workload during seasonal volume peaks when extra help is needed. In some markets, on-demand staffing is used to address a prolonged staff shortage. While they fill necessary gaps in labor, the work quality and reliability of temporary staff often leave much to be desired. The current staffing agency model simply does not meet the productivity or financial needs of modern warehousing or manufacturing operations. Here are the five major pain points experienced by warehouses that rely on temporary staffing to address any of these challenges.
1. Unaccountable: Their Business Model Conflicts with Yours
Perhaps the biggest issue when working with a staffing agency is the fact the temporary business model actively works against your organization’s objectives. While your company attempts to decrease labor costs and increase productivity, a staffing agency is working on a cost-plus model that incentivizes cost-heavy decisions like overtime hours. Extra work for staffing agencies is a positive since it means more billable hours for them, but this will always work against the success of your business by hurting your budget and bottom line.
2. Unproductive: Lack of Quality
The reality is that temp workers will never be as motivated as regular employees. They are there solely to perform a task during an allotted amount of time and don’t share the aspirations of your regular staff to advance within the company, thus, the quality of work tends to be lower.
3. Unreliable: Workers Are Not Tailored to Your Business
Staffing agencies don’t take the time to understand your business and find workers that would be the best fit – they merely send you whomever they have available. Agencies don’t make money based on the quality of work their temp workers perform and only need their workers to show up for them to be paid. This also means you and your team must provide all the training needed to ensure a temp worker does their job correctly.
4. Unmanageable: No Value or Working Relationship
Businesses should always look for long-term partnerships and working relationships with other companies to help push company goals forward. No such partnership is possible with a staffing agency since their business model does not include looking out for your company’s best interests or success. These agencies are not concerned with providing value; they profit from simply filling an existing gap.
5. Unsafe: Legal Issues
Temp workers open companies up to a variety of potential legal issues, from injuries to hostile work environment lawsuits. Temp workers exist in a confusing area of legal limbo that provides them the same protections as regular employees while also not holding them to the same standards of work quality, attitude, or reliability. Temp labor injuries are also recorded on your OSHA-300 log and count towards your Workers Comp mod rate.
How Capstone Solves These Pain Points
Capstone Logistics utilizes a performance-based, dynamic labor solution that focuses on aligning your budget and performance objectives. With our elite engineering and operational resources, combined with data-driven insights from 600+ sites nationwide, Capstone provides a pricing and performance management model that leverages our flexible workforce to help you reach the key performance indicators most important to the success of your business.
Our unique approach solves your labor problems by providing exceptional workforce, supervision, training, and floor-level coaching so you can focus on your business goals.
Capstone solutions are 10-40% more productive on a per-unit basis than temp labor.
Capstone provides benefits you won’t get from a temporary staffing agency:
- Trained talent with extensive training and hands-on experience
- On-site team leadership that ensures productivity, reliability, and continuous improvements
- Floor-level performance coaching and support
- Incentive-driven; pay-per-performance model that ensures high performance
- Scale and data-driven insights from 600+ sites managed by Capstone
- Turn-Key Equipment Certification
- Budget assurance and control of labor costs
Utilize a modernized labor solution that pushes your business forward instead of holding it back. Reach out today for a FREE Assessment of your operations!