The ROI of Partnering with a Manufacturing Staffing Agency

Posted on 01/31 by Erin Helms

At first glance, doing your own hiring may seem to be the most cost-effective way to meet your manufacturing staffing needs. But the reality is that the hiring process is filled with quite a few direct and indirect costs, many of which are not immediately apparent. Partnering with a manufacturing staffing agency can have a tremendous ROI due to our existing relationships and processes. Let’s take a deep dive into what you can expect.

What Are the Financial Benefits of Partnering with a Manufacturing Staffing Agency?

Manufacturing staffing services have a deep knowledge of and experience in the industry, as well as in the local markets that we serve. We take pride in maintaining a frequently updated roster of highly skilled and thoroughly vetted candidates who will be ready to go on Day One. We also understand the importance of finding the right fit, so we work hard to pair businesses with candidates that share their values and overall approach to work. Here are a few ways that all of this translates into direct and indirect financial benefits.

Reduced Hiring Costs

When you hire on your own, you have to spend time writing job descriptions and figuring out where to place ads. In most cases, you will also have to pay for those ad placements. You’ll need to screen applications, vet candidates, decide which prospects to interview, conduct those interviews, make final hiring decisions, and ultimately onboard your new hires. Meanwhile, your existing team members must cover the gap, often incurring expensive overtime…not to mention increasing their risk for exhaustion and burnout. Partnering with a dedicated manufacturing staffing agency lowers the costs of hiring. Recruiting is our core business service. We know where to find the talent you need and how to position your company to attract top prospects. Rather than starting at the very beginning each time, you can simply let us know what you need, and we’ll send you a short list of highly qualified candidates from which to choose.

Flexible Staffing Solutions

A manufacturing temp agency can provide more than just full-time candidates. Do you experience seasonal surges in demand? Did a key employee just request a leave of absence? Or maybe you’re implementing some new automation technology and you need someone with specific skills to help your team members make the adjustment. If you’re facing these or many other scenarios, temporary staffing may be the best solution. In this case, we’ll send over as many workers as you need, with whichever skills you require, for however long you need them. They’ll remain on our payroll and move on to their next gig at the end of the contract period. Another potential staffing solution is temp-to-hire. Are you intrigued by someone who doesn’t quite meet all of your preferred qualifications? Or perhaps you’re opening a new facility and not yet sure how many full-time workers you’ll require. Temp-to-hire serves as a sort of working interview, allowing you to test employees’ skills and determine whether you’ll need them long-term, all without making a commitment up front. Each worker we send will be on a temporary contract with the option to extend. At the end of the contract period, if you and the worker agree, we’ll help you onboard them as a permanent employee. If not, you are free to let the contract expire as usual.

Lower Turnover Costs

Employee turnover is extremely costly for any company. You’ll not only have the sunk costs that you have already put into the first worker, but you’ll also have to absorb the expenses of hiring and onboarding someone new. But when your employees are well-matched to your organization, and you take active steps to make them feel valued, they are more likely to stay. Partnering with a manufacturing staffing agency helps to reduce turnover. We work hard to make sure that each new hire is truly the right fit. We can also assist with upskilling your current team members and provide ideas for boosting employee engagement. All of this can help to keep your workers happy and involved, building loyalty and reducing turnover.

Key Metrics Manufacturers Should Track for Success

The cost-per-hire is simply how much it costs your company to hire each new employee. Fortunately, it’s easy to calculate. All you have to do is determine how much you spend on hiring for the year, and then divide that by the number of employees you hire in that year. So if you spend $50,000 on hiring, and hire 50 employees, your cost-per-hire is $1,000. Time-to-fill is how long it takes to fill each open role. This will vary according to a lot of factors, with highly specialized positions typically taking longer to fill. But you can calculate an average by simply adding up the number of days it takes to fill each of several roles and then dividing by the total number of positions you filled.

Retention Rates and Employee Productivity

These measures are reasonably self-explanatory, but incredibly important. Your retention rate is the percentage of employees you keep on board throughout the year. Employee productivity is how close to maximum output your team is able to get. The idea is that partnering with a dedicated manufacturing staffing agency can help boost productivity while maintaining high retention rates. Keeping up with these metrics can help to ensure that you are getting the best possible ROI.

Qualitative Benefits

While they’re more difficult to track, partnering with a manufacturing staffing agency can also provide several qualitative benefits for both your company and your team members. Examples include: • Less pressure on HR teams • Increased positivity among employees • Lower risk of burnout • Better cohesion among team members • Heightened sense of workers’ self-worth Manufacturing staffing agencies specialize in matching each client partner with just the right manufacturing talent for each role. Rather than trying to find and recruit workers on your own, partnering with a dedicated staffing firm allows you to focus on your core business. Our streamlined processes can reduce the time-to-hire as well as the associated costs, while providing quite a few qualitative benefits for you and your team. The ROI can be significant, so why not give it a try?

Maximize Your ROI by Partnering with a Manufacturing Staffing Agency Today

Founded in Las Vegas in 2002, LaborMAX has grown to encompass about 100 locations in various states. When you partner with us, you’ll gain the advantages of a nationwide staffing agency with a hometown, personal touch. We have deep expertise in the manufacturing industry and a strong, constantly updated roster of top talent. If you’re ready to maximize your invest and fill your manufacturing positions quickly, contact us today!

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