Ahhh…those immortal words from the movie “Stripes”. Little did John Candy, Bill Murray, Harold Ramis, etc. know in 1981 that the term LEAN would become part of the vernacular for every manufacturing facility worldwide.
Is your company practicing lean principles? Want to take lean to a whole new level? Want to reduce cost and increase profits? Try this concept….(This is the portion of the blog that I will the HR professionals to stop reading, and prepare myself for the comments to follow)…How about making your company’s workforce lean? i.e. Contract everyone on your payroll except a core group of management personnel!!
Say you’re the owner of a manufacturing facility with 100 employees, 15 are what you would consider “key personnel”. Do you know what the other 85 truly cost your company to employ? Depending upon where you are in the country and which resource you look at, wages, benefits, vacations, insurances, taxes, et al; that cost can be anywhere from 1.3-2.0 times the rate you pay the employee.
Wait!! There’s more. Now factor in the other profit-eating incidental costs that you don’t readily see. Down time, time spent on new employee interviews, old employee reviews and other issues, time and expense running payroll and benefits administration, costs of drug and back ground checks, on and on…you get my point.
Wouldn’t it make sense to have someone take care of all of that stuff as part of their service? Instead of signing checks to all of those employees, the insurance companies and everyone else weekly, how about signing one check bi-monthly to the company doing all of that for you? In addition, your agency would probably provide you an on-site person to deal with the day-to-day people issues, if you can spare an empty desk.
You’re thinking this type of move would create a great deal of upheaval in your company. That really isn’t the case. As long as the paycheck stays the same, and the benefits are comparable, most employees don’t care who does the direct deposit.
So…the next time you lose a project, or lose money because your employee related costs are too high, perhaps it’s time for your workforce to become a lean, mean, fighting machine!!
Todd Briggs is the New Business Development Manager for HRU. He has over 20 years of experience working for the company. He has the special ability to quickly build relationships with our clients, address their concerns, design and implement their unique process within our recruiting team. Let him begin building that relationship with you and your company. Contact him here.
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