It can feel like a catch-22: changing workforce needs, hiring freezes or even budget constraints limit full-time hiring, but the work still needs to move forward. That’s why contingent labor in manufacturing—professional contractors, Just in Time (JIT) employees and temporary staffing during these periods—has become a go-to strategy for companies looking to keep critical work moving forward.
More than a stopgap, outsourcing labor is an intentional way to maintain momentum in engineering, quality assurance, production, and research and development. And, when you make the right temporary hires, these professionals are often in the perfect position to slide into full-time roles once factors change or restrictions are lifted.
Here’s what to consider as you weigh whether to use contingent labor to your strategic manufacturing advantage.
Why Outsourcing Works
Most large organizations set their budgets, including staff payroll and associated payroll costs, several months ahead of their fiscal year. For many of these companies, there is no flexibility within budget buckets, including payroll.
When fluctuations in workforce needs occur or hiring freezes are put in place, whether due to restructuring, acquisition, shifting business priorities, or any other reason, many companies still maintain contingency or non-payroll labor budgets.
So, while companies may not have the ability to hire full-time, regular employees, oftentimes there is a budget for conditional labor costs and to staff positions ranging from entry level to professional. These outsourced employees can support essential operations without increasing full-time headcount.
While contingent labor is not a new phenomenon, what is new is how companies are approaching temporary hires. No longer seen as a workaround, instead, savvy companies are using it as a planned, budget-aligned solution for a variety of business needs:
- Maintaining production and operational continuity
- Scaling production quickly in response to changing market conditions, seasonal trends, or manufacturing timelines without the commitment of permanent staff
- Access to expertise or technology that a company may not already have in-house
- Validating new products within research and development departments
- Meeting quality and compliance requirements
Contingent labor can also support unforeseen special projects and reworks that fall outside traditional payroll.
Temp-to-Perm Hiring Leads to Long-Term Wins
One of the common misconceptions around temporary employees is that they will leave as soon as they have a traditional full-time job offer.
But as Christine Chandler, President, AdvantaStaff, has observed, that’s not the case. “The market has greatly shifted. Many times, these professionals enjoy working for a specific period on a project that interests them.”
“They have the opportunity to use specialized skills,” she adds, noting that companies get the added benefit of having skilled talent without having to invest in specialized training or certifications, or commit to a contract.
Pay rates for outsourced staff are also comparable to employees and may include other incentives like insurance and paid time off. This ensures workers are just as bought-in and never feel less-than compared to on-staff employees. Plus, they are given the opportunity to work with a company before committing themselves to regular employment.
Chandler often sees that it’s a win-win scenario for the company as it can offer a seamless path to full-time hiring. Both parties get to make sure it’s a good long-term fit before committing to the long term, leading to less turnover and higher retention.
Not only does your investment pay off in the short-term by keeping critical work moving, it pays off in the long-run, too. Contingent employees pose a lower hiring risk and have a faster onboarding time because they already understand the work, culture, and expectations.
Move Forward, Even When Hiring is on Hold
The necessity for a more flexible labor force, periods of constraint, and/or cost efficiencies should never lead to lost momentum. Instead, they’re an opportunity to build toward what’s next. But, it’s crucial to understand immediate needs and identify trained professionals who can step in quickly.
AdvantaStaff is connected to a pipeline of screened and qualified employees in all facets of manufacturing, including logistics and distribution, assembly and packaging, light industrial and advanced manufacturing.
“Through our association with The Wauford Group, we have a deep list of contacts and proven recruiting sources,” says Chandler. “This has given us years of experience placing a wide range of professionals in the right roles within the manufacturing environment.”
She adds that, while the timing to identify and place individuals varies based on the position, AdvantaStaff typically presents qualified candidates within a week or two. This speed in finding professionals who can immediately add value ensures your projects never slow down.
Let’s talk about what we can do to keep your workforce moving.