Need an Edge on the Competition? Here’s How Manufacturers Can Get Competitively Creative
The competitive nature of the manufacturing industry is undeniable. Not only do small to mid-sized manufacturing businesses need to compete with larger businesses, but there is a labor shortage affecting the industry. The labor shortage in manufacturing is valued at around 400,000 fewer personnel since the pandemic.
The truth is manufacturing companies need to be competitive for mere survival. Larger companies can compete with more resources and brand reputation. However, small to mid-sized manufacturers must consider all their options. Fortunately, you can work with a PEO. This will allow you to maximize productivity, improve profitability, attract & retain staff, and bolster innovation while your back office and HR tasks are covered by a PEO.
Invest in Your Staff
Having a team of skilled, highly productive employees will improve your competitiveness in the manufacturing industry.
A PEO can help:
- Properly Hire and Onboard the Right People — this often includes only considering new hires that fit your company culture, automating as much of the onboarding process as possible, and equipping new hires with the necessary information and training to succeed in the position.
- Maximize Productivity — What's holding your staff back from being productive? PEOs can help determine the problem and then help you implement common strategies associated with increased productivity. (i.e., LEAN methodology, learning opportunities, better communication, employee support, etc.)
- Improve Training, Safety, and Compliance — Not only does the CDC report that "an estimated 13,455,000 workers in manufacturing industries are at risk for fatal and nonfatal injuries," but workplace injuries in the U.S. cost companies as much as $58.61 billion in 2021. With a PEO's expert advice and guidance, your company can improve training, safety, and compliance to limit how much your business will pay out year after year.
- Offer Better Benefits — Investing in your staff means investing in their health, wellbeing, and happiness. This means better benefits! Your company can take advantage of PEO employee benefits at a fraction of the cost of obtaining the same benefits on your own.
- Provide Employee Wellness Programs — In addition to employee benefits, a PEO can help your company implement a solid employee wellness program that boosts their health in and outside the office. In fact, 66% of respondents in one survey noted a boost in productivity when participating in their company's wellness program. At the same time, another study saw an increase in employee morale and lower absenteeism.
Upgrade Your HR Offerings
With a PEO, day-to-day payroll and time-consuming HR paperwork are taken care of, freeing you up to do much more. This is significant since research shows that more than 40% of your precious time is wasted on repetitive manual tasks that could otherwise be taken care of digitally.
Fortunately, a PEO will help you upgrade your HR offerings and more:
- Employee access to personal online information (ie. vacation, benefits, paycheck info, etc.)
- Leadership will have more time to tend to employees and daily functions
- PEOs can provide safety training
- Reduced employee injuries (and the costs that come with it)
- Assigned risk manager
To be successful and experience growth, you must first be prepared to make the necessary changes. This includes upgrading your HR offerings with a trusted PEO.
Improve Your ROI with a PEO
To survive in the manufacturing industry, companies need to do well financially. This begins and ends with improving your ROI. Fortunately, studies show that working with a PEO can improve your ROI by nearly 27.2%. These calculations in the report were based on components like HR personnel costs, health benefits, worker's compensation, unemployment insurance, and other HR expenditures.
Here are some other vital ways PEOs can improve your ROI:
- PEOs Save Time — A few examples include drafting HR documents like handbooks and forms, introducing faster and more efficient procedures (i.e., moving away from manual tasks), and assistance with compliance reporting requirements.
- Productivity Increases — Happy and well-taken care of employees are more productive employees. A PEO can help you increase ROI by ensuring your staff is happy and healthy.
- Reduce Turnovers and Increase Employee Retention — Well-taken care of staff and strong company culture can take employee turnover down to an incredible 13.9% or better in many cases. For obvious reasons, happy employees are more likely to stay with a company than those who aren't satisfied with their employers. This can save millions in re-hiring and training efforts!
Your competitive edge and improved ROI — starts with your employees. As Vaughn Aust said, "Happy employees lead to happy customers, which leads to more profits." To gain that advantage it takes a trusted PEO like PRO Resources. They have been helping small and mid-sized manufacturing companies do just that since 1991.
Contact us to learn more about how we can help you maximize productivity, improve profitability, and attract and retain good employees.