Possible Solutions for High Non-Employee Performance Costs

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Exploring Motivation as a Possible Solution for High Non-Employee Performance Costs

To be an effective manager, you must understand both the value and price of your employees. In the manufacturing industry, employee performance can be a huge source of financial losses or gains – making it critical to ensure that team members give their all every time they are on a production line. But what monetary value does an employee need to contribute to ensure that an organization is not losing money because of their non-performance? The most apparent answer is that they need to be producing as much as their benefits and income cost.

Unfortunately, pay is only a tiny piece of the puzzle, and several other non-employee performance costs can quickly rack up to make matters even worse. Some of these costs that may not be factored into the equation in many manufacturing facilities include utilities, transportation, equipment, telecommunications, real estate, and much more. From this perspective, no business that has employees that are only performing to meet their gross salary would be able to survive long-term because all profit margins would be lost.

How Can Motivation Reduce High Non-Employee Performance Costs?

It can be challenging for a business to identify high non-employee performance costs and understand how they are impacting their business’s finances. Since these things can take time to pinpoint and remedy, it is crucial to be vigilant in your motivational strategies company-wide until more financially sound systems are found to offset high non-employee performance costs. This will be an ongoing process for many businesses as technology and project requirements continue to change.

While motivation will not work directly on non-employee performance costs, they can be mitigated by motivating employees to work efficiently. For example, if the employees responsible for the transportation of parts are happy and performing well, they can often overcome the minor limitations with the equipment they are using, leading to higher costs. Likewise, a motivated employee will also be less likely to have errors in their work or a loss of productivity simply because they are so engaged in the process.

Forklift is putting cargo from warehouse to truck outdoors

Once employees become motivated, they will be able to work towards the same common goal to ensure high non-employee performance costs are dealt with as quickly as possible. For some managers, it can be challenging to have a difficult conversation with employees about their performance and how it affects the business; however, this is a critical step in reducing high non-employee performance costs and any direct employee expenses that may be accrued.

Any manufacturer that is struggling to reign in high non-employee performance costs will benefit from the performance-based staffing services provided by Certified Source. We work together with employers to ensure their staff remains motivated and engaged through a unique job advancement and variety approach that limits burnout. With the right people in place, any business can take the time to determine what high non-employee performance costs are affecting their business and address them quickly.

Exploring Risk Management Programs as a Possible Solution for High Non-Employee Performance Costs

When identifying risks in the manufacturing industry, it is often easy to focus on the human aspect of your workforce. This metric does not account for the risk when equipment becomes faulty or breaks down – which can be incredibly costly. According to Aberdeen, the average cost of machine downtime was around $260,000 hourly across all businesses in 2016. That expense can be avoided with the right risk management program. But what if there was an easy way to minimize downtime and increase stability with your manufacturing equipment?

At Certified Source, we strive to be more than just a performance-based staffing partner for the manufacturing industry. Our goal is to help businesses access the resources and strategies they need to succeed – even if they aren’t related to staffing! For this reason, we wanted to share some unique ways that risk management programs can be leveraged to decrease high non-employee performance costs. That way, you can focus on keeping your clients happy with as minimal downtime as possible throughout the manufacturing process.

How Can Risk Management Programs Decrease Non-Employee Performance Costs?

Technology solutions are essential for the manufacturing industry. Modern machines not only transform the way new parts are created but also streamline the process to make efficiency and affordability a priority. Unfortunately, removing the bulk of the human element that can lead to problems doesn’t necessarily remove all risks if the equipment isn’t properly maintained or monitored. And even a simple problem that goes unnoticed can lead to extensive downtime and high repair costs. But with the right risk management program, these factors can quickly be addressed and monitored.

These risks are often referred to as “third-party risks” since external factors influence them. For instance, the type of equipment you choose to invest in and how well you maintain them could present unique risks. Without these problems accounted for, non-employee performance costs can continue to rack up as malfunctions, downtime, and human error due to lack of training or inexperience evolve into struggles in meeting process goals. But what can be done to ensure that a risk management program focuses on these unique aspects of the manufacturing industry and mitigate the identified risks?

machinery tools and equipment
machinery tools and equipment

Manufacturers need to devise a solution outlined in their risk management program to minimize risks based on vendors, contractors, robots, partners, equipment providers, maintenance technicians, and other non-employee parties. Certified Source can help streamline this process by focusing on techniques like onboarding, training, auditing, and offboarding through our performance-based staffing services. In contrast, the management team at the facility focuses on non-employee-related risks that could be holding them back. This two-pronged approach to minimizing risk can help ensure that the business has the resources and plans to make a positive impact year-round.

Exploring Setting, Tracking, and Monitoring Quality and Productivity Goals as a Possible Solution for High Non-Employee Performance Costs

Most manufacturers have great systems in place to monitor quality and productivity goals for their employees. However, they don’t always take the time to ensure that these same checks and balances are available for non-employee performance costs like training, required equipment, certification programs, and more. Without these costs being factored into the overall equation, there is a good chance that the facility doesn’t know the actual costs they are accruing. Even worse, they could be directly impacting your bottom line.

At Certified Source, we know the true value of data. That’s why we encourage all of our manufacturing clients to take a well-rounded look at all high-performance costs that might be affecting their facilities. This includes high non-employee performance costs that may be sliding under the radar currently. Only with this holistic view will they be able to start making more informed decisions about what changes need to be made to improve productivity across the board and positively impact internal and external growth. In this segment, we will focus on the benefits of setting, tracking, and monitoring quality and productivity goals for a manufacturing facility.

How Can Setting, Tracking, and Monitoring Productivity Goals Decrease High Non-Employee Performance Costs?

Although the concept behind a SWOT analysis may seem dated, it is a good starting point to determine what quality and productivity goals make the most sense and which processes are likely to affect them. This can easily be broken into four squares; strengths, weaknesses, opportunities, and threats. For the most significant impact, consider completing these for all business areas, including non-employee performance costs like training or equipment updates that might increase productivity and performance. While we wish we could give more guidance, these factors may be different between each facility.

Most of the possible improvement metrics should be readily available for your review. For instance, if a recent training has been completed, then there is a good chance that you should be able to see a direct correlation in the improvements that are being made. This is particularly true for training options since you should know what the training is designed to improve. If you don’t see improvements, it may be time to cut those non-employee performance costs or look for a more suitable alternative. This constant pursuit of efficiency and performance should drive all decisions that are being made.

inspection and checking production process on factory station

Any manufacturer struggling to manage high non-employee costs will have to research their processes deeply to determine what factors contribute to them. One way Certified Source helps counteract these high non-employee costs is by ensuring that candidates have the qualifications necessary to make a positive impact and provide external training when needed to ensure qualifications are met. If you are interested in learning more about our performance-based staffing services or the unique ways that we can help you overcome high non-employee costs, please contact us today or find your nearest location to get started.

Development of Quality Teams as a Possible Solution for High Non-Employee Performance Costs

Running a business can be incredibly expensive. Many managers spend significant time looking for ways to reduce costs to redistribute that money towards needed items. Whether you are looking to save money on equipment, training, or other resources, developing a quality team may have more financial impact than you realize.

When quality teams have been established within a company, it can lead to lower non-employee performance costs. Cohesive teams have more than likely been trained well and thoroughly. There is a good chance they will know what resources are available and what steps should happen to maximize time efficiency. By prioritizing the development of quality teams, you can save on many things down the line.

How Can the Development of Quality Teams Eliminate High Non-Employee Performance Costs?

By developing quality teams from the onset, companies will have the talent to train new team members and quickly assimilate them internally. To go the extra mile, you may have a current manager or employee who can create a manual or training module for the company. By building these types of training opportunities internally, there is a high chance of maintaining consistency and having to spend less down the road on fixing mistakes.

Allotting training costs ahead of time can mitigate future training costs that might otherwise be required down the road. Quality teams often breed leaders who can infuse the company culture with their competence. This is undoubtedly a cost saver when looking at the big picture.

Additionally, when teams are trained well, there is less of a chance of wasted time and resources. You may consider digitizing data and processes to minimize human error. By centralizing these items, you can better understand efficiency, quality, and cost across your organization. Employee mistakes are bound to happen, but they can also be quite costly. Building a solid team that utilizes consistent processes can reduce costs caused by human mistakes.

When actionable information is given to each team member, disruptions become less. From long-time managers to new employees, consistency and communication can help move the organization towards best practices that result in budget maintenance. By working together, stronger quality outcomes are achieved for the entire organization. Whether you are working towards optimized production, reduction in costs or defects, less downtime, improved audit costs, product compliance, or better yields, it is imperative to put time, effort, and a budget into building a quality team.

Business people discussing income charts and graphs during team meeting in modern office
Business people discussing income charts and graphs during team meeting in modern office

Certified Source prioritizes helping our employer clients partner with the best recruits in the area. We use a performance-based approach to help train qualified candidates, ensuring their ability to make an impact on day one. Developing a quality team is both cost-efficient and critical to customer experience. At Certified Source, we pride ourselves on connecting companies with top talent in the area to fill needed vacancies and positively add to your team. Give us a call today– we would be delighted to help fill your staffing needs, ensuring that you swiftly and efficiently meet your goals.

Exploring the Enforcement of Attendance and Written Warning Policies as a Possible Solution for High Non-Employee Performance Costs

The enforcement of attendance and written warning policies can be an excellent solution for high non-employee performance costs. Establishing clear attendance expectations and implementing a policy with progressive disciplinary action for violations can help ensure that employees are aware of their responsibilities and are held accountable for their actions.

Additionally, a written warning policy can be used to document and track violations, ensure that employees are aware of their actions' consequences, and provide a paper trail for use in legal proceedings if necessary. By enforcing attendance and written warning policies, employers can help reduce the financial costs associated with poor performance and help promote a culture of accountability.

sitting at desk holds pen signing

How Can the Enforcement of Attendance and Written Warning Policies Reduce High Non-Employee Performance Costs?

When managing the costs associated with low employee performance, it is essential to have a practical attendance and written warning policy in place. It is crucial to ensure that employees are held accountable for their performance and that these policies are enforced. This section will explore how enforcing attendance and written warning policies can help reduce the high costs associated with non-employee performance.

One way that enforcing attendance and written warning policies can help reduce the cost of non-employee performance is by ensuring that employees are only absent when they have a valid reason. If an employee is absent without a valid reason, they should be given a written warning. This will help to ensure that they are aware that their performance is being monitored and that they need to make an effort to improve their attendance.

Another way that enforcing attendance and written warning policies can help reduce the costs associated with non-employee performance is by ensuring that employees are given proper performance feedback. If an employee is not meeting their job expectations, it is important to let them know. This can be done through a written warning that outlines what is expected of them and the consequences for not meeting those expectations. This will help to ensure that employees are aware of the importance of meeting their performance expectations and that they are held accountable for their actions.

Finally, enforcing attendance and written warning policies can help reduce the costs associated with non-employee performance by ensuring that employees are given the proper tools and resources to perform their job. If employees are not provided with the proper tools and resources to succeed, they are less likely to meet their performance expectations. It is crucial to ensure that employees have access to the tools and resources they need to be successful. This will help ensure that they can meet their performance expectations and reduce their performance costs.

hr sitting on desk writing the policy

Exploring Re-Training as a Possible Solution for High Non-Employee Performance Costs

In recent years, businesses have struggled to keep up with the costs of non-employee performance. This can include contractors, consultants, and other third-party services. As a result, businesses have been looking for ways to reduce these costs while still ensuring quality performance.

One possible solution to this problem is re-training. Re-training involves providing employees additional training and education to increase their skills and capabilities. This can be done through in-house training, online courses, or even attending workshops and conferences. By investing in employee re-training, businesses can ensure that their workforce is updated with the latest industry trends and practices.

How Can Re-training Help Reduce High Non-Employee Costs?

Re-training also provides an opportunity for businesses to increase employee engagement and morale. By investing in their employees, businesses can show that they value their contributions and are willing to invest in their future. This can increase job satisfaction and loyalty, improving performance and reducing non-employee performance costs.

Re-training can also help businesses to stay ahead of the competition. By investing in the development of their employees, businesses can ensure that they can keep up with the latest industry trends and practices. This can help them stay competitive and provide better services to their customers.

Re-training can be an effective solution for businesses looking to reduce non-employee performance costs. By investing in their employees, businesses can ensure their workforce is updated with the latest industry trends and practices. This can lead to improved performance, increased employee engagement, and morale, and reduced non-employee performance costs.

Manager talking with staff
Manager talking with staff