What is a Temp Agency?

Temp Agencies provide employees to businesses across several industries including:

  • Office Temps
  • Construction Temps
  • Warehouse Temps
  • and more… 

Why do companies hire Temps?

Companies hire temporary workers for several reasons including but not limited to:

  • Filling positions during peak times and seasons
  • Saving on payroll costs
  • Not able to find reliable full time workers

Problems when using Temp Agencies

Temp agencies provide a needed service but the quality of workers they provide are usually inadequate. Some problems companies face when hiring temp workers include:

  • inexperienced workers
  • workers not showing up
  • workers showing up late
  • having new workers show up everyday
  • lots of employee turnover

The Solution is Flat Rate

With so many problems when dealing with temp agencies there has opened a way for a new way of doing things. Companies like Lumper HQ are offering staffing for a Flat Rate for certain positions in the warehouse. Lumper HQ charges flat rates for Container Unloading, Palletizing, Transloading and co-packing. Where it would have taken an unknown amount of temp workers and an unknown amount of cost to complete an unload or a transload, now can easily be budgeted for because Lumper HQ will do it for a flat rate no matter how long or how many workers it takes.

A deeper look!

Lets take a look at who works in a warehouse:

  • Machine Operators
  • Order Pickers
  • Unloaders
  • Re-Packers
  • People to label
  • Floor Supervisors

Now lets see which of these positions can be replaced with a flat rate service and the cost benefits of that switch. 

  • Machine Operators
  • Order Pickers
  • Unloaders
  • Re-Packers
  • People to label
  • Floor Supervisors

So take a look above and you see that Unloaders and Re-Packers can be replaced with a flat rate option, so lets see what the costs associated with each service is. 

Unloaders:

  • Temp Worker’s
    • Cost $28-$35/hour (min 8 hours) Total for 1 worker $224-$280
    • Cost to unload a container unknown as temp workers will be about 50% slower then trained flat rate container unloaders (lumpers)
    • Likely Cost to unload a container with a temp worker will be $224-$280as a temp worker will not be motivated to work any faster as they are being paid by the hour, most likely they will spend the entire shift on 1 container. 
  • Flat Rate
    • Cost $195* per container (min 1 container) Total for 1 container $195

Re-Packers:

  • Temp Worker’s
    • Cost $28-$35/hour (min 8 hours) Total for 1 worker $224-$280
    • Cost to repack is unknown as temp workers will be about 50% slower then trained flat rate re-co packers 
    • Likely Cost to repack a containers worth of product with a temp worker will be $224-$280as a temp worker will not be motivated to work any faster as they are being paid by the hour, most likely they will not finish by the end of their shift and not show up the next day.
  • Flat Rate
    • Cost $.50* per carton, for example to repack 500 pieces it would cost: $250 and the job will be completed on time the same day

It is easy to see why Flat Rate is the way to go.

 

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