The True Cost of Staff Shortages

Manufacturing businesses rely heavily on their staff to keep the production line running smoothly. When a company experiences staff shortages, it can have a significant impact on various aspects of the business. The true cost of staff shortages on manufacturers is not just financial, it also includes burnout, lost production, safety and quality risks and additional indirect costs. In this blog post we will discuss these costs and their impact on the manufacturing business. 

Financial Costs

One of the most obvious costs of staff shortages on manufacturers is the financial impact. When there are not enough workers to keep the production line running efficiently, the company may need to pay overtime or hire temporary workers, which can add up quickly. Additionally, when there is a shortage of workers, productivity may suffer, resulting in lost revenue for the company.

Burnout and Turnover

When there are not enough workers to handle the workload, existing employees may be required to work longer hours or take on additional responsibilities. This can lead to burnout, where employees become physically and mentally exhausted from the increased workload. Burnout can lead to decreased productivity, absenteeism, and even turnover, as employees look for jobs that are less demanding.

Lost Production

Staff shortages can also lead to lost production. When there are not enough workers to handle the workload, production may slow down or even come to a halt. This can result in missed deadlines, delayed shipments, and lost revenue for the company. When production slows down or stops, it can have a ripple effect throughout the supply chain, impacting other businesses that rely on the manufacturer’s products.

Quality and Safety Issues

When there are not enough workers to handle the workload, quality and safety can suffer. Employees may rush through their work or take shortcuts to keep up with demand, resulting in subpar products or even injuries. Additionally, when there is a shortage of workers, it can be more difficult to maintain quality control, as there may not be enough staff to check each product thoroughly. The result is even more product expense, brand reputation damage and the elevated risk to employee safety. Workplace injuries climb when employees are overworked, being asked to cover positions they aren’t trained to do or are pushed to work faster than normal to reach production goals despite staff shortages.

Training Costs

When a manufacturer experiences staff shortages, they may need to hire new employees or cross-train existing employees to fill gaps in the workforce. This can be expensive, as it requires time and resources to train new employees or provide additional training for existing employees. Additionally, if the manufacturer experiences high turnover because of staff shortages, they may need to continually invest in training new employees, further adding to the costs. This also has an invisible cost of additional burn out on the employees called upon to train the new staff over and over.

Conclusion

The true cost of staff shortages on manufacturers is not just financial, but also includes burnout, lost production, safety risks, quality issues, and training costs. It is essential for manufacturers to have a plan in place to address staff shortages. This problem is not going away. Employers must be creative and think differently about the problem. Having a strong staffing partner can help but the total solution will require employers to challenge their processes, mind set and activity.  

The team at Ardent Staffing Solutions is positioned to see both the employee and the employer markets in real time. We hear both sets of challenges and can help employers and job seekers find one another. It’s what we do. This problem is not going away…Reach out today to find out how Ardent Staffing can help you. www.ardentstaffingsolutions.com

 

Ardent Staffing Solutions is a Massachusetts based temporary and permanent placement staffing agency specialized in professional, administrative, and skilled manufacturing placements.

April 7, 2023

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