Last week, we published a blog called Manufacturing Companies, Keep the Faith and Soldier On, which was a call to action for US producers and distributors to prepare to play offense in this time of crisis. Because although it is clear that the near-term will be uncertain in terms of restrictions, delays in materials, and workforce challenges... that should not prevent you from preparing to take on pent-up demand that is just around the corner.
That being said, you are probably also trying to figure out what to do with your largest line item expense - payroll - while weathering this storm. On one hand, you can't afford to do nothing, as the fixed cost and lack of revenue will crush the business. On the other hand, you don't want to cut a significant portion of your workforce, as it is the very lifeline you need to scale back up when the volume returns. Consequently, you are in a true catch-22... you can either avoid furloughs and drive the business into debt, or lay off a significant portion of the workforce and lose decades of business and product knowledge.
Luckily, there is a third option that you can take advantage of now that creates a true win-win for your business and workforce: you can retain your workforce by converting them to Veryable Operators.
For businesses, doing so lowers your fixed costs, eliminates unnecessary overhead expenses, provides a soft landing for your employees, and allows you to retain the workforce knowledge that you more-than-likely would have otherwise lost forever if you laid off employees. You are also able maintain operations with a proportional labor force as your demand necessitates. This move creates a more flexible and agile cost structure via a greater reliance on a variable workforce right at the time you need it most. Lastly and of most importance, this move positions you well to take on the pent-up demand in the coming weeks just-in-time with your existing workforce.
For your converted Operators, they now have the benefits of daily pay, a flexible work schedule, more take home pay without deductions, and a diversity of economic opportunities, rather than having to file for unemployment. As a result, Operators can keep their income stream alive and well, as we have a number of essential businesses in desperate need of additional flexible labor capacity.
Executing this strategy is quick, easy, free, and a win-win. All you have to do is create a free profile here to get started, which should take no more than 1-2 minutes. Then, if you'd like a follow up consultation, you can schedule time with me directly here.