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Should I Flex? Questions and Misconceptions about On-Demand Labor

By
Jacob Shaffield
November 12, 2024
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Success belongs to those prepared to break free from convention and ask this critical question. In an era where change is the only constant, businesses clinging to yesterday’s static workforce structures are increasingly vulnerable. Traditional labor models—built for stability, predictability, and long-term employment—are crumbling under the weight of new market realities. Economic fluctuations, technological advances, and shifting worker expectations demand a workforce strategy that is not only stable but adaptable, dynamic, and responsive. Asking, “Should I flex?” is not about abandoning structure; it’s about evolving to meet the demands of a world that rewards agility.

Agility is not a luxury—it is a necessity for survival. Businesses face increasingly unpredictable shifts in demand, customer expectations, and supply chain complexities. A rigid workforce model, grounded in fixed costs and limited flexibility, cannot meet the demands of such a volatile environment. Organizations must embrace a workforce model that is as responsive as the market itself. This shift toward agility is echoed by Professor John Kotter of Harvard Business School, who emphasizes that "stability is not the key to success in turbulent times. Agility and speed to action are essential." On-demand labor, with its capacity to scale in real-time, offers businesses a way to stay ahead, responding to demand fluctuations with the kind of agility that static models simply cannot achieve.

Legacy HR policies were created for a world that no longer exists. The policies that once protected stability now risk stifling it. Today’s competitive landscape requires not just incremental change, but a fundamental rethinking of how companies manage and deploy their workforce. Hard-line policies around hiring and work hours, while well-intentioned, were developed in an era of predictable growth and slow change. Now, these policies often function as barriers to the flexibility that both employers and employees crave.

Partners like Veryable—an industry pioneer with nearly a decade of on-demand labor expertise—help companies deploy an adaptable labor model that meets both business demands and the preferences of today’s workforce. Let’s dive into the five burning questions your business must ask to unlock agility and five common misconceptions about on-demand labor that are keeping companies from discovering this advantage.

1. Are Our Current Labor Costs Aligned with Demand Fluctuations?

In any business, aligning labor costs with actual demand is crucial for maintaining profitability. However, traditional fixed labor models often misalign expenses with real operational needs, leading to overstaffing during slow periods and understaffing during busy ones. An on-demand labor pool addresses this by enabling businesses to add skilled workers precisely when needed, without incurring excess costs during downtime. As management expert Peter Drucker once said, “Efficiency is doing things right; effectiveness is doing the right things.” By building and managing a labor pool, companies can not only do things right but also ensure they are doing the right things by aligning labor resources with demand. Instead of paying for idle hours, companies can direct their labor costs toward work that directly drives value, allowing them to preserve quality and profitability. This approach to workforce strategy frees companies to focus on innovation.

2. How Quickly Can We Scale Our Workforce Up or Down?

Speed is a decisive factor in today’s fast-paced markets. When demand surges, businesses with inflexible hiring models face delays and bottlenecks, whereas those with a labor pool can scale up nearly instantaneously. On the flip side, during downturns, an on-demand workforce allows companies to scale down, minimizing costs without layoffs or severance. “Adapt or die” is more than a philosophy; it’s a necessity in volatile industries. A labor pool empowers businesses to respond to sudden market changes at a moment’s notice, ensuring they can adjust resources without missing a beat. In industries like logistics, where delays from labor shortages can significantly impact operations, this adaptability can mean the difference between profit and loss. On-demand labor eliminates the lag that typically occurs with traditional hiring, letting companies focus on meeting client demands and maintaining operational efficiency.

3. Are We Prepared to Respond to Sudden Increases in Order Volume Without Compromising Quality?

A surge in demand can be both a blessing and a burden. The ability to meet increased volume without sacrificing quality or stretching a full-time workforce too thin is crucial. An on-demand labor pool offers the immediate support businesses need to expand capacity, ensuring that quality remains consistent and core employees are not overextended. Businesses must proactively prepare for fluctuations by building a labor pool, taking ownership of their ability to meet market needs. This proactive approach ensures that quality standards are maintained and that customers receive reliable service, regardless of demand. On-demand labor provides a strategic advantage, allowing companies to balance workload fluctuations without impacting the satisfaction or morale of their core team.

4. How Resilient is Our Workforce to Disruptions in the Supply Chain?

Supply chain disruptions have become a constant across industries. When production schedules or inventory flow is disrupted, a rigid full-time workforce creates unnecessary overhead. In these situations, on-demand labor allows businesses to scale back temporarily, pausing costs without severing ties to skilled workers. Building resilience requires accepting that disruptions are inevitable and preparing to adapt when they arise. A labor pool provides flexibility to adjust workforce levels as conditions change, making it possible to quickly scale operations when normal supply resumes. This level of adaptability is crucial to avoiding high costs and prolonged downtime.

5. Are Our Workforce Strategies Supporting Our Growth Goals?

Every company wants to grow, but fixed staffing models often limit expansion. A rigid labor structure locks companies into long-term commitments that can stifle flexibility. In contrast, on-demand labor gives companies the freedom to expand or contract resources based on immediate needs, aligning workforce strategy with growth objectives. For businesses, this means prioritizing workforce flexibility as a foundational component of their growth strategy. By leveraging a labor pool, companies can scale with agility, capturing new opportunities without overcommitting resources. Sustainable growth is achieved when workforce strategies are as adaptable as the business’s vision, making on-demand labor an essential tool for companies looking to expand without risking stability.

Five Misconceptions about On-Demand Labor

Misconceptions about on-demand labor keep companies from realizing its full potential. These misunderstandings overlook the evolution of technology, workforce attitudes, advantages that on-demand labor offers. It is not just an alternative to traditional staffing—it’s a solution for a world in which the ability to adapt is paramount.

1. On-Demand Labor is Just Temp Labor with a New Name

A common misconception is that on-demand labor is simply a repackaging of traditional temporary staffing, filling short-term roles without long-term integration. However, on-demand labor is designed for adaptability, allowing businesses to flexibly scale their workforce based on real-time operational needs, not just pre-defined, fixed roles. Unlike temp labor, which is typically scheduled in advance and meant to fill static gaps, on-demand labor provides an agile, responsive solution to address unpredictable surges or declines in demand.

For instance, ADAC Automotive tapped into Veryable’s platform to adjust their workforce across three manufacturing plants dynamically. Within just a few months, they developed a flexible labor pool that allowed them to schedule skilled operators precisely when production spikes required it, significantly reducing reliance on overtime and mitigating burnout. This level of responsiveness is unique to on-demand labor and enables companies like ADAC to align their labor resources tightly with actual demand rather than fixed schedules. The agile approach means operators become a strategic asset rather than a temporary fix, seamlessly filling in as needed without the limitations or planning constraints of traditional temp labor.

2. On-Demand Labor is Too Expensive

Some believe on-demand labor incurs higher costs due to the flexible nature of work scheduling. However, on-demand labor can actually be more cost-effective by matching labor expenses precisely with production needs, eliminating the overhead associated with idle time or underutilized staff. With on-demand labor, businesses pay solely for productive hours, which often leads to cost savings compared to a full-time staffing model where workers may have inactive periods while still accruing hourly wages or benefits.

For example, Gilster-Mary Lee Corporation was able to tackle a significant backlog during their peak season by leveraging Veryable’s platform. By deploying operators exactly when demand spiked, they managed labor costs efficiently, paying only for the hours needed to achieve operational goals. Gilster-Mary Lee’s management noted that using on-demand labor allowed them to scale operations effectively while avoiding the high cost of maintaining a full-time workforce through slower periods. The result was a cost-effective and highly productive workforce model, aligning labor costs directly with output and eliminating wasted spending associated with traditional staffing.

3. Our Business is Too Complex for On-Demand Labor

A prevalent belief is that on-demand labor only suits basic or low-skill tasks and wouldn’t fit complex environments requiring specialized expertise. However, on-demand labor platforms like Veryable allow businesses to build a trained labor pool of returning operators familiar with specific processes, including those in highly specialized industries. This enables companies to tap into skilled operators who already understand the unique aspects of their operations and are capable of performing at high standards in complex settings.  We wrote a blog about this topic here.

In the case of Mack Tool and Engineering, which specializes in producing precise parts for the aerospace and medical fields, Veryable’s platform allowed them to attract skilled operators capable of upholding their high standards for accuracy and quality. The operators trained from the outset quickly adapted to the company’s needs, delivering the precision required for sensitive projects. By creating a dedicated pool of on-demand labor, Mack Tool was able to ensure their operators could support intricate tasks, proving that on-demand labor is viable for companies with complex operational needs. The result was a streamlined approach to meeting labor demands, reducing the risk and rigidity of relying solely on permanent staff in these critical areas.

4. Using On-Demand Labor Will Upset Full-Time Employees by ‘Taking Away Jobs’

A primary concern among employers is that bringing in on-demand operators will lead to dissatisfaction among full-time employees, who may feel their job security is at risk. However, on-demand labor is not intended to replace core staff but rather to complement and support them during periods of high demand. By handling fluctuations in workload, on-demand labor enables full-time employees to avoid the strain of overtime or the instability of seasonal layoffs, ultimately leading to improved morale and a more stable work-life balance.

At RTIC Outdoors, Veryable’s on-demand operators were brought in to handle peak seasons, allowing full-time staff to maintain their regular schedules without the added pressure of excessive workloads. This strategic approach led to better morale and higher retention rates among permanent employees, who were able to maintain predictable hours. Additionally, RTIC Outdoors found that using on-demand labor helped balance workloads efficiently, reinforcing that on-demand operators are not competitors to core staff but are, in fact, allies who alleviate pressure during times of increased demand. By stabilizing the work environment, on-demand labor supports a healthier work culture, ultimately benefiting the entire team.

5. We’re Not Tech-Savvy Enough to Use On-Demand Labor

Some businesses hesitate to use on-demand labor platforms, assuming they require advanced technical skills or intricate software knowledge. However, Veryable’s platform is built for simplicity, ensuring even non-technical supervisors can easily post opportunities, review operator profiles, and manage labor needs without requiring a steep learning curve. The mobile interface streamlines labor requests, allowing supervisors to gain immediate access to skilled operators without additional administrative burdens.

In this post, we explain how Veryable empowers supervisors to quickly manage labor needs and get operators on the ground within hours. By eliminating lengthy hiring processes, Veryable’s platform enables companies to focus on productivity rather than logistics. With the intuitive app, businesses can experience all the benefits of on-demand labor with minimal effort, reinforcing that a lack of technical expertise should never be a barrier to integrating on-demand labor solutions.

Answering ‘Should I Flex?’ with Action

Almost every business should answer "Should I Flex?" with a resounding "YES!" This leads to the next set of questions - How?, When?, How Much?, With Whom? At Veryable, we're ready to help you answer that question with local operations experts to dive deep into your business and drive success.

On-demand labor is more than a strategy—it’s a commitment to building resilience into your workforce. It’s about giving your business the power to act, to adjust with precision, and to optimize resources in real-time. By integrating flexible labor, you’re not just responding to change; you’re embracing it, shaping your operations to match today’s demands without sacrificing stability or quality.

When you strip away the misconceptions, the value is clear: on-demand labor strengthens your team, lowers costs, and keeps your business agile. It’s a model designed to support growth, maintain efficiency, and foster a workforce that’s as adaptable as the markets you serve.

Additional Resources

Explore how on-demand labor can transform workforce flexibility and efficiency across industries. These resources offer insights on the advantages, best practices, and specific applications of on-demand labor in manufacturing, logistics, and beyond.

What is On-Demand Labor?

Traditional Staffing vs On-Demand Labor Platforms

Top Five Benefits of On-Demand Labor for Manufacturing and Logistics

Scaling for Peak Season: Why On-Demand Labor is a Game Changer

How to Start Using On-Demand Labor the Right Way

On-Demand Labor Guide for the Retail Supply Chain

If you’re ready to leverage on-demand labor, create a profile with Veryable and begin building a more agile, efficient workforce today.

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Jacob Shaffield
Jacob is the General Manager for Veryable in Houston, and previously for Central Kentucky and Southern Indiana – including Louisville, Lexington, and Evansville. Prior to Veryable, Jacob spent 20 years in logistics, marketing, ecommerce, and retail management roles – including as a VP for a furniture SMB and owner of e-commerce and brick and mortar retailers. With leadership from Fortune 10 to start-ups, he understands operational impact throughout the supply chain across many sectors.

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