Automation, whether robots or co-bots, are drawing a lot of attention these days with the 43.7% growth of e-commerce and the increasing fulfillment needs across a number of industries and consumer categories.  We’ve all heard the familiar refrain that automation is taking over in manufacturing and logistics, but that has not been the case due to offshoring versus automation.  

Imagine it’s the busiest month of the year and you can’t take on any more orders because your employees are maxed out with their workload. You’ve all had your fill of overtime and if anyone has to call out, you don’t know how you’ll make it through the week.

So you’ve started using on-demand labor, but you’re not so sure about how many people you should be adding to your labor pool. Maybe someone told you a number that was so high it shocked you, or maybe you’ve been flying solo and don’t know what you should be aiming for.

Once you heard of on-demand labor and the concept of a labor pool, your next thought was probably something along the lines of “That sounds great, but how long does it take?”

You’ve heard the term labor pool and have an idea of what it is, but now you are likely wondering: what level of commitment is needed, and is it worth it for me and my business?

Operations leaders across the country are wrestling with the issue of balancing their daily execution with finding time to drive operational improvements. The truth is that creating a labor pool is something we’ve seen plenty of clients utilize to solve this problem. The other truth is that creating a labor pool is a bonafide change to the way that most businesses have viewed their labor force, which is understandably a reason to be skeptical.

At Veryable, we operate an on-demand labor platform to solve the need for efficiently responding to changes in customer demand. We understand that this isn’t for everyone, but by the end of this blog you will be better equipped to make that determination for your business.

The big question is: should building a labor pool be an operational improvement priority?

When someone first hears about on-demand labor and the concept of a labor pool, they often think they can get out of the hiring game for good. It can be confusing at first when you’re trying to balance managing your full-time workforce and building a flexible labor pool alongside it, so the temptation is to just choose one or the other. We get asked if people should stop hiring completely once they build their labor pool to a large enough size to cover all their work. 

So you’re new to on-demand labor, and you end up hitting a roadblock that you weren’t expecting. You’re excited about the potential of Veryable for your business, but aren’t so sure any more. What now?

If you’ve used on-demand labor for a while, you’ve probably heard the concept of a labor pool mentioned at least once. And maybe you’ve decided you want to implement this model at your business, but you’re thinking it can’t just be as simple as “build a labor pool.” What does that even mean?

Operations managers are facing labor issues daily related to recruiting, retention, utilization, and performance. Maybe you are facing these challenges and making trade-offs so you have the right amount of labor to meet your production schedule. Doing so is a balancing act that requires some out-of-the-box thinking.

As both employers and employees know, there’s a perpetual struggle to balance between the interests of a company and those of its employees. Companies benefit by cutting costs while increasing production, whereas workers benefit from increased pay and flexible hours. As we’ve mentioned before, neither party can be faulted for these expectations, which is why it is high time for a solution that satisfies everyone’s needs. And that’s exactly what a shared labor pool creates: a competitive environment that benefits both sides of the equation.