Five Situations Where Travel Labor Makes Sense

A lot of companies shy away from travel labor, because they think it’s too expensive. That line of thinking, though, can be substantially more expensive. When other labor options fall short, the real cost shows up in missed deadlines, stalled production, lost revenue and more.  

Travel labor is not a replacement for local staffing agencies, it’s a complementary strategy. Many times, the lower-price, local staffing solution is the best path for our clients.

Other times, though, CSTL is the smartest, fastest, most cost-effective solution. Here are five primary scenarios where travel labor is a no-brainer. 

1. FILLING AN UNFILLABLE TALENT GAP

   Situation: There is simply not enough local talent. If you want the work done you need to bring in the people.
   
   
2. MAXIMIZING UTILIZATION

   Situation: 
Your business is not generating revenue due to a lack of labor. If the cost of travel labor is less than the net profit margin you would achieve by operating fully staffed, travel labor is 100% worth it.
   
   
3. AVOIDING MORE COSTLY, NON-LABOR ALTERNATIVES

   Situation: 
The cost of alternative options is greater than the cost of travel labor. Increasing production at another facility, re-routing product or holding on shipping can be far more costly than short term increases to labor expenditures.
   
   
4. PROTECTING REPUTATION

   Situation: You have a deal with a client and cannot afford to miss. Short term cost increases are worth protecting your business’ reputation and avoiding the risk of losing future deals.
   
   
5. IMPROVING CONSISTENCY & RELIABILITY

   Situation:
Local providers have not been able to consistently support your business. Turnover is high and you’re spending more on onboarding, overtime and output is lacking. You need a different solution to move the needle.
   

Labor is a cost that can be optimized like every other element of production, but it’s too often viewed in a vacuum – one labor option compared to another labor option. That perspective can be too limited, because 1) labor is just one component of true overall cost, and 2) the labor options are not always simple apples-to-apples comparisons. 

This myopia is something we commonly encounter at AFIMAC. Because our focus is on temporary travel labor – what we refer to as Critical Situation Temporary Labor (CSTL) – our offering is inherently more comprehensive than a local contingent staffing agency’s offering. It needs to be so we can source and deliver the right people from anywhere in the country and support them while they’re on site.

Premium labor services can seem illogical at face value. You may assume the cost is high, but when you evaluate the cost of inaction, it pales in comparison. Labor solutions are often math problems. Companies that are good at labor forecasting have a plan in place in the event labor needs cannot be met. Travel labor is a lever that can save your business money.