Amplifying the Efficacy of the Food and Beverage Industry with Contingent Staffing

Overview

Marked by production volatility and staff shortage, the food and beverage industry has been facing the crucial challenge of meeting the fluctuating demands of the ever-increasing population. Though the labor shortage in the food and beverage industry is always found to be a pressing issue, the COVID-19 pandemic has made the situation more unprecedented, forcing manufacturers to make adjustments in their manufacturing operations and workforce strategies. Just like most other industries, contingent staffing in food and beverage industry proves to be highly fruitful.The article gives an overview of the predominant challenges in the food and beverage industry, followed by the ways in which contingent staffing can help in enhancing its efficacy.

Pressing challenges of the food and beverage industry

One of the most common obstacles that food and beverage manufacturers consistently encounter is the staff shortage. It is almost a decade since this issue has been growing, making it challenging for food and beverage employers to attract and retain employees. According to a report published by Deloitte, the key reason behind this issue is the traditional perception associated with manufacturing companies, suggesting that there is a limited career opportunity in this industry.

Although the food and beverage industry has significantly improved in terms of high-tech innovations and offers good salaries for career advancement, individuals seem to be disappointed with rigid schedules, absence of flexibility, and improper learning opportunities. Instead of engaging additional workers during seasonal highs, many employers continue overburdening their existing employees, making them work extra hours without giving them sufficient pay and benefits. This results in low employee morale and increased burnout rates, leading to a failure in employee retention. To cope with all these issues, employers in the food and beverage industry need to consider establishing a contingent workforce.

Related read: Factors to consider when utilizing contingent workforce

Role of contingent staffing in food and beverage industry

Contingent staffing in food and beverage industry refers to the strategy of on-demand hiring temporary or contractual labor to fulfill business needs during seasonal peaks or certain short-term project needs. 

Here’s how contingent staffing can help in enhancing the efficacy of the food and beverage industry: 

Flexibility

Given the current demand fluctuations in the food and beverage market, manufacturers should consider building a contingent workforce strategy to remain flexible and agile. With this strategy, food and beverage manufacturers can efficiently and conveniently enlarge or downsize their workforce according to their changing needs. 

During the busiest seasons or holidays, when product demand rises, it becomes easier for manufacturers to onboard contingent workers and fulfill their needs. Similarly, when the demands decrease, resulting in a reduction of workload, manufacturers can downsize their teams by releasing contingent workers instead of initiating mass layoffs of fixed or full-time staff.

Seasonal hiring

Seasonal fluctuations in demand are quite common in the food and beverage industry. For instance, changes in coffee-drinking habits can be observed with changing seasons. When the chilly days strike in, the demand for coffee increases, requiring coffee manufacturers to take a proactive approach to meet the demand. On the contrary, ice cream manufacturers experience a similar surge in demand during summer. To deal with such demand variations, manufacturers can opt for seasonal hiring of contingent staff, making sure that they engage the required number of workers during peak times.

Gateway to specialized skills

At times, food and beverage manufacturers tend to face the need for specialized skills and talents that might be absent in their existing workforce. Such instances usually arise during new product launches, maintenance of some equipment, or food safety audits. By opting for contingent staffing in food and beverage industry, manufacturers can put in place specialized expertise and efficiently fulfill their short-term project or business needs.

Cost-efficiency

Hiring contingent workers in food and beverage industry typically costs less than what it takes to hire permanent staff. Besides investing a considerable amount of money in the hiring process, employers need to provide permanent employees with fixed salaries, paid leaves, health insurance schemes, retirement plans, and other perks and benefits. On the other hand, most employers seek assistance from professional staffing agencies when hiring contingent workers. As such, the staffing agencies bear all expenses associated with the hiring process, including job advertisements, interviews, and onboarding.

Plus, contingent workers do not require the guarantee of fixed or long-term salaries. They usually get payments based on the tasks they do or for the hours they work. Also, as contingent workers are directly not included in the payroll of the employer, they do not have the requisite of added benefits or perks as received by permanent employees.

Time-efficiency

Because contingent workers are hired by means of reliable staffing firms, the process tends to be streamlined, saving a lot of time for the employers. Contingent staffing agencies develop and maintain a broad pool of talented and qualified potential candidates to fill up vacant positions for food and beverage manufacturers. The agency also assists with the screening, shortlisting, and onboarding process of candidates, allowing employers to divert their focus and time to other operational areas.

Improved job satisfaction

By switching to contingent staffing in food and beverage industry,manufacturers can break down the conventional workforce norms associated with rigid or fixed work schedules. They can implement flexible work norms, allowing contingent workers to pick up the shifts in which they are most comfortable to work. This strategic approach will not only attract qualified and skilled contingent workers but also offer them the desired motivation to work with the same employers in the future. 

When employers choose to create blended teams with their existing employees and contingent staff during peak times, the fixed or full-time employees do not feel stressed or overburdened due to the increasing workload. This further helps improve their morale, leading to overall job satisfaction.

How Denken Solutions helps

As one of the leading operators in the staffing industry, Denken Solutions designs and follows the right strategies and methods to source the best talent for clients. We undertake a client-centric approach to evaluate the job needs and role requirements of the client. This helps us in identifying potential candidates, assessing their skills and competencies, and determining if they would be the right fit for the positions. With specialization in contingent staffing, Denken Solutions is all set to be your one-stop solution for your workforce needs. 

Conclusion
To sum up, contingent staffing offers a tactical edge to manufacturing companies operating in the food and beverage industry, which are continually witnessing the pressing issue of staff shortage. By opting for contingent staffing in food and beverage industry, employers can bring more flexibility to their operations, save considerable time and costs associated with permanent hires, get access to specialized skills and talents, and meet seasonal demands. So, are you ready to amplify the efficacy of your food and beverage manufacturing business through contingent staffing solutions? Become our customer and unlock your business potential today!