Labor Cost Vs. Quality
Labor: Costs vs. Quality
By Jennifer Merrell, Principal
“There’s also greater recognition that the quality of labor is increasingly important, and because with the economic recovery the availability of good people is getting tighter, companies are willing to pay more and are willing to be not quite as cost-sensitive.”
Larry Gigerich, Managing Director for Ginovus,
as quoted in Area Development Q4 2014
What defines quality labor?
The main criteria defining a quality workforce includes:
- An educated and sustainable group of people that have the training and experience necessary to meet the demands of a specific industry.
- A group of workers who have a range of skills for corporate functions and projects.
- A pool of workers with proven ability to create and develop processes and products.
- Workers who share a goal for consistent improvement in productivity.
Whether relocation or expansion is the reason for a new facility site search, companies are taking a good hard look at the quality of the labor available in an area and weighing the factor at least as important as the bottom line cost as part of the overall corporate strategy. For technology and highly skilled positions, this analysis takes on even greater importance. Achieving higher production rates with quality labor is becoming essential to the profitability of companies in the United States today.
The importance of labor, both in cost and quality is of highest concern for companies now and in the future and the global economy will be dependent on this key factor for growth and sustainability.