Today’s manufacturing and logistics operations are at the center of rapidly evolving industry trends that impact operational efficiency and influence customer retention. In particular, the intricacies of inventory management and order fulfillment have escalated as both order and distribution channels proliferate and customers demand faster and less expensive delivery options.

1. The Impact of Recruiting and Hiring on Order Management and
Delivery Performance
Today’s manufacturing and logistics operations are at the center of rapidly evolving industry
trends that impact operational efficiency and influence customer retention. In particular, the
intricacies of inventory management and order fulfillment have escalated as both order and
distribution channels proliferate and customers demand faster and less expensive delivery options.
Issues related to technology, safety, ergonomics and cost pressures help to define how an
enterprise moves and delivers its goods. They also illuminate the importance of hiring and
maintaining a well-trained and stable workforce.
Right hiring boosts order management goals
Hiring in today’s manufacturing environment
On a day-to-day basis, shift managers and supervisors must align their recruiting and hiring efforts
to fill orders more quickly and meet promise dates by positioning the right leaders on the floor
and the right individuals on the line. To find out more about how manufacturers recruit and
hire talent, Randstad recently surveyed approximately 2,800 manufacturing professionals. Their
responses on the following pages reflect both areas of success and opportunities to improve
recruiting and hiring efforts.
2014 Workplace Trends
Best practices in recruiting and hiring
support operational goals by creating a
stable workforce and reducing:
• turnover
• onboarding frequency
• training recurrence
• absenteeism
• injuries
• workers’ compensation
• knowledge drain
Manufacturing and logistics facilities continue to invest in
technology and processes to achieve:
• streamlined multichannel ordering and distribution
• improved order fulfillment efficiency and accuracy
• increased customer satisfaction and retention
• enhanced worker safety and experience
• decreased costs

2. recruiting and hiring
Received a better offer elsewhere (better pay, benefits, etc.)
Received a better offer elsewhere (better pay, benefits, etc.)
To pursue a different career path
More opportunities for career advancement elsewhere
Relocating
Change in family situation
Workload is too heavy
To further their education
More opportunities for career advancement elsewhere
Do not feel supported by management
Workload is too heavy
To pursue a different career path
Poor relationship with supervisor
Relocating
What are the top reasons employees tend to give for leaving?
Compared to last year, does it take more time to find the right talent to fill positions?
59%
61%
30%
30%
14%
13%
13%
10%
46%
26%
22%
21%
17%
16%
When asked about why employees resign, a majority of executives again point to the power of money, with
better offers elsewhere cited as the predominant reason. Next in line are advancement opportunities (overall
responses) and pursuit of a different career (manufacturing and logistics responses), both of which frequently
translate into salary increases—further evidence of how income impacts the employment/retention equation.
A majority of companies say it now takes longer to
find candidates with the right skills, experience
and personal traits to make a good hiring match.
Yes
62%
Yes
59%
Overall responses
Manufacturing and logistics responses
Is your company currently below its target headcount?
Nearly half (48%) of executives in other industries indicate that their organizations are below headcount, but
the figure drops for manufacturing and logistics professionals, 36% of whom say their companies’
headcounts are low.
yes yes
48% 36%
Overall responses
Manufacturing and
logistics responses

3. recruiting and hiring
On average, how long does it take to fill a position?
21%
39%
53%
31%
17%
15%
7%
5%
2%
10%
1 month or less 2–3 months 4–5 months 6 months + Not sure
Many companies require two to three months to hire a
position, but manufacturing and logistics organizations
appear well-equipped to hire at a faster pace, with 39%
filling positions within the one-month timeframe.
Overall responses
Manufacturing and logistics responses
Manufacturing executives report consistently less
utilization than other industries of every recruitment
strategy we surveyed. This outcome may indicate that
manufacturing and logistics organizations focus on
other recruitment tools or may reveal opportunities to
incorporate a different mix of tools to a comprehensive
recruitment plan.
Which of these, if any, has your organization taken to improve recruitment?
Overall responses
Manufacturing and
logistics responses
Using a wider range of recruitment channels (i.e. social
media, etc.) 54% 50%
Developing relationships at local universities and
colleges 37% 19%
Offering higher salaries 27% 17%
Offering more training and development to new hires to
lure potential employees 21% 15%
Offering better benefits 19% 10%
Offering more or a wider range of internships 17% 7%
Other 2% 6%
To locate and recruit the best employees, companies
formulate a range of strategies to make the most of
their recruiting effort. A majority of organizations
try to broaden their reach by using social media
and other recruitment channels.

4. recruiting and hiring
Which methods do you use to recruit talent?
Staffing/recruitingcompany
Jobboards
LinkedIn
Facebook
Twitter
Google+
Noneofthese
67%
65%
47%
15%
7% 6%
9%
66%
50%
30%
11%
4% 4%
15%
Of all companies surveyed, two in three rely on
staffing/recruiting firms to fill their talent needs. Within
social media recruitment tools, LinkedIn is strongly
favored, outpacing Facebook, Twitter and Google+.
Overall responses
Manufacturing and logistics responses
Manufacturing and logistics organizations again report
lower usage of many popular recruitment tools, with
15% reporting no usage. A particular discrepancy is the
frequency with which the manufacturing and logistics
sector utilizes online recruitment tools, particularly job
boards and LinkedIn. Manufacturing and logistics hiring
managers might benefit from assessing if there is a missed
opportunity to recruit target talent by further engaging
the online tools used more often in other industries.
About the Survey: Overall responses represent the findings from a poll conducted by the global research firm Ipsos.
Manufacturing and logistics responses represent the findings of a Randstad online survey and in-person interviews. All sample
surveys and polls may be subject to other sources of error including, but not limited to, coverage error and measurement error.
Some figures have been rounded to the nearest whole number.

5. in summary
The Employee Effect on Order Management and
Delivery Performance
With over one-third of manufacturers reporting they are below headcount and a strong majority
reporting longer hiring times, shift managers are incentivized to optimize recruiting and hiring
processes that create workforce stability and reduce labor expense. Considerations include:
Cost Control
Manufacturers must be flexible to cyclical conditions, changing customer dynamics, governmental
regulations and evolving technology systems, and therefore must carefully balance resources
to meet rising expectations that in turn increase operational costs. For example, a recent supply
chain management study by Peerless Research Group reports that a majority of manufacturers
across all industries report increased costs of transportation (85%), raw materials (77%), labor
(67%) and operational processes (62%).
While manufacturers cannot control external costs, they can—and have great impetus to—
impact labor costs by hiring and training a stable workforce. Advanced fulfillment processes,
such as paperless picking systems and SKU management tools, provide greatest ROI when worker
transition and training is minimized.
Outsourcing
According to the Peerless study, manufacturers indicate they will increasingly outsource particular
functions, with 46 percent saying they will rely on outside vendors for transportation and logistics.
Slightly more than one-third will outsource production and warehousing work.
The complexities of shift labor management are well-suited to outsourced labor solutions, are
often particularly effective at improving attendance, accuracy and engagement of second and
third-shift teams.
Staffing Partners
Systems and solutions that help boost order management and delivery performance while also
reducing labor spend can differentiate an enterprise on many levels. Staffing partners offer the
benefit of a reliable, qualified talent source, enhanced safety, outcomes and reduced employment
management costs. Randstad is ready to share its labor management expertise and talent
resources so your teams can operate at the highest levels and achieve operational success.