Our Business Development team will help you set Your Labor Pool target depending on your goals and employee headcount. In order to do so, the team will need the following:
- The number of Full Time Employees on your shop floor. HR/Admin/Finance, etc. should be excluded from this count
- How many workers you need on your busiest days, or Maximum Headcount needed
- The number of weeks allotted to build Your Labor Pool (also called the Ramp Length) to determine how many Operators you should bring in on a weekly basis to achieve YLP goal.
Formula for YLP Target
Once the Business Development team has the above information, they can calculate Your Labor Pool target by using the following equation:
(Max Headcount Needed - Min Headcount Needed) x 3 = YLP Target
Note: We calculate based on a multiple of 3 because we advise businesses to triple the workers they typically need to meet demand variation.
Example YLP Target Calculation
Imagine the following scenario:
- A company has 50 Full Time Employees
- The company needs 60 Full Time Employees on it's busiest day
How to calculate the YLP Target:
(Max Headcount Needed (60) - Min Headcount Needed (50)) x 3 = 30
Why Your Labor Pool is Created on a Multiple of 3
Your Favorite Operators Aren't Always Available
Operators have their own schedules which means they may not always be available when you need them. Having a larger Labor Pool allows you to get the help you need when you need it despite these factors.
Having a Large Labor Pool Helps Your Respond to Demand
Demand is unpredictable. When demand goes beyond even the highest of your projections, Your Labor Pool will help you respond quickly and efficiently.
Your Labor Pool Can Alleviate Gaps from Turnover
Bigger Labor Pools help alleviate attrition, or employee turnover. We understand that full-time employee headcount does not always remain constant. When turnover hits, you can utilize the extra capacity you gained through Your Labor Pool to keep your operations running smoothly until you can return to your minimum headcount.
How to Calculate the % Flexible Labor
% Flexible Labor is calculated through the following formula:
((Max Headcount Needed - Min Headcount Needed) / Min Headcount Needed) x 100 = FL%
Note: % Flexible Labor is defined as the maximum percentage of Veryable workers you will need in your facility