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nGROUP Performance Blog

Bob Duron

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Why Is Cost Per Unit Better Than Traditional Hourly Labor

Posted by Bob Duron on Feb 19, 2019 10:51:00 AM

In the right environment a Cost Per Unit (CPU) model is far superior to a traditional hourly staffing model. In a CPU the provider shares in risks and rewards, and there is an economic incentive to drive performance in a way that aligns with the client. In an hourly model, it’s the opposite. The provider is paid regardless of the outcome or performance and the client bears many of the risks associated with managing the workforce.

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Topics: nGROUP, performance partners, Outsourcing, reduce labor costs, Labor Cost Solution, Warehouse Technology, Operational Support, Great Labor Management, Reduce Cost Per Unit, Cost Per Unit