Struggling with High Absenteeism in Contract Workers: How Can We Ensure Reliable Manpower?

Dear Seniors,

I am working as Head of HR in a manufacturing unit. We have two contractors where absenteeism among contract workers is very high. Despite our daily communication with the contractors to address absenteeism rates, they assure us of improvement, only to face the same situation the next day. In an attempt to mitigate the issue, they provide replacements, but this constant turnover leads to a decline in work output. We invest time and money in training these new workers, yet many of them do not show up the following day, resulting in daily manpower shortages and a consistent decrease in output. Although we have the option to charge the contractor for the losses incurred, this is not an ideal solution as it does not address the root cause of the problem, which is the shortage of reliable workers.

I seek your advice on how to effectively manage this ongoing challenge. In a manufacturing setting, where production takes precedence over HR issues, finding a solution to this problem is crucial for maintaining operational efficiency.

Regards,
P.K. Mishra

Hi,

It is very important to assess the quality and performance history of any contractors before finalizing them for your organization. Anyhow, as a contractor, he has to abide by the rules and regulations of the contract agreement. Please ensure in writing that the contractor has to supply manpower on a regular basis. He must also ensure that he will not change the people until the completion of the allotted work. In case of a violation of the contract, you may caution him that his contract will be terminated. This approach was successful in my previous manufacturing company.

Jana
HR Faculty

Hi Mr. Mishra,

Can we do the following:

1. Proper documentation of manpower engagement.
2. Impose a significant penalty on contractors linked to the absence of labor or loss of production.
3. Search for new contractors/leaders from the existing labor force to manage big assignments responsibly. They can also recruit additional labor as needed. This will serve as a warning to the contractor that failure to provide the right manpower may result in workforce disruption and the termination of their role.
4. If labor requirements are consistent, consider planning for on-payroll labor.

Please provide your comments on the feasibility of these suggestions.

Hello,

Thank you for your valuable advice. In fact, we have already taken the same steps. However, the contractor is very influential and is in good standing with the company's management. He also supports us. Therefore, we can't take this final step quickly because it will not be supported by top management. Instead, we have given him warnings and applied pressure in writing every time. Unfortunately, this approach is not yielding results.

P.K. Mishra

Dear Mr. Anurag,

Thank you for your advice and suggestions. I have already taken all three steps suggested by you. However, we are unable to proceed with Step No. 4 as our management has not allowed it. They are not willing to do so in order to reduce their liabilities.

P.K. Mishra