Are You Managing Your Manufacturing Contractors Effectively?

Staff
By Staff
8 Min Read

Managing manufacturing contractors can be difficult given the size and complexity of the facility. Without a standard process, it’s almost impossible to ensure contractor safety and keep projects on track.

Is your team effectively managing these areas of contractor compliance, and how could you improve both working conditions and performance at the same time?

Onboarding and Training

When it comes to contractor efficiency, the onboarding process is critical. The less issues you can have up front, the faster that contractors can get to work and complete the project you hired them to do.

Does your onboarding process ever cause project delays or setbacks? Do you need a bunch of third-party services or tools to manage onboarding?

You should be able to prove that contractors meet training requirements at any point in time. This means having organized and accurate training records that are easy to access. Most companies use a learning management system (LMS) to track and document training. An LMS is great if you have a lot of workers and limited resources to maintain records manually.

But even if you don’t have a software system, it’s critical to document the following information on your contractors:

  • Basic details (name, contact information, supervisor, etc.)
  • Training records
  • Licenses, permits, and certifications

If you’re sending manufacturing contractors to a safety council or using a third-party verification service, there’s going to be an unavoidable delay. The key is to close the gap between when training occurs and when you document it. Once you have the information you need to confirm compliance, it should go into your compliance logs immediately. Overall, it’s easier to onboard and manage contractors when you follow the same steps each time.

Health and Safety Compliance

One of the biggest risks of hiring manufacturing contractors is making sure they’re safe. You need to ensure the safety of all the workers at your facility—not just the ones that you hire in-house.

Have any of your contractors been involved in a recent safety incident? How confident are you that the contractors onsite are compliant with regulatory safety training standards?

One sign that you’re not effectively managing contractor safety is that you don’t speak to the foreman or team leader about safety. There should be a direct line of communication between the contractor and site EHS department to ensure the safety of the project.

Take a proactive approach by:

  • Doing a daily safety walkthrough of the contractors’ worksite
  • Reviewing a contractor’s safety plan before you hire them
  • Making sure that all workers have the proper PPE on for each shift
  • Including contractors in site safety initiatives
  • Having a way for contract workers to report workplace safety hazards and issues
  • Tracking expiration dates for contractor permits, licenses, etc.

ID Verification

Having a contractor ID verification process in place is critical for lowering operational risks. This is especially important if you have a large manufacturing facility with lots of workers coming in and out.

How do you currently verify that the personnel onsite are supposed to be there? How easily can you confirm which contractors are onsite any given day of the week?

If you work with a small number of contractors, then you might not need a digital verification system in place. Simply reviewing documentation at your site’s security entrance and issuing a visitor’s pass could be an option.

On the other hand, a manual identification process might not be feasible if you have a big contractor workforce or complex compliance requirements to verify. In that case, you might want to invest in a system for badging in and out. That way, you can keep a detailed log of who’s onsite and eliminate risks of unverified personnel getting inside the facility.

Data Management

Keeping updated and accurate contractor records is essential for compliance and overall efficiency. The better your data, the easier it is to keep track of all your third-party workers.

How do you collect contractor documents like permits, licenses, and training records? Are you confident that your records are up to date and accurate? Is your documentation process standardized, or could it use more organization?

Here are some signs that you need to improve your team’s contractor data management:

  • When you need to find a specific contractor document, you dig through paper files, email attachments, or computer files to find it.
  • Training records have missing information and are not up to date.
  • You don’t know which documents are expired or about to expire.
  • Contractor files don’t have standard syntax, making it hard to find what you’re looking for.

The key to better data management is standardization. Using the same process for naming, storing, and managing files means that you can easily see what’s missing for each contractor. Create a specific process for collecting documentation so that your team has all the data they need for regulatory compliance and internal contractor audits.

Relationship Building

An easy area of contractor management to overlook is the relationship between you (the hiring company) and your manufacturing contractors. Part of building a strong safety culture is including all workers, regardless of their status, in your EHS programs and initiatives.

Do you treat contractors like your other employees? Do you ask contractors for feedback on your site’s processes and procedures? Do you take steps to keep contract workers engaged while they’re working for you?

When you manage contractors efficiently, it allows you to build stronger relationships. Since you’re not constantly checking compliance or fixing problems, you can treat them as partners in the overall success of your business.

If possible, include contractors in your team building and engagement initiatives. Invite them to standup meetings, show appreciation for them alongside full-time employees, and provide them with the same resources. Taking this approach opens a better line of communication with contractors, so you can find even more ways to improve their experience.

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