Output Over Hours Quantifies Why Operations Leaders Are Overpaying for Temp Labor and What They Can Do About It
DALLAS, TX — Paul Baker, CFO and co-owner of Productiv, has published Output Over Hours: Why Paying for Time Creates Waste and Paying for Output Creates Flow, a data-driven guide for manufacturing and fulfillment leaders who suspect their labor model is costing more than it appears.
The book's central argument is one Productiv has proven across real operations: the hourly temp staffing model is a cost-plus arrangement that misaligns every incentive in the supply chain. Agencies earn more when more hours are used. Clients absorb all the risk. And the true cost of temp labor — accounting for downtime, rework, turnover, supervision, and the learning curve — can run 50–100% above the rate on the invoice.
Baker draws on data from more than 1,000 kitting and assembly projects to walk operations leaders through a better approach: measuring cost per unit instead of manhours, staffing lines by operations count rather than headcount estimates, implementing single piece flow on conveyors, and building gainsharing programs that tie workforce compensation to actual output.
The book arrives as Productiv's Embedded Operations model has gained traction among manufacturers and brand operators looking for an alternative to the staffing agency cycle. Rather than supplying temporary labor, Productiv deploys dedicated W2 teams inside client facilities to own throughput, quality, and SLAs end-to-end — with unit-based pricing that aligns Productiv's incentive directly to operational efficiency. Across nine active embedded sites in Virginia, North Carolina, Texas, and Utah, the model has delivered an average 23% reduction in cost per unit and 41% increase in throughput within 18 months. Output Over Hours is the operational case study behind that model in book form.
"Most companies are negotiating the staffing markup down a few percentage points while completely ignoring that the markup is attached to a broken pricing structure," Baker writes. "We've been haggling over the price of the wrong thing."
Operations and supply chain leaders can learn more about Productiv's Embedded Operations model at getproductiv.com/embedded-operations.
Output Over Hours is available now for download or purchase on Amazon.
ABOUT PRODUCTIV: Productiv is the high-performance 3PL built for enterprises and fast-growing brands that can't afford operational bottlenecks. With 20 years of solved problems and processes that compound through continuous improvement across hundreds of millions of orders, Productiv drives speed, compliance, and consistency for omnichannel fulfillment and kitting under one roof.
For brands battling daily to hit delivery windows, maintain accuracy, and keep visibility across inventory — Productiv brings the operational depth, technology infrastructure, and expertise to hit your commitments and keep pace with growth. For enterprise brands seeking a more responsive, tech-capable partner, Productiv offers the execution rigor you expect with the flexibility, direct leadership access, and modern systems you've been missing.
Every Productiv warehouse runs a focused number of client programs — with direct access to expert leadership and operators who know your business, not a shared service desk or a rotating cast of account managers. You don't just get a warehouse — you get two decades of solved problems and the team that solved them, operating as a true extension of your operation. Our infrastructure is built for data-driven teams — cloud-based WMS, client portals, shopping cart integrations, in-house EDI, and API-accessible data. From multi-component kitting builds and retail-compliant distribution to high-SLA DTC fulfillment, Amazon FBA prep, and complex production workflows — Productiv is the 3PL that pulls you forward.
For more information, visit: getproductiv.com