Tuesday, September 26

How to Lower Costs With Labor Management Software

When it comes to owning or managing your own business – whether you have 10 or 10,000 employees – you likely are always looking for ways to cut costs and make work more efficient for all employees.

A labor management software is most likely not on your top 100 ways to save money for your company, but it should be. In fact, only 20% of distribution centers currently use a labor-management system. After gaining an understanding of how you and your company can benefit from labor management software, however, you will surely understand why you should adopt your own today.

What is Labor Management Software?

The purpose of labor-management software is to make your job easier by providing detailed labor tracking, productivity reporting, and planning capabilities.

While different software may offer different features such as mobile application or schedule, they all are designed to measure your company’s performance according to engineered standards and to ensure data accuracies, which are a problem for nearly 50% of all small and medium-sized businesses, according to the Human Capital Leadership Institute. With a little research, you will most likely be able to get more out of your labor management software, such as scheduling or payroll.

Why Is It Good for Business?

With the rate of labor increasing, now is a better time than ever to invest in your own labor management software. As of 2020, labor oftentimes makes up more than 20% of the expenses of an organization; additionally, companies that use a labor-management system report gains in an overall distribution center productivity of 10 to 25%.

If that does not convince you, it may be interesting to hear that reports have found that, on average, a 5,000-headcount business with a $300 million payroll could potentially save $6 million per year and reduce labor costs by 2% with better workforce management. While the upfront costs may be high, the overall improvement to your company requires this key step of making labor-management easier for both you and your employees.

Therefore, introducing a labor-management software to your work environment will greatly improve how smoothly your business runs.

Looking Ahead

With its increased capacity, labor management software allows you to better plan for the future. Big data analysis is vital to ensure a consistently improving workplace; this process becomes much simpler with the user-friendly interface of labor management software.

For example, some software systems keep track of the skills of each employee and can help plan a work schedule that will help their projects be performed at peak efficiency. It is also easier to spot places where additional training may be necessary for the institution as a whole, for the new hires, or maybe for the folks who have been there since day one.

If you have decided that this software is the right decision for you and your company, you can start searching for the labor-management software that best suits your needs. Soon, you will be on your journey to becoming a better-functioning, higher-producing business.

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