Labour costs are without question a very large, variable operational expense.

With the implementation of a fully automated workforce management solution operational efficiencies and labour cost savings will significantly increase.

We explore the top 5 areas a WFM solution can reduce total labour costs:

1.Reduce administration errors
Human resources are vital to the efficiency and productivity of any organization. However, due to the wide range of crucial responsibilities, errors are inevitable which can affect the bottom line. The automation of administrative processes reduces costs, and frees both managers and employees to perform on duties that will increase productivity.

2. Eliminate expensive mistakes

Overpayment is the number one leading human error an organization can make. With a time and attendance system in place, data can be imported directly into the system and called upon when needed. Workforce management ensures that data is always accurate and the bottom line is not negatively affected.

3. Create significant short and long-term ROI

For some industries, labour costs can account for 50 percent or more of total operation budgets. For example, the increasing demand and instability of the long-term care industry has contributed to excessive labour costs.

With an effective workforce management solution in place – staff reductions, hiring freezes, schedules, budgeting and forecasts can all be monitored to meet operational demands and boost short and long term ROI. In fact, businesses can see savings of up to 5% in operating costs by automating processes.

4. Increase employee productivity
With a workforce management solution in place you are able to reduce the duplication of effort and human error and increase management and employee productivity. Employees are able to utilize web-based self service tools, providing real-time viewing of information. Ultimately this improved communication and accessibly improves attendance, time management and absence requests.

5. Maximize yield and operate at full efficiency

One of the biggest challenges facing many industry managers is the need to increase production while ensuring that operational costs remain in check. A workforce management solution equips management with real-time information to monitor staffing, analyze budget performance and control labor costs, all while continuing to focus on increasing production and profit margins.