Nearly every well-run business looks to curb costs and increase efficiency and productivity. Typically, businesses resort to staff or pay cuts.
But, what if we told you that there was another way?
What if we tell you that you can control the cost of labor without controlling your staff?
Well, here are 6 rules you should follow to do just that:
#1. Build your schedules around great forecasting
Forecasting is an intricate science, as it involves a ton of data analytics and metrics on the basis of which predictions are made. By building accurate forecasts and scheduling daily tasks accordingly, costs will decrease.
#2. Use an optimization tool
Automation is the most efficient way to go about most processes, as it not only helps save time for both managers and employees, but also makes organizations more effective.
#3. Understand your business
One common cause for increased costs is an incorrect understanding of the goals and objectives of the company. The better you understand your business, the better your scheduling will be and the lower your labor costs will be.
#4. Know what to measure
Data analytics is essential. It isn’t about how much data you analyze, but about what kind of data you analyze. Choosing the right metric to monitor and make your decisions upon can have a huge impact on your labor costs.
#5. Have the right people, in the right place, at the right time
Staffing is often defined as the process of having the right person in the right place at the right time. If any part of these criteria is not fulfilled, it leads to increased costs. Making sure you have enough staff working at any one time to meet the demands of your customers is essential for ensuring your business is successful and makes a profit.
#6. Engage and empower your employees
You can control all of the previous parameters, but if you cannot keep your employees motivated it is all for naught. The most important task you have is to keep your employees engaged, empowered and motivated. Create a strong work culture and cordial relationships with everyone on your team.
The cost of labor is steep in many cases but there are ways you can cut costs without affecting the moral and productivity of your staff.
If you want to know more about the best ways to cut your labor costs without affecting your staff, click the link below for more information.