Reduce Labor Cost

Reduce Labor Cost

Labor is the main variable cost item for all the markets served by EmLogis.

The need to remain competitive is what drives companies to minimize costs. The most apparent benefit of the EmLogis solution is the ability to eliminate waste in human resource scheduling. The most successful approach to adjusting labor costs is to look at a more effective alignment of the staff with the market need. In each industry, the means to define the needs of employees vary. In retail and quick-service restaurants, the POS systems often provide the baseline for when to schedule personnel. In healthcare and hospitality, it is driven by a client census – how many patients or guests do you have and when do you have them.

In all markets, the key is to ensure that the right people are available when the workload requires, but only when the workload requires. Most facilities use a reactive approach to manage the excess labor costs. As the day goes on, they reduce their staff as the need drops off. This approach saves some labor costs, but usually the majority of those costs have been lost earlier in the day or week. Further, it lowers employee morale as it disrupts their personal life.

Overtime avoidance is often seen as the simplest way to cut labor costs. As a result, many facilities use a zero overtime policy. The impact is often poor customer service ratings due to under staffing or higher cost personnel doing the work of lower cost staff. For healthcare, overtime is the major issue due to understaffing and shortage of personnel.

With the EmLogis solution, our customers often increase the number of shift structures from fixed 8-, 10-, or 12-hour shifts to more variable shifts (6, 6 ½, 7, 7 ½, etc.) to meet the known requirements. The addition of these variable shifts facilitates the precise alignment of customer needs with the skills available.

In addition, this proven solution can combine increased shift complexity with an increase of the number of people scheduled at one time. By moving beyond 10 to 20 employees on a team to entire facilities and multiple facilities with hundreds of employees, a much greater cost-effective solution is delivered.

With the EmLogis solution, our customers have realized significant value with the following solutions:

  • The proactive shifting of personnel from low demand to peak business hours.
  • Reducing overtime by more efficiently managing costs in advance.
  • Saving money by utilizing the right skill and pay rate for the right job.

EmLogis continuously delivers hard-dollar, tangible values.

Now companies can achieve 5 to 20% Labor Cost Savings by properly aligning the skills of your workforce with the needs of your clients.

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