Reduce Labor Cost
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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 define and manage a more effective alignment of the staff with the business demand. In each industry, the means to define the needs of employees vary. In retail and quick-service restaurants, the POS systems often provide the demand baseline for when to schedule personnel. In healthcare and hospitality, it is driven by census – how many patients or guests does an organization administer have and when do they arrive and stay for treatment.
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 a major issue due to understaffing and shortage of personnel.
With the EmLogis solution, many facilities often increase the number of shift structures from fixed 8- or 10-hour shifts to more variable flexible shifts such as 8-, 10-, or 12-hour or even 7-1.2 etc. The addition of these variable shifts facilitates the most cost effective and productive 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, organizations 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.
- • Moving employees to a preference-based scheduling which increases employee retention
EmLogis continuously delivers hard-dollar, tangible values.
With WorkForce Modeling, powered by Adaptive Programming organizations can achieve 5 to 20% Labor Cost Savings by properly aligning the skills of your workforce with the needs of your clients.