Here are the insights you aren’t looking at - but should be.
Gone are the days when a successful business ran solely on the basis of having the best products or services - long gone in fact. Today, more than ever, success depends on the people you have in your team, just how motivated those people are, and how efficiently they perform.
Workforce management (WFM) metrics are the key to unlocking this potential. And the truth is, many businesses fail to properly utilise or understand these metrics, leading to an array of missed opportunities.
In this article we’re shining a light on the hard-hitting truths about workforce management metrics, and how mastering them could be a game changer for your business.
Labour costs - more than just the wages
In today’s environment labour costs represent a significant chunk (up to 70%) of operational expenses. These costs cut into your profitability and long-term viability.
It’s about more than just wages paid though. To effectively manage your workforce and keep your labour costs in check you also need to monitor:
Staff timekeeping
Overtime costs
Company benefit expenses
Employee absenteeism
Contact Harald Chief Technology Officer, Barton Ip says regularly analysing all labour costs is critical to identifying trends and anomalies.
“For most businesses, the biggest cost is labour. In fact, it makes up some 70% of a business’s spending. That’s a big slice of the profits,” he said.
“For most businesses, the biggest cost is labour. In fact, it makes up some 70% of a business’s spending. That’s a big slice of the profits” Barton said
“If you’re not monitoring all key labour metrics and taking action on the insights, you may as well throw money down the drain.”
“For instance, frequent overtime can be an indicator of understaffing or inefficient scheduling. There are also instances where teams are clocking in, but not getting the job done. This is all extremely important data that every business needs to be across,” he said.
2. Employee productivity - does the output match performance?
In business, time and effort should equal results. When that isn’t happening, you have a problem.
Low productivity is a red flag for lack of motivation, insufficient training, low-level recruitment or poor management.
Whatever the case is, performance metrics are essential when it comes to monitoring output per employee or per hour worked.
With performance insights at your fingertips you can quickly identify those who are outperforming and those who may be underperforming and address issues promptly.
3. Attendance and absenteeism
Frequent absenteeism or tardiness can majorly disrupt operations and put pressure on your entire team.
That’s why it’s essential to have a handle on not just the frequency of absences, but also the who, when, and where. Then look at how those absences are impacting the rest of the team and their productivity.
Employee monitoring tools will help you to fully understand how absenteeism is showing up in your business. With the right tech, you can quickly identify who is working, who is not, patterns in movement, or lack of participation.
All of these metrics empower you to make more informed decisions around rostering, scheduling and employee management.
4. Compliance
Adhering to labour laws and workforce regulations is a non-negotiable for any business.
Non-compliance can lead to heavy fines, safety issues, reputation damage, and an uncomfortable work environment for the entire team.
Not to mention, compliance issues can cause major delays - which cost money and disruptions to production.
One of the simplest ways to tackle compliance is through staff monitoring.
“If you’re not regularly reviewing and auditing compliance metrics such as working hours, overtime, team safety and risk management - you are putting your organisation at risk,” Barton said.
“It’s a risk that’s not necessary because there’s a really easy fix for employee monitoring and staff compliance.
“With Find Harry’s Workforce Management solution you can discreetly and effortlessly ensure the right people are in the right place at the right time. Through data generated from movement, you can easily identify issues and ensure proper duty of care,” he said.
Workforce management solutions - accessing metrics that matter
With access to key metrics that focus on your people and productivity levels, you can gain actionable insights that drive growth across all areas of operations.
Don’t let your business fall behind. It’s time to harness the power of workforce management metrics to transform your organisation into a strategic asset.
Want to learn more about employee monitoring and workforce management systems for your team?
Get in touch with Contact Harald today.
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