Take control over your largest business expense!
Last month, the AZ Central reported that the SPD exceeded their overtime budget for employees by nearly $1 million. A Republic analysis of overtime data, obtained through a public-records request, showed that of the 822 employees who received overtime in the prior fiscal year, the average annual payout was $7,880. Greater than $20,000 in overtime was received by 58 employees each.
Lack of scheduling control and the ability to stay within budget, has been an unresolved issue in organizations and businesses for some time now. 80% of organizations exceed their overtime budget, according to a past report by HR.com. 80%! That is insane, and apparently hasn't changed in a decade, given the recent issue in Arizona.
What an unacceptable use of money, when there are simple solutions to prevent this waste. Most effective solutions that prevent overtime and control labor expenses are counterproductive in the sense that they themselves are expensive. Most, yes - but not all.
A scheduling solution that is integrated with budget features to help control labor is essential for today's businesses, if they wish to remain competitive within their market space. The ability to report and review labor related activities, in real-time, allows for educated decision making which ultimately leads to improving efficiency and cutting costs. This is especially crucial for organizations who run lean and are applying a strategy of operational excellence.
At a bare bones minimum, labor costs are over a quarter of all expenses. Think of the massive opportunity you are opening up to your competitors if they have this in control and you do not.
A great way to take control is to utilize the budgeting features within Orbital Shift's online schedule and time clock. Here you can view and compare labor expenses and hours allocated by employee, position, or department in real time. The budget maker, overtime calculator, and labor forecasting methods are built right into the employee scheduling application, and easily accessible from anywhere on the internet. Also, overtime hours can be quickly identified so management can make changes to avoid paying the increased rate, before the event happens.
Empowering managers to evaluate the impact of various staffing scenarios and make cost saving adjustments on the spot is essential to achieve bottom line profitability. Orbital Shift's online system can do just that.