The Secret Costs of Labor

Areas of waste in workforce management are not always obvious.

Clock with Dollar Symbol

Unanticipated labor costs can surprise managers of companies large or small. We think of these as the secret costs of labor.

Consider an employee who clocks in early or clocks out late or one who gets into an unintentional overtime situation. Multiply those unanticipated costs by several employees and let the problem drag on for months, and you have a significant payroll leak.

All kinds of small inefficiencies can cost employers money every month: employees calling in to check their schedules or making shift/cover requests while on the clock, managers contacting numerous employees to cover a shift - and playing phone tag or returning messages after the shift is filled - and employees missing critical information, such as meeting times or special events. Lost time adds up.

We also know that new costs can arise at any time. Consider the Affordable Care Act. Its requirement for health insurance coverage will likely make careful tracking of employee hours a new priority for some companies.

The takeaway? Companies that don't monitor their labor expenses in real time stand to lose considerable money on labor. That's why flexible, constantly evolving products for tracking time and attendance as well employee scheduling, budgeting, and communication are vital for companies of every size.

Orbital Shift responds to each of the "secret costs" mentioned above. Simple settings in the time clock system control how early an employee is allowed to clock in. Alerts prompt managers to respond to potential overtime situations as they develop rather than after the fact. Communication tools within our scheduling functionality, such as employee messaging and schedule change notifications, save time and eliminate the inefficiencies that add up to larger-than-expected costs. Our products are constantly evolving to meet new workforce challenges with the result of giving companies an excellent return on investment.

Image courtesy of: cooldesigns

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