How to reduce your Labour Costs in 2021

reduce your Labour Costs

If labour costs can account for as much as 70% of total business costs, letting overpayment, human errors or general mistakes happen can cost your business profoundly.

It might seem like a little bit extra here and there, but depending on the number of workers and pay rates, if you add it all up you could be looking at a new member of staff or further financial security for your company.

Remember it’s not just hours worked that cost you, but additional expenses such as unapproved overtime, absenteeism, long breaks and more.

How can WFM by Chronologic help you reduce labour costs?

WFM can uncover where your hidden labour costs are, allowing you to improve processes and cut £££ off your payroll costs annually.

The first step to help you do this to automate employee Time & Attendance, giving you complete transparency and accuracy of payroll costs.

The next is to add rules to protect from time theft

Did you know employees are routinely overpaid by up to 30 minutes per day? This cost soon adds up.

Applying roundings and grace to your workforce rules can stop employees from being paid for the extra time they take to get to work and even penalise late comers by redacting pay.

According to MEM Magazine, building pay rules and policies into a workforce management system has been shown to reduce payroll costs by 2.5% – 5%.

Then we need to discourage absenteeism

Yes, people get sick and we’re in no way suggesting that you force your employees to not take holiday, or work while ill.

What we’re talking about is the absenteeism that involves more people taking the Monday off after a big football game is on. Suspicious absenteeism.

Explaining the cost of this type of absenteeism not just on the company but on the morale of those left to cover can help. On top of this introducing a mandatory doctor’s sick note before returning to work for ‘one off’ days, can stop that urge to pull a ‘sickie’.

Finally, you need to standardise employee scheduling

Much like absenteeism, people are people and holidays or sick days will happen throughout the year. What you can improve on however is ensuring that scheduled work isn’t a nasty surprise for your workers, meaning they are more productive while at work.

Using a digital schedule template can enable you to truly find the schedule that ‘works’ for all your staff, and on those rare days where you’re caught short-handed, you can simply check the online calendar to find an available replacement ASAP.

Schedules can be published months in advance, so your employees can make solid social plans knowing it won’t affect you or request time off with plenty of time to find a suitable replacement.

To find out more about how WFM by Chronologic can save you money on labour costs get in touch today or request a Demo.