Smaller companies are feeling the squeeze of budget cuts, reduced demand, and tighter credit. It has never been more important to do more with less.
Since labor is the largest controllable expense, integrating and automating management, payroll, and HR is a place to start. As CEO of a company that provides workforce management software, I’ve seen three areas where this type of software can deliver rapid cost savings:
Reduced payroll errors and overtime. When done manually, there are many potential sources of errors—from transcription errors in keying in time worked to inconsistent pay policy interpretation and rounding hours on timecards. These can amount to 3% or more of your payroll costs!
Reduced absenteeism. Absences can drain productivity and add costs. An automated system allows you to identify trends and abuses and quickly fill open shifts with the most appropriate workers.
Reduced administrative burdens. An automated system also lets managers focus on the most profitable activities rather than on paperwork to track employee time, absences, or schedules.
Getting a firm grasp on these issues can have a big effect on your bottom line. One customer with 130 employees saved $130,000 by automating a paper-based time system that eliminated "hour creep" and cut overtime by 60%.
When times are tight, getting a handle on these three areas can help your business get through the difficult stretch. As the economy inevitably rebounds, you will be positioned for growth.
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