The only way for a business—large or small—to operate efficiently is by ensuring it has the right people with the right skills working on the right task at the right time. However, very few small business owners possess the skills and experience to recruit, hire, and train qualified employees, and to assign them to jobs that match their abilities—all while simultaneously meeting all the needs of their business.
One of the first benefits of labor management systems is to close this gap and free up more time on your schedule. But it doesn’t stop there. When a labor management system is in sync with the way workers work and managers manage, the money saved goes right to the business’s bottom line.
Benefit #1: Simplified Employee Scheduling and Time Tracking
- Flexible scheduling and time recording allow workers to swap shifts and access their schedules from smartphones and other mobile devices. Managers can view at a glance the times when demand will be highest and lowest so they can adjust work schedules accordingly. They’re also better able to manage employees’ paid time off, approve shift trades, and keep track of employee absences.
Benefit #2: Integration With Payroll and Other Accounting Systems
- The accuracy of employee compensation is improved by connecting time clocks and other attendance trackers directly to payroll systems. This reduces the number of accounting errors and the need to issue corrected paychecks. Labor management systems also make tax records, inventory management, and other accounting functions more accurate.
Benefit #3: Pay-as-you-go Pricing Via Saas
- More and more business processes are migrating to the Software-as-a-Service model that lets the company pay for only the features and functions their operation requires. Cloud-based labor management systems allow employers to access their data and manage their business anywhere. They’re also easy to customize to meet the business’s specific needs, and their dashboard interfaces allow both managers and employees to get a complete and clear view of the information they’re looking for.
Benefit #4: Easily Manage Employees Who Alternate Job Functions
- In many industries, employees wear many hats, sometimes in the course of a single workday. Labor management systems allow businesses to designate the hours in a shift that an employee worked in a management capacity, in a sales capacity, and in a cashier capacity, for example. Permissions and pay rates can be associated with specific roles so that time records are adjusted automatically and employees are only able to access only the functions their current role requires.
Benefit #5: Auto-generate Detailed Reports on Employee Performance
- Having all employee data in an integrated management system facilitates the creation of reports comparing the productivity and efficiency of individual employees. For example, sales tracking allows companies to compare wages and other labor costs at various hours of the day with the amount of revenue being generated at that time. Managers can also view reports that show the sales revenue generated by each employee per transaction.
The Features to Look for in a Labor Management System
It’s easy to see why you might want a little digital help, but how can you tell which system is the best for your business? These are among the most valuable features of labor management systems:
- The ability to scale up or down as work levels and other factors change.
- Tracking, qualifying, and rating applicants for open jobs.
- Features that allow employees to use the systems effectively on their own (self-service).
- The ability to access the system’s features via the cloud to support workers wherever they are and whenever they need it.
- Generation of analytical reports on worker productivity and the effectiveness of labor processes.
- Top-notch security to protect sensitive employee data and business intelligence.
- Support for contractors, freelancers, and other third parties via integration with the company’s finance, accounting, and other operations.
- Support for mobile workers and employees who work from home.
- Links to employee onboarding, payroll, and other human resource functions.
Labor Management Systems Benefit Your Entire Business
With the right labor management system in place, you’ll realize benefits that go far beyond scheduling and time-tracking, and help tie together all of your company’s accounting and business processes.
But before you can realize the benefits of a labor management system, you must have a clear understanding of the employee-management features and functions that are most important to your operational style. This helps you avoid paying for features you don’t need or implementing an overly complicated system that employees and managers struggle to use.
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