Managing labor expenses efficiently is becoming crucial for enterprises to stay profitable. Some
of the challenges include the following:
- Labor costs are tied directly to the managers' ability to ensure that
staffing resources flex with fluctuating demands.
- Lack of timely
data reflecting actual labor expense
- Lack of management buy-in
- Overtime
and agency expenses frequently over budget.
- Managers with varying
skills at budget management and staffing decisions
The diagram below depicts the instruments available in OWM for consistently achieving near-optimal
staffing levels in the face of unforeseen circumstances by aligning information
with frontline decisions.
OWM reduces operational cost through the following means:
- Reduce overtime, agency and staffing expenses
- Reduce payroll
error rate and abuse
- Reduce payroll inflation
- Reduce
unauthorized leaves
- Reduce paper and printing costs
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