Labor Efficiencies: Why Do You Say It Like That’s a Bad Thing?
By Allegiance Staffing
May 3, 2016
Ask any recent business school graduate, and s/he will tell you that labor efficiencies come with a neat formula that subtracts standard hours from actual hours, the result of which is then multiplied by the standard rate. This equation results in the labor efficiency variance. If the variance is not in your business’ favor, you lose money.
Tackling the variance is as simple as partnering with a 25-year thought leader in the staffing industry. Yet some companies are slow to move toward dealing with the problem. Possibly concerned with the negative tone of reports covering the issue, the USA Today talked about squeezing blood out of root vegetables, businesses that are acutely aware of reputation management do not want to be mentioned in the same breath as those dabbling with their efficiency variance.
In fact, tightening your labor efficiencies is a good thing!
• Employ the right workers. Administrative staff members vary in training and career goals from IT staff. Technicians have different skill sets from machine operators. In short, when you tighten your variance, you open up job opportunities for qualified workers.
• Enhance customer service. Your technician with a knack for troubleshooting keeps your equipment running. You fill the order on time. Your customer is happy. Your administrative staff has good math and critical thinking skills. When a customer calls with a billing issue, it only takes one worker to resolve the problem. The customer is happy.
• Expand with ease. Remember the idea of collaborating with a staffing expert? Well, when you get these folks to help you with tightening the variance, your revenue goes up. When that happens, you might think about expanding. Guess who is available to help you with quick and efficient hiring of vetted professionals for the positions you need to fill?
Contact us today to discover more reasons why labor efficiencies are not just crucial for your company but important for your employees, too. Or, Join Our Talent Network today to become a part of one of the most successful staffing companies in the US.