One of the most significant costs for any organisation, regardless of industry, is its workforce; making it crucial for businesses to set in place efficient workforce management processes and focus on optimising productivity to control expenses.
Workforce management software provides businesses with a strategic tool to achieve these objectives, offering several benefits that directly contribute to reducing labour costs. In this blog, we'll explore 11 ways software like HR Duo helps businesses streamline their daily operations, enhance the production line, and boost the productivity of their employees to ultimately lower labour costs.
1. Enhanced Time Tracking
Manual time tracking is becoming a thing of the past, due to its error-prone processes and susceptibility to "time theft" (e.g. arriving late, leaving early or taking longer breaks). According to a survey by the Chartered Institute of Personnel and Development (CIPD), 39% of UK employees admitted to "time theft" behaviours, finding that time theft costs UK businesses an estimated £45 billion annually in lost productivity.
Workforce management software provides modern and robust time-tracking functionalities, allowing businesses to monitor employee hours more accurately. By automating time-tracking and eliminating manual errors, organisations can ensure payroll accuracy and prevent overpayments, thus reducing labour costs.
Advanced features such as clock-in/out functionality and geofencing technology found within HR Duo go above and beyond enhancing accuracy and accountability, eliminating manual tracking methods, and helping businesses save time and resources.
2. Efficient Scheduling
Inefficient shift scheduling leads to overstaffing during slow periods or understaffing during peak times, both impacting your bottom line. A study conducted by the Workforce Institute Europe found that businesses in the UK and Ireland lose an average of 7% of their annual revenue due to inefficient staff scheduling practices.
Workforce management software enables businesses to create optimised employee schedules based on demand forecasting, skill requirements, and labour regulations. Put simply, by aligning staffing levels with workload fluctuations, organisations can minimise unnecessary labour expenses associated with overstaffing or understaffing.
HR Duo's digital rotas and shift scheduling management features are designed to ensure you have the right people, in the right place, at the right time.
3. Streamlined Attendance Management
Unplanned absences disrupt operations and cost businesses. The UK's National Office of Statistics reported that absenteeism costs UK businesses an average of £600 per employee per year.
Automated attendance tracking within workforce management software simplifies the process of monitoring employee attendance and addressing attendance issues promptly. By identifying patterns of absenteeism and implementing corrective measures, businesses can mitigate the financial impact of absenteeism on labour costs.
HR Duo's attendance management features help you identify patterns and address absenteeism proactively, minimising its financial impact. You can also implement features like automated notifications to prompt employees about upcoming shifts and better enforce attendance policies, further reducing absenteeism.
4. Optimal Resource Allocation
Businesses rely on accurate insights into employee availability, skills, and performance to make informed decisions regarding resource allocation. By assigning tasks and projects to the most suitable employees, organisations can maximise productivity and minimise labour expenses associated with inefficiencies.
Leading professional services firm Deloitte found that businesses in the UK and Ireland waste an average of 15% of their labour budget due to inefficient resource allocation. By utilising software like HR Duo to match employee skills and availability with task requirements, businesses can reduce wasted labour hours and improve operational efficiency.
5. Compliance with Labour Regulations and Employment Law
Non-compliance with employment laws and regulations isn't just a headache – it can pack a serious financial punch. Take, for instance, the UK right-to-work penalties. Starting January 2024, fines for employers who hire individuals without the proper permissions will triple compared to 2023. The penalty for employers for failing to establish a right to work has been raised to up to £45,000 per employee, from its previous limit of £15,000. The penalty for repeat failures to establish the right to work has been raised to £60,000, from its previous limit of £20,000.
By using the right software, businesses can sidestep these hefty penalties and automate compliance-related tasks like tracking employee breaks, overtime, leave entitlements, and right-to-work verifications. HR Duo has been built with compliance in mind. Our platform automates critical people and performance processes, streamlining the entire employment life cycle whilst keeping you compliant with access to smart HR templates and employee data.
6. Performance Monitoring and Management
Unidentified performance issues can act as silent productivity killers within organisations, leading to increased staffing costs and hindering overall growth - potentially costing businesses up to 9.4% of their annual salary budget (according to statistics from the CIPD).
Through performance management features often found within workforce management software, organisations can more effectively monitor employee performance with accurate metrics, provide constructive feedback, and identify opportunities for improvement.
At HR Duo we believe that businesses can create a more engaged and productive workforce by using the right performance management tools. We want to empower your team with the resources and tools to set ambitious goals, provide constructive feedback, and assess employee performance effectively.
7. Optimal Workforce Utilisation
It's no secret that assigning the wrong staff who lack the requisite skills or experience to the wrong tasks is a huge waste of time and money.
Fortunately, workforce management software offers a clear solution by delivering immediate insights into employee skills, qualifications, and experience. By using this information you can seamlessly align the right employees with the right task, maximising efficiencies and reducing labour costs.
HR Duo provides you with a full overview of the skills and qualifications of your workforce, making it easier to identify employee skill gaps and opportunities for growth. Remember point 2? Well, it's echoed here - our platform has been built to help you place the right people, in the right place, at the right time.
8. Employee Self-Service
Employee Self-Service (ESS) has become a staple feature in modern HR and workforce management systems, catering to companies of all sizes. This tool grants employees convenient access to their personal and job-related information, promoting autonomy and streamlining administrative processes. By enabling employees to independently handle tasks such as requesting time off, managing their schedules, or accessing pay slips, ESS not only empowers individuals but also alleviates the workload on HR and operational staff.
But how does this translate into tangible savings in staffing costs? HR Duo's self-service portal offers advanced functionalities like mobile access and real-time updates, facilitating seamless information management for employees. This approach significantly reduces the need for manual intervention, thereby cutting down on administrative overheads. By easing the administrative burden on line managers, HR Duo enhances overall workforce satisfaction and productivity, contributing to cost savings in staffing operations.
9. Real-Time Data and Analytics
Data-driven decision-making is essential for businesses looking to reduce labour costs and improve operational efficiency. Workforce analytics tools offer a window into the inner workings of your organisation, revealing invaluable information about how your employees spend their time, identifying potential burnout risks, and providing key performance insights. Armed with this knowledge, line managers can make informed decisions, predict business outcomes, and proactively implement changes to help employees thrive.
HR Duo provides full visibility with real-time analytics dashboards that offer insights into workforce trends, performance metrics, and cost drivers - empowering you to pinpoint areas for improvement and devise targeted strategies to curtail labour expenses.
10. Payroll Accuracy
Ensuring accurate payroll calculations is crucial for businesses to maintain compliance and effectively manage their labour costs. Taking the guesswork out of pre-payroll processing by automating calculations and deductions, businesses can minimise errors and reduce the need for costly manual interventions.
By using software like HR Duo, businesses can take advantage of automated data synchronisation and real-time payroll reporting, saving valuable time and resources. This not only enhances operational efficiency but also empowers HR teams to focus on strategic initiatives that drive business growth.
11. Employee Engagement Initiatives
Does employee engagement improve business performance, and does it affect your bottom line? The simple answer is yes, it does. The impact of employee engagement on a business's success and growth cannot be overstated. Studies, including Gallup data, consistently demonstrate that companies with higher employee engagement see over 20% higher productivity in operations compared to their less-engaged competitors. Ultimately, engaged employees are more productive and less likely to leave the company, leading to higher retention rates and lower labour costs.
Your people are your biggest asset, which is why we provide the tools for you to nurture a workplace where employee well-being and engagement become second nature. HR Duo's powerful suite of employee relations and engagement features such as on-demand employee relations advice, instant messaging, employee assistant programmes, and performance management tools will evolve your workplace and improve business performance.
Every Penny Counts
Throughout this blog, we've explored 11 ways HR Duo helps businesses streamline their daily operations, enhance productivity, and ultimately lower labour costs. From advanced time tracking to efficient scheduling and streamlined attendance management, HR Duo gives organisations the tools to make smarter decisions, boost employee engagement, and drive bottom-line results.
We understand the age-old adage that time is money, and in business, every penny counts. That's why we offer more than just a demonstration of HR Duo. In just 15 minutes, we'll provide you with tailored solutions to your challenges and show you how the power of a robust workforce management and HRMS platform can transform your business. Request a free demo of HR Duo now.
