When was the last time you revisited your labor standards? Are they still reflecting the realities of your workplace, or have they become outdated and out of touch? Imagine walking through a busy retail store, where every task is executed smoothly, every customer is attended to promptly, and every employee knows exactly what to do. Sounds ideal, right? Achieving this level of efficiency and customer satisfaction isn’t just a dream—it’s the result of effective workforce management, with accurate labor standards at its core.
In our previous blog (Why Regularly Updating Labor Models is Essential for Your Business), we discussed the importance of accurate labor standards and the potential consequences of letting them become outdated. Now, let’s explore practical steps you can take to keep your labor standards relevant and ensure they continue to serve your business effectively.
Scenario One – Overestimating Hours
If your labor demand forecast generates more hours than necessary, your staffing will be inflated, leading to higher operational costs and reduced productivity. Wage percentages will exceed optimal levels, causing unnecessary financial strain on the business—profit that could have been safeguarded by employing smarter labor standards.
Scenario Two – Underestimating Hours
Conversely, if your labor model lacks crucial processes or standards, the forecast may fall short of the actual demand. Employees won’t have enough time to complete their tasks, leading to a decline in customer service quality or production output. This can also result in non-compliance with regulations, triggering financial penalties or even temporary shutdowns—both of which negatively impact profitability.
How to Avoid the Pitfalls of Inaccurate Labor Standards
To prevent the negative impacts of inaccurate labor standards, businesses must be proactive in reviewing and updating their practices. Here’s how you can stay ahead:
1. Labor Audits: A Swift and Effective Solution
Conducting regular labor audits is one of the most efficient ways to ensure your labor standards are aligned with real-life processes.
What Is a Labor Audit?
A labor audit involves a comprehensive analysis of your current labor model. It looks at the standards you have in place, compares them with actual operations, and identifies any gaps or outdated practices. This process provides valuable insights into what’s working well and what needs adjustment, helping you stay compliant and efficient.
Why It Matters
Regular audits help you catch issues before they become problems. They ensure your standards remain realistic and relevant, reflecting the actual time and effort required for tasks in today’s work environment.
How We Can Help
At Simms & Associates, our labor audit services provide a clear picture of your current standards. Our experts conduct thorough reviews and offer actionable recommendations, helping you fine-tune your workforce management and stay on top of changes.
2. Labor Modelling Projects: Building a Strong Foundation
If your business doesn’t have a formal labor model or needs to refine its existing standards, embarking on a labor modelling project can be a game-changer.
What Is Labor Modelling?
Labor modelling projects involve creating or refining your labor standards using methods like Engineered Labor Standards (ELS). ELS breaks down every task into smaller, manageable steps with specific time allocations. This approach ensures that each task is performed efficiently and consistently across your workforce.
Why It Matters
ELS provides a highly accurate method for forecasting labor needs, helping businesses adapt to changes in the market or workflow without sacrificing efficiency. It allows you to set precise expectations and ensures that staffing levels are optimized for maximum productivity.
How We Can Help
At Simms & Associates, we specialise in developing Engineered Labor Standards that are tailored to your business. Our experts use data-driven approaches to create standards that reflect the true nature of your operations, providing you with a robust framework for effective workforce management.
3. Listen to Your Team: The Frontline Insights
Your employees are on the front lines every day and have valuable insights into how well your labor standards work in practice. Engaging with them can provide practical feedback that ensures your standards are realistic and achievable.
Why It’s Important
Involving employees in the process fosters a sense of ownership and engagement. It also helps you understand the practical challenges they face and identify any discrepancies between your standards and actual working conditions.
How to Do It
Regularly seek feedback through team meetings, surveys, or informal conversations. Use this input to make informed adjustments to your labor standards, ensuring they are fair and workable for everyone.
4. Leverage Technology: Modern Tools for Better Management
Technology plays a crucial role in maintaining accurate and effective labor standards. Advanced workforce management systems can help you track and measure performance against your standards, providing real-time insights.
Why Leverage Technology?
By using technology, you can continuously monitor how tasks are being completed and quickly identify areas where adjustments are needed. This helps maintain a high level of accuracy and ensures your labor standards evolve with your business needs.
Our Solution
Kwenta Vault, our innovative labor management platform, integrates seamlessly with your existing systems. It provides real-time data, robust reporting, and the ability to easily update labor standards, making it an essential tool for staying agile and responsive.
5. Invest in Training and Continuous Development
Even the best labor standards need the support of a well-trained team to be effective. Regular training ensures that employees understand the standards and know how to meet them.
Why Training Matters
Continuous training helps bridge any gaps between expectations and performance. It ensures everyone is on the same page and can perform their tasks efficiently, leading to higher productivity and job satisfaction.
How We Can Help
At Simms & Associates, we offer tailored training programs designed to help your team get the most out of your laboor standards. Investing in your employees’ development not only improves adherence but also fosters a culture of continuous improvement.
Transform Your Labor Standards with Kwenta
Maintaining accurate and effective labor standards is made easier with Kwenta Vault, part of the comprehensive Kwenta suite from Simms & Associates. Kwenta Vault, a centralized platform for labor standards management, integrates seamlessly with your workforce management systems, allowing businesses to monitor and update labor models in real time.
Additionally, the Kwenta suite includes:
- Kwenta Predict: Using predictive behavioural analytics, Kwenta Predict provides valuable insights into employee well-being and engagement, enabling proactive interventions to improve retention and satisfaction.
- Kwenta Count: A leading occupancy solution that tracks real-time customer traffic, helping businesses make informed decisions about staffing and operations.
With Kwenta’s powerful combination of tools, businesses can optimise not just their labor standards but also their overall workforce management, ensuring agility and resilience in a rapidly changing environment.
Keep Your Business Ahead of the Curve
Maintaining accurate and up-to-date labor standards isn’t just about compliance—it’s about creating a strategic advantage. With Kwenta Vault, your business can optimise operations, ensure employee satisfaction, and deliver a seamless customer experience.
Ready to learn more? Contact Simms & Associates today for a demo of Kwenta or to explore how our labor audit and modelling services can transform your workforce management. Together, let’s build a better, more efficient workplace.