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Workforce Management Chaos

July 15, 2015 | Workforce Management

Food manufacturing companies often experience competitive pressures to reduce labor costs.  Orders continually flow through the organization at various times and quantities throughout the year, which results in staffing issues.  The pressure to reduce labor costs and meet order fluctuations generates workforce management chaos.

In a typical one hundred-person company, workforce management chaos occurs in the form of time and attendance input errors, overpayments, reconciliations, data errors, employee complaints, and possible visits from various sectors of the government.  According to Ed Thordsen, a thirty-year employee workforce management expert, “workforce management chaos costs a typical mid-sized manufacturing company upwards of $25,000 per year.”

According to Payroll Consultant Jeff Borschowa, payroll errors, and the decision to ignore them, compound the costs. At one company, “employees were understandably upset and from [the point of an error] onward, very militant toward payroll calculations – no further errors were tolerated.”

A properly implemented time and attendance application significantly eliminates workforce management chaos.  A typical solution should have the ability to configure rules within the application to meet any scenario.  There should be a central database for all payroll codes and wage rates with a built in processing engine to calculate wages.  The manual processes – from time capture to payment – should be eliminated along with the associated workforce management chaos.

Such a system should also yield a positive return for a manufacturing company. According to Nucleus Research ROI, the average company gets back “$7.88 for every dollar spent” on these types of applications

-Yvonne Hangsterfer

About Workloud:

Workloud is a modern workforce management SaaS company of the people, by the people and for the people. And those people are you and your employees. We make your employees more productive, empowered and engaged. And we do it with our end-to-end cloud-based Employee Scheduling, Time & Attendance, and Absence Management solutions.

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Originally published July 15, 2015, updated December 1, 2017
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