We have seen unprecedented growth in the demand for hourly workers. In fact, in the last 20 years alone, hourly workers have increased in the U.S. from 69.2 million to 80 million. Today, according to the U.S. Department of Labor, 59% of all Americans are paid by the hour with forecasts showing steady increases in hourly employees well into the future. Fueling this growth is a wide range of factors including economic disruptions, the gig economy and a greater attention to a more consistent work-life balance.
The demographics of the hourly worker are intriguing. More than 70% of hourly employees are under 30 years old with 8% being in their 40s and another 8% being in their 50s. Interestingly, more than half the hourly workers over the age of 30 have a post-secondary education so the stigma that an hourly worker might not have a formal secondary education is, quite simply, false.
With labor costs on the rise, the Labor Department reported a 2.2% increase in labor rates in the first quarter of 2017 alone, companies need to better manage they’re labor pool immediately if they want to retain the profits they have realized in the past. With labor being a company’s largest single, controllable expense, the need to act is now.
As we now know, the hourly worker is far more educated than we thought, and because of this, many of the technological tools that business can utilize to control employee costs, won’t be met with skepticism or uncertainty; in fact, as we’re seeing at Workloud, these resources are a welcome addition to an employee’s daily work life.
Over-employment, overtime, and mismanagement of the right skills for the right job at the right time are the harbingers of out-of-control labor expenses. But all of these incidences and occurrences, including others, can be controlled with a workforce management software like Workloud’s. In fact, we have seen labor savings up to 7% from some of our customers by simply utilizing employee scheduling, time and attendance, and absence management features that are dynamic, but easy to implement and simple to utilize.
Not to be overlooked in any of this are the hidden labor costs associated with lawsuits, litigation and lost productivity resulting from non-compliance to state, federal and union rules and regulations. Think how much your life would be simplified if these rules and restrictions were managed for you within your workforce management solution. They can be, and when taken in conjunction with savings from overtime and demand-driven scheduling, we don’t need to fear the rising cost of labor; not when there’s a solution at our fingertips.
Your employees will easily embrace and welcome new technologies that allow them more flexibility, greater scheduling access, enhanced communication with managers through mobile devices, and the ability to have input in paid time off, shift-swapping and volunteering. With Workloud, let your employees experience all of these benefits while controlling your labor costs and adding newfound efficiencies into your workforce management processes.