Do you know the impact of your workforce on your bottom line? How about the HCROI of your organization? Many CFOs believe they know the answers to these questions- or else, they think that whatever the answers may be, they cannot be changed. In reality- unnecessary labor costs cannot only be identified, but often reduced or avoided completely.
A study conducted by CEB found that the average business attributes 70% of their total operating costs to labor, and therefore loses 4% of their gross profit margins (a $12 million loss for every $1 billion made in revenue). As CFO, you are largely responsible for minimizing such detrimental costs wherever possible. That includes identifying solutions and overseeing digital transformation with cost-saving technologies.
Workforce analytics offers a powerful solution for recognizing inefficiencies and dealing with costly labor problems within your business. This article will explore the benefits of using labor reporting, KPIs, and other live data for maintaining competitive growth and optimum cost-efficiency.
Benefits of Using Workforce Analytics as a CFO
As CFO, you are at the center of your company’s finances, investments, and operational risks on a day-to-day basis. When it comes to labor management, you monitor everything from time collection patterns and payouts, hiring trends and retention rates, and even employee health and engagement at each of your worksites.
Analytics software provides powerful KPIs that can help determine the effectiveness of the countless components of your business. It can help predict and avoid unnecessary costs before they have the chance to occur, as well as address them swiftly when they do.
In addition, workforce analytics allow you to:
- Consolidate both financial and HR “people” data to bridge all the areas of your operation and monitor their influence on each other efficiently
- Establishes a baseline, or control, so you can confidently observe the progress being achieved or correct actions which are damaging your business
- Identify cost irregularities and blind spots for more effective decision-making
- Support worthwhile HR initiatives for engaging employees and retaining top talent (key for boosting HCROI)
- Identify workforce patterns which may be inhibiting productivity or cost-efficiency (time theft, ineffective managers, excessive overtime or employee burnout, too few timeclocks at a location, etc.)
- Uncover turnover and recruitment challenges to prevent costs associated with understaffed worksites, hiring and onboarding
- Predict the future needs of your organization and uphold effective budgeting
- Re-invest into your labor force by being able to evaluate, reward, and promote employees (thereby decreasing turnover, nurturing morale, and safeguarding productivity)
Your company’s performance will suffer long-term without the aid of this workforce management super tool. With benefits like these, you gain both HR and financial ‘blue prints’ for improving certain aspects of your business, especially when it comes to informed labor management decisions.
EPAY’s HCM Analytics for the Hourly Workforce
Ready to invest in labor analytics, but unsure where to start? EPAY’s reporting and labor analytics solution is one of a kind. Why? We built our analytics platform with the hourly, distributed workforce in mind.
Our HR analytics software gives employers like you the intel they need to eliminate costly setbacks and inefficiencies related to managing hourly, distributed employees. You’ll be able to access information across time collection, performance management, talent acquisition, engagement, and other inputs with ease.
Our solution includes a user-friendly interface, including:
- A customizable dashboard
- Over 1,200 standard reports
- Filtering capabilities to create ad-hoc, specialized reports
- Distribution and export features for ease with your other applications
Ready to learn how EPAY’s HR analytics software can serve your business? Request a demo today! Or check out our 2020 Workforce Management Benchmark Report to learn about the KPIs and metrics you need for getting the best results from your workforce.