Employee Scheduling Software Keeps Labor Cost in Check

Employee Scheduling Software Keeps Labor Cost in Check

Thinking how you can avoid high labor costs without laying off employees? You can, by using smart employee scheduling software.

Online employee scheduling software helps keeping your company’s labor cost in check by minimizing under/over staffing and avoiding unnecessary overtime. It can automatically sum up employee’s working hours, time off, overtime and even shift premium pays and instantly displays the information when you are making shift schedules. As you are making shift assignments, smart employee scheduling software automatically sums up employee work hours, calculates labor costs, and provides detailed cost reports so you know instantly if you are on budget. The ability to foresee the cost impact while making a work schedule is essential to labor cost controls.

Having too many employees than needed reduces operating margins and having too few employees adversely affects customer service levels. Smart employee scheduling software lets you define how many people you need by position, skill, or shift assignment reason and it will indicate if you have over/under staffed a shift. Smart employee scheduling software like Snap Schedule lets you instantly know how many people you have scheduled on each shift, by position, and if you have specified how many people you need at each position, it will automatically compute and display color coded numbers to identify whether the assigned head counts are over or under.

Doing overtime and incentive pay (e.g. shift differential) by hand is time consuming and error prone. Smart shift scheduling software lets you specify rues to handle practically all types of incentive. You can define as many rules as you like. With each rule, you can specify how the premium pay will be calculated, whether or not overtime exempt employees are eligible, which days of the week and which hours are applicable, and whether or not shift premium pay should be included in overtime computations. You can then associate a shift premium rule to a particular shift, and all employees who are assigned to that shift will be subject to the same premium pay rule. A shift premium pay can be a fixed amount per shift regardless of the number of hours worked, a fixed amount per hour for each hour worked, or a percentage of the employee’s regular hourly rate for each hour worked. Note that the rules are additive so if you specify more than one rule, the total shift premium will be the sum of the premium components derived from each rule.

Every business is dynamic and changes in the demand might happen at any time. With effective employee scheduling software, companies can easily adjust staffing levels along with shift patterns to meet the increased or decreased demand. This ensures that your company, for example, will be adequately staffed under various circumstances.


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