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Are You Making the Most of Labor Forecasting?


Labor forecasting, or accurately planning worker schedules, can take up hours of management's time each week. Inadequate visibility into forthcoming production volumes and customer demands requires managers to guess at the best possible schedules. However, inaccurate labor forecasting can have serious financial and production consequences, such as high labor costs from overstaffing and inadequate productivity. Labor forecasting software can help managers effectively project staffing needs and create an optimized workforce plan. Here's a closer look at what businesses need to know to put labor forecasting to work in their own business processes.

How Labor Forecasting Works

Staff scheduling is derived from a company's need to meet client and customer demands. For example, in a production environment staffing schedules are directly tied to outstanding customer orders. Labor forecasting can help your business make the most of productivity assets, while maximizing profits and revenue. Without the right tools, valuable management time is spent trying to navigate this complex issue. Your employee scheduling isn't optimized, and there can be a direct impact to your bottom line. Over-staffing can be expensive, and understaffing can lead to critical errors in serving your customers. Integrated labor forecasting tools can help businesses accurately predict and meet scheduling needs.

Technology Tools for Labor Forecasting
The good news for managers and businesses is that they're no longer relying on guesses and best estimates. With the new generation of integrated workforce technology, it's possible to use data-driven projections to help you more accurately schedule your workers. Labor workforce planning technology uses algorithms that take a variety of factors into consideration to help you accurately determine what workers you will need, when, and where. It's possible to control costs, consider other factors such as union scheduling rules, and actively meet customer demand.

Businesses that need better control over their financial picture and staffing costs in order to remain competitive are increasingly investing in this important technology. Today's cloud-based solutions make it easier for managers to access scheduling information from anywhere. As integrated systems communicate effectively, it's possible to take a wider range of data points into consideration when developing schedules from employee time-off requests to upcoming production needs. Significantly reduce hours of needless work so your valuable managers can focus on high quality activities that yield a high ROI for your business. With the right infrastructure in place, business owners can be more assured they are achieving maximum productivity while minimizing waste.


This website contains articles posted for informational and educational value. Paychex is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, Paychex. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant.
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