What does it take to build a high-performance workforce? The answer might vary, depending upon your business strategy, but establishing a high-performance workforce generally relies upon a number of specific operating components including: careful labor planning, well-established standard operating procedures, accurate performance expectations, appropriate onboarding, continuous training, employee engagement, incentive pay programs, rewards and recognition, and accountability to name a few. To effectively execute on these programs, leading companies today rely on the capability of a Labor Management System (LMS).
If you’re looking to improve your organization’s workforce performance, it is essential to have a tier-one LMS in place. In fact, implementing an LMS has generally helped organizations realize a 12-20 percent increase in productivity. Typical implementations result in labor savings of 8-15 percent. This level of improvement doesn’t happen overnight, but with the right labor strategies and tools in place — it can typically be achieved over a six-month period.
Here are five key elements high-performance organizations have in common.
5 Components of a High-Performance Workforce
1: LABOR PLANNING –
Change is constant, which is why relying on historical labor standards won’t help your organization increase efficiency. High-performance organizations model their labor requirements using dynamic labor standards that can flex with your work content. Utilizing dynamic engineered labor standards enables companies to accurately plan their workforce needs for today and forecast for tomorrow — avoiding understaffing, overstaffing, and overtime costs. By taking a more intelligent approach to labor planning, companies don’t just assign the right number of workers per activity but match the right workers with the right skills to each specific activity.
2: PERFORMANCE MANAGEMENT –
Real-time performance data and alerting within an LMS allows organizations to spot unexpected lost time, determine the root cause and correct it quickly. A state-of-the-art LMS utilizing real-time business intelligence analytics makes it easy for floor managers to spot performance bottlenecks as well as specific employees who are struggling, allowing for real-time resolution. An LMS is also the best way to support an incentive pay program, which can significantly improve performance.
3: TRAINING AND OBSERVATIONS –
In today’s labor market, it is imperative that your managers continually help their team achieve higher levels of performance. Labor Management Software will automatically identify individuals in need of assistance as well as those who are performing well. That information can then be used on the floor by managers to make an immediate impact on the team’s performance and morale. Consistent, data-supported engagement between managers and hourly associates creates a positive environment that results in higher levels of retention.
4: VISIBILITY –
Storing operational information in multiple systems (i.e., WMS, time and attendance, manual spreadsheets, etc.) limits the timely visibility of performance data and impairs management’s ability to react quickly. An LMS can seamlessly aggregate data from multiple systems. Tier One Labor Management Systems utilize sophisticated business intelligence reporting to display multiple levels of KPIs across a company’s entire operation.
5: STANDARDS –
Today’s high-performance companies use multi-determinant engineered labor standards to assure their performance expectations accurately reflect their environment and the ever-changing mix of work. Utilizing engineered standards requires the use of a Tier One LMS to accurately calculate this level of standard. The use of engineered labor standards will provide fair expectations for each activity in the operation and, more importantly, for each associate. The use of engineered labor standards results in significantly higher levels of performance as compared to one-determinant historical standards.
These are just five of many components of a High Performance Operation. Today’s leading companies utilize a complete Labor Management Program (LMP) assuring that their greatest asset—their workforce—is as productive as possible.
WANT TO LEARN MORE ABOUT WHAT IT TAKES TO CREATE A HIGH-PERFORMING WORKFORCE?
Labor management technology presents the opportunity to better plan, and manage your operation in real-time, improve your culture, boost workforce performance, and reduce your cost per unit. For more insight Schedule a ProTrack LMS Demo or Free Operational Labor Audit.
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