This month the National Living Wage increased and will continue to do so until 2020 when it is projected to rise to at least £9 per hour, as detailed in the initial 2016 agreement.
This will result in a significant number of implications but the primary impact will be on hourly workers. Industries such as healthcare, residential care homes, and in particular manufacturing, will experience short- and long-term consequences from the annual incremental increase. In the short term, operating costs will rise adding to an organisations bottom line, while going forward the exponential cost of overtime and the potential of increased risks will serve to only further escalate operating costs.
Regardless of how you feel about it, the harsh reality is that organisations are struggling to manage the administrative burden of their large workforces in the light of persistent upheaval.
The substantial HR challenges the National Living Wage regulations present should not be underestimated. At SumTotal, through years of experience, we know that a Workforce Management (WFM) solution can and will provide your organisation with essential assistance.
WFM software provides your organisation with the data and insights which in turn empower you to better manage your workforce.
Here are just some of the ways WFM helps:
- Tracking time – letting you know if employees are punctual in completing their schedule, thereby ensuring you are not paying employees for time not worked.
- Prevents “Buddy Punching” – our time clocks work on a personal identification system putting an end to friends/colleagues punching in for an absent employee.
- Scheduling – the reporting system will provide the data to ensure you always have the optimum number of employees allocated, thereby reducing overtime costs. Additionally, “shift trading” means employees can now be assigned shifts based on availability and skill thereby reducing opportunities for human bias or error.
In short, a WFM solution can reduce operating costs, reduce payroll costs and provide invaluable assistance to workforce planning.
To learn more about SumTotal’s WFM solution or get a free demo please click here.