Labor Management System – Why Use It?

If you take a look at the economy from a distance, you can tell that it is getting busier every year. Just take a look at the eCommerce industry, wherein its sales jumped by 37 percent in 2014. It was quite a challenge for the carriers and retailers to meet the delivery expectations. Around 15 percent of the products bought by online shoppers did not receive the items they’ve ordered at the specified cut-off dates by Christmas Eve.

In order to increase the capacity these industries face during peak seasons, they usually employ seasonal labor in order to cope up with the increased volume of orders. But it can be tricky since you need to determine the right amount of added labor, not to mention getting the most out of the staff. This is where the Labor Management Software comes in. It is able to forecast the requirements needed in the workforce, control the costs of labor and track their performance. All of these are done while the culture is being fostered that is centered around productivity, continuous improvement and self-management. Below are other benefits that every firm can get when using Labor Management Systems

Increase performance and productivity

When labor tracking is automated, it frees the supervisors in investing time in its workforce. It will also aid in managing the higher degree of productivity. The tracking capability of LMS enables the operations in evaluating the employees, experience the position at the moment and even monitor the performance benchmarks. Added to that, the the LMS can be integrated into mobile devices like smartphones and tablets, thus it will provide actionable information when tracking or monitoring on the floor. It will enable the supervisors in reconciling observations done on the floor with the historical and current performance data so as to address situations in real time.


It bolsters retention

With a powerful performing management program like the LMS, it will increase the employee retention and satisfaction with their job. Through the implementation of the accountability structure in which it rewards employees that are recorded to have very high performance, they are given incentives whether this is through financial or non-monetary means. By doing this, operations can produce more out of its already existing skilled workforce and even reduce the need to hire temporary labor.

Identify employees with low performance

Operations in the company can place the new employees on a great learning curve in the LMS in which it offers a better understanding of the content of the work and at the same time, it establishes the needed performance expected based on the time established in the facility and even the projected improvement. Instead of waiting for months trying to determine the weaknesses and strengths of every employee, the operations can gauge the progress of the employee and offer to coach. Or they can also be reassigned to functions alternative to what they were primarily assigned to do.

You can find more information regarding the Labor Management Software by visiting You will also find other tips on how it can help your company become more productive.