Executive Briefings

Fulfilling the Potential of Fulfillment Personnel

Labor costs have increased by 10 percent to 15 percent during the past five years, but the measure of true productivity (units of work measured over a time period) has remained relatively flat. That means there's been an increase in the labor cost per unit of work performed. And when you consider that employee turnover rates of 25 percent or higher are not uncommon, it's clear you need to make the most of your return on investment in the operations labor force. If you can better manage your labor cost, you will improve the bottom line.

How do you do this? While the primary accountabilities of a manager - planning, organizing, directing and controlling - have not changed much in 50 years, it may be time to take a fresh look at your approach.

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Labor costs have increased by 10 percent to 15 percent during the past five years, but the measure of true productivity (units of work measured over a time period) has remained relatively flat. That means there's been an increase in the labor cost per unit of work performed. And when you consider that employee turnover rates of 25 percent or higher are not uncommon, it's clear you need to make the most of your return on investment in the operations labor force. If you can better manage your labor cost, you will improve the bottom line.

How do you do this? While the primary accountabilities of a manager - planning, organizing, directing and controlling - have not changed much in 50 years, it may be time to take a fresh look at your approach.

Read Full Article