Integrated
design of multiple business processes can lead to synergies and cost savings.
Leveraging the HR/Position model for both labor budgeting and workflow, while
following and tracking labor hours and dollars through business systems, leads
to accurate calculation of labor data and real-time reporting and control.
An
additional component of Labor Cost Management (LCM) is managing turnover. In
some segments of the industry, such as Long Term Care, the turnover rate can be
extremely high. Matching leading
business transformation processes and principles along with intelligent
utilization of HRMS systems can lead to proactive improvements in employee
satisfaction and productivity, along with a reduction in turnover.
For many healthcare
organizations, labor constitutes a large portion of the operating budget (as
high as 75%). Due to the complexity of Fair Labor Standards Act (FLSA), many of
these entities generally error on the side of being conservative, which often
means hourly employees are overpaid. Through the intelligent automation and
integration of payroll processes (e.g. time and attendance, HR/payroll,
benefits, etc.), our clients can realize payroll savings of 1% to 5%. Somewhat
unique to healthcare, Position Control is a process that measures labor cost by
tracking approved positions as proxy for actual labor costs. Revere understands the nuances of Position
Control and can work with you to design an effective solution, often using the
ERP software that you presently operate. Labor Cost Management can be a quick
and significant win for your organization.