Research Reveals How Top-Performing Companies Engage Their Employees and Reduce Labor Costs
Tuesday, April 13, 2010 at 10:33AM A new research study from Aberdeen Group shows that labor management solutions help both warehouses and stores provide more efficient service with lower labor costs and improved training. The study, Labor Management: Instill Accuracy, Efficiency, and Productivity in the Warehouse and Retail Store, captured data from over 110 companies.
In this tough economy, with cost-containment pressures mandated by company executives (67 percent overall), Aberdeen finds that top performers focus on labor standards, ongoing monitoring, and performance-based incentives to drive down labor costs while still delivering business results. Productivity gains through the extended fulfillment process help warehouse and store managers keep product moving from the warehouse dock through to the retail floor and end customer in an efficient and cost-saving manner.
Employee measurement coupled with incentives and training leads to engagement. "Top companies are leading the way by engaging their employees through both formal on-boarding programs, and implementation of incentives tied to meeting performance goals,” says Bob Heaney, senior research analyst. “Leading performers are achieving practice levels on these two processes of 1.6 to 1.8 times higher than all others combined."
To view the entire report, please click here.
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