Deloitte Announces LaborWise™ 2.0 with New Features
Improve Productivity, Engagement and Operational Efficiencies
LaborWise can save $200 to $800 per hourly employee annually, enabling organizations to make more strategic investments as a result of this long-term, sustained savings.
New York, October 10, 2017 — Deloitte today announced updated functionality for LaborWise™, it's workforce analytics product that unveils hidden sources of labor overspend. The revamped version of LaborWise not only identifies labor overspend but finds relationships between overspend and workforce productivity, helping executives enhance employee productivity, performance and engagement.
“After using LaborWise with dozens of organizations, we discovered that labor overspend is not just a cost issue, but a barometer of human capital practices that affects sales performance and customer service,” said Pat Russo, principal, Deloitte Consulting LLP. “An organization’s workforce is its most important asset. It’s critical for organizations to optimally use the power of their workforce to maintain competitive advantage. LaborWise’s new functionality takes our people analytics capabilities to a new level, and organizations can now focus on labor costs and performance in one holistic process.”
Deloitte analysis finds that a typical Fortune 500 company spends $1 billion to $2 billion per year on labor, which accounts for approximately 50 to 60 percent of companies’ operating expenses. At that volume, labor overspend amounts to an average of $30 million per year, or 0.5 to 2 percent of hourly payroll.
LaborWise is designed to help reduce labor costs by analyzing workforce data for nine causes of overspend including overtime, missed punches and canceled meals. The latest version builds upon this capability by drawing connections between overspend and sales performance and other operational metrics. Empowered with this new data, companies have identified, quantified and sustained long-term savings.
“Many of our clients didn’t realize how actionable their workforce data was until we ran it through LaborWise,” added Russo. “Not only can organizations realize significant savings after using LaborWise, they are then able to reinvest those savings into the organization for other strategic priorities. We consider LaborWise to be an essential tool for any human capital transformation that seeks lasting changes in their workforce.”
To learn more about LaborWise, visit its website.