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Using Labor Management Systems to Get the Most Out of Your Business


There are few businesses that operate in a fully streamlined manner. To get as close as possible, you’ll often need technological help. Fortunately, there are various workforce management systems available that can help you look at your business as it is currently run and figure out how you can be more efficient. A good labor management system can often mean the difference between a business that’s operating reasonably well and one that’s positioned for a successful future.

Using a labor management system in your business

Using this type of system (usually called an LMS) will allow you to do something fairly unique – to take a look at your business’ operations from a bird’s eye view, taking data from various types of operation and using it to make high-level decisions. Before you can implement a solid LMS, though, you’ll need to understand a bit more about how these systems will help you. This guide will give you the information you’ll need to determine how and why an LMS might benefit your business in the long run.

labor management systems

What is a labor management system?

Labor management tools can be defined as a suite of tools that, when used together, help a business to better track, direct, and analyze its own operations. As you might imagine, the precise nature of these tools varies quite a bit between industries and even between businesses of different sizes, but the end goal is always the same. Businesses that use such systems are those most willing to reap the labor management system benefits that come from having a unified toolset available.

Who should use a labor management system?

Once you know what a labor management system is, you’ll need to figure out if it can work for you. In all honesty, these systems don’t work for every business. They tend to work best for those that need to gather consistent data in order to best steer their business towards the future. These businesses generally have more employees than can be tracked by a quick headcount, typically deal with enough inventory that manual counts are inefficient, and operate on a scale that requires some kind of centralized software resource. It’s also important to note that the company needs to have enough working capital to make an upfront investment in a tool that tends to only bring in returns after a bit of time has passed.

How long does it take to implement a labor management system?

As you might expect, implementing one of these systems can take time. The exact length of implementing a system is going to come down to a number of factors that include the complexity of the system being used, the amount of training that you’ll need to do to bring employees up to speed, and the number of resources that you’ll be able to turn towards the project. The conservative estimate for implementation is usually between four and six months, but it’s not uncommon to see the implementation of the various systems take up to a full year.

labor management systems

Labor management system benefits

Given the time-frame that it takes to implement one of these systems, it’s important to realize that the end result really is worth the wait. A good LMS will help you to improve many aspects of your business, ranging from basics like gaining better metrics and inventory control to helping you better plan for your workforce and helping your employees to be a bit more autonomous. These systems generally help businesses to figure out where they are not being efficient enough and where their true strengths lay, allowing for better forward planning and ultimately for more profitable futures.

How to choose a labor management system

Choosing a good LMS isn’t always easy. You’ll want to start by seeing what other similar businesses in your industry are using and then looking at your own goals. It’s also a wise idea to take a look at the packages that are currently available and to make sure that they align with your vision of what you want the system to accomplish. It’s always a good idea to get some kind of professional input as to what type of system that will work best for your business, though the ultimate choice will have to be your own.

labor management systems

Streamline your business

Streamlining your business requires more than just a good LMS. It also requires working with the professionals who can help you to get the most from your operations. PayTech can help you with everything from processing your payroll to dealing with HR matters, all in a way that will help your business to concentrate on its strengths. When you’re ready to move forward, make sure to check out the different pricing and packages we have available.