The labour model is workforce management's foundation. The labour model is used for a variety of purposes from the creation of an annual labour budget to being the source of requirements for WFM software. As with any foundation, if it is built poorly, it will not support the structure that sits on it. Similarly, an ill-defined or poor labour model will not support a robust WFM strategy.
The labour model describes the workforce and the work it performs. Some key ingredients to a well-defined labour model are:
Tasks and Labour Standards. A labour standard describes the average amount of time it takes the average worker to perform a task. The labour model documents every task workers perform and its labour standard.
Processes. Processes connect tasks into larger activities that drive productivity. The labour model illustrates processes your workers perform to define standard operating procedure and as a means to operational improvement.
Workplace Attributes. For multi-location organisations, the attributes of each store, factory, hospital, airport, warehouse, etc., affects what people do and how they do it. For example, a workplace with a large floor plan requires more cleaning time than one with a small floor plan. The labour model documents workplace attributes and their impact on work performed at each location.
Pay Rules. Most organisations need to manage a myriad of pay rules. Some are established by national governments or regional authorities. Others are a result of corporate policy or collective bargaining agreements. And, many are driven by employees’ contracts. The labour model synthesizes these sometimes conflicting rules into a logical decision tree so that pay can be applied consistently without errors.
Metrics. Workforce management increases the visibility to labour. The labour model defines the specific key performance indicators that an organization uses to track the workforce across multiple dimensions including productivity, cost, and service level.
Developing a labour model can be intimidating. The key to developing a labour model is focus. A workforce management strategy will identify what aspects of the labour model require investment in what aspects can be left alone. Learn how Axsium can help measure, maintain, improve and transform your labour model with our Business Services.