The Great Resignation has contributed to the labor shortage which has impacted all businesses, especially those with a large hourly workforce. And as companies search for solutions, including new ways to attract and retain talent, employees continue to reevaluate their priorities based on what they value about their jobs, says Kshitij Dayal, Senior Vice President engineering and operations at Legion.
Large organizations like walmart and Target raise wages to attract hourly workers. However, with so many companies now offering signing bonuses and record-breaking compensation packages, employers looking to compete in a tight job market must find a new way to win over employees. AI-powered workforce management and demand forecasting may be the answer.
Demand forecasting with AI-derived insights
Every physical business has periods of high and low demand for labor. From holidays to weather events, throughout the day, week and month, many factors influence the ebbs and flows of a business. However, without the right tools to properly forecast demand, managers are unable to create optimal workforce plans and employee schedules, not knowing how many employees should work on a certain day or at a certain time. hour. Scheduling too many people will result in overspending on labor, and scheduling too few will ensure missed revenue generation opportunities, as employee productivity can be hampered while trying to meet customer demand.
For example, a slow day in a restaurant with too many employees creates business losses, while a busy day with too few workers can result in a loss of revenue for the business because it cannot sit and serve as many people for lack of the appropriate number. waiters or chefs. Additionally, ineffective scheduling practices can create unhappy and dissatisfied employees, as they feel overworked when there is a staff shortage.
Workforce management platforms that incorporate AI-powered demand forecasting capabilities can help address these issues. They leverage machine learning algorithms to analyze key data points and demand drivers (e.g. daily weather, local events, etc.), looking for market patterns and trends. Then, predictive analytics models use this information to provide insights into customer behaviors to determine where demand is likely to come from and what the best employee schedule will be. By harnessing the power of AI for demand forecasting, employers can create highly accurate schedules that allow them to optimize their work efficiency. Plus, they can more easily match their business needs with employee skills and preferences, which creates a better employee experience.
Learn more: 4 Ways Emerging Workplace Technology Can Ease the Perceived Labor Shortage
Integrate schedule agility into workforce management
In today’s highly competitive job market, employers also need to provide flexible scheduling, especially as 85% of hourly workers believe it is important to have more control over their schedules. However, managers who still use traditional, manual methods to create work schedules (e.g., spreadsheets or even “pen and paper”) risk creating inefficient schedules, as well as wasting time that can be spent on higher value activities, such as working with customers and providing constructive and positive feedback to their employees.
AI-powered workforce management solutions can automate the entire scheduling process, allowing managers to easily and efficiently generate schedules that comply with local labor laws (e.g. meals and breaks) while respecting employee preferences. These smart scheduling solutions also make it easy for employees to request time off, swap shifts, and even take extra shifts – often with just one click in a mobile app – creating a better overall experience for everyone. employees because they are able to define when, how much, and where they want to work. A mobile platform is essential for millennials and Gen Z workers in particular, as they expect every aspect of their lives to be online, efficient, and personalized to their needs.
An intelligent workforce management platform also allows the company to optimize its workforce by distributing employees across multiple locations. This not only provides the company with additional workers who know the inner workings of the company’s procedures, but also gives workers the opportunity to take on additional shifts that may not have been available before.
Mitigation of supply chain disruptions
Even now, more than two years into the pandemic, supply chain disruptions continue to be a sore spot across industries, as businesses catch up to meet demand for items, causing delays and driving up prices. While current employment trends are not the sole cause of the supply chain situation, they have had a significant impact, with industries such as manufacturing, transportation, warehousing and utilities seeing high dropout rates Last year. Businesses need to do more with fewer resources, both from an inventory and employee perspective.
Smart workforce management solutions can help reduce supply chain uncertainty by enabling fulfillment centers to operate more efficiently. For example, through the use of AI and ML, companies can analyze thousands of data points that can impact labor requirements (e.g. delivery days, weather events, etc.) so they can make better, more informed planning decisions. Additionally, he creates staffing guidelines based on demand, labor standards, business policies, and budget constraints to create the optimal work plan. This allows fulfillment center operators to formulate long-term staffing plans with fixed and flexible schedules.
Foster a positive work environment
If there is anything to learn from the Great Resignation, it is that no business is immune to the labor shortages and training challenges presented during this time. Instead of sitting back and offering the same benefits and wages that workers no longer see value in, companies have taken the time to think about what employees really want from a job and from an employer. , whether it’s more recognition, a higher salary or more flexible hours.
By offering benefits that better match employees’ wants and needs, organizations demonstrate that they truly care about their employees, who are more than just a number. This creates a better culture and future-proofs the company, reducing the chances of employees leaving the company.
Every competitive advantage counts as companies continue to seek new ways to attract and retain hourly employees. AI-powered workforce management is a game-changer, giving employers a simple way to optimize their work efficiency while simultaneously improving their employee experience.
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