What is resource utilization, and why is it important? A wise person once said that it isn’t how much you make; it is how much you save.
This axiom is especially true when it comes to business. After all, business resources are not simply hoarded; they are funneled back into the company to promote further growth.
Resource utilization is primarily defined as part of human capital management. However, a resource can be anything that a business uses in order to move forward. This includes employees with advanced skill sets, machinery and tools, some forms of IP, and capital or liquid assets.
How can you make the most of these resources? Consider adopting time and labor management software.
Here is what you should know:
How to Maximize
Most employees are engaged in multiple projects at a time. Your success hinges on making sure the bulk of their billable hours are spent in their areas of expertise. Unless they are efficiency experts, you don’t want them wasting time organizing project sequence, negotiating timelines for competing projects, or estimating when and how to transition from one project to another.
Fortunately, most time and labor management software offers successive task scheduling. With this feature, setting concrete deadlines for your employees is easier than ever. What’s more, you can also more readily break down a process into more digestible chunks. This promotes clarity so your workers are never looking through notes or wondering what they should do next.
The work breakdown process accounts for other resources besides in-house labor. It can designate tools and equipment, capital or investments, or contract labor requirements. With each step of the process, your workers will know not only what to do, but what they need for each step within a project. This also helps you to place non-labor resources when and where they are needed most.
The best time and labor management software also offers attendance features. Aside from simply keeping track of employee hours, these systems can be integrated with other programs to ensure all employees are working on what they should be and are where they need to be.
Additionally, payroll and reporting analytics are notably useful tools. Typically, these features simplify payroll, withholdings and tax functions while also helping you calculate your overall costs. Billing in a competitive market often means giving a client the biggest bang for their buck. Comparative cost analysis of salary or wages against skill sets can go a long way in ensuring that you are both paying employees fairly and minding your bottom line.
The Bottom Line: Time and Labor Management Software Helps You Make the Most of Your Talent, Money and Resources
The perks mentioned above are just of the few most noteworthy features offered by time and labor management software. It is important to remember that time and labor management software is an investment. The upfront cost may seem steep, but you save in the long term when you see clearly where every dollar is being invested. Over the course of several projects, the savings can be tremendous.
