Some of the best ways to control labor costs are:
- Schedule precisely – Labor costs can be controlled by
scheduling as precisely as possible. A budget should be then
created and it should be used to cover the labor expenses and
create a work schedule.
- Reduce employee turnover – Reducing employee turnover will
reduce costs of recruitment, selection, training etc.
- Cross train the labor – By cross training your labor and
employees they will be given skill sets to perform a variety of
operations in the factory and this will significantly reduce your
absolute labor cost.
- Automate and outsource where required – Procedures should be
regularly reviewed and should be upgraded where possible and where
required. Make sure to use the right software and the right service
partner and this will help you to control your labor costs.