Occasionally I have been asked to justify why anyone in retail would need engineered labor standards. The arguments go something like,
• “Does one second vs one and a half seconds really make a difference?”
• “Most scheduling systems round labor anyway”
• “At the end of the day, operators have to schedule to the budget, not to labor standards”.
The basis of these questions is probably related to a bad experience trying to implement a pile of over-engineered labor standards that were handed off with little context or considerations for the end use. I know this because it happened to me back in my workforce management software implementation days. I have seen over engineering and incomplete labor engineering — typically from consulting firms whose primary services are focused elsewhere.
Labor standards should not be thought of as over-engineered time studies that split the hairs of time and are not compatible with environments that operate more fluidly. They are precise and accurate calculations, true, but in retail practice they should be viewed as a means to a more operationally productive end.
Engineered labor standards are the basis for achieving operational excellence. They are about understanding the workload required to effectively and efficiently operate your stores to make your workforce more productive. The information and insight they provide can lead to substantial gains in labor savings and lead to increased profitability. In most cases our clients are able to reinvest savings from inefficient tasking work to customer service and selling. Labor standards can also help make workforce management scheduling systems more accurate and work toward sharpening the budget – not blowing it.
So back to the original question – “Does one second really matter?” The answer is that you are asking the wrong question. The question should be, “Do labor standards really improve my operations?” The answer to that question, that we have seen over and over again across our clients, is emphatically “YES!”.
More to come on operational excellence and top-line growth…..