Tracking labour inefficiencies

THE implementation of Kronos labour management software gives most businesses a return on investment within the first 12 months, says Diamond Management managing director Neil McCormack.

“After 23 years in the IT industry, I started looking at labour management, dealing with the front line of capturing labour and assessing its use,” Mr McCormack said.

“I discovered that in most cases, at least 40 per cent of a company’s expenses related to labour.

“If you can reduce this expense, it impacts your bottom line straight away.

“I realised there was merit in implementing and streamlining labour processes, making it more efficient and productive – getting more throughput in your factory if that’s the case – and increasing your bottom line automatically.”

Diamond Management is the only agent for Kronos in the world.

Mr McCormack said the company chose to align itself with the Kronos product because it was far superior to that of competitors.

“Another attracting factor was the product developer’s strong commitment to injecting 10 per cent of their total revenue per annum back into research and development,” he said.

“Last year, that was nearly $50 million. That is about 10 times the total revenue of its competitors, so of course it is a dramatically superior product.

“And while it is a US product, it has all the complexities of Australian conditions built in to the standard product.”

Mr McCormack said the main point of difference between this product and its competitors was that it covered essentially all technology platforms.

He said it was not designed to replace payroll products and could be fed into Excel, Cognos or standard ERP (enterprise resource planning) systems.

“Kronos was the only labour management software in the world that provided real-time information so inefficiencies could be responded to immediately,” he said.

Mr McCormick said Kronos was not just for large-scale organisations such as manufacturing companies.

“There is a worldwide trend towards the capture of labour of the white-collar workforce,” he said.

“Companies of 21 employees or more are starting to use Kronos but real efficiencies are achieved at 40 to 50 employees.

“We figure that if your labour costs are 25 per cent or higher, we can make a difference in your bottom line fairly quickly.”

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