The profit margins of manufacturing SMEs are feeling the pinch due to surging fuel and material prices. To make matters worse, the recent decision by the Fair Work Commission to increase the minimum wage rate by 5.2 per cent has made it harder for SMEs to absorb such costs, adding further strain on an industry already in dire straits.
For manufacturing SMEs, this makes it essential to effectively manage their entire workforce, especially when facing increased pressure to reduce expenses while maintaining operational agility, labour compliance, and rigorous health and safety standards. To manage escalating challenges, SMEs must consider optimising and automating scheduling practices to maximise productivity and reduce burnout.
By doing so, SMEs can gain four key benefits:
1. Maximise productivity
Running an efficient and productive operation is vital for any successful business but is particularly crucial in the manufacturing sector. To improve productivity, SMEs should leverage smart technology solutions that automate and streamline time-consuming administrative tasks, enhance decision-making capabilities, and improve employee scheduling to match the needs of shift requirements. When operations run smoothly, businesses experience better product quality, increased customer satisfaction, and reduced operating costs both on and off the floor.
2. Meet demand
SMEs that depend on manual or paper-based processes are likely to struggle to meet changes in demand for their products. When faced with increased or decreased demand, unexpected or otherwise, having the right workforce management systems in place is critical for adjusting staffing levels accordingly. With scalable and flexible workforce technology, SMEs can automate processes, hire more strategically, onboard employees faster, drive efficiency, and maximise employee engagement to align properly with demand.
3. Reduce burnout
Stressed and fatigued employees are more prone to burnout, which can contribute to higher turnover. Workforce technology can assist SMEs by reducing the repetitive, monotonous tasks that can negatively impact mental and physical health. Failing to comply with health and safety practices, such as providing adequate rest time between shifts and appropriate breaks during shifts, can have serious consequences for SMEs, including major disruption to operations, legal action, and reputational damage. With the right tools, SMEs can provide an extra line of defence for the workforce through managing the stress and fatigue employees experience.
4. Increase visibility into costly trends and workforce activity
With pressure to increase profitability, it’s essential for SMEs to look for ways to reduce costs. However, those that rely on manual systems to track employee time and attendance often find it difficult to manage labour expenses and gain visibility into costly trends and activities. A workforce management solution built for the manufacturing industry can help SMEs reduce payroll errors and costly overtime for hourly employees. Furthermore, it can help improve workforce productivity by reducing manual, time-consuming administrative tasks so employees can focus on value-adding activities instead.
With the right technology, SMEs can transform the employee experience with tools that empower teams to make informed decisions that achieve business goals and outcomes. Leveraging purpose-built people solutions can be the key to running a smooth, efficient operation.
