Top Performers Focus on Employee Training, Monitoring and Incentives to Drive Down Labor Costs

Have the recession and the constant pressure to contain costs changed the way companies handle their warehousing and retail storeroom operations? Is improving operational efficiency still the number one priority among warehouse managers?

According to new research by the Aberdeen Group, the answers to those questions are now more complex than ever before.

The study, titled Labor Management: Instill Accuracy, Efficiency, and Productivity in the Warehouse and Retail Store, indicates that while efficient warehouse processes continue to be important, there's also now a growing appreciation for a skilled and engaged staff that can put those optimized operations into practice. In short, Aberdeen found that top performers are focusing on comprehensive training, ongoing monitoring and performance-based incentives to drive down labor costs while still delivering business results.

Specifically, these Best-in-Class firms:

Are 1.9 times as likely as all others to utilize established standards against which employees can be measured. I was surprised to see that laggards are 65 percent less likely than Best-in-Class to have established standards against which employees can be measured how can productivity be effectively evaluated if standards aren't in place? As Aberdeen points out in the report, "If employees are not given direction as to what quantifiable measures and goals will be in place, responsibility for poor performance should rest squarely on management's shoulders."

Are 2.7 times as likely as all others to perform employee-specific data collection.

The report concludes that incentives aligned with corporate goals can be significantly beneficial since improved employee labor productivity has a direct and positive impact on your company's bottom-line.

A complimentary copy of the 25-page report is available at

TAGS: Finance
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