Global Logistics and Supply Chain Strategies - March 2008 - (Page 60)

OPINION requirements. Programs that make managing these variables easier have moved into the mainstream of the distribution industry because they enable companies to do more work with fewer people. According to AMR Research, labor management systems (LMS) typically raise productivity 20 percent or more for warehouse operations. An aging—and shrinking—workforce increases the need for such programs as companies struggle to maintain or improve their productivity despite fewer workers. In addition, labor management systems allow warehouse and distribution center management to evaluate staff performance against engineered labor standards or other measures. With a diverse workforce the ability to develop best practices for specific operations, along with detailed instructions on proper placement of materials and sive use of technology. With much of the incoming labor force accustomed to the use of technology in many aspects of their lives, some changes in compensation and workflow can be easily implemented. Labor management software that reports on job performance, for instance, makes changing compensation from a strict hourly wage to a function of certain productivity measures much easier. Similarly, slotting and scheduling software that optimize productivity is seen as a boon by these same workers, who expect automated processes and prefer to use technology rather than manual labor whenever possible. With the right technology in place, performance-based compensation systems respond to the expectations of today’s workers that their success should depend on working smarter, not harder or longer. model. Possibilities may include offering partial shifts as either reduced hours or fewer days to accommodate part-time employees, establishing new shift hours, offering four-hour work increments and implementing cooperative scheduling. For today’s workers, feeling valued and encouraged to grow is critical to happiness at work. Educational benefits employees value range from literacy programs to skills workshops and software training to tuition reimbursement. Workers no longer expect to stay with the same company for life, so they are more focused than ever on keeping skills current to facilitate the change in employers they see as inevitable in their careers. In addition, numerous studies indicate that younger workers, women and minorities expect recognition from and connection to company leadership. The incoming labor cohort does not value—or always tolerate—a highly hierarchical organization. Companies that respond with team structures, flatter organizational designs, and mentoring and training programs will most effectively meet the expectations of the emerging workforce. Employees now want both tangible, cash acknowledgment for their contributions to the enterprise and expect praise and promotions for their achievements. Image Matters In another switch from past patterns, increasing numbers of employees want to work for a company with a positive reputation. Attending to image today does more than position the company with potential customers; it is an important part of a successful human resources program. Employees want to be associated with well known and admired companies, so public relations programs, corporate giving strategies, and community relations activities all contribute to improved recruitment and increased retention. Distribution managers who want to win the competition for good workers will respond to the changing labor environment by adopting a more creative approach to job structures and recruiting to appeal to a diverse work force. And, they will implement a comprehensive labor management system to ensure they use the workers they do attract as efficiently as possible. To access this article online, visit The Library at www.supplychainbrain.com, category: Interviews/Opinions. To succeed, companies must adapt compensation packages and job structures to respond to the unique needs and expectations of different groups within the workforce. equipment, can substantially minimize training time and quickly improve results. Labor management systems can also capture real-time detailed information about job performance, equipment usage, work zones, work group results, and the efficiency of specific processes. As a result, managers have the information they need when they need it to improve technology, reward workers, change processes, or measure their results— all increasingly important in today’s market where a declining supply of labor makes high productivity essential. Having the right technology is only part of the answer to managing changes in the distribution workforce. With 70 percent of the new entrants to the labor market expected to be women and minorities this year, employers who want to attract the best workers need to develop innovative solutions that will make their distribution jobs attractive to a diverse and demanding workforce. The new generation of workers expects quick results, a fast-paced work environment, and extenNot only do compensation schemes need to be reconsidered, so do retention and promotion strategies—including benefits and team structure. A more diverse workforce means more variety in the kinds of benefits desired by distribution workers—and offering the right benefits and work environment are critical factors in retaining employees. For employers, retention translates into money saved in training and recruitment efforts as well as increased productivity. Increasingly, employees indicate that working conditions matter as much in their decision to remain with a company as the direct pay and benefits offered. Among the factors consistently ranked most important by younger workers, women and minorities are a flexible and supportive work environment, educational programs and benefits, and effective reward and recognition programs. For distribution managers, responding to the desire for greater flexibility requires reconsideration of the typical shift staffing www.SupplyChainBrain.com GLOBAL LOGISTICS & SUPPLY CHAIN STRATEGIES 61 http://www.SupplyChainBrain.com http://www.SupplyChainBrain.com

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Global Logistics and Supply Chain Strategies - March 2008 Editorial GL & SCS Exclusive FastForward Up Front The Green in Green Think Inside the Box Have a Second Look Can't Happen Here Opinion: Stay in the Black as Your Workforce Fades to Gray Opinion: Four Critical Steps to Managing Change in the Supply Chain Industry Voices

Global Logistics and Supply Chain Strategies - March 2008

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