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How to keep labour costs in check

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Infrastructure Partnerships Australia chief executive Brendan Lyon recently urged Australian businesses to exercise more control over costing of major projects to ensure they were running on or below cost.

Labour is a particularly critical component of costing jobs in Australia, given that even the lowest paid full-time Aussie worker earns a tidy minimum wage of AUD 16.37 per hour, compared to USD 7.25 (equivalent to AUD 7.75) in the US.

Labour cost will continue to rise as indicated by the latest Australian Bureau of Labour statistics, which reveal unit labour costs are up 1.9 per cent year-on-year in 2014. One industry that is encouraging automation and outsourcing to save money from high labour costs is the restaurant industry. A recent survey shows wages and staff on-costs account for about 45 per cent of a restaurant’s typical business expenses.

This is the reason labour costs need to be factored into every job analysis. Decision makers increasingly need the ability to use data and information about labour costs of jobs to focus on reducing unnecessary costs, increasing productivity and gaining greater operational control.

Mitrefinch Time and Attendance solutions enable businesses to better measure, analyse and manage the working time of their employees, allowing more effective and more efficient deployment of human resources. The powerful Labour Costing system allows the employer to plan daily and weekly tasks across multiple cost centres, compare planned tasks and budgets with those already achieved, and track projects by hours, quantity, or cost.

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