Labor analytics software can help control labor costs.
One of the largest costs in healthcare organizations is labor. As volume of activity fluctuates, the labor supply needs to be adjusted appropriately. Having an appropriate quantity and skill mix of full- and part-time employees affects labor costs per hour and labor efficiency, two labor-cost control points that department managers need to monitor to make effective hiring decisions. Managers can use software applications for operating budgets, productivity monitoring, position control, and staffing/scheduling to manage labor expenses. Knowing the type of information each of these cost-control tools provides is critical to making effective decisions related to labor expenses. Because of their unique expertise, healthcare financial managers can serve as a resource to help the organization's department managers manage labor costs.