In the US during Q1 of 2022, we have seen Nonfarm Productivity fall a whooping 7.5%, that is the biggest drop since 1947.
If we saw the same situation in other areas of our business, we would be fast to act. Imagine how quickly your business would change to electric company cars if fossil fuels were to triple in price, or upgrade computer systems if the old one constantly crashes and causes you to lose customers.
The same cannot be said for employees. In the last 100 years, we have seen little change that truly affects the employee’s working day.
Keep Your Employee’s Happy
With all this happening around us, we need our businesses to become more efficient. We need to use our resources more efficiently, whilst ensuring that our employees are happier and not overworked.
We can take a look at one of our customers whom operate care homes within Europe. They employ around 30 people in different professions. The work can be quite physically demanding, but there was no way to measure this. We at NIVY Watch helped them extract some quite interesting data. We had a look at the staff and noticed that in one of the 3 buildings they work in, the staff suffer from a much higher level of physical excursion.
Red is the 3rd Block, we can see clearly the higher outputs.
The data is simple, but it empowers the company to do something about it. They can set up a rota system, offer a small bonus for working in the 3rd building, or provide better amenities for staff to rest.
This simple analysis can help retain staff and provide a superior customer experience. According to Europa.eu, EU unemployment stands at only 6.2%, by far the lowest since 2008, and the US has its lowest jobless claims since January 1970 .
Forbes has put a number on the price of staff turnover at approximately 33% of an employee’s salary yearly . Not only that, it takes 8 – 12 weeks to replace a knowledgable worker and has a dramatic effect on team morale .
Improve Employee Efficiencies
Making employee’s happier and feel more valued is a great start to helping counter the current economic challenges, but you can take it one step further by reviewing even more data.
One logistics company we work with had an issue where production just stopped 7 times in a day. Each time was quite short, but in total it added up to 12% of the working day.
Being a small company, they didn’t believe it was down to problematic staff, but simply a process issue. The problem being, these are the hardest to track down. NIVY Watch installed some beacons and the workers wore our watches, the results are so simple but effective it is almost unbelievable.
On the chart above, we can see the data from one employee. The red line is units produced, and the blue line graph is the distance from the employee’s workstation. We can see that when the employee was far from their workstation, production naturally halted. By using strategically placed location beacons, we could identify that the worker was actually going to the material rack to restock with material.
Such a simple piece of data would be almost impossible to find in a company of even 50 employees without using technology like NIVY Watch. It can provide simple, actionable insights that quickly & specifically target the most in-need areas of your business.
To conclude, it is clear that inflation isn’t going away anytime soon and this is going to have an effect on all of us in one way or another. In times like these, throughout history, companies are either left behind or they innovate, There are many ways technology can help businesses grow, maybe NIVY Watch is one of them!