UPDATED 09:00 EDT / OCTOBER 10 2017

APPS

Deloitte gets into the product game with workforce analytics tool LaborWise

Deloitte Touche Tohmatsu is best known for the information technology consultancy services it provides to enterprises, but now the company is looking to broaden its horizons with the launch of a series of standalone software products tailored to address specific customer pain points.

The first of those products is called LaborWise, which Deloitte describes as a workforce analytics tool that’s designed to help companies keep a lid on “labor overspend.” First released last year, LaborWise is receiving a significant update with new capabilities that should help organizations to identify the relationships between overspend and workforce productivity, which in turn should help them to boost the productivity of their employees.

The main purpose of LaborWise is to help organizations reduce their labor costs. It does this by analyzing employee data to identify the nine most common causes of overspend, including miscalculated overtime, missed punches and canceled meals, among others.

Labor cost overruns can be incredibly expensive for large-scale organizations, Deloitte says. The firm cited its own analysis that shows the average Fortune 500 company spends $1 billion to $2 billion a year on labor, amounting to 50 to 60 percent of their operating expenses. Labor overspend typically averages around 0.5 to 2 percent of these firms’ hourly payroll, which puts the average overspend of a Fortune 500 company at $30 million per year, Deloitte said.

That explains the new update. LaborWise’s new capabilities serve to enhance the platform by drawing connections between overspend and important metrics like sales performance. Using the new data LaborWise provides, Deloitte reckons, companies can realize even higher and more sustainable long-term savings with regards to labor costs.

“Many of our clients didn’t realize how actionable their workforce data was until we ran it through LaborWise,” said Pat Russo, a principal at Deloitte Consulting LLP. “Not only can organizations realize significant savings after using LaborWise, they are then able to reinvest that savings into the organization for other strategic priorities.”

Russo said the LaborWise update marks the beginning of a new strategy that will see Deloitte launch a range of new software products that are designed to tackle specific problems enterprises face, and for which no specific solution currently exists.

“We consistently assess the challenges our clients are facing, and the vendors they work with to see how we can partner to innovate and develop products in what we would call the ‘white space,’ the space that no vendors were tackling today but we knew represented pain points that our clients were dealing with,” Russo said.

LaborWise is available as part of Deloitte’s consulting services or as a standalone product.

Image: Deloitte

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