What WE can do for YOU… The Labor Tracking Tool
The Labor Tracking tool allows us to track several metrics of the business:
Estimate accuracy: For newer customers, we can compare our job time to our original estimate so we know how close we came to modeling the correct number of hours. If we consistently over-estimate our hours, it helps explain why we consistently lose bids. If we are under-estimating we may be winning jobs but potentially losing money, effectively pricing ourselves out of business.
Operational efficiency: If we track our job time at the site, we can compare this to our budgeted hours to see how efficiently we are performing the actual job tasks. To make this work, our budgeted and actual hours must consist of only the job-site time (no travel time). Operational efficiency has a direct and substantial effect on the labor margin for our business, which is typically our highest cost. We usually see a direct correlation between the operational efficiency we record from the labor tracking and the Gross Profit we realize.
Route/Crew efficiency: We can compare the job site time to our overall paid hours for a given crew to see how efficiently we are working when include travel time, paid down time, etc. Route density has a substantial impact on this metric. The tighter our routes, the less time we are wasting from site to site. This leads to lower direct labor costs and lower estimates for clients who can easily be plugged in to the route.
If you are not tracking labor right now, you will not know the element(s) of labor on which you need to focus for improvement. The result is reduced cash flow and lower company valuations. This is a metric which can be tied to incentive programs to drive your supervisors and managers, creating a company that exceeds industry benchmarks and creates the most profit and value.
The Labor Tracking Tool…just one of the many services Three Point Group offers. Want to find out more? Contact us today! 678-366-0333
