Labor management challenges in the
Manufacturers use overtime to complete work orders, keep up with production deadlines, and increase employee satisfaction. Many facilities, however, are distributing unnecessary OT because they cannot keep track of employee requests and hours worked. Those that rely on paper consider about 27% of their overtime costs to be unbudgeted.
There is also a worker shortage that perpetuates the reliance on overtime. Manufacturers must be resilient and adapt quickly to disruptive market conditions, yet the number of retirees is increasing while the number of qualified applicants to replace them stagnates. Manufacturing suffers from an inaccurate perception of what the industry has to offer, and high-priority benefits like remote work is impossible, making it difficult to attract talent.
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