Labor costs are one of the largest expenses for businesses
Labor costs are one of the largest expenses for businesses. In the hospitality industry, for example, labor costs can average up to 50% of total operating expenses. In the face of rising costs and increased competition, companies are looking to reduce their labor spending. They are trying to strike the balance of making sure they aren’t caught short-staffed causing disgruntled overtime expenses, potential burnout and poor customer service, but at the same time making sure they aren’t over scheduled with underutilized staff.