How artificial intelligence can help solve labor shortages

The problem of labor shortage is becoming increasingly prominent. Can AI help?

The “Great Resignation” has resulted in labor shortages that are impacting every business, especially those with large numbers of hourly employees. As businesses look for solutions, including new ways to attract and retain talent, employees will continue to re-evaluate the priorities they value at work, said Kshitij Dayal, Legion senior vice president of engineering and operations.

Large companies like Walmart and Target are raising wages to attract hourly workers. However, with so many businesses now offering signing bonuses and record-breaking compensation packages, employers hoping to compete in a tight labor market need to find a new way to win over employees. AI-driven workforce management and demand forecasting could be the solution.

Using Artificial Intelligence Insights for Demand Forecasting

Every brick-and-mortar business will experience peaks and troughs in labor demand. From holidays to weather events, there are many factors that influence the rise and fall of your business on a daily, weekly and monthly basis. However, without the right tools to properly forecast demand, managers cannot develop optimal labor plans and employee schedules to determine how many employees should be working on a given day or at a given time. Scheduling too many people will result in labor overruns, while scheduling too few will ensure missed revenue opportunities, as employee productivity may be hampered in trying to meet customer demand.

For example, in a restaurant with too many employees, a slow day can result in lost business; in a restaurant with too few employees, a busy day can result in lost revenue because it does not have the right amount The waiter or chef cannot accommodate and serve enough customers. Additionally, inefficient scheduling can lead to dissatisfied employees who feel overworked when short-staffed.

A workforce management platform that integrates AI-driven demand forecasting capabilities can help solve these problems. Use machine learning algorithms to analyze key data points and demand drivers such as daily weather, local events, and more to look for patterns and market trends. Predictive analytics models then use this information to provide insights into customer behavior to help determine where demand is coming from, as well as optimal employee schedules. By harnessing the power of artificial intelligence for demand forecasting, employers can create highly accurate schedules, allowing them to optimize their labor efficiency. Additionally, you can more easily match your business needs with your employees’ skills and preferences, creating a better employee experience.

Building Flexible Schedules into Workforce Management

In today’s competitive labor market, employers also need to offer flexible schedules, especially since 85% of hourly employees feel confident about their working hours Having more control is important. However, managers who still use traditional manual methods to create work schedules (such as spreadsheets or even "pen and paper") risk creating inefficient schedules and wasting time that could be used on higher value activities. time, such as working with clients, to provide constructive and positive feedback to employees.

AI-driven workforce management solutions can automate the entire scheduling process, allowing managers to easily and efficiently generate schedules that comply with local labor laws, such as meal and rest breaks, while also meeting employee preferences. These smart scheduling solutions also allow employees to easily request time off, swap shifts, and even work overtime—often just on a mobile app, creating a better overall experience for all employees. Because employees can define when they want to work, how much they want to work, and where they want to work. Mobile platforms are especially important for Millennial and Gen Z employees, as they expect all aspects of their lives to be online, efficient and personalized to suit their needs.

Smart workforce management platforms also allow businesses to optimize their workforce by sharing employees across multiple locations. Not only does this provide businesses with more employees who understand the inner workings of the business, it also allows employees to take on additional work that they might not have been able to do before.

Mitigating Supply Chain Disruptions

Even now, more than two years after the pandemic began, supply chain disruptions remain a pain point for every industry as companies chase product demand, causing delays and Push up prices. While current employment trends are not the sole cause of supply chain conditions, they have had a significant impact, with industries such as manufacturing, transportation, warehousing and utilities seeing high turnover rates last year. From an inventory and employee perspective, businesses are having to do more with fewer resources.

Intelligent workforce management solutions can help manage supply chain uncertainty by enabling distribution centers to operate more efficiently. For example, by using AI and ML, enterprises can analyze thousands of data points that may affect labor needs, such as delivery dates, weather events, etc., to make better, more informed scheduling decisions. Additionally, staffing guidance can be created based on demand, labor standards, business policies, and budget constraints to develop the best labor plan. This allows distribution center operators to develop long-term staffing plans with fixed and flexible schedules.

Create a positive work environment

If there is anything to be learned from the Great Resignation, it is that no business is immune to the labor shortages and training challenges that have arisen during this time. Rather than sitting around offering the same benefits and pay that employees no longer find valuable, companies should take the time to reflect on what employees really want from their jobs and the company. Is it more recognition, higher pay, or greater flexibility in working hours.

By offering benefits that better align with employee needs, companies are proving that they truly care about their employees, not just the numbers. This will create a better corporate culture and predict the future, reducing the chances of employees leaving the company.

Every competitive advantage matters as companies continue to find new ways to attract and retain hourly workers. AI-powered workforce management is a game-changer, providing employers with a simple way to optimize their labor efficiency while improving their employee experience.

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