Using Technology To Manage Your Labor Shortage

An Ongoing Problem: Solve Your Labor Shortage in 2022 with ERP

“Labor shortage” is a phrase used far too often nowadays. Businesses in every industry across the globe are searching for skilled workers to fill their job openings but are coming up short. With so many jobs available and so many people unemployed, it begs the question, “Why is there a labor shortage?” Depending on who you ask or what you read, it boils down to several factors: The pandemic (fear of exposure), generous unemployment benefits, skill gaps, career shifts, supply chain issues, and more.

Whatever the reasons for the 2021 labor shortage (and potential 2022 labor shortage), your focus should be on how to manage labor shortage issues wisely so that your business can continue to operate in these unprecedented times.

This is where cloud ERP technology comes into play.

A cloud ERP solution is a comprehensive business management tool that rests on a modern, flexible platform. Every department, including accounting, customer service, payroll, services, sales, manufacturing, and more, is connected, which means data from each department is synchronized and available to all employees. Because the ERP is based in the cloud, the shared data is accessible at any time and from anywhere using a web-enabled device. And businesses that choose a solution with open APIs are able to seamlessly integrate with third-party applications.

In addition to receiving an end-to-end view of the business process, better reporting capabilities, and deeper insights into the health of your business, you’ll have the ability to manage labor shortage issues. Here’s how.

1. Understanding Your Resources, Anticipating Your Needs

When trying to manage labor shortage concerns, having up-to-date and accurate information from a centralized location (commonly referred to as a “single source of truth”) provides insights that help you identify and anticipate your business needs (e.g., forecasting and planning). Labor is obviously a huge business need. Knowing your workforce requirements in advance is a huge advantage.

Let’s use the construction industry as an example.

Construction firms juggle multiple projects at a time. With the right cloud ERP solution, they’re able to manage projects, budgets, activities, issues, change orders, documents, and costs in real time from a single dashboard. In terms of managing labor, they have the information needed to determine workforce requirements.

Instead of desperately trying to hire x number of workers for a job starting yesterday, they have time to attract and incentivize skilled workers for jobs starting in the future.

2. Embracing Automation Across Your Workflows and Processes

Managing workflows and processes manually is time-consuming and, in today’s digital reality, unnecessary. Your employees are spending time they don’t have figuring out their next steps, including who is doing what and what has already been done.

A cloud ERP solution automates, streamlines, and simplifies your processes and workflows. Your employees are freed from doing mundane, routine tasks and can focus on activities and tasks more suited to their abilities, increasing productivity.

The increased productivity brought by ERP automation means less manpower is needed to get the job done and needing less manpower during a labor shortage is critical.

3. Seamless Integrations

As previously noted, a cloud ERP solution integrates applications through open APIs. According to Technopedia, “An open API is an application programming interface which is available for use openly by the public. This kind of API allows developers to easily reprogram commercial or proprietary software for their own use.”

Seamless integrations between applications (such as integrating financial reporting with eCommerce) eliminate data silos as well as the need to switch from one application to another. There is no delay in the exchange of information. You and your team have a unified database that provides an accurate record of business-wide transactions.

The increased efficiency brought by seamless integrations eases the demand for new team members.

How Acumatica Can Help

With 2021 labor shortages possibly extending into 2022, investing in a modern, mobile, and affordable cloud ERP solution is vitally important. Here at Accordant, we recommend Acumatica Cloud ERP as one such solution.

Acumatica’s universal platform with open APIs and low-code/no-code customization capabilities is exactly what every business needs to become a connected, personalized, and efficient business. With synchronized data from every department and application (accessible 24/7), users have a 360-degree-view of their business. And Acumatica’s modern technology helps manage labor shortage issues, from forecasting/planning labor needs through company-wide visibility into resources to embracing automation and seamlessly integrating applications.

To learn more about Acumatica and how it can help your business become more efficient and profitable, even during a labor crisis, contact our construction technology experts today.