What is the importance of labor hour?

Hello Team,

Its indeed very important.  Somehow,  its the basis of the welfare workers enjoy today around the World in countries born by America and beyond.  It protects the rights of the workers.  It was an arena where majority of the nation gather with similar opinions and discuss on how to better themselves to better the government. 

Work hours are key components in estimating productivity growth and hourly wages as well as being a useful cyclical indicator in their own right, so measuring them correctly is important. The US Bureau of Labor Statistics (BLS) collects data on work hours in several surveys and publishes three widely-used series that measure average weekly hours. The series tell different stories about average weekly hours and trends in those hours but qualitatively similar stories about the cyclical behavior of work hours.

Regards,

Saiyid

Agree wiyh answer added by mr, Saiyid Maududi

Working time statistics are needed to evaluate the effect on workers’ health and safety of the number of hours worked and how these are organized during the day, week or month, and to monitor working hours and schedules in relation to existing laws and regulations regarding (a) the maximum hours that workers are expected to work on a daily or weekly basis, (b) the number of overtime hours, (c) working schedules other than regular full-time schedules, such as night work, shift work, etc., and (d) certain absences from work, such as vacation, sick leave.

Finally, statistics on working time are also needed to implement, monitor and evaluate policies and programs that target the balancing of work and family life, an area which has become increasingly important .

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They are accounted for eight and forty-hour work week considering six days (ie on only one rest per week). If the work week of five days (ie, days of rest), the maximum weekly working hours is forty hours.The lesson here hours of actual work. That does not come in these hours the time spent working on going to work, for example, or the time spent in the back

I agree  , i think the answers are informative and define the question , i will just be repeating whats already been said  , Good answers all 

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Reducing Labor Costs

The price of labor constitutes a significant part of the total cost of a small business, and no business can survive for long by ignoring labor costs. Downsizing the workforce may result in short-term cost reduction. However, this will leave you vulnerable when you need to ramp up volumes with short notice. Unfavorable employee turnover also contributes to overall labor costs. Rational and intelligent labor cost control will boost productivity and enhance profits.

Direct and Indirect Benefits of Labor Cost Rationalization

By keeping a keen eye on the cost of labor, you can save money in the short and long terms. Although this is the most obvious benefit, you will learn to recognize many other benefits once you begin the process of cost reduction.

Cost control is impossible without data related to labor costs and labor performance. With this data in hand, you both reduce costs and also find ways to improve efficiency, enhance skills, rationalize HR policies and boost employee morale. Collecting data to facilitate an informed labor cost reduction decision is a cost-saving idea in itself.

Invite cost-saving ideas from employees and make them a part of the decision-making process. Be innovative, perhaps by reducing the time allotted for breaks and using the money saved to set up a gym or a recreational zone for your employees. In this way, labor cost reduction can actually help improve employer-employee relations.

Technology: a Fantastic Tool to Rationalize Costs

Cost control can be initiated by automating the process of recording employee attendance. Software applications work to analyze data and determine the hourly efficiency of your workforce. This helps you assess employee discipline and efficiency and helps you plug wastages and leakages.

Is obsolete technology affecting the efficiency of your workforce? Spending money on improved solutions can help you automatically reduce labor costs without having to downsize a single employee.

Technological improvements have helped us overcome past limitations. Consider reducing expenses by asking employees to work from home. Offer flexible working hours and keep track of hours with the help of software applications and web cameras to reduce expenses.

Use social networking websites to minimize the cost of finding new talent. Encourage employees to find new talent through professional networking websites. Consider the option of outsourcing the work to third-party freelancers to maximize cost reduction.

Risks Involved in Labor Cost Reduction

Buying an automated time clock can cost between $350 and $500, which may seem exorbitantly expensive when compared to traditional solutions. Buying laptops and paying for the installation of networking equipment for work-from-home employees also may involve a hefty outlay. However, it is easy to spend and hope that benefits will automatically flow.

Technology, however, will yield benefits only if the collected data is utilized properly. You will also have to consider the recurring cost of maintenance and upkeep.

Conclusion

Labor cost reduction must become a part of the core vision of your small business. Factors affecting labor costs are always changing. Your efforts to reduce expenses must evolve accordingly. On the other hand, a keen business sense is also required, since one cannot just blindly hope that technology alone will reduce expenses

Importance of Labour Hour not only restricted towards ensuring Labour rights in working time, wages, benefits etc., but also indirectly plays an important role in improving productivity by limiting the working time and also avoids unncessary overhead costs to the factory.