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Home » GPS Tracking Blog & Software News » Demonstrating How GPS Tracking Reduces Labor Costs
July 15, 2014

Demonstrating How GPS Tracking Reduces Labor Costs

Demonstrate GPS's labor cost saving

One of the key benefits many GPS businesses emphasize when promoting their tracking solutions is that the software can help lower labor costs. It is a big selling point of the service, and it helps with a pain point many fleet managers feel at least twice a month when they do payroll. However, to make this claim credible to your prospects, you will have to be able to outline what features of the software will lead to this benefit. This is why it is important to understand how to apply the attractive features of the GPS tracking solution you sell to an active fleet. Here's how your clients can use the GPS tracking software to reduce their labor costs:

Tighten schedules

GPS provides better estimates for travel time, letting dispatchers reduce schedule gaps in the technician's day. When a tech looks at his daily schedule and sees lots of openings, it can lead to unproductive work habits. Also, an inefficient schedule leaves the business responsible for paying for wasted time. On the other hand, too tight a schedule will create situations where techs show up late to jobs. Late techs mean dissatisfied customers. So, packing a tech's day with back-to-back jobs can help with employee utilization rates, but if there isn't proper balance, it can come at the expense of customer satisfaction.

Reduce overtime

Many hourly employees are paid time and a half for any over time they work. In some cases, scheduled overtime works out well for a fleet. Techs have an opportunity to earn more and the fleet avoids the overhead of adding another full-time employee. However, too much overtime can backfire. Techs get burnt out, fleets end up paying higher labor costs, and regular working hours become less productive as techs look for excuses to work for the higher rates.

Reduce employee turnover

The efficiency and productivity improvements that GPS tracking helps achieve can reduce employee turnover. With less scheduling gaps and healthy amounts of overtime for each month, employees will be more satisfied overall, and will be less likely to go looking for another job. By reducing turnover, the business' labor force will be more productive because there will be less time spent recruiting and training new employees, and employees will be more experienced and productive on average.

Identify productivity trends

What gets measured gets managed. Fleet managers have to be able to see beyond the minutia of the daily activities of their fleets. They have to see the big picture of how their fleet is operating and how productive each employee is over the course of the week, month, and year.

Reward top performers

The labor cost for the top performing quarter of employees is lower than the bottom quarter because of how much more productive they are. They should be rewarded for their good work and productivity. Even with financial rewards, high performing employees result in lower labor costs since the business is able to get more valuable productivity. Rewarding productivity tends to result in more productivity. They more than make up for their higher earnings in higher productivity and other benefits to the business.

Showing your potential clients how they can bring down their labor costs by implementing a GPS tracking solution does a couple of things. It helps them see how affordable your solution actually is. They should be able to understand that when they buy the tracking services from you, they are investing in a productive asset that will help their business become more productive.

If you're thinking about starting a GPS tracking business, sign up today for a free demo. During the demo, you'll learn more about how GPS tracking can reduce labor costs, and how you can use the Position Logic platform to help jump-start your business.