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Labor costs have increased by 10% to 15% during the past five years, according to our research. But the measure of true productivity (units of work measured over a time period) has remained relatively flat. That means there's been an increase in the labor cost per unit of work performed.
And when you consider that employee turnover rates of 25% or higher are not uncommon, it's clear you need to make the most of your return on investment in the operations labor force. If you can better manage your labor cost, you will improve the bottom line.
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