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What Is Labor Analytics Software?

Are you managing a large workforce? Are you responsible for labor cost analysis? If so, you are probably already looking for tools to help track and analyze work-related data.

Labor analytics software, or LAS, helps you manage labor information so you can move toward optimizing your workforce and reducing labor costs. Here is what you should know:


What Does Labor Analytics Software Do?

The primary function of LAS is to mine and manage data for decision-making purposes. This includes automated data collection pulled from attendance, supervisor input and HR applications. From there, the software can categorize and compare hours, task progress and completion, and cost.

Analytics usually contains predictive capacities, benchmarking and reporting options as well. Many brands build in analectic options, and some are self-serviceable. However, there are some variations between these programs, which often cater to different business needs and types.

Isn’t Labor Analytics Software Just HR Software?

Labor management and HR systems usually work together and employ many of the same analytics. They also focus on many of the same elements such as hiring, retention and job performance.

That said, there is a key difference between the programs. Labor analytics software is more of a big-picture application that can help you identify trends. This is why it also includes succession planning, workforce allocations and cost management. HR software, on the other hand, focuses more on personal applications affecting individual employees, such as onboarding.

Who Can Benefit From Labor Analytics Software?


These applications have become a necessity for larger businesses. Once you stop knowing all your employees by name, you need to switch over. However, LAS applications can be very helpful for many different businesses. It largely depends on the program one selects.

Picking a useful software system obviously depends on your needs. However, some functions such as gathering data are rather straightforward. For LAS applications, analytics is where the rubber meets the road.

One thing to consider is if you currently have HR software that you are really happy with. If so, you may want to include an add-on feature that allows you to upgrade your current system for labor management analysis.

If you don’t have or like your current HR software, you may want to consider a human capital management suite. These are more extensive applications designed to handle all your labor issues. They handle everything from HR outsourcing to labor allocations and cost reporting.

Again, the size and type of business you are in is a determining factor. Industrial applications are designed to handle large numbers of employees. Less expensive and more generalized programs are typically used in medium to small businesses. Their analytic features are easier to apply.

Also, you might consider specialty programs, which are usually created as an extension of scheduling or HR software for businesses such as construction work, medical staffing, emergency services and hospitality management. These programs cater to odd hours, varied locations and nonstandard business practices.

Like most things in business, labor analytics software is all about getting the right fit. Shop around and you are sure to find one that is right for you.

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