Controlling Wage Inflation with Employee Productivity Management Tools Powered by AI
U.S. employers paid 4% more?in wages and benefits last year, according to the Employment Cost Index. Wage inflation is here, it’s real, and industry leaders expect it to continue. As companies plan for increasing workforce costs in 2022 and beyond, it’s more important than ever to understand the results of that investment. One relatively new field that’s quickly becoming mainstream is employee productivity management (EPM), designed to help companies better understand, measure, and enhance employee performance.?
In any organization there are top performers, average performers, and below average performers. Using technology to help identify poor performing employees gives employers the opportunity to protect the investment they made in hiring, training, and managing those team members by providing additional professional development, coaching, and mentoring support. If low performing team members go unnoticed, they can drag down the financial performance of the business and damage morale when high performers notice they’re not pulling their own weight.?
The future of work is changing, and the move to more telework and flexible work schedules has accelerated over the past two years. The quick implementation of work-from-home protocols has challenged many managers now tasked with mentoring, managing, and engaging employees remotely – some for the first time. There’s been a lot of talk about communication and collaboration tools that can help dispersed teams, but new technology tools are now available to help managers too.
A leading technology company in the EPM space, Prodoscore provides a non-intrusive approach (no keystroke logging, no camera monitoring, no website tracking) to measuring employee productivity. Using machine learning, AI, and natural language processing, Prodoscore tracks thousands of daily activity points across core business applications to deliver productivity intelligence and give leaders the data to make informed decisions about their workforce.?
From January 2020 to April 2021, Prodoscore reviewed 21.7 million data points collected from 3,000 U.S.-based employees and 140 organizations. Low-productivity employees measured 11.7% of the sample, average-productivity workers 72.7%, and high-productivity workers 16.1%. Prodoscore gives every employee a score on a scale from 0 to 100. Scores under 40 are considered low productivity, non-engaged employees.?Scores between 40 and 70 are average and scores above 70 are high productivity employees. For more analysis on the cost of low productivity workers,?you can?read more about their study here.??
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Prodoscore is simple to implement because it accesses log data via API from a business’ main operating systems, including collaboration tools (MSFT O365/Teams/WebEx), CRMs (SalesForce) and UCaaS phone systems (RingCentral, 8X8). The data is analyzed using Google’s AI and ML tools and presented in an easy-to-understand format (a simple scoring system), giving managers clear insight into the productivity of each team member.?
When we initially invested in Prodoscore at CAVU Capital, we did so because we thought that working remotely was becoming the new normal and that managers would require new tools to work effectively in this new environment. Today, we believe Prodoscore is well positioned to help companies combat wage inflation as well – by identifying low performing employees so they can be coached up, or coached out.??
For more information on Prodoscore, visit?www.prodoscore.com.
CAVU Capital is a private investment firm founded in 2020 and headquartered in?Tampa, FL.?CAVU makes investments in emerging and mid-market technology companies and takes an active role in helping management create and execute a plan to grow. For more information, visit?www.cavucapital.com.
Business Specialist at Tiana Smith Coaching
2 年Great ??
CFO and FP&A Executive: Perm, Project, Fractional, Interim. M&A Advisory, Purchase Due Diligence, Navigating Private Equity. Turnarounds/Restructurings. CFA Charter. Top 20 MBA, Beta Gamma Sigma. Bitcoin enthusiast.
2 年Great post Barry Shevlin Separately, raising prices absolutely should be a situational decision. Consumers are getting hit with fuel, food and rents inflation well beyond CPI data, which uses hedonic quality adjustment to mask real inflation pain. Companies should also consider flat pricing complemented by productivity tools, or even price reduction, as there is a strong opportunistic case for capturing market share during these episodic high inflation cycles. Best wishes for your personal and portfolio success.
Sr. SEM Specialist at iFixit. The Future Is Repairable. Together We Can Fix Anything.
2 年I believe the brilliance stems from AI scoring to not be intrusive on your staff. A good employee will utilize most tools available and time wisely. A productive employee will use both efficiently. Their algorithm seems to holds true, which makes prodoscore a GEM. Knowing you are monitored is bad enough, but forcing someone to clock in and telling them when they can take a break at a certain time in this day and age is absurd. I’d like to give this some thought. If you do 90% of your job at an amazing level, but your manager notices 10% that is slightly off, the messaging from the manager in reprimanding can kill that 90% long-term. You don’t have full visibility in that 90% without prodoscore. More true in a remote position.
Embracing New Horizons: Reflecting on a Rewarding Journey at Prodoscore and Welcoming Future Challenges in Tech
2 年Genius ??
Operating Partner @ Axial Reade Capital, LLC
2 年Now is the time to refine operations and process to drive efficiencies everywhere (including through RPA and AI) but there is only so much juice in that squeeze. At some point in an inflationary environment prices have to adjust. For businesses with pricing power I suggest that the time for price increases is sooner, not later.