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Labour Shortage Effects on Automation

Published: Published on Zhilianhai

How it shows up

SymptomWhat it indicates
Overtime and agency staffWage inflation for repetitive roles
High turnoverTraining cost and quality variation
Deferred shiftsLost capacity, not lost demand
Older workforceSkills leaving faster than they are replaced
Recruitment costHard cost with no asset to show

How to use it in a business case

  • Quantify recruitment and training cost, not just wage rates.
  • Include the cost of quality variation caused by churn.
  • Use your own site data; averages rarely reflect local conditions.

Business cases based on local payroll data are more defensible than ones built on national averages.

Information is provided for initial research. Verify specifications, pricing, policies and standards against the original source before making decisions.

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