Importance Or Needs Of Labor Cost Control

The need of labor cost control arises to fulfill the following purposes.

1.  Labor cost control is important to make economic utilization of labor force in production process.
2. Labor cost control is important to obtain maximum quantity of output with the least amount of materials and other resources.
3. Labor cost control helps to obtain better quality output with the least effort and time of workers.
4. Labor cost control reduces the cost of production of products manufactured or services rendered.
5. Labor cost control ensures the satisfaction of the workers by creating a good working environment in the factory.
6. Labor cost control helps to adopt the fair system of wage payment and to minimize labor turnover.
7. Labor cost control is helpful in minimizing wastage of materials by workers , idle time and unusual overtime work.
8. Labor cost control is helpful to maintain safety working environment.
9. Labor cost control is important to keep complete records of the employees and to supply information to the management regarding availability, efficiency, utilization and absenteeism of the workers.
10. Labor cost control is very useful to increase the profitability and competitiveness of the organization.