Words by Ross Moody, IPWEA Director Fleet
Public works organisations like to benchmark with their peer organisations and the private sector, but this can be worthless – if not misleading – if not done properly.
Ensure you're making an apples with apples comparison when benchmarking labour rates.
The basis for establishing fleet workshop labour rates can differ from one organisation to another leading to invalid comparisons and even worse poor decisions.
To benchmark labour rates meaningfully, it is essential to know it is an 'apples with apples' comparison and that requires an examination of all the elements that make up the rates. That way it is possible to identify any underlying points of difference which can be assessed in greater depth.
As part of the 2018 IPWEA Plant and Vehicle Management Workshops, IPWEA will present an interactive and hands-on workshop session to address this important issue and provide participants with an understanding of cost recovery labour rates and their implications. Labour rates will be built in a step-by-step process that defines the various components and their associated costs leading to a “fully burdened” (or fully absorbed) labour rate.
It is all too easy for organisations to decide to outsource on the basis of their internal labour rates that could be flawed, and disadvantage the in-house service provider.
About the 2018 Plant and Vehicle Management Workshops, 12-29 November The IPWEA Plant and Vehicle Management Workshops have been providing continuing professional development and networking for people working with fleet for more than 15 years. Providing a mix of training and technical sessions, the workshops are a roadshow that is delivered to eight locations around Australia, enabling attendance by people who would not be able to attend a national event.