Tanda Blog

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Product Updates    |   

Here’s why, what, and when it will happen. So why the upgrade? Building rosters is the cornerstone of staff management. Since Tanda started in 2012, our customers have created more than 59 million shifts, almost 550,000 rosters, and more than 7.5 million timesheet exports. That’s a lot of mileage for seven-year-old technology. And it’s done a lot of good for our more than 7000 customers.  And, because you trust us to build cutting-edge workforce software, we aren’t resting on our laurels. We want to keep bringing you the best, most advanced rostering solution in the world. New Rosters: re-engineered for the future of work Introducing faster, more powerful, and even more reliable rosters. We’ve rebuilt completely from the ground up, which means: Changes with you. Laced with the most advanced software engineering technologies, this is the most flexible product we’ve ever made. Features and improvements will be released faster than ever before. That means, with our customer-first mantra, your feedback will be actioned rapidly. More views. New technologies enable us to build wide-ranging fortnightly and monthly rosters that weren’t possible with the old technology used in Classic Rosters. More performance. When you log-in, everything is snappier, faster, and more responsive. When is it happening? Today, 18 September 2019, there won’t be any changes on your account. The rollout will start from next month. On 18 October 2019, your account will default to New Rosters. Default means clicking on Rosters goes to New Rosters instead of the current view (Classic Rosters). However, this won’t be a sudden change. We know that, at the end of the day, customers prefer the familiar — which is completely understandable. So you can still use the old version of rosters, which we are now calling Classic Rosters. Access it by hovering over Rosters and selecting it from the drop down. We will also keep supporting Classic Rosters. That means if you are using it and have a question, our expert Support Team is happy to help out. The new and powerful. Easy-to-use, advanced features being added to New Rosters. Limitless Rostering. Roster for more than one week, two weeks, or three weeks in the same view. You can even roster for 18 months on one screen if that’s how your business works. Custom Fields: So every employee has all the information they need. Create fields to communicate reminders, addresses, and other details for each shift.  View Options. Customise how your rosters look based on your unique business needs/style. Organise it by teams, by hourly rate, by the number of rostered hours rostered, and more. Instant Information. See detailed shift, staff, and costing information at a glance. Re-engineered. With brand-new technologies under the hood, New Rosters now loads much faster for organisations of any size. Roster Patterns. For 24/7 industries need round-the-clock rostering. What’s not changing? From creating shifts to assigning teams to seeing roster costs and building templates, you can still accomplish the major tasks you’ve always done in Classic Rosters. New Rosters just helps you do more.  We’ll be there every step of the way We realise this is a massive step up. But change can sometimes be difficult — it can certainly be in this case. So we will give you everything you need to transition into the faster, more powerful future of Tanda Rostering: Help articles that detail how it all works Product Tours when you visit New Rosters for the first time. They will take you through how to use it — after which, you can try it yourself Expert Support Team if you have questions specific to your account Software is a two-way conversation. Let us know how you go. It’s not just us talking at you and telling you what to use. We want you to tell us what you think as well. What are you finding useful? What doesn’t quite make sense? Let us know by answering these quick questions.  

Announcing the brand-new Rosters upgrade — the world’s most comprehensive staffing tool.

17 September 2019

Product Updates    |   

Communication leads to perfection. SMS, calls, FaceTime, face-to-face, WhatsApp, and time and attendance (T&A) all have one thing in common. They are used to send and receive messages. The communication gets especially more complex with T&A. Whenever you log in, you build and publish rosters. You ask for staff details during onboarding. You receive leave requests from the team. There are a multitude of moving parts in any given shift. That\'s why your T&A needs to act like a communication service. According to a study by the Economist Intelligence Unit, poor communication drastically impacts morale, sales, and goals. Some losses have even been in the hundreds of thousands. And, just as managers need to adapt to each employee’s communication style, they also need to know which tool to use in each situation. Key Points: Three major releases this month Bespoke information workflows with The Platform A record of contract hours with Regular Hours of Work Complete staff inductions with employment contracts in onboarding More often than not, T&A software is a 2-step information exchange. Step 1: Tell staff their start and end times. Step 2: Staff prove they followed those times by clocking in and out. But it can also be a complex process. To run the perfect shift, some teams need extensive information such as addresses, vehicle numbers, access codes, preferred hours, staff on leave. And don’t forget onboarding contracts, managing leave requests, performance review dates. The list goes on. Every feature we release is working towards one goal: empowering you to run the perfect shift. And correct, comprehensive communication is a massive part of this. So this month, we released 3 major features to help strengthen those lines of communication. 1. Communicate bespoke information with The Platform Custom fields on rosters (L) and the Tanda App (R) If you’ve ever needed to send information to your team before a shift starts, there’s a high chance it’s done outside of Tanda. Things like alarm codes, reminders, or client details. Anything your team needs to be able to complete the perfect shift. But what if you could do it all inside Tanda? Store client addresses. Send unique reminders. Keep track of performance review dates. Even create an entire database of your customers. Welcome to The Platform. It’s a brand-new way of workforce management. The Platform is made up of Custom Fields and Custom Objects. Between these two, you can create your own fields and forms, and turn Tanda into a bespoke, powerful data management tool.  We believe it’s the future of workforce management. See how it works. 2. Keep a record of contract hours with Regular Hours of Work Set Regular Hours of Work for your staff. Choose break lengths, teams, and how shifts are split. The fact is, as your business grows, so do the administrative requirements. The brute force solution for this is to hire more and more staff to handle the paperwork — but that might blow your bottom line wide open. For permanent staff (especially part-time), contract hours are a staple. Using Regular Hours of Work, you can keep track of it all in Tanda. This cuts on back and forth between different systems because, hey, rostering and leave is just on the next tab over. Recording Regular Hours of Work is just the beginning. In the next few months, you can create both rosters and leave requests from Regular Hours of Work. Whether you’re building out your rosters or processing massive amounts of leave, Regular Working Hours automates the most time-consuming part of that process. If you have Admin, General Manager, and Payroll Officer permissions, start recording your team’s Regular Hours of Work now. For team managers, ask your supervisor to do this for you. 3. Better onboarding with contract uploads and welcome messages In the first days of your newest hire, a smooth onboarding is one of the best ways to ensure early success. One of the core parts of this process is signing a contract. The easiest way to do that is with Tanda’s onboarding offering. You can now upload their contracts when you send onboarding invitations (and include a nice welcome message, too). This means they can sign it with a click of a button. Note: Please double-check if this is sufficient to count as a signature.

Three ways to run a perfect shift (that aren’t clocking in and out).

4 September 2019

Awards & Rostering    |   

Looking for talented and culture-fit employees is hard enough on its own, but the real challenge for any manager is when the onboarding process kicks in. Is onboarding really important? Onboarding new employees is essential in making sure they know specific details about the company, knowing who they’ll be working with, and setting expectations at work. It’s an important step in the employment process that affects retention in the long-run, and contrary to popular belief, it doesn’t have to be complicated nor expensive. Here are three easy steps to onboard your new hire: Step 1: Introduce them to the company Anybody who’s gone through their first day at a new job knows what it’s like — excited to get to work but also quite nervous in the new environment. Making new hires feel welcome is one of the first steps in helping them get settled quickly, and there are several ways to do this. For one, you can send a welcome email a week before they even start working. And once they do start, take them around the workplace as soon as possible, and introduce them to their new colleagues. And this doesn’t just mean making them shake hands with staff from every department. Introduction of a new hire to your company is more than just remembering names and titles — it’s also about letting them in on the values, culture, and overall standards that the organisation has. Providing them with this information will make them feel involved in the business’ overall success right from the start. Free e-book: Making the Onboarding Experience Work for your Business Step 2: Collect essential staff information Here comes the nitty-gritty part: Collecting the important employee details for HR and operational purposes. Some of these include their personal information (birthday, residential address, bank account details), tax declaration form, and a signed acknowledgment of workplace policies. Traditionally, this was being done through paper, where staff would need to fill up and submit forms on their first day. Thanks to technology however, this part of the onboarding process can now only take minutes to complete. Some workforce management platform now offer paperless onboarding, allowing managers to collect data, upload files, and sync bank details with their current payroll software. Not only does this free up time for the managers themselves, but it also allows new employees to finish administrative tasks quickly and get straight to work. Read more: The Employer’s Onboarding Checklist Step 3: Communicate goals and expectations Set a one-on-one chat with your new hire as soon as all the operational stuff are out of the way. Often, employees turn dissatisfied at work because their managers fail to communicate clear goals and expectations for their job, which then leads to the staff underperforming or worse, leaving the company. Make sure to give them specific, measurable, and realistic goals that are tied down with your team’s, and ultimately, your company’s mission. Some employees will also expect training and traveling opportunities, which can be clarified upon onboarding. Being able to sit down with your new employee only takes minutes, but could greatly affect their future at work. In summary, onboarding new employees requires time and effort to execute properly. There’s a lot to take care of, but if you prepare ahead of time and use the right tools, you can pull it off swiftly and empower your workforce towards success. Ready for a smooth onboarding process? Try Tanda’s Paperless Onboarding feature for 14 days, no credit card required.

3 Steps to Onboard a New Employee

3 September 2019

Product Updates    |   

Here’s why, what, and when it will happen. So why the upgrade? Building rosters is the cornerstone of staff management. Since Tanda started in 2012, our customers have created more than 59 million shifts, almost 550,000 rosters, and more than 7.5 million timesheet exports. That’s a lot of mileage for seven-year-old technology. And it’s done a lot of good for our more than 7000 customers.  And, because you trust us to build cutting-edge workforce software, we aren’t resting on our laurels. We want to keep bringing you the best, most advanced rostering solution in the world. New Rosters: re-engineered for the future of work Introducing faster, more powerful, and even more reliable rosters. We’ve rebuilt completely from the ground up, which means: Changes with you. Laced with the most advanced software engineering technologies, this is the most flexible product we’ve ever made. Features and improvements will be released faster than ever before. That means, with our customer-first mantra, your feedback will be actioned rapidly. More views. New technologies enable us to build wide-ranging fortnightly and monthly rosters that weren’t possible with the old technology used in Classic Rosters. More performance. When you log-in, everything is snappier, faster, and more responsive. When is it happening? Today, 18 September 2019, there won’t be any changes on your account. The rollout will start from next month. On 18 October 2019, your account will default to New Rosters. Default means clicking on Rosters goes to New Rosters instead of the current view (Classic Rosters). However, this won’t be a sudden change. We know that, at the end of the day, customers prefer the familiar — which is completely understandable. So you can still use the old version of rosters, which we are now calling Classic Rosters. Access it by hovering over Rosters and selecting it from the drop down. We will also keep supporting Classic Rosters. That means if you are using it and have a question, our expert Support Team is happy to help out. The new and powerful. Easy-to-use, advanced features being added to New Rosters. Limitless Rostering. Roster for more than one week, two weeks, or three weeks in the same view. You can even roster for 18 months on one screen if that’s how your business works. Custom Fields: So every employee has all the information they need. Create fields to communicate reminders, addresses, and other details for each shift.  View Options. Customise how your rosters look based on your unique business needs/style. Organise it by teams, by hourly rate, by the number of rostered hours rostered, and more. Instant Information. See detailed shift, staff, and costing information at a glance. Re-engineered. With brand-new technologies under the hood, New Rosters now loads much faster for organisations of any size. Roster Patterns. For 24/7 industries need round-the-clock rostering. What’s not changing? From creating shifts to assigning teams to seeing roster costs and building templates, you can still accomplish the major tasks you’ve always done in Classic Rosters. New Rosters just helps you do more.  We’ll be there every step of the way We realise this is a massive step up. But change can sometimes be difficult — it can certainly be in this case. So we will give you everything you need to transition into the faster, more powerful future of Tanda Rostering: Help articles that detail how it all works Product Tours when you visit New Rosters for the first time. They will take you through how to use it — after which, you can try it yourself Expert Support Team if you have questions specific to your account Software is a two-way conversation. Let us know how you go. It’s not just us talking at you and telling you what to use. We want you to tell us what you think as well. What are you finding useful? What doesn’t quite make sense? Let us know by answering these quick questions.  

Announcing the brand-new Rosters upgrade — the world’s most comprehensive staffing tool.

17 September 2019

Product Updates    |   

Communication leads to perfection. SMS, calls, FaceTime, face-to-face, WhatsApp, and time and attendance (T&A) all have one thing in common. They are used to send and receive messages. The communication gets especially more complex with T&A. Whenever you log in, you build and publish rosters. You ask for staff details during onboarding. You receive leave requests from the team. There are a multitude of moving parts in any given shift. That\'s why your T&A needs to act like a communication service. According to a study by the Economist Intelligence Unit, poor communication drastically impacts morale, sales, and goals. Some losses have even been in the hundreds of thousands. And, just as managers need to adapt to each employee’s communication style, they also need to know which tool to use in each situation. Key Points: Three major releases this month Bespoke information workflows with The Platform A record of contract hours with Regular Hours of Work Complete staff inductions with employment contracts in onboarding More often than not, T&A software is a 2-step information exchange. Step 1: Tell staff their start and end times. Step 2: Staff prove they followed those times by clocking in and out. But it can also be a complex process. To run the perfect shift, some teams need extensive information such as addresses, vehicle numbers, access codes, preferred hours, staff on leave. And don’t forget onboarding contracts, managing leave requests, performance review dates. The list goes on. Every feature we release is working towards one goal: empowering you to run the perfect shift. And correct, comprehensive communication is a massive part of this. So this month, we released 3 major features to help strengthen those lines of communication. 1. Communicate bespoke information with The Platform Custom fields on rosters (L) and the Tanda App (R) If you’ve ever needed to send information to your team before a shift starts, there’s a high chance it’s done outside of Tanda. Things like alarm codes, reminders, or client details. Anything your team needs to be able to complete the perfect shift. But what if you could do it all inside Tanda? Store client addresses. Send unique reminders. Keep track of performance review dates. Even create an entire database of your customers. Welcome to The Platform. It’s a brand-new way of workforce management. The Platform is made up of Custom Fields and Custom Objects. Between these two, you can create your own fields and forms, and turn Tanda into a bespoke, powerful data management tool.  We believe it’s the future of workforce management. See how it works. 2. Keep a record of contract hours with Regular Hours of Work Set Regular Hours of Work for your staff. Choose break lengths, teams, and how shifts are split. The fact is, as your business grows, so do the administrative requirements. The brute force solution for this is to hire more and more staff to handle the paperwork — but that might blow your bottom line wide open. For permanent staff (especially part-time), contract hours are a staple. Using Regular Hours of Work, you can keep track of it all in Tanda. This cuts on back and forth between different systems because, hey, rostering and leave is just on the next tab over. Recording Regular Hours of Work is just the beginning. In the next few months, you can create both rosters and leave requests from Regular Hours of Work. Whether you’re building out your rosters or processing massive amounts of leave, Regular Working Hours automates the most time-consuming part of that process. If you have Admin, General Manager, and Payroll Officer permissions, start recording your team’s Regular Hours of Work now. For team managers, ask your supervisor to do this for you. 3. Better onboarding with contract uploads and welcome messages In the first days of your newest hire, a smooth onboarding is one of the best ways to ensure early success. One of the core parts of this process is signing a contract. The easiest way to do that is with Tanda’s onboarding offering. You can now upload their contracts when you send onboarding invitations (and include a nice welcome message, too). This means they can sign it with a click of a button. Note: Please double-check if this is sufficient to count as a signature.

Three ways to run a perfect shift (that aren’t clocking in and out).

4 September 2019

Awards & Rostering    |   

Looking for talented and culture-fit employees is hard enough on its own, but the real challenge for any manager is when the onboarding process kicks in. Is onboarding really important? Onboarding new employees is essential in making sure they know specific details about the company, knowing who they’ll be working with, and setting expectations at work. It’s an important step in the employment process that affects retention in the long-run, and contrary to popular belief, it doesn’t have to be complicated nor expensive. Here are three easy steps to onboard your new hire: Step 1: Introduce them to the company Anybody who’s gone through their first day at a new job knows what it’s like — excited to get to work but also quite nervous in the new environment. Making new hires feel welcome is one of the first steps in helping them get settled quickly, and there are several ways to do this. For one, you can send a welcome email a week before they even start working. And once they do start, take them around the workplace as soon as possible, and introduce them to their new colleagues. And this doesn’t just mean making them shake hands with staff from every department. Introduction of a new hire to your company is more than just remembering names and titles — it’s also about letting them in on the values, culture, and overall standards that the organisation has. Providing them with this information will make them feel involved in the business’ overall success right from the start. Free e-book: Making the Onboarding Experience Work for your Business Step 2: Collect essential staff information Here comes the nitty-gritty part: Collecting the important employee details for HR and operational purposes. Some of these include their personal information (birthday, residential address, bank account details), tax declaration form, and a signed acknowledgment of workplace policies. Traditionally, this was being done through paper, where staff would need to fill up and submit forms on their first day. Thanks to technology however, this part of the onboarding process can now only take minutes to complete. Some workforce management platform now offer paperless onboarding, allowing managers to collect data, upload files, and sync bank details with their current payroll software. Not only does this free up time for the managers themselves, but it also allows new employees to finish administrative tasks quickly and get straight to work. Read more: The Employer’s Onboarding Checklist Step 3: Communicate goals and expectations Set a one-on-one chat with your new hire as soon as all the operational stuff are out of the way. Often, employees turn dissatisfied at work because their managers fail to communicate clear goals and expectations for their job, which then leads to the staff underperforming or worse, leaving the company. Make sure to give them specific, measurable, and realistic goals that are tied down with your team’s, and ultimately, your company’s mission. Some employees will also expect training and traveling opportunities, which can be clarified upon onboarding. Being able to sit down with your new employee only takes minutes, but could greatly affect their future at work. In summary, onboarding new employees requires time and effort to execute properly. There’s a lot to take care of, but if you prepare ahead of time and use the right tools, you can pull it off swiftly and empower your workforce towards success. Ready for a smooth onboarding process? Try Tanda’s Paperless Onboarding feature for 14 days, no credit card required.

3 Steps to Onboard a New Employee

3 September 2019

Most Popular

Awards & Rostering

What you need to know about the Casual Conversion Clause

On 1 October 2018, the Fair Work Commission announced that a new casual conversion clause will be included in 80+ modern awards across Australia. What does it mean? Casual conversion is a right given to regular casual staff to request for full-time or part-time employment status, given certain prerequisites. In the awards, a ‘regular casual employee’ is: “A casual employee who has, in the preceding period of 12 months, worked a pattern of hours on an ongoing basis which, without significant adjustment, the employee could continue to perform as a full-time employee or part-time employee under the provisions of this award.” Businesses whose awards fall under mandate are required to advise their casual employees of this clause. This does not require employers to offer conversion to their eligible employees; rather, the clause entitles all eligible employees the right to request for conversion. Who can apply? The clause allows casual workers to apply for conversion if: They have  been working for the business for twelve (12) months; and Their work pattern is an ongoing number of hours over the past year, which can be continued without adjustment upon conversion to full-time or part-time. Employers must provide casual employees with a copy of the casual conversion clause within their first year of initial engagement with the business. Casual employees who are eligible to apply should request their employers in writing. Can applications be rejected? Yes, applications can be rejected. Reasonable grounds include: A significant adjustment of work hours for the employee in order to accommodate their full-time or part-time employment status; The employee worked for short periods and/or irregular shifts or hours; and The position of the casual employee will cease to exist in the foreseeable future. Rejection of applications can be done, given that both employee and employer have discussed the decision. Should employers not convert a casual employee, a written refusal must be provided, indicating the reasonable grounds of rejection. Read more: What is the Contingent Workforce and how can you leverage it in your business? What awards are covered? The introduction of the clause covers 80+ modern awards, including: Hospitality Industry (General) Award 2010; Food, Beverage and Tobacco Manufacturing Award 2010; Manufacturing and Associated Industries and Occupations Award 2010; Building & Construction General On-site Award 2010; Concrete Products Award 2010; Electrical, Electronic & Communications Contracting Award 2010; Graphic Arts, Printing and Publishing Award 2010; Plumbing and Fire Sprinklers Award 2010; Textile, Clothing, Footwear and Associated Industries Award 2010; and Vehicle Manufacturing, Repair, Services and Retail Award 2010 To check if your business is included, click here. What should your business do next? It’s important to keep in mind that Fair Work’s decision does not require businesses to convert casual employees in all cases where a casual employee makes a request for conversion to their employer.  For this reason, it’s important to understand the criteria for casual conversion and understand what your obligations are when employees meet these requirements. If you or your business falls under the new clause, here are the steps you can take to stay compliant: Check your modern award or enterprise agreement. Awards with existing clauses for casual conversion may have different requirements. Check your award for the exact rules in your industry. Create a casual conversion letter. You can also download a copy here. Notify your employees. Make sure you give your casual staff (employed as of 1 October 2018) a copy of the final letter. Record the outcome of the casual conversion offer. Whether they accept or reject the offer, keep copies of their written responses for future reference. If you are unsure how the casual conversion clause affects your business, call the Fair Work Infoline on 13 13 94 or visit www.fairwork.gov.au To make sure you stay updated with the latest news on awards, employment, and compliance, subscribe to our newsletter today.

Product Updates

Domino’s and Tanda: Building the Workforces of the Future

Brisbane-based company Tanda has today announced a business partnership with Domino’s Pizza Enterprises Limited, to automate and optimise the company’s payroll process. The partnership will assist Domino’s in empowering its franchisees with the right technology and tools to efficiently manage rostering and payroll as a competitive edge. Tanda Director Tasmin Trezise said he is excited about the partnership. “Tanda is proud to be working collaboratively with Domino’s to build the future of workforce management, and this represents an exciting step towards using technology to shape enterprise workplaces,” said Mr Trezise. “Domino’s is an agile and forward-thinking company who are leading the way in terms of innovation, whether this is through their drone delivery services or re-imagining their labour supply chain management.” The partnership between the two companies will see a roll out of Tanda\'s software to over 700 stores across Australia and New Zealand. Domino’s Australia and New Zealand CEO Nick Knight said the Company was looking forward to making franchisee’s lives easier with the efficient time and attendance program. “We are always looking to use the latest innovative technology in everything that we do as a Company – this from delivery to customers and for systems and processes with franchisees,” said Mr Knight. “Rolling out Tanda in stores across Australia and New Zealand will allow our franchisees to efficiently roster and record team member’s attendance so we look forward to reaping the benefits of the innovative program.” Trezise explained that Domino’s franchisees would soon see incredible benefits after the working relationship with Tanda begins. “This partnership will empower Domino’s franchisees with a greater understanding and insight into their labour costs so they are able to make smarter and more informed business decisions whilst having comfort that their payroll complies with current awards and enterprise agreements. “The fact that Domino’s and other Australian businesses are using new technology like Tanda is a testament to Australia’s growing success as an innovative nation.” Domino’s partnership with Tanda began in the Company’s dedicated innovation space, the DLAB, which was designed to encourage out of the box thinking. From local corner cafes to global workforces, Tanda is revolutionising the world of rostering and payroll one shift at a time. About Tanda Tanda is a scalable workforce management SaaS, that is helping businesses to unlock efficiency and productivity gains through more effective labour force management. For more information, visit www.tanda.co About Domino’s Domino’s Pizza Enterprises Limited is the master franchisor for the Domino’s brand in Australia, New Zealand, Belgium, France, The Netherlands, Japan and Germany. Across these seven markets, DPE and its franchisees operate over 2,000 stores. For more information, please visit www.dominos.com.au For further information, media enquiries or images contact: Bridget Mahon Marketing Communications Officer Email: bridget@tanda.co

Editor's Picks

Industry Insights    |   

How this retailer increased profit by $8.9m from rostering more hours

There has been a lot of speculation on why we are losing retailers so fast. An interesting research piece from the US presented an alternative hypothesis that generalises the issue down to rostering for profit rather than rostering to control costs. For context – If you were given the choice of increasing revenue by 5% or reducing costs by 5% in order to create the most profitable outcome, what would choose? A “back of the hand” calculation would show that reducing costs increases profit more than the equivalent uptick in revenue. Accordingly, most retailers choose option two. This makes sense if you assume the two scenarios are independent of each other, but what if the cost was your employees? This is where the problems arise. For industries like retail, where staff have a direct impact on sales, it’s not as simple of a question as cutting costs to increase profit. In a study led by Professor Marshall Fisher from Wharton, he and his research team constructed a conceptual model from historical data to identify stores within a US-based retail chain that had the highest potential to benefit from increased labour spend. Importantly, the strategy was actually implemented at 168 retail sites over a 26-week period to validate the model, with the retailer electing to implement the strategy further. The result: A near $8.9 million increase in profit of the stores included. The labour cost challenge The challenge in allocating labour budgets lies in the tradeoff between the known immediate payroll cost and the less certain increase in sales that could be achieved with more staff on hand. The researchers point out that retail managers have a tendency to overweigh the decision to reduce the known payroll cost than the less certain increase in sales which could be achieved by allocating additional labour spend. The labour budget death spiral The study highlights the limitation of the most common retail strategy — setting labour budgets as a portion of sales. Fisher points out that this approach creates a circular problem by failing to take into account how store labour spend can positively impact sales, with the worst case leading to a spiraling effect of reduced sales forecasts reducing labour spend which reduces sales further and so on. Quantifying the impact of labour spend on revenue Creating labour budgets that are designed to maximise profit requires retailers to know on a store-by-store basis the correlation between labour-spend and sales. One way to do this is by looking at times when staffing levels deviate from the original schedule. If ten staff were scheduled on a particular day, but on that day only eight turned up, did sales also decrease by the same portion? If not, by how much? If the answer to the above is that sales didn’t decrease at all, the store is likely overstaffed. If there is a measurable impact, the inverse scenario is likely true and the store may be losing sales by being understaffed. This is the same approach used in the study, which found the relationship between random staffing deviations and impacts on sales was statistically significant. Results showed an increase in labour spend pointed to increased sales at varying degrees, depending on known store attributes. Implementing the strategy for profit The study identified stores in a US retail chain which had the highest market potential, making them good candidates for an increased labour spend. The market potential factored in attributes like average basket value and proximity to competitors, which would create scenarios that allow workers to have the highest impact on converting sales. In the study, 168 stores were selected this way, then allocated a 10% increased labour budget over a 26-week period, of which 75% of the increase was actually consumed in practice by the stores. The outcome was a 4.5% increase in revenue at the impacted stores and resulting in a near $8.9 million profit increase. Learning from the strategy The study shows empirically why the common practice of setting labour budgets as a fixed proportion of forecasted revenue is often self-defeating when applied in a retail setting. An opportunity exists to all retailers to leverage this same profit-centric model for defining labour budgets. The data required is available to all retailers however, it may just be a matter of leveraging that information with the right systems. An integrated forecasting strategy that integrates foot traffic, sales, and employee scheduling data is a practical opportunity afforded to retailers of any size to optimise their labour resource allocations. The interesting part is, Fisher’s research is readily available to all retailers who are looking to drift away from the traditional method of fixing labor budget rosters. The next step is to get this method of labour resource allocation battle tested in the Australian markets. Stay tuned. Up next: What is the Contingent Workforce and how can you leverage it in your business?

Industry Insights

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Ensuring a Seamless Adoption of New Technology Among Frontline Employees

Technology as a business necessity In 2017, nearly half of all Australian innovation-active businesses spent on new equipment or technology, making tech the most common innovation expenditure — and rightly so. Technology has become a necessity for businesses everywhere, and the most competitive companies are always looking to upgrade theirs to improve productivity. However, it’s important […]

June 30 Reminder: Check your Superannuation Contributions!

Superannuation underpayment is a significant problem in Australia. An estimated 2.85 million Australians are being short-changed. On average, they have 50% less in their super balances than those who are being paid correctly. Further, analysis of ATO data has shown that the average underpayment is $2,070 — that’s $80 per fortnightly pay. Young, blue-collar workers […]

Awards & Rostering

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3 Steps to Onboard a New Employee

Looking for talented and culture-fit employees is hard enough on its own, but the real challenge for any manager is when the onboarding process kicks in. Is onboarding really important? Onboarding new employees is essential in making sure they know specific details about the company, knowing who they’ll be working with, and setting expectations at […]

3 Reasons Why a Tablet Device is the Best Device to Clock-in

Providing an easy-to-access Time Clock device at all times is one of the most essential ingredients of implementing a successful attendance policy. For fixed location businesses, the Tanda Time Clock App installed on a tablet device is the best method to ensure that employees always remember to clock in and out of their shifts. Over […]

Product Updates

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Announcing the brand-new Rosters upgrade — the world’s most comprehensive staffing tool.

Here’s why, what, and when it will happen. So why the upgrade? Building rosters is the cornerstone of staff management. Since Tanda started in 2012, our customers have created more than 59 million shifts, almost 550,000 rosters, and more than 7.5 million timesheet exports. That’s a lot of mileage for seven-year-old technology. And it’s done […]

Three ways to run a perfect shift (that aren’t clocking in and out).

Communication leads to perfection. SMS, calls, FaceTime, face-to-face, WhatsApp, and time and attendance (T&A) all have one thing in common. They are used to send and receive messages. The communication gets especially more complex with T&A. Whenever you log in, you build and publish rosters. You ask for staff details during onboarding. You receive leave […]

Events & Media

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How to Communicate as a Leader with William Gooderson

“Staff members have good and bad days. We need to adjust. There will be times when there is a short deadline. We need to drive and lead because we are the team leader. There will be times when you’ve got the flexibility to take staff on a journey,” says leadership expert William Gooderson of PwC. […]

Forging the Workforce of the Future: Can you increase employee attendance?

John is 5 minutes late for work every day while his colleague Martha is late for 30 minutes once a week. Do these late clock ins really matter? For many businesses, they do. In shift work industries and frontline roles, frequent tardiness can mean disruption and loss of profit. Even just 10 minutes of being […]

Clients & Partners

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HideAWAY Handmade Scrubs Up their Scheduling with Tanda

Artisan beauty goods company HideAWAY Handmade knows what it means for products to be made with love. Named for Hideaway Bay in Queensland where founders Wendy Campbell and Bruce Arms became engaged, the popular online brand crafts artisan personal care products such as whipped soaps, bar soaps, body custards, scrubs, and other bath time treats—all […]

Domino’s Israel selects Tanda for Workforce Success

Tel Aviv, Israel — Tanda is proud to announce that Domino’s Israel will roll out its innovative workforce management software to 57 locations after a successful 3-month trial. The Tanda platform will be used to manage rostering, time and attendance, and wage reporting for over 1,500 staff across Israel. Following an introduction from Domino’s Pizza […]

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Industry Insights    |   

How this retailer increased profit by $8.9m from rostering more hours

There has been a lot of speculation on why we are losing retailers so fast. An interesting research piece from the US presented an alternative hypothesis that generalises the issue down to rostering for profit rather than rostering to control costs. For context – If you were given the choice of increasing revenue by 5% or reducing costs by 5% in order to create the most profitable outcome, what would choose? A “back of the hand” calculation would show that reducing costs increases profit more than the equivalent uptick in revenue. Accordingly, most retailers choose option two. This makes sense if you assume the two scenarios are independent of each other, but what if the cost was your employees? This is where the problems arise. For industries like retail, where staff have a direct impact on sales, it’s not as simple of a question as cutting costs to increase profit. In a study led by Professor Marshall Fisher from Wharton, he and his research team constructed a conceptual model from historical data to identify stores within a US-based retail chain that had the highest potential to benefit from increased labour spend. Importantly, the strategy was actually implemented at 168 retail sites over a 26-week period to validate the model, with the retailer electing to implement the strategy further. The result: A near $8.9 million increase in profit of the stores included. The labour cost challenge The challenge in allocating labour budgets lies in the tradeoff between the known immediate payroll cost and the less certain increase in sales that could be achieved with more staff on hand. The researchers point out that retail managers have a tendency to overweigh the decision to reduce the known payroll cost than the less certain increase in sales which could be achieved by allocating additional labour spend. The labour budget death spiral The study highlights the limitation of the most common retail strategy — setting labour budgets as a portion of sales. Fisher points out that this approach creates a circular problem by failing to take into account how store labour spend can positively impact sales, with the worst case leading to a spiraling effect of reduced sales forecasts reducing labour spend which reduces sales further and so on. Quantifying the impact of labour spend on revenue Creating labour budgets that are designed to maximise profit requires retailers to know on a store-by-store basis the correlation between labour-spend and sales. One way to do this is by looking at times when staffing levels deviate from the original schedule. If ten staff were scheduled on a particular day, but on that day only eight turned up, did sales also decrease by the same portion? If not, by how much? If the answer to the above is that sales didn’t decrease at all, the store is likely overstaffed. If there is a measurable impact, the inverse scenario is likely true and the store may be losing sales by being understaffed. This is the same approach used in the study, which found the relationship between random staffing deviations and impacts on sales was statistically significant. Results showed an increase in labour spend pointed to increased sales at varying degrees, depending on known store attributes. Implementing the strategy for profit The study identified stores in a US retail chain which had the highest market potential, making them good candidates for an increased labour spend. The market potential factored in attributes like average basket value and proximity to competitors, which would create scenarios that allow workers to have the highest impact on converting sales. In the study, 168 stores were selected this way, then allocated a 10% increased labour budget over a 26-week period, of which 75% of the increase was actually consumed in practice by the stores. The outcome was a 4.5% increase in revenue at the impacted stores and resulting in a near $8.9 million profit increase. Learning from the strategy The study shows empirically why the common practice of setting labour budgets as a fixed proportion of forecasted revenue is often self-defeating when applied in a retail setting. An opportunity exists to all retailers to leverage this same profit-centric model for defining labour budgets. The data required is available to all retailers however, it may just be a matter of leveraging that information with the right systems. An integrated forecasting strategy that integrates foot traffic, sales, and employee scheduling data is a practical opportunity afforded to retailers of any size to optimise their labour resource allocations. The interesting part is, Fisher’s research is readily available to all retailers who are looking to drift away from the traditional method of fixing labor budget rosters. The next step is to get this method of labour resource allocation battle tested in the Australian markets. Stay tuned. Up next: What is the Contingent Workforce and how can you leverage it in your business?

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