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Awards & Rostering    |   

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 100,000 staff clock-in each day with their app installed on a dedicated tablet. Using a tablet is cost-effective and frictionless compared to other methods, e.g. a point of sale terminal, a PC, or old school attendance devices like fingerprint scanners. Here are a few of the many benefits of using a tablet: 1. A tablet is a dedicated device Providing a dedicated device means less excuses. Placing the Tanda Time Clock tablet in a location where employees congregate prior to their shift commencement is the best way to ensure employees remember to clock in for their shift. Unlike a PC or POS system, there is no room for excuse that someone else was using the device. Clocking in takes just a few seconds per employee, and unlike other software that runs exclusively on employee mobile phones, there is less room for unfortunate incidents that hinder employees from logging their attendance, such as losing their personal mobile device. Service interruption is also a possibility for other systems; since a PC or POS system also serve multiple functions, it can also become distracting for employees to actually remember to clock in from time to time. For an effective attendance policy, you want to ensure there is no confusion when it comes to legitimate reasons for not clocking in, such as someone else actively using your attendance device for purposes aside from clocking in and out. A dedicated device makes enforcing the attendance policy fair and transparent, and makes it easy for anyone in your team to log in their hours. 2. Tablets are cost-effective The global popularity of the tablet device has slashed prices worldwide. The first tablet to hit the market at a global scale, the original iPad, retailed for around $800.  Today, consumers can get its competitor brand, Samsung, for around $160 a tablet. It’s now a lot more accessible for all business managers of any business size to acquire a device. Traditional workforce software vendors supply their own expensive branded devices, which they make money from, and strategically only their device will work with their software. Time and attendance software like Tanda makes no money from providing hardware, and gives clients the flexibility to select their own devices without hindering them from managing their workforce. 3. Tablets unlock additional functionality compared to old devices And because Tanda doesn’t limit employers the way they would maximise their device, there are also additional functionalities that can better help solve workforce management problems beyond recording attendance. For one, Shift Questions can record the reasons employees deviate from their roster, helping management identify the source of variances on timesheets. One such example might be when employees clock out later than their rostered finish time. It’s useful for the approving manager to know if that employee was directed to stay back, or had clocked off later for a different reason. With the Tanda Time Clock App, employees can be asked exactly this question, among many others, when clocking out later than scheduled. Another feature is Instant Onboarding, which allows a new employee to be rapidly deployed into Tanda by a manager using the Time Clock App, ensuring that new employees aren’t forced to hold parallel records until they are entered into the system. By getting rid of paperwork for the new staff, they’re able to get to work faster. Multi-breaks allows employees to easily nominate when they are taking breaks.  This is especially useful to businesses where employees might take more than one break. Team picker allows employees to accurately record when they change team or department using the Tanda Time Clock. This keeps cost reports accurate, and ensures employees who receive different rates for different roles have their payroll calculated with the highest degree of accuracy. In terms of security, the Facial Recognition Auto-approval is an optional measure to save time and add security to the timesheet approval process. Tanda leverages facial recognition technology to build a profile of the employee, ensuring that clock-in photos are given an additional layer of verification. Ready to take advantage of Tanda and its features on tablet?  Start your 14-day free trial today, no credit card required.

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

13 August 2019

Awards & Rostering    |   

By 2020, the Australian pharmaceutical industry will rise to $25.2 billion from $22.85 billion in 2016. According to GlobalData, this growth will be driven by good market access and subsidised cost of prescription medicines, among others. The pharmaceutical market is a knowledge-based, technology-intensive industry that employs tens of thousands of employees across Australia. Like many major industries, the pharmaceutical industry has made improvements across all areas of compliance. According to consultancy firm PwC, employers have also increased focus on human capital. Part of this is managing the pharmacy award in Australia. What is the Pharmacy Award? The Pharmacy Industry Award 2010 outlines the award for this industry. It covers all employers and employees throughout Australia who are involved in any pharmacy-related work. Examples of these occupations are pharmacy assistants, students, and interns, pharmacists, and pharmacist managers. Minimum weekly wages can be found below. In 2018, minimum weekly wages were increased by 3.5%, with commensurate increases in hourly rates on the basis of a 38-hour week. The minimum pay rate for a Pharmacist is now $27.19 per hour, up from the previous $26.28 per hour. Read more: Why Pharmacies Love Tanda Manually computing pharmacy award rates Many business owners and managers manually compute pharmacy award rates through the P.A.C.T. Pay and Conditions Tool. Through this website, you can look up the award rates for your employees based on their occupation. You can also use the leave, notice and redundancy, and shift calculators. The more staff you have, the more difficult it gets. Any manager can make mistakes with computing pharmacy award rates. And these mistakes can be costly. For example, inaccurate wages can result in lawsuits, even when they just stem from clerical errors. That’s why many organisations automate the process. Read more: Taking Back Time: Solving the enduring wage theft problem in Australia Using a pharmacy award wage calculator Manually computing the pay of your employees is not efficient. Try our free award wage calculator to see how automation can make this process go faster. This free calculator computes the total number of hours worked and wage for your staff with break times considered. Just fill in the table with your staff’s details such as shift start, shift end, and hourly rate. Add employees as necessary. You will be able to see the total number of staff, hours, and pay for the pay period. However, this award wage calculator only works for the simplest of cases. Anything more complicated than this requires the complete award rates interpretation software. This engine can automate your wage calculations, whether you’re on one of our built-in award templates or have a custom EBA. You can even integrate it with payroll software Australia for hassle-free payment of employees. You can use this for free for 14 days, no credit card required. Read more: The last financial year in key feature releases Complete pharmacy award rates interpretation now available Still on the fence about automating your pharmacy award rates? Our award engine can automate compliant rostering and payroll for any business, including base rates, overtime, allowances, and higher duties. All managed awards have built-in base rates that sync with payroll and update on staff birthdays or when Fair Work mandates change. You won’t even need to keep up with changes in award rates because we do that for you. Take advantage of modern employee management technology and try our award rates engine today. Want to get your pharmacy award interpretation and award rates right, every time? Use our award wage calculator or start your free 14-day trial now to access all our workforce success features! No credit card required.

How to Understand the Pharmacy Award in Australia

27 June 2019

Clients & Partners AU    |   

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 done through traditional means. The brand’s big draw? All-natural, locally-sourced ingredients, with a process designed to be as sustainable as possible. HideAWAY Handmade is a fully online store, enabling the brand to focus less on managing a physical storefront and more on putting great care into the products they make, especially with a small team. Regardless of location, though, the need to manage their on-site employees in the most effective way possible is a constant. Enter Tanda’s mobile application and rostering software. A Mobile Workforce Amber is part of the Production team, creating soaps, body custards, and other bath products such as bath bombs. She speaks glowingly of the mobile version of Tanda’s software, which the team uses for time clock and online roster features. The portability of the mobile app also gives them the added bonus of having the option to check their rosters and manage availability without needing to head to the office. “I use everything through the mobile app unless I\'m clocking in at work. And it\'s really good. So then if I\'m at home and I\'m trying to book a holiday I can also write in my unavailability for a holiday. And then it can get approved in real time. Even if it\'s on the weekend as well. So I find that really handy,” Amber says. The clean user interface and live wage tracker also makes it easier for workers to budget their own personal expenses accordingly. “I like that it tells you in the top corner how many hours you’re doing and then also how much you estimate to make for the week. So that makes it easier for me to budget through my week as well.” Whipping Up Smooth Operations In the product manufacturing business, having a user-friendly online roster interface is a big concern for companies like HideAWAY when switching from manual rostering or legacy systems. When loads can be unpredictable and one week can be insanely busy while the next could be quiet, schedules could get messy very quickly without the right software. For HideAWAY’s workforce, the auto-fill option in Tanda’s predictive rostering feature addresses this need. “Let\'s say that the week beforehand was quiet. We can pull it over and the shift filling feature helps fill it all in, to maximise our roster and prepare for a big week ahead,” posits Dan, the brand’s Operations Manager. Overall, he emphasizes that Tanda has made the process of creating an online roster for employees easier and more streamlined. It also takes much less time than before. The presence of in-app messaging options are a big benefit, too. “Tanda has been a game changer for us with rostering and being able to contact our staff quick and easy with the text message and the call feature,” he says. No more need for unintuitive software that may not be built for scheduling either. “I guess before we were using Tanda we were just rostering through, I think it was a Google Sheet or Microsoft XO. Super basic and it took hours to do that.” Now, HideAWAY uses a single app for creating and managing staff schedules—connecting them more closely with their wages, with each other, and with their work.   Ready to find out what Tanda can do for your business? Try it for free today.  

HideAWAY Handmade Scrubs Up their Scheduling with Tanda

24 June 2019

Awards & Rostering    |   

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 100,000 staff clock-in each day with their app installed on a dedicated tablet. Using a tablet is cost-effective and frictionless compared to other methods, e.g. a point of sale terminal, a PC, or old school attendance devices like fingerprint scanners. Here are a few of the many benefits of using a tablet: 1. A tablet is a dedicated device Providing a dedicated device means less excuses. Placing the Tanda Time Clock tablet in a location where employees congregate prior to their shift commencement is the best way to ensure employees remember to clock in for their shift. Unlike a PC or POS system, there is no room for excuse that someone else was using the device. Clocking in takes just a few seconds per employee, and unlike other software that runs exclusively on employee mobile phones, there is less room for unfortunate incidents that hinder employees from logging their attendance, such as losing their personal mobile device. Service interruption is also a possibility for other systems; since a PC or POS system also serve multiple functions, it can also become distracting for employees to actually remember to clock in from time to time. For an effective attendance policy, you want to ensure there is no confusion when it comes to legitimate reasons for not clocking in, such as someone else actively using your attendance device for purposes aside from clocking in and out. A dedicated device makes enforcing the attendance policy fair and transparent, and makes it easy for anyone in your team to log in their hours. 2. Tablets are cost-effective The global popularity of the tablet device has slashed prices worldwide. The first tablet to hit the market at a global scale, the original iPad, retailed for around $800.  Today, consumers can get its competitor brand, Samsung, for around $160 a tablet. It’s now a lot more accessible for all business managers of any business size to acquire a device. Traditional workforce software vendors supply their own expensive branded devices, which they make money from, and strategically only their device will work with their software. Time and attendance software like Tanda makes no money from providing hardware, and gives clients the flexibility to select their own devices without hindering them from managing their workforce. 3. Tablets unlock additional functionality compared to old devices And because Tanda doesn’t limit employers the way they would maximise their device, there are also additional functionalities that can better help solve workforce management problems beyond recording attendance. For one, Shift Questions can record the reasons employees deviate from their roster, helping management identify the source of variances on timesheets. One such example might be when employees clock out later than their rostered finish time. It’s useful for the approving manager to know if that employee was directed to stay back, or had clocked off later for a different reason. With the Tanda Time Clock App, employees can be asked exactly this question, among many others, when clocking out later than scheduled. Another feature is Instant Onboarding, which allows a new employee to be rapidly deployed into Tanda by a manager using the Time Clock App, ensuring that new employees aren’t forced to hold parallel records until they are entered into the system. By getting rid of paperwork for the new staff, they’re able to get to work faster. Multi-breaks allows employees to easily nominate when they are taking breaks.  This is especially useful to businesses where employees might take more than one break. Team picker allows employees to accurately record when they change team or department using the Tanda Time Clock. This keeps cost reports accurate, and ensures employees who receive different rates for different roles have their payroll calculated with the highest degree of accuracy. In terms of security, the Facial Recognition Auto-approval is an optional measure to save time and add security to the timesheet approval process. Tanda leverages facial recognition technology to build a profile of the employee, ensuring that clock-in photos are given an additional layer of verification. Ready to take advantage of Tanda and its features on tablet?  Start your 14-day free trial today, no credit card required.

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

13 August 2019

Awards & Rostering    |   

By 2020, the Australian pharmaceutical industry will rise to $25.2 billion from $22.85 billion in 2016. According to GlobalData, this growth will be driven by good market access and subsidised cost of prescription medicines, among others. The pharmaceutical market is a knowledge-based, technology-intensive industry that employs tens of thousands of employees across Australia. Like many major industries, the pharmaceutical industry has made improvements across all areas of compliance. According to consultancy firm PwC, employers have also increased focus on human capital. Part of this is managing the pharmacy award in Australia. What is the Pharmacy Award? The Pharmacy Industry Award 2010 outlines the award for this industry. It covers all employers and employees throughout Australia who are involved in any pharmacy-related work. Examples of these occupations are pharmacy assistants, students, and interns, pharmacists, and pharmacist managers. Minimum weekly wages can be found below. In 2018, minimum weekly wages were increased by 3.5%, with commensurate increases in hourly rates on the basis of a 38-hour week. The minimum pay rate for a Pharmacist is now $27.19 per hour, up from the previous $26.28 per hour. Read more: Why Pharmacies Love Tanda Manually computing pharmacy award rates Many business owners and managers manually compute pharmacy award rates through the P.A.C.T. Pay and Conditions Tool. Through this website, you can look up the award rates for your employees based on their occupation. You can also use the leave, notice and redundancy, and shift calculators. The more staff you have, the more difficult it gets. Any manager can make mistakes with computing pharmacy award rates. And these mistakes can be costly. For example, inaccurate wages can result in lawsuits, even when they just stem from clerical errors. That’s why many organisations automate the process. Read more: Taking Back Time: Solving the enduring wage theft problem in Australia Using a pharmacy award wage calculator Manually computing the pay of your employees is not efficient. Try our free award wage calculator to see how automation can make this process go faster. This free calculator computes the total number of hours worked and wage for your staff with break times considered. Just fill in the table with your staff’s details such as shift start, shift end, and hourly rate. Add employees as necessary. You will be able to see the total number of staff, hours, and pay for the pay period. However, this award wage calculator only works for the simplest of cases. Anything more complicated than this requires the complete award rates interpretation software. This engine can automate your wage calculations, whether you’re on one of our built-in award templates or have a custom EBA. You can even integrate it with payroll software Australia for hassle-free payment of employees. You can use this for free for 14 days, no credit card required. Read more: The last financial year in key feature releases Complete pharmacy award rates interpretation now available Still on the fence about automating your pharmacy award rates? Our award engine can automate compliant rostering and payroll for any business, including base rates, overtime, allowances, and higher duties. All managed awards have built-in base rates that sync with payroll and update on staff birthdays or when Fair Work mandates change. You won’t even need to keep up with changes in award rates because we do that for you. Take advantage of modern employee management technology and try our award rates engine today. Want to get your pharmacy award interpretation and award rates right, every time? Use our award wage calculator or start your free 14-day trial now to access all our workforce success features! No credit card required.

How to Understand the Pharmacy Award in Australia

27 June 2019

Clients & Partners AU    |   

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 done through traditional means. The brand’s big draw? All-natural, locally-sourced ingredients, with a process designed to be as sustainable as possible. HideAWAY Handmade is a fully online store, enabling the brand to focus less on managing a physical storefront and more on putting great care into the products they make, especially with a small team. Regardless of location, though, the need to manage their on-site employees in the most effective way possible is a constant. Enter Tanda’s mobile application and rostering software. A Mobile Workforce Amber is part of the Production team, creating soaps, body custards, and other bath products such as bath bombs. She speaks glowingly of the mobile version of Tanda’s software, which the team uses for time clock and online roster features. The portability of the mobile app also gives them the added bonus of having the option to check their rosters and manage availability without needing to head to the office. “I use everything through the mobile app unless I\'m clocking in at work. And it\'s really good. So then if I\'m at home and I\'m trying to book a holiday I can also write in my unavailability for a holiday. And then it can get approved in real time. Even if it\'s on the weekend as well. So I find that really handy,” Amber says. The clean user interface and live wage tracker also makes it easier for workers to budget their own personal expenses accordingly. “I like that it tells you in the top corner how many hours you’re doing and then also how much you estimate to make for the week. So that makes it easier for me to budget through my week as well.” Whipping Up Smooth Operations In the product manufacturing business, having a user-friendly online roster interface is a big concern for companies like HideAWAY when switching from manual rostering or legacy systems. When loads can be unpredictable and one week can be insanely busy while the next could be quiet, schedules could get messy very quickly without the right software. For HideAWAY’s workforce, the auto-fill option in Tanda’s predictive rostering feature addresses this need. “Let\'s say that the week beforehand was quiet. We can pull it over and the shift filling feature helps fill it all in, to maximise our roster and prepare for a big week ahead,” posits Dan, the brand’s Operations Manager. Overall, he emphasizes that Tanda has made the process of creating an online roster for employees easier and more streamlined. It also takes much less time than before. The presence of in-app messaging options are a big benefit, too. “Tanda has been a game changer for us with rostering and being able to contact our staff quick and easy with the text message and the call feature,” he says. No more need for unintuitive software that may not be built for scheduling either. “I guess before we were using Tanda we were just rostering through, I think it was a Google Sheet or Microsoft XO. Super basic and it took hours to do that.” Now, HideAWAY uses a single app for creating and managing staff schedules—connecting them more closely with their wages, with each other, and with their work.   Ready to find out what Tanda can do for your business? Try it for free today.  

HideAWAY Handmade Scrubs Up their Scheduling with Tanda

24 June 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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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 […]

Four Ways to Keep your Managers on the Frontline

Managers juggle different roles throughout the day. They set goals, coach employees, monitor performance, and control budgets and expenses. When they don’t do it effectively, employees become frustrated and can’t perform their best. In fact, a worldwide survey revealed that 40% of employees are dissatisfied at work due to a lack of help and support […]

Awards & Rostering

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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 […]

How to Understand the Pharmacy Award in Australia

By 2020, the Australian pharmaceutical industry will rise to $25.2 billion from $22.85 billion in 2016. According to GlobalData, this growth will be driven by good market access and subsidised cost of prescription medicines, among others. The pharmaceutical market is a knowledge-based, technology-intensive industry that employs tens of thousands of employees across Australia. Like many […]

Product Updates

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The last financial year in key feature releases

At Tanda, we move fast to solve the world’s greatest workforce challenges. We released over 200 features last year. Here are the major ones. The last 12 months have seen Tanda rise above the capabilities of traditional workforce software.  Our product team has focused on releasing features that help management to plan and execute the […]

We want you to use our software less. Here are 5 new ways to do it.

Have you ever changed numbers on Excel, and everything else changed too? How long did that take? I’m guessing less than the time it took to read this sentence. What takes seconds now took an entire day for an accountant or bookkeeper in the ‘60s. They had paper spreadsheets back then. So a small adjustment meant […]

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 […]

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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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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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