Why you need better rostering for the new financial year
It’s now less than a month away from the end of the financial year, which means you’re quite likely incredibly busy. Whether you’re looking to hit your financial year KPIs, making some big changes to your business, or just managing your staff more effectively, it can be a stressful time for business owners and managers.
Therefore, it’s important to give your managers and staff the right tools so you can get the most from your workforce in the new year.
Rostering is one such tool, and is often referred to as one of the biggest pain points in managing a workforce. Poor rostering leads to any number of problems and issues in the workplace including;
- Store managers spending hours each week rostering, when they could be focused on larger priorities.
- Rostering on too many or too few staff, results in unnecessary increased wage costs or a reduced ability to service customer demand.
- Last minute roster changes from bad communication leads to the wrong number of staff, and can ultimately affect overall morale.
- Managers can’t cost their upcoming staffing costs with the complexity of the Australian industrial relations system.
- Bad compliance without an effective system, means you’re trusting all your store managers to be rostering within employment law requirements.
Any of these problems occurring could be causing you unnecessarily high labour costs, a reduction in effective customer service, and a decrease in the productivity of your managers.
But it doesn’t have to be this way!
Rostering should form the foundation of your workforce management. It is your point of reference for staff resourcing, managing labour costs, and insightful reporting.
Implementing modern and powerful rostering software is the easiest way to get on top of your workforce frustrations.
What a great rostering system brings to your business
A great rostering system should:
1. Cost your rosters including overtime, allowances, and leave.
It’s very hard to meet labour budgets if you don’t know how much your roster is going to cost you. Great rostering systems should be able to cost your roster as you build it, so that you can make the best decisions in the moment to meet your budgets. Award conditions such as penalty rates, allowances, and leave can add extra unforeseen costs to your weekly roster, so it’s important that your system is able to account for these in the total roster cost. Businesses that can accurately forecast their labour costs are better able to optimise their labour spend, which leads to smarter workforce decisions.
2. Be easy and intuitive to use.
There’s no point going through the process of updating your system, only to find out it’s more difficult than doing it manually. Rostering shouldn’t be a hassle, especially when you’ve got better things to focus on. A great rostering system should be intuitive and easy to use for your entire team. Features like auto-saving, filters for teams and locations, alternative roster views, make what used to be a time-consuming task, quick and effortless. Once you’ve built the roster, being able to quickly send it out to staff via SMS and email, as well as any last minute changes, keeps all your staff updated on what’s happening.
3. Use Predictive Workforce™ software to tell you how many staff are required.
Correctly predicting the number of staff for any given day can feel like a miracle sometimes. However, great rostering software systems should be able to use predictive analytics to show exactly how many staff you need, at what time, every day. Integrating Point of Sale data, revenue, and other forms of service demand data into your rostering system is crucial to optimising your labour productivity. Having the correct number of staff leads to higher staff productivity, greater profitability, and an improved customer service experience.
End of Financial Year is a great time to review your systems, reflect on what’s working, and what can be improved for the New Financial Year. Updating your rostering system starts you off on the right foot, free from paperwork and stressful staff management. This leads to better time and attendance tracking, wage calculation, and faster payroll processing. That way you can focus on running your business, not your rosters.
Awards & Rostering |
How much do full-time staff really cost?
Being in the business of managing staff costs, we often hear people say that casual staff just cost so much more than their full time equivalents. I mean, that extra 25% is a killer, right? Especially for staff who work a fairly consistent schedule each week, it’s almost like free money. For a while there I went along with that, not really giving it much thought. But today the thought struck me – casuals miss out on plenty of benefits afforded to full and part timers, so are they really better off? I decided to investigate further. What follows may surprise you. First – how many days in a year does a full time employee work? Weeks in a Year: 52 Working Days in a Year: 260 So far so good. We’re going to ignore the 1 or 2 days that we’re off by, for the sake of a nice round number. Next, let’s look at this full time employee’s entitlements, in days. Annual Leave: 20 (4 weeks) Personal Leave: 10 (2 weeks) Public Holidays: 10 We’ll assume a 7.6 hour work day and 17.5% leave loading. So how many hours of leave are we paying? Annual Leave – Base: 152 Annual Leave – Loading: 26.6 Personal Leave: 76 Public Holidays: 76 Total Hours of Leave Paid: 330.6 Earlier we calculated how many days of work one can work in a year, now let’s subtract leave taken to get a more accurate figure. Days of Leave Taken: 40 Actual Days Worked in a Year: 220 Actual Hours Worked in a Year: 1672 Divide 330.6 (hours of leave paid) by 1672 (hours worked) and we get 19.77%. Remember, we are comparing this to the 25% loading paid for casual staff. So from this perspective, yes, your full time and part time staff are still cheaper – but only by 5.23%. And even that number is probably on the low side. We ignored long service leave and maternity leave because they are a bit more unreliable. Both they are also costs (or accruals) that can definitely add up! When you take into account the fact that you only have to pay casuals when you need them, it’s easy to see why more and more Australian employers are turning to casual staff. According to the ABS, this has been growing steadily since the 90’s, and today over 1 in 5 jobs in Australia are casual.
Product Updates |
New rostering features allows you to get visual with pay rates
This week at Tanda, we’ve launched some exciting new features to give businesses a complete visual breakdown on different pay rates that are applying on the roster. This is a game changer in allowing managers to easily build a fully costed, compliant and optimised work roster. Making it easier to understand the cost of a roster Tanda’s always given you the cost of a roster, broken down by each employee and each day. However, even that doesn’t always make it clear why costs blow out sometimes. This is why we built the roster costing chart. Visible on the costs view of their rosters, it shows a breakdown of each hour of the employee’s roster, showing if the time will be ordinary time or overtime and the cost that it’ll be paid at. With lots of staff on a roster, you’ll see a small preview for each person. We call it the candybar because of how datalicious it looks. You can even sort the list of staff based on this candybar – so you can order rosters based on who has the most complex costing which usually comes from having the most different kinds of overtime. Making it easier to give staff the hours they want We’re tackling these problems from both ends to give you more tools to make great rosters. You can now set the preferred hours that someone would like to work on their employee profile. If you roster someone with a lot more, or a lot less, hours than their preference, you’ll see a reminder on your roster. There’s 10% leeway on either side, which means you don’t need to roster everyone with exactly the number of hours they want – just in the general vicinity. This is a great way of giving staff hours they are happy with, while still maintaining the natural flexibility in hours required for casual employment. Did you know? If you roster a casual for the same hours every week, most Modern Awards include a clause where you need to offer them a permanent contract. Fair Work refers to this as “regular and systematic” rostering. Our goal at Tanda is to make it super simple to build a roster that is both compliant and optimised under your relevant Fair Work Award. If you’re interested in finding out some more information about implementing this in your business check out our rostering or award interpretation pages.
Events & Media AU |
Australian Minimum Wage Update 2017
It’s been a big year for Australian employers, with changes to penalty rates, compliance crack downs by Fair Work, and shake ups in the world of big business Enterprise Agreements. As the End of Financial Year quickly approaches business owners and employers need to start thinking about minimum wage updates and staff pay rates for the New Financial Year. Fair Work has today announced its decision on national employment standards for 2017, including wage increases for Modern Award rates. As of July 1 2017, the national minimum wage will be increased by 3.3%, resulting in a minimum hourly rate of $18.29. This is the first time in awhile that there has been minimum wage increase of more than 3%, and marks the second highest increase to the minimum wage since the introduction of the Modern Award system, with the highest increase occurring in 2011 at 3.4%. This comes only a day after the Fair Work Commission released its Transitional Arrangements for Sunday penalty rates, which will see penalty rate changes implemented from July 1 2017, for specific employees under the Fast Food, Retail, Hospitality, and Pharmacy Award. Changes to Public Holiday penalty rates will also come into effect July 1 2017, for specific employees under the Hospitality, Restaurant, Retail, Fast Food and Pharmacy Award. What does this mean for you? The national employment standards are set by Fair Work, and constitute the minimum legal wage and entitlements that employees are entitled to. As a business owner it is your responsibility to ensure that you are aware of wage rate changes, how they apply to your Modern Award or Enterprise Agreement, and that your employee wage rates have been updated accordingly prior to July 1 2017. For employers with employees under the Fast Food, Retail, Hospitality, Pharmacy, and Restaurant Award, additional care must be taken to account for the changes to Sunday and Public Holiday penalty rates. Employers should check that they have applied the new updated wage rates to the correct employees. For example: Under the Fast Food Award, Sunday penalty rate changes will be staggered over the next three years, and will only be applied to Level 1, full-time, part-time and casual employees under the Award. While only full-time and part-time employees under the Hospitality Award will be affected by transitional arrangements. For more information on the Transitional Arrangements to Penalty Rates please visit the Fair Work Commission website. Employers with Custom Agreements For employers who have a custom agreement, pay above Award or have an Enterprise Agreement, it is your responsibility to conduct a ‘Better Off Overall Test’ (BOOT). This will confirm that your employees are better off under your custom agreement, than under the industry Modern Award. Navigating the wage rate update mine field Australia is regularly considered one the most complex countries to process payroll in, due to the complex and extensive regulations around labour in Australia. As such, it is no surprise that some Australian employers have struggled to keep up with the complex intricacies that are often associated with Modern Awards and wage rates as they change and update over the years. However, failing to update wage rates correctly poses significant risk for business owners who risk breaching Fair Work regulations. It is therefore important that business owners and employers have the correct tools on hand to manage wage rate updates, Better Off Overall Test logistics, and compliance requirements. How can Tanda help? Implementing an automated workforce management system like Tanda, provides business owners and employers with the peace of mind in managing payroll compliance. In addition to streamlining rostering and timesheets, Tanda automates Award Interpretation including Award management. The market-leading award interpreter automatically calculates the gross wage for your staff based on your industry Award and additional factors such as penalty rates, overtime and allowances. Tanda then takes this information and transfers it into your payroll software, in a format that is ready to be processed, so you can pay your staff quickly and effectively. The best part about all of it- is that Tanda automatically updates Modern Award pay rates each year for you, in accordance with Fair Work’s wage updates. Tanda stores all your records securely in the cloud to meet your compliance expectations, but it also takes the stress out of your EOFY paperwork. Contact one of Tanda’s friendly Business Managers for more information on how Tanda can automate your wage rates updates this Financial Year, on 1300 859 117 or via email at firstname.lastname@example.org. For more information on Fair Work’s 2017 wage updates, please visit the Fair Work website. Disclaimer: While Tanda works to alleviate the hassle of wage rate updates through its automatic updates, the responsibility to confirm that wage rates are correct still rests with the employer.