Tanda Blog: Events & Media AU

Events & Media AU

Tanda partners with Aurion for Workforce Success

QLD, Australia — Tanda is proud to announce Aurion People & Payroll Solutions as the Platinum Sponsor of the 2019 Workforce Success Conference to be held this 26th July. The annual event organised by Tanda is entering its second year, following the inaugural conference in 2018. The previous conference, held on the Gold Coast, attracted over 280 business owners, managers, […]

ICYMI: What went down at Workplace by Facebook’s first-ever Manila Hackathon

Last Nov 9-10, we at Tanda successfully held our first-ever Hackathon collab with Workplace by Facebook. The 2-day event, held in Facebook’s Manila office, brought students and professionals together to compete on making the coolest and most innovative concept integrating the two platforms — Tanda and Workplace by Facebook. The short program started with an […]

Get your gears ready for Workplace by Facebook’s first-ever Manila Hackathon

Collaboration is an esteemed means to an end. Anywhere you are — in the workplace or in school — we believe that the best ideas more often than not emerge from a collaborative effort. In Tanda, where employees come from different time zones, we understand how teamwork gets more stuff done. We aim to preach […]

What actually happens at a Tanda Hackathon?

Every year we run a Tanda hackathon. Actually, that’s a lie — this year we’ve already done one in Manila, but we’re now gearing up for our Brisbane one, which should be even bigger. Anyway, an integral part of organising a hackathon is people asking you what actually happens at one. In this post, I will answer that […]

Things I Learned at our First Tanda Hackathon in Manila

On 28th-29th July, we hosted our third ever Tanda Hackathon — our first at our Manila office. Coming into a different country with a different culture, I wasn’t sure how well our famous “Biggest Hackathon in Brisbane” would translate. This is the story of how I went from nervous to ecstatic in a span of […]

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 […]

How to be compliant for Single Touch Payroll

The new Federal Government initiative of Single Touch Payroll will aim to streamline business reporting obligations regarding certain taxes and wage information. Legislated on the 16 September 2016 under the Budget Savings (Omnibus) Act 2016, Single Touch Payroll (STP) will become mandatory July 1 2018, for employers with 20 or more employees. Single Touch Payroll […]

Tanda announces Global Partnership with AEVI

Tanda has announced a partnership with international technology company AEVI. The partnership will bring Tanda’s market leading workforce management solution to AEVI’s Global Marketplace for smart Point of Sale (SmartPOS) devices. This will revolutionise how merchants and business owners run and manage their business. Australia has some of the most complicated labour laws in the […]

Easter Penalty Rates for 2017

Easter may be just around the corner, however for many businesses it marks the start of the dreaded public holiday period. Commencing on Friday 14th April, 2017 (Easter Good Friday), businesses in Queensland will see a total of six public holidays in the next 18 days. Such a phenomenon hasn’t occurred in over a decade, […]

Public Service Announcement: Fair Work Crackdown

The recent spate of Fair Work crackdowns has increased concern for small business owners, as the severity and prevalence of non-compliance and underpayment continues to increase. Fair Work recently imposed a $143,000 penalty against a Brisbane Business Owner and his former internal Payroll and Account Manager, after it was uncovered that they had deliberately underpaid […]

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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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