Tanda Blog: Product Updates

Product Updates

New Tanda Time Clock

Today we’re excited to announce the upcoming release of a newly redesigned Tanda Employee Time Clock. Addressing the problem of recording accurate employee Time and Attendance is core to ensuring we service you, our customers. This is why, on the 29th of January 2019, an update to both iOS and Android will be released on the respective […]

Introducing Custom Events and Time Off Blackouts

The holiday season is approaching quickly, and you’re building your Christmas schedules in preparation for the busiest time of year. You notice many of your casuals have added unavailability when you need them most. To make matters worse, your part-timers have applied for leave on the busiest days of the year! What a nightmare! Luckily […]

Whats new in Tanda – November 2018

This month we’ve got some key updates to the Tanda App which make it easier for you to contact your staff quickly. Read on to find out what’s new in Tanda this month and a sneak peek at a few things coming soon. Easily get in touch with staff in the Tanda Mobile App Getting […]

Last-minute staff replacements

Sometimes an employee will call in sick, leaving you high and dry with the tedious task of the dreaded ring-round. In light of this, we’ve made finding last-minute staff replacements quicker and easier within the Tanda Mobile App. Our mobile app shows managers available staff, costs, scheduled hours, and schedule validations so you can make […]

Whats new in Tanda – October 2018

We’ve been busy this month working on a range of new features for managers and employees. Here are the 4 new features we released in October: Live Insights – Control your wage costs and make data-driven staffing decisions It doesn’t matter how well you plan out your rosters, there are always going to be things […]

Introducing Live Insights: Using real-time staffing to secure your business

Staffing, or scheduling the correct number of staff for a shift, is key to delivering services in any business. Have too few and you’ll get long lines and unsatisfied customers. Have too many and you’ll end up putting all your profits into paying wages. But the nature of staffing is such that even seasoned managers […]

What’s New in Tanda – September 2018

This month we’ve been busy working on the first two manager features for the Tanda app. With full rosters and shift swapping, managers can step away from their back office and instead access the information they need to run a successful shift in their Tanda app. Read on to see the new features released this […]

Introducing Tanda Tip Jars

Recently, we released a feature that aims to revolutionize the food service industry. The Tanda Virtual Tip Jar will be able to take the tips your business receives, calculate the amount each employee is due to take home, and export it directly to their payroll along with their wages.         Tipping is […]

What’s New in Tanda – August 2018

Welcome to the Tanda’s release notes for August. Here’s what we released this month: Live wage tracker – track your wages in real-time View the date leave requests were submitted Remove old time clocks from your account Sync staff milestones to your calendar New integrations Live Wage Tracker™ – Track your wages in real time […]

Introducing Live Wage Tracker™

Today we are releasing a groundbreaking feature that will give managers the ability to see, in real time, how many staff are on the ground and how much wages are costing. The Live Wage Tracker™ is going to make managing your day of operations much easier. We know that in 2018 everything happens right now. […]

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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 labour 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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