Why Live Workforce Data is the Future
In the pursuit of workforce success, business owners and head office level decision makers are the chief scientists, they are tasked with deciding what things can and can’t mix, and prescribing the optimal ratios for profit.
The chemists of profit though sit on the front-line of the business, they’re the staff who mix the ingredients and decide if the ingredients fizzle, or create explosive profit.
You can prescribe success for many things from the top down in business:
“Here’s how you assemble a burger for best eating”
“Here’s how you salt the fries for perfect coverage”
“Here’s how you order the stock to reduce waste”
The one that eludes most businesses is how to pass down the line “Here’s how you create a successful workforce”
Here’s the science in practice. The best salesperson I ever worked with was the franchisee of a large electrical retail store. I’ve never heard someone talk with so much passion and authority about the merits of extending the warranty on a toaster.
For him, good customer service and the subsequent numbers on the board had a different meaning to other staff. It was obvious for him that the scorecard of numbers on the board spelt life or death of the business. This reflected in his diligence and dedication to customer success.
The challenge for him and all other business leaders is how to scale that urgency down to create action on a during shift basis at the front-line.
Creating action through scarcity. If the result of selling an extended warranty, coffee or banana bread to each customer was the difference between being ahead of, or behind the curve of success at any given time throughout the day, these seemingly transactional tasks gain new importance.
When you track progress during the shift, it becomes more real how scarce and difficult it is to materialise profit, cementing the importance of decisions made on shift.
But scarcity besides being a reality of business is what motivates humanity – it’s why you’ve probably visited more landmarks on a short vacation than you’ve ever visited in your own town.
The cumulative impact of these daily, during shift actions, is end of period profit.
Prescribing Success. Bringing KPI’s into real-time scales the end goal of profit down to daily decision making, prescribing the formula for success.
From a day of operations perspective, it’s about scarcity and urgency. Placing importance on the little things that add up to big profit by allowing teams to measure the outcomes of their decision in real time.
In this scenario, getting the team out on time or ahead of time for example, no longer just incrementally affects an end of month report. It decides whether you finish your shift ahead of the prescribed success curve or behind – literally.
The goal is to let anyone of any level of business knowledge understand how they’re going, and what they can do to improve it at any given time.
The road to success is paved with action, and live KPI’s are the precursor to action.
For more details on the Tanda Live Wage Tracker™ visit Tanda.
Industry Insights |
3 Strategies to Master Your Wage Costs
Understanding your wage costs from a financial report is a bit like trying to piece back together a fruit smoothie that’s already been blended. Only a fraction of employers ever master their wage costs. Those who do are able to turn what’s viewed as a burden by their competitors into their best competitive advantage. A well trained and engaged workforce is a terrifyingly sharp weapon to take to your competition. The secret to it all is actually highly practical in application. It has been proven through decades of research that links highly engaged workforces to increases in topline revenue. We’ve worked with some of the most successful companies in traditionally low margin industries. Here are three of the most potent strategies you can apply to turn your workforce into your weapon in the new year. (1) Start measuring the future, rather than just reporting the past Financial reports are good if you want to see what happened yesterday. But taking control of wage costs is a long-term game. This means managing all expenses that a company bears for the employment of a staff member. This includes everything from gross salaries and benefits to other legal employer contributions. If you want to improve your future wage cost position, you need to start in advance. Building a conceptual report of your future wage costs works well because changes to the way you manage your workforce can take a long time to flow through. That’s especially true when it comes to agreed rostered hours, employment types, and hiring strategies, which take time to materialise into long term savings. You know what Christmas trade was like last year, so what will it look like in the new financial year with higher wage costs and new employees? What could you change throughout the year in terms of things like the types of employees you hire and their agreed hours? The difference can be significant. Scenario test your forecasts based on employment type, age, level and test the impact of unforeseen overtime. Software will greatly speed this process up. If you’re only reporting on how well you’ve done, start reporting into the future in 2019. Plan to be successful in the future so you can start moving towards your goals now. (2) Tie up loose ends with a sharp ‘day of operations’ plan A well-run shift feels good, it’s like a hot knife through butter. The perfect win-win-win for business, employee, and customer. For some businesses, this is a random occurrence, but businesses that invest in the success of their workforce replicate this effect on a daily basis. It sounds simple enough: you need the right people in the right place at the right times, and management that leads the charge from the front. The reality is that planning and execution have many moving parts, which is why the day of operations plan holds key to your long term success. Staff levels should track your schedule, or day of operations plan, like clockwork. Any observed discrepancies should be viewed in light of demand being increased or decreased versus what was expected. At Tanda we we’ve quantified the ‘loose ends’ of a shift to be worth at least 1% of total payroll cost, based on clients who moved off manual timesheets. These represent just the small 1 to 5 minute variances here or there to what was planned, so with larger unexpected variances there can be a much larger than 1% difference between your plan and actual costs. Executing shifts with precision and recording times accurate to the minute is low hanging fruit in 2019. You can do this by setting goals for the time between trading or production end, and the official shift end, to encourage staff to finish diligently. If the original plan results in success, sticking to the plan guarantees it. Tanda’s Live Wage Tracker lets you see wage costs in real-time and adjust staffing levels to drive profitability (3) Return Managers to the Frontline If you want to sell more, make more, and ultimately do more in 2019, empower your managers to lead from the front. This is an opportunity that most businesses leave on the table. Frontline managers are your managers who lead shifts and teams, and they lead more employees than any other level of management. Remember, frontline staff have direct and measurable impacts on top line revenue and quality — they are the doers of any company. Research shows that the most valuable thing a frontline manager can do is allocate time to lead from the front, yet frontline managers spend more time on administration than on more important things like coaching and training. Make the admin the exception. Analyse what keeps managers in their office and automate it, so they can lead the charge from the front. Industrial engineers use the fancy term “task-based observation”, but in practice finding out what to automate is as simple as analysing each piece of paper a manager touches and asking, “why?” Tanda’s Live Wage Tracker monitors your wage costs in real time as Tanda’s Award Engine calculates the exact cost of your wages for each minute of the day Master your Wage Costs Mastering your wage costs only takes a few key changes to the way you do business. First, investing in the right software will empower you to accurately forecast the next 12 months and beyond based on both reported data and common scenarios. Workforce success platforms like Tanda eliminate the need to guess how different employment and overtime levels affect revenue. Second, planning ahead and having contingencies ensure that every shift runs well and no resources are wasted. Besides having a sharp “day of operations plan”, preparing for staffing difficulties is possible with features like shift swapping that dramatically reduce no-shows. Third, ensuring that managers have a connection with both the staff and the customers gives you an edge over the competition. A manager that is not stuck in the back office understands concerns from all ends, and makes better decisions as a result. Help your business grow by implementing these three strategies today! Curious to know more about a workforce management system that can help your business get better? Book your FREE demo with Tanda today.
Product Updates |
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. So checking how much you spent on wages after the fact (end of day, week, or month) is just too late for you. We’ve built the Live Wage Tracker™ to enable you to proactively make decisions that will affect your bottom line. Real time certainty for accurate staffing Having optimal staffing levels is good for everyone; customers get the right level of service, employees aren’t overworked or bored, and the business spends the right amount of money on wages. Live Wage Tracker helps you: Gain oversight of your day of operations See accurate staff counts and wages at any given moment Understand how much you’ve spent on wages so far that day Ensure optimal staffing levels See where you’re overspending on wages Investigate any variances to your roster What’s next? We’re proud to say the live wage tracking feature is a big deal. Our next challenge is even bigger – we’re working on bringing you a live view of your sales and demand so you can get a complete picture of your day. Instead of checking on those KPIs at the end of the day and trying to improve the future, you’ll be able to track them on the day and improve the now. With live sales, live demand, and live KPIs managing your day of operations has never been so easy. Try Live Wage Tracker™ today for free, no credit card required.