What does the new wage increase mean for your business?
The Fair Work Commission has announced the Australian minimum wage will be increased by 2.5% starting 1st July 2015. The 1.86 million lowest paid workers will get a $16 a week pay rise.
Tanda used its own labour cost reporting system to measure the expected effects this will have on local businesses and found startling results.
Tanda CTO Alex Ghiculescu said “The data determines there could be damaging effects, especially in industries with narrow margins.”
“Take a typical restaurant and bar with around 40 staff. We project their annual wage costs to go up by just over $60,000 even before you add in oncosts for superannuation, workcover, leave entitlements, and so on.”
“A change to the minimum wage has multiple flow-on effects when you consider various award levels, overtime rates and weekends.”
“To put it in perspective, for such a business to keep similar margins they would need to sell around 10,000 beers in addition to current sales.”
If businesses are incapable of raising profit and pricing margins to keep level with the expenses of the wage increase, they will be forced to lay off staff.
Business lobby groups are in agreement with the prediction. Australian Chamber of Commerce and Industry direction of employment, education and training Jenny Lambert says “The Fair Work Commission didn’t do the right thing by the economy by bringing in such a substantial above average increase.”
“We’re now looking at ways to utilise Tanda’s labour reporting systems to help businesses understand the impact on their bottom line,” Mr Ghiculescu says.
Tanda wants to focus on finding a way to make the minimum wage fair for all Australians while keeping Australian businesses strong.
Awards & Rostering Events & Media AU Product Updates |
Tanda hits 1 Million clock ins!
Tanda has ticked over to 1 MIllion Clock-Ins! That is a lot of people showing up for work. And though we may gripe and grumble about the daily grind, one million clock-ins is something we want you to celebrate with the whole team at Tanda. Tanda has been here to help you. We have helped you make payroll simple and easy. We have helped you make time theft and wasted hours of figuring out award rates a thing of the past. But today Tanda wants to acknowledge someone else in this ever-growing time and attendance tool. We want to focus on YOU. One million clock-ins on our successful cloud-based software might seem like an intangible concept. Instead, we’d like you to think of it more as an in-Tanda-ble concept. That’s people getting up early to clock in so you have your morning coffee. That’s childcare workers all over Australia clocking in to make sure your children get the best start in early learning. That’s certified companies like Subway, Nike and Telstra moving forward in the constantly changing systems of business, time and attendance. But more importantly in many ways, that’s small businesses and the backbone of Australian industries moving forward with them too. Tanda ensures no one gets left behind, and no time or attendance goes amiss for those 1 million of you who have clocked in. Though we can’t celebrate this achievement with each and everyone of you in your office, restaurant, childcare centre, hotel or whatever space it is you run your business in, we can still thank you all here from Tanda HQ. This video isn’t much, but its a small demonstration of how excited we are for all of you. Keep up to date with more exciting news from Tanda by heading to our Facebook page and giving us the old thumbs up at https://www.facebook.com/TandaHQ or follow us on Twitter and LinkedIn for more surprises to come.
Industry Insights |
Change Might Be Coming to Hospitality and Retail Owners
This one is looking at all you Food Produce and Hospitality business owners out there in the Tandaverse. It has been announced that the Senate will launch an inquiry into the Australian Wine Industry. Tanda users in wine country, also known as South Australia, may have already heard South Australian Senator Anne Ruston moved for the inquiry to see if there’s a market failure. This means having a look at that transition from vineyard to restaurant. In true politician style, Senator Anne Ruston says things are going well for the wine industry in Australia, but there may be opportunities we have missed and certain factors going against us. This is all very vague and contradicting. Managers and business owners out there know hearsay is useless for your growth. Facts and numbers are the things most important to you. So what does all this actually mean for you? Well, what is unusual in politics is that it seems all sides of government are for the inquiry. Senate has reported that though the broad-ranging report is still in the process of conception, it would take a look at the power and influence of retailers and wholesalers of Australian wine in domestic and international markets. Not only will it uncover information beneficial to retailers, it’ll examine existing policies like the Wine Equalisation Tax. Though it’s quite apt that the policy is named WET, refrain from wetting your lips to celebrate just yet. Things could be in the process of changing for better or worse. But this is only part of a bigger picture. Free Market Trade agreements are on the table now making it an exciting time for Australian business owners. Tanda, and we’re sure you guys too, are very keen to see how this inquiry unfolds in the near future and beyond.
Industry Insights |
“Help! My employees are always late!”
Do you find in your business employees are constantly showing up for work late, or clocking off just a little bit too early for your liking? Tanda can help you keep track of your employees clock-ins and clock-outs. The SMS feature alerting you when people are late is also a handy Tanda tool to keep an eye on the hard workers and the not-so-hard workers in your team. But there’s one thing a Tanda Clock can’t do, and that’s motivate your team to show up on time to put in their best work. There’s a few key reasons staff start to dawdle on their way to work. One key factor is motivation. Once motivation drops in the office, kitchen or factory, the unproductive sentiment can spread like wild fire. You can help bring up your employees motivation levels with a few tips and tricks that the team here at Tanda has learned and implemented as well. Automation Firstly, automate what you can. If there is something an employee has to do that could be done just as easily with an add-on, application or new system then what are you waiting for? The same way Tanda automates payroll and rosters meaning less time wasted on the boring stuff, you can get rid of the boring tasks for your employees too. Rotation There are some things that have to happen around the workforce. But, if one employee has to carry out the same task or responsibility for more than three hours you will notice they might be getting bored. Try rostering them onto the same task for days or weeks on end and then ask yourself can you really blame them for being late all the time? Instead, it’s better to delegate and rotate tasks between your team. Productivy levels tend to spike at the beginning of a task, so if you can keep your team motivated with new or different things to do you’ll find less stragglers getting to work in the mornings. Optimization Which brings us to optimising how you use your time. Tanda knows a thing or two about time and attendance. Studies have shown people were more likely to be more cooperative and get work done in the morning. Throughout the day the peak in productivity comes unsurprisingly after lunch breaks. The worst times for positive results came just before lunch breaks and nearing the end of the shift. With that in mind, try and schedule the nitty gritty work, unpleasant tasks or least favourite jobs in the mornings and just after your staff have had a break to refresh. Save the fun stuff for the long hours and just before home time. Because really, if your staff are passionate about what they do for your company then there should be plenty of fun stuff for them to do.