Tanda Blog: New Feature

New Feature

Flexible Features have arrived at Tanda

Time to spread the news that Tanda has some exciting new features in a cache of innovative rostering software products. Existing Tanda customers, which is likely a lot of you reading this, may have already had a chance to play with some of them. But if you haven’t seen the full showcase this article is […]

New Feature! Leave Tracking Module

Our long awaited leave tracking module is now live. Check out the user guide to learn how Tanda (PayAus) can help you track those times when your staff don’t work.

New from Tanda: Roster Taggings

Ever wanted to add a location to a shift in a Tanda roster? Maybe you want to tag shifts for newbies, experienced staff, and managers. We’re super pleased to have rolled out our new tagging system. Using tags, you’re able to set up a set of colour codings that correspond to tags which you can […]

New integrations: Attaché and Reckon

We’re pleased to announce integrations with Attaché and Reckon (aka. QuickBooks/Quicken)! Integrating with even more accounting, payroll, and HR packages allows us to save even more of our customers’ time and money when gathering staff data and processing payroll. These integrations should be rolled out for all customers in the coming days. How do they […]

Sneaky New Feature: Get an SMS When Someone Arrives at Work

We’ve all met Dave. Dave is “always on time” and “never calls in sick”, except when he knows his manager won’t be in the office and thus won’t be able to check on him. What can you do about Dave? Tanda (PayAus) can now send you an SMS when Dave clocks in to work! The […]

New From Tanda: Daily Roll Calls

It’s 10:15 in the morning. Your weekly all hands meeting starts at 10:30, and you need a list of people who won’t be there. What do you do? If you don’t use Tanda (PayAus), maybe you’re lucky and have another system in place where staff clock in when they get to work. Chances are, it’s […]

Tanda Unveils Easy-to-Use Wage Easy Integration

We are pleased to announced that Tanda (PayAus) has full Wage Easy integration, a leading payroll and HR software system. Full integration allows you to use Tanda to track your staff’s attendance and manage their timesheets, and then export the data directly into Wage Easy, and your subsequent HR processes. How does it work? Well, they don’t call […]

Text Me Maybe: Share Your Rosters by SMS!

Tanda’s (PayAus) roster management tools just got even more powerful, with the ability to send your staff their rosters by SMS, instantly. No more printing rosters out and making sure they don’t get lost, or trampled on, or wet. No more casuals calling up during the busiest time of the day to ask when their […]

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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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