Embracing Smart Tech for Franchise Success
The Australian franchise space is embracing technology to become more heavily engaged with their consumers, strengthening their brand and relationships with customers. However, issues such as compliance, brand reputation and franchisor oversight are becoming more regulated, franchisors must be proactive in protecting their brand reputation and mitigating potential risks. Best practice franchisors are embracing smart […]
10 October 2016 — read
The Australian franchise space is embracing technology to become more heavily engaged with their consumers, strengthening their brand and relationships with customers. However, issues such as compliance, brand reputation and franchisor oversight are becoming more regulated, franchisors must be proactive in protecting their brand reputation and mitigating potential risks. Best practice franchisors are embracing smart tech as the tool to strengthen their franchise both internally with their staff, and externally with their customers. To first understand the benefits and value that smart tech can provide to franchises, it is important to understand the concerns that franchisors are facing. The franchise model typically works by decentralising responsibility to franchisees. This grants them a degree of autonomy, while also providing them with the support and guidance of the broader franchise network. While this framework is central to the success of the franchise model, it also provides one it’s greatest risks – that it becomes increasingly difficult for the franchisor to maintain appropriate governance and oversight over the wider franchise. Therefore, the main concerns franchisors have when it comes to workforce management, stem mainly from; compliance, governance and oversight. Labour force compliance concerns, specifically wage rate compliance, tops the list as the number one concern franchisors have regarding their workplace responsibilities. These concerns are derived largely from the fact that franchisors lack ability to oversee the franchise’s labour compliance as a whole. Failing to observe factors such as Industry award rate calculations, employment and payroll requirements can have massive implications for not only the franchisee, but the franchise brand as a whole. Employing smart cloud technology like Tanda, means that franchisors not only gain the ability to set and lock pay rates for every employee, but also the assurance that the system is in accordance with regulatory laws. Award interpretation engines, and fail-safe attendance tracking software gives greater compliance comfort for each level of the franchise, ensuring that employees are paid accurately for the time they work. Smart cloud-based technology provides franchisors and franchisees with greater governance and oversight into the business, at each level. The ability to access data and resources provides greater insight into the franchise’s functioning, but also assists managers to make smarter strategic decisions for the workforce. These decisions have the ability to influence franchise profitability, productivity and workplace satisfaction. More than just managing risks however, a Tanda workforce management solution also provides significant upside to Franchises. Workers are typically more engaged in the rostering process, are happier that they will be accurately paid for the time they work and are typically less likely to turnover and express a more positive attitude than the alternatives. Furthermore, with a better managed roster, Franchisees are given the tools to minimise Overtime Expense and thus reduce costs while Franchisors can gain effective benchmarking between their stores and add more value back into their Franchise network. Our vision is to help our clients build more open, connected and predictive workforces, through the use of smart technology, that helps our clients to get the most from their workforce. Smart technology is about empowering franchisees with the correct tools to further grow their franchise success, and providing peace of mind for Franchisors to protect their brand’s reputation and success. Tasmin Trezise was a Panelist at the National Franchise Convention 2016, addressing the topic; “Risky Business- How smart tech can protect your brand and mitigate risk in your Franchise”. Panel facilitated by Keran McKenzie of MYOB.