Tanda Blog

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Rota & Compliance UK    |   

Everywhere we go, whatever service or product we buy, there are frontline employees who provide us services. Frontline employees are those who directly interact with customers. They perform all kinds of roles to deliver the customer promise. This includes answering phone inquiries, assisting in-store clients, performing consultancy work, and fulfilling maintenance jobs. For many businesses, dozens or even hundreds of frontline workers are needed every single day. Traditionally, managers used pen and paper to build the employee rota. Today, you can use a shift rota template not only to build your employee rota but also to lower costs. What is a shift rota template? A shift rota template is a great way to make your administrative work easier. Employees have different availabilities, skills, and wage costs. For regular work weeks, it’s good to have a go-to template that balances all these requirements. Never used a template before? Don’t worry, our free Shift Rota Template for Excel is available for download! The template is on Google Sheets and can be easily shared with read-only access. You can also talk to your employees through the comment feature for any changes in their schedule. Moving to an online shift rota template ensures your employees can access their schedule any time. Read more: Bar Scheduling Problems? Get Your Free Timesheet Software UK! Why does a good employee rota matter? Building a good employee rota is not as easy as it looks. It starts with understanding what both managers and employees want. Managers want a rota that allows the business to cater to as many clients as possible. Employees want a rota that maximises their skills but gives them work-life balance. Finding the middle ground requires plenty of data and careful planning. A good employee rota can unlock staff productivity and increase engagement across the board. This also means higher profits and faster expansion. Remember that staff appreciate good rotas just as much as managers do because of its long-term benefits. Read more: Planning for Success: How to build a perfect work rota If putting together a good employee rota sounds like a lot to handle, don’t worry. Once you’ve gotten the hang of our free Shift Rota Template for Excel, you can upgrade to our scheduling software UK. It lets you see staff availability as you go, so scheduling takes less time. You can also set targets and rota costs to make sure you never go over budget. Once done, you can save the employee rota template. That way, you won’t use up all your time and resources making sure everything is in order. Best of all, you can access this for 14 days, completely free of charge, no strings attached.  Read more: 3 Reasons to Get Your Employee Rota Right Can you have more than a shift rota template? Our scheduling software UK doesn’t just help you plan shifts. It also provides a complete set of features you need to run your business. Now you can stay within budget, track demand for staff, monitor attendance, and communicate with employees. See wage costs in real-time and adjust staffing levels to drive profitability. You can also introduce new methods of onboarding, shift swapping, and leave management. This software impacts all areas of business from day-to-day operations to planning for the year. And we’re ready to help you set it up, no matter how big or small your company is!  Read more: Braving “Blue Monday”: New Reporting Requirements for Small Businesses Invest in a scheduling software today A Shift Rota Template for Excel is a great start if you want to modernise the way you run your business. Managing frontline employees day in and day out costs a considerable amount of resources. But the bottom line, especially for frontline workers, is delivering the customer promise. Transitioning to a scheduling software for UK businesses helps you balance wage and administrative costs with staffing levels.  Try it out with our free Shift Rota Template for Excel or jump right in to our 14-day trial. Take care of your customers, empower your employees, and grow your business with the right employee rota software today. Build the best employee rota possible. Start your free 14-day trial now and get one step closer to workforce success! No credit card required.

How to Use a Shift Rota Template to Manage Frontline Employees

8 July 2019

Rota & Compliance UK    |   

Are you a new manager trying to work out pro rata leave? Or are you an experienced business owner hiring more staff? Whatever stage your business is in, almost all your employees are entitled to pro rata leave. This means computing the leave entitlement of every single employee.  It also means managing their annual leave to give them time off to unwind. Keeping track of all these requirements and schedules can be taxing for managers and business owners. So what is pro rata leave? How does it affect productivity and morale in the workplace? How can you make sure that you’re on top of pro rata leave for UK employees? What is pro rata leave? In the UK, almost all workers are legally entitled to 5.6 weeks’ pro rata leave. This paid holiday is also known as statutory leave entitlement or annual leave. Agency workers, workers with irregular hours, and workers on zero-hours contracts are entitled to this as well. Working out the holiday entitlement for full-time or part-time employees is simple. Just multiply the number of days they work per week by 5.6. Part-time workers will always have less than the 28 days that full-time workers have. The pro rata leave is an important part of ensuring work-life balance in the UK. Read more: Brexit Business Impact: How to Future-proof your Trade Can vacations give workers a morale boost? Taking an annual leave has a significant impact on an employee’s performance. According to studies by BCG and EY, more than 80% of employees who utilised their leave reported a positive impact on morale. Additionally, more than 70% reported an increase in productivity. But in 2016, 40% of the British workforce didn’t use their entitled holiday time. Why is this happening? Reasons range from difficulty in scheduling leave to not being able to afford to take the day off. While not immediately obvious, this trend will negatively impact the business. Overworked employees are less productive and less likely to stay with a company. Read more: Happiness and Healthcare: Why UK’s healthcare workers need a morale boost Use a pro rata calculator to work out annual leave! Working out the annual leave is difficult for many employers. Using our pro rata calculator takes the hassle and uncertainty out of the process. Work out your staff’s holiday entitlement for free! Simply begin by choosing between computing on a daily or hourly basis. Provide important details like the employee’s start date and hit calculate. But why settle for this when you can do so much more? Try our Online Leave Management feature to submit, approve, and manage employee leave entitlements and availability. Track vacation, paid time off, and sick leave entitlements to automatically update staff profiles, rota, and timesheets. Do this all for free for 14 days, no credit card required. Read more: Pro Rata Calculator: Less paperwork, more profit! Manage pro rata leave better, no credit card required There’s no need to ask “what is pro rata leave” ever again when you have our full suite of features that work it out for you! There’s no need to remember computations or go back and forth on dates. Everything is available all on one platform. And it’s not just about managing pro rata leave requests either! We have a one-stop-shop for time and attendance, rota management, and labour compliance. So don’t let old strategies hold back your modern business. Invest in a workforce management solution that’s right for you and your employees. Don’t you think it’s time to try out new solutions to empower your people and grow your profits? Manage your employees better, instantly. Try our free pro rata calculator, or better yet, start your free 14-day trial now and get one step closer to workforce success! No credit card required.

What is Pro Rata Leave? Why does it matter for UK employees?

21 June 2019

Product Updates    |   

There is nothing more British than a pint of beer after a long day’s work. In fact, the alcohol industry accounts for 2.5% of all employment in the country. This translates to 770,000 jobs as of 2017. Significantly, 80% of these jobs are in retail -- pubs, clubs, and bars. But running a bar or a pub in the UK is a tall order, no pun intended. About 65% of jobs in pubs, clubs, and bars are part-time. This makes bar scheduling a nightmare for managers. Many managers look for free timesheet software in the UK to help manage their shift workers. Check out how you can take advantage of free timesheet software below! Bar scheduling software for frontline managers Many managers in the UK go through the same tedious process of creating timesheets every single pay period. Encoding different information from various sources and calculating the correct pay takes time and money. Spending a good chunk of your administrative resources on timesheets can certainly make a dent in your overall profits. Why settle for this when you can cut the process down by hours? With bar scheduling software, you save time, control costs, and simplify employee communications. You can create the perfect rota in minutes and keep your managers on the frontline! Read more: Four Ways to Keep your Managers on the Frontline Stay labour compliant with bar scheduling software Work doesn’t end once shifts are published. Fortunately, bar scheduling software can calculate precise wages based on staff clock-ins from our free employee timesheet machine. They are also ready to be exported to your payroll system. You won’t need to worry about costly fines due to timesheet mistakes down the line. You can focus on what matters most: your pub, club, or bar’s clientele. Keep them coming back with efficient customer service that comes from an empowered staff. Ensuring the future of your business only takes a couple of clicks. Try our free timesheet software UK for 14 days to get the full experience! Read more: Braving “Blue Monday”: New Reporting Requirements for Small Businesses Bonus: Free timesheet machine for accurate timesheets The biggest hurdle in creating an accurate timesheet is unreliable attendance records. A traditional timesheet machine is prone to time theft. Buddy punching, time clock deception, and extended breaks cost companies millions. Investing in a reliable timesheet machine helps insure companies against this. While some companies still use inefficient fingerprint scanners, most forward-thinking ones use electronic time clocks with a photo verification feature. Best of all, this free employee timesheet machine is available for download right now! Read more: Building Workforce Success with Appletree Estates Don’t let timesheets take up time Timesheets are a tedious but necessary part of running a pub, club, or bar as they rely on shift workers. Successful managers know how important it is to balance labor costs with delivering the customer promise. Transitioning to workforce technology doesn’t have to happen all at once. Try it out with free timesheet software UK first and see what difference it can make, no credit card required. Once you know your way around it, you’ll be ready to explore the full range of features that will revolutionise how you do business.   Ready to take advantage of free timesheet software UK?  Start your free 14-day trial now and get one step closer to workforce success!

Bar Scheduling Problems? Get Your Free Timesheet Software UK!

14 June 2019

Rota & Compliance UK    |   

Everywhere we go, whatever service or product we buy, there are frontline employees who provide us services. Frontline employees are those who directly interact with customers. They perform all kinds of roles to deliver the customer promise. This includes answering phone inquiries, assisting in-store clients, performing consultancy work, and fulfilling maintenance jobs. For many businesses, dozens or even hundreds of frontline workers are needed every single day. Traditionally, managers used pen and paper to build the employee rota. Today, you can use a shift rota template not only to build your employee rota but also to lower costs. What is a shift rota template? A shift rota template is a great way to make your administrative work easier. Employees have different availabilities, skills, and wage costs. For regular work weeks, it’s good to have a go-to template that balances all these requirements. Never used a template before? Don’t worry, our free Shift Rota Template for Excel is available for download! The template is on Google Sheets and can be easily shared with read-only access. You can also talk to your employees through the comment feature for any changes in their schedule. Moving to an online shift rota template ensures your employees can access their schedule any time. Read more: Bar Scheduling Problems? Get Your Free Timesheet Software UK! Why does a good employee rota matter? Building a good employee rota is not as easy as it looks. It starts with understanding what both managers and employees want. Managers want a rota that allows the business to cater to as many clients as possible. Employees want a rota that maximises their skills but gives them work-life balance. Finding the middle ground requires plenty of data and careful planning. A good employee rota can unlock staff productivity and increase engagement across the board. This also means higher profits and faster expansion. Remember that staff appreciate good rotas just as much as managers do because of its long-term benefits. Read more: Planning for Success: How to build a perfect work rota If putting together a good employee rota sounds like a lot to handle, don’t worry. Once you’ve gotten the hang of our free Shift Rota Template for Excel, you can upgrade to our scheduling software UK. It lets you see staff availability as you go, so scheduling takes less time. You can also set targets and rota costs to make sure you never go over budget. Once done, you can save the employee rota template. That way, you won’t use up all your time and resources making sure everything is in order. Best of all, you can access this for 14 days, completely free of charge, no strings attached.  Read more: 3 Reasons to Get Your Employee Rota Right Can you have more than a shift rota template? Our scheduling software UK doesn’t just help you plan shifts. It also provides a complete set of features you need to run your business. Now you can stay within budget, track demand for staff, monitor attendance, and communicate with employees. See wage costs in real-time and adjust staffing levels to drive profitability. You can also introduce new methods of onboarding, shift swapping, and leave management. This software impacts all areas of business from day-to-day operations to planning for the year. And we’re ready to help you set it up, no matter how big or small your company is!  Read more: Braving “Blue Monday”: New Reporting Requirements for Small Businesses Invest in a scheduling software today A Shift Rota Template for Excel is a great start if you want to modernise the way you run your business. Managing frontline employees day in and day out costs a considerable amount of resources. But the bottom line, especially for frontline workers, is delivering the customer promise. Transitioning to a scheduling software for UK businesses helps you balance wage and administrative costs with staffing levels.  Try it out with our free Shift Rota Template for Excel or jump right in to our 14-day trial. Take care of your customers, empower your employees, and grow your business with the right employee rota software today. Build the best employee rota possible. Start your free 14-day trial now and get one step closer to workforce success! No credit card required.

How to Use a Shift Rota Template to Manage Frontline Employees

8 July 2019

Rota & Compliance UK    |   

Are you a new manager trying to work out pro rata leave? Or are you an experienced business owner hiring more staff? Whatever stage your business is in, almost all your employees are entitled to pro rata leave. This means computing the leave entitlement of every single employee.  It also means managing their annual leave to give them time off to unwind. Keeping track of all these requirements and schedules can be taxing for managers and business owners. So what is pro rata leave? How does it affect productivity and morale in the workplace? How can you make sure that you’re on top of pro rata leave for UK employees? What is pro rata leave? In the UK, almost all workers are legally entitled to 5.6 weeks’ pro rata leave. This paid holiday is also known as statutory leave entitlement or annual leave. Agency workers, workers with irregular hours, and workers on zero-hours contracts are entitled to this as well. Working out the holiday entitlement for full-time or part-time employees is simple. Just multiply the number of days they work per week by 5.6. Part-time workers will always have less than the 28 days that full-time workers have. The pro rata leave is an important part of ensuring work-life balance in the UK. Read more: Brexit Business Impact: How to Future-proof your Trade Can vacations give workers a morale boost? Taking an annual leave has a significant impact on an employee’s performance. According to studies by BCG and EY, more than 80% of employees who utilised their leave reported a positive impact on morale. Additionally, more than 70% reported an increase in productivity. But in 2016, 40% of the British workforce didn’t use their entitled holiday time. Why is this happening? Reasons range from difficulty in scheduling leave to not being able to afford to take the day off. While not immediately obvious, this trend will negatively impact the business. Overworked employees are less productive and less likely to stay with a company. Read more: Happiness and Healthcare: Why UK’s healthcare workers need a morale boost Use a pro rata calculator to work out annual leave! Working out the annual leave is difficult for many employers. Using our pro rata calculator takes the hassle and uncertainty out of the process. Work out your staff’s holiday entitlement for free! Simply begin by choosing between computing on a daily or hourly basis. Provide important details like the employee’s start date and hit calculate. But why settle for this when you can do so much more? Try our Online Leave Management feature to submit, approve, and manage employee leave entitlements and availability. Track vacation, paid time off, and sick leave entitlements to automatically update staff profiles, rota, and timesheets. Do this all for free for 14 days, no credit card required. Read more: Pro Rata Calculator: Less paperwork, more profit! Manage pro rata leave better, no credit card required There’s no need to ask “what is pro rata leave” ever again when you have our full suite of features that work it out for you! There’s no need to remember computations or go back and forth on dates. Everything is available all on one platform. And it’s not just about managing pro rata leave requests either! We have a one-stop-shop for time and attendance, rota management, and labour compliance. So don’t let old strategies hold back your modern business. Invest in a workforce management solution that’s right for you and your employees. Don’t you think it’s time to try out new solutions to empower your people and grow your profits? Manage your employees better, instantly. Try our free pro rata calculator, or better yet, start your free 14-day trial now and get one step closer to workforce success! No credit card required.

What is Pro Rata Leave? Why does it matter for UK employees?

21 June 2019

Product Updates    |   

There is nothing more British than a pint of beer after a long day’s work. In fact, the alcohol industry accounts for 2.5% of all employment in the country. This translates to 770,000 jobs as of 2017. Significantly, 80% of these jobs are in retail -- pubs, clubs, and bars. But running a bar or a pub in the UK is a tall order, no pun intended. About 65% of jobs in pubs, clubs, and bars are part-time. This makes bar scheduling a nightmare for managers. Many managers look for free timesheet software in the UK to help manage their shift workers. Check out how you can take advantage of free timesheet software below! Bar scheduling software for frontline managers Many managers in the UK go through the same tedious process of creating timesheets every single pay period. Encoding different information from various sources and calculating the correct pay takes time and money. Spending a good chunk of your administrative resources on timesheets can certainly make a dent in your overall profits. Why settle for this when you can cut the process down by hours? With bar scheduling software, you save time, control costs, and simplify employee communications. You can create the perfect rota in minutes and keep your managers on the frontline! Read more: Four Ways to Keep your Managers on the Frontline Stay labour compliant with bar scheduling software Work doesn’t end once shifts are published. Fortunately, bar scheduling software can calculate precise wages based on staff clock-ins from our free employee timesheet machine. They are also ready to be exported to your payroll system. You won’t need to worry about costly fines due to timesheet mistakes down the line. You can focus on what matters most: your pub, club, or bar’s clientele. Keep them coming back with efficient customer service that comes from an empowered staff. Ensuring the future of your business only takes a couple of clicks. Try our free timesheet software UK for 14 days to get the full experience! Read more: Braving “Blue Monday”: New Reporting Requirements for Small Businesses Bonus: Free timesheet machine for accurate timesheets The biggest hurdle in creating an accurate timesheet is unreliable attendance records. A traditional timesheet machine is prone to time theft. Buddy punching, time clock deception, and extended breaks cost companies millions. Investing in a reliable timesheet machine helps insure companies against this. While some companies still use inefficient fingerprint scanners, most forward-thinking ones use electronic time clocks with a photo verification feature. Best of all, this free employee timesheet machine is available for download right now! Read more: Building Workforce Success with Appletree Estates Don’t let timesheets take up time Timesheets are a tedious but necessary part of running a pub, club, or bar as they rely on shift workers. Successful managers know how important it is to balance labor costs with delivering the customer promise. Transitioning to workforce technology doesn’t have to happen all at once. Try it out with free timesheet software UK first and see what difference it can make, no credit card required. Once you know your way around it, you’ll be ready to explore the full range of features that will revolutionise how you do business.   Ready to take advantage of free timesheet software UK?  Start your free 14-day trial now and get one step closer to workforce success!

Bar Scheduling Problems? Get Your Free Timesheet Software UK!

14 June 2019

Most Popular

Product Updates

What you need to know about the Casual Conversion Clause

On 1 October 2018, the Fair Work Commission announced that a new casual conversion clause will be included in 80+ modern awards across Australia. What does it mean? Casual conversion is a right given to regular casual staff to request for full-time or part-time employment status, given certain prerequisites. In the awards, a ‘regular casual employee’ is: “A casual employee who has, in the preceding period of 12 months, worked a pattern of hours on an ongoing basis which, without significant adjustment, the employee could continue to perform as a full-time employee or part-time employee under the provisions of this award.” Businesses whose awards fall under mandate are required to advise their casual employees of this clause. This does not require employers to offer conversion to their eligible employees; rather, the clause entitles all eligible employees the right to request for conversion. Who can apply? The clause allows casual workers to apply for conversion if: They have  been working for the business for twelve (12) months; and Their work pattern is an ongoing number of hours over the past year, which can be continued without adjustment upon conversion to full-time or part-time. Employers must provide casual employees with a copy of the casual conversion clause within their first year of initial engagement with the business. Casual employees who are eligible to apply should request their employers in writing. Can applications be rejected? Yes, applications can be rejected. Reasonable grounds include: A significant adjustment of work hours for the employee in order to accommodate their full-time or part-time employment status; The employee worked for short periods and/or irregular shifts or hours; and The position of the casual employee will cease to exist in the foreseeable future. Rejection of applications can be done, given that both employee and employer have discussed the decision. Should employers not convert a casual employee, a written refusal must be provided, indicating the reasonable grounds of rejection. Read more: What is the Contingent Workforce and how can you leverage it in your business? What awards are covered? The introduction of the clause covers 80+ modern awards, including: Hospitality Industry (General) Award 2010; Food, Beverage and Tobacco Manufacturing Award 2010; Manufacturing and Associated Industries and Occupations Award 2010; Building & Construction General On-site Award 2010; Concrete Products Award 2010; Electrical, Electronic & Communications Contracting Award 2010; Graphic Arts, Printing and Publishing Award 2010; Plumbing and Fire Sprinklers Award 2010; Textile, Clothing, Footwear and Associated Industries Award 2010; and Vehicle Manufacturing, Repair, Services and Retail Award 2010 To check if your business is included, click here. What should your business do next? It’s important to keep in mind that Fair Work’s decision does not require businesses to convert casual employees in all cases where a casual employee makes a request for conversion to their employer.  For this reason, it’s important to understand the criteria for casual conversion and understand what your obligations are when employees meet these requirements. If you or your business falls under the new clause, here are the steps you can take to stay compliant: Check your modern award or enterprise agreement. Awards with existing clauses for casual conversion may have different requirements. Check your award for the exact rules in your industry. Create a casual conversion letter. You can also download a copy here. Notify your employees. Make sure you give your casual staff (employed as of 1 October 2018) a copy of the final letter. Record the outcome of the casual conversion offer. Whether they accept or reject the offer, keep copies of their written responses for future reference. If you are unsure how the casual conversion clause affects your business, call the Fair Work Infoline on 13 13 94 or visit www.fairwork.gov.au To make sure you stay updated with the latest news on awards, employment, and compliance, subscribe to our newsletter today.

Product Updates UK

Domino’s and Tanda: Building the Workforces of the Future

Brisbane-based company Tanda has today announced a business partnership with Domino’s Pizza Enterprises Limited, to automate and optimise the company’s payroll process. The partnership will assist Domino’s in empowering its franchisees with the right technology and tools to efficiently manage rostering and payroll as a competitive edge. Tanda Director Tasmin Trezise said he is excited about the partnership. “Tanda is proud to be working collaboratively with Domino’s to build the future of workforce management, and this represents an exciting step towards using technology to shape enterprise workplaces,” said Mr Trezise. “Domino’s is an agile and forward-thinking company who are leading the way in terms of innovation, whether this is through their drone delivery services or re-imagining their labour supply chain management.” The partnership between the two companies will see a roll out of Tanda\'s software to over 700 stores across Australia and New Zealand. Domino’s Australia and New Zealand CEO Nick Knight said the Company was looking forward to making franchisee’s lives easier with the efficient time and attendance program. “We are always looking to use the latest innovative technology in everything that we do as a Company – this from delivery to customers and for systems and processes with franchisees,” said Mr Knight. “Rolling out Tanda in stores across Australia and New Zealand will allow our franchisees to efficiently roster and record team member’s attendance so we look forward to reaping the benefits of the innovative program.” Trezise explained that Domino’s franchisees would soon see incredible benefits after the working relationship with Tanda begins. “This partnership will empower Domino’s franchisees with a greater understanding and insight into their labour costs so they are able to make smarter and more informed business decisions whilst having comfort that their payroll complies with current awards and enterprise agreements. “The fact that Domino’s and other Australian businesses are using new technology like Tanda is a testament to Australia’s growing success as an innovative nation.” Domino’s partnership with Tanda began in the Company’s dedicated innovation space, the DLAB, which was designed to encourage out of the box thinking. From local corner cafes to global workforces, Tanda is revolutionising the world of rostering and payroll one shift at a time. About Tanda Tanda is a scalable workforce management SaaS, that is helping businesses to unlock efficiency and productivity gains through more effective labour force management. For more information, visit www.tanda.co About Domino’s Domino’s Pizza Enterprises Limited is the master franchisor for the Domino’s brand in Australia, New Zealand, Belgium, France, The Netherlands, Japan and Germany. Across these seven markets, DPE and its franchisees operate over 2,000 stores. For more information, please visit www.dominos.com.au For further information, media enquiries or images contact: Bridget Mahon Marketing Communications Officer Email: bridget@tanda.co

Editor's Picks

Industry Insights    |   

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?

Industry Insights

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UK Employee Confidence is Down – Here’s How to Attract Talent Anyway

Gartner’s Global Talent Monitor report for the fourth quarter of 2018 showed that employee confidence declined in the UK. For Brian Kropp, Gartner HR’s group vice president, this means that attracting talent is going to be particularly challenging. Employees will see more risk in changing jobs than staying in their current one, regardless if they’re […]

Braving “Blue Monday”: New Reporting Requirements for Small Businesses

April 1 was dubbed Blue Monday in the UK. Businesses nationwide need to comply with new costs and tax reporting requirements. Around 2 million small businesses were affected by the new rules on accounting under HMRC’s Make Tax Digital (MTD) program. One major change is the need for compliant software to track their finances. Many […]

Rota & Compliance

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How to Use a Shift Rota Template to Manage Frontline Employees

Everywhere we go, whatever service or product we buy, there are frontline employees who provide us services. Frontline employees are those who directly interact with customers. They perform all kinds of roles to deliver the customer promise. This includes answering phone inquiries, assisting in-store clients, performing consultancy work, and fulfilling maintenance jobs. For many businesses, […]

What is Pro Rata Leave? Why does it matter for UK employees?

Are you a new manager trying to work out pro rata leave? Or are you an experienced business owner hiring more staff? Whatever stage your business is in, almost all your employees are entitled to pro rata leave. This means computing the leave entitlement of every single employee.  It also means managing their annual leave […]

Product Updates

See more

Bar Scheduling Problems? Get Your Free Timesheet Software UK!

There is nothing more British than a pint of beer after a long day’s work. In fact, the alcohol industry accounts for 2.5% of all employment in the country. This translates to 770,000 jobs as of 2017. Significantly, 80% of these jobs are in retail — pubs, clubs, and bars. But running a bar or […]

Free UK Pro Rata Holiday Leave Calculator Now Available

Are you finding it difficult to figure out how much holiday leave each of your employees have left this year? Is it taking a long time to process holiday leave requests and finding out how much leave days can be carried over to the next year? These can all be a thing of the past […]

Events & Media

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Tanda clocks in at Xerocon London

Tanda recently joined over 70 exhibitors at Xerocon London 2018 – one of the biggest fintech showcases in the UK. Held at the Excel London conference centre, industry leaders from Europe, the Middle East, and Africa were present, discussing the future of business and cloud accounting, at the 2-day event. With over 3,000 attendees, Xerocon […]

Clients & Partners

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Building Workforce Success with Appletree Estates

“I think people would be very surprised with the number of staff it takes to deliver their home, the breadth of different skills needed to do that,” muses Richard Carmichael, Construction Director of Appletree Estates. Specialising in residential and retail new build and renovation projects, they have between 30 to 50 employees working on projects […]

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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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