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Clients & Partners UK    |   

“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 across the North West. Richard, who has been on site for a year, deals with many issues common to labour-intensive companies across the world. From processing timesheets to onboarding new staff, Appletree Estates saw a big gap in their operations. We asked Richard how Appletree Estates is eliminating these administrative challenges. Huge administrative burden “We\'ve been trying to fix the problem for two years or so,” he shares. “We have a team of about 30 at that time on paper timesheets, paper holiday forms, and a highly inaccurate process. So people weren\'t always here when they said they were gonna be here, weren’t always a hundred percent accurate in terms of remembering all the hours that they had to leave and et cetera.” Many companies that do their payroll manually experience the same roadblocks. Traditional ways of tracking attendance are inefficient and can even lead to disputes down the line. “That was a big driver, really, accuracy,” he continues, “But also the administrative burden was huge. We were doing 10 to 20 hours of management time to deliver [payroll], plus every single member of the team was spending at least 15 minutes a week doing their own timesheets.” When it comes to administrative work, minutes quickly turn into hours. And each minute spent in the back office doing timesheets or payroll could be spent on training employees or engaging clients instead. So Appletree Estates turned to workforce technology. Read more: 5 Benefits of Using Time and Attendance Software Game-changing software “Tanda is game-changing, really, so I save tens of hours of company time used to go into doing that time sheets for between 30 and 50 guys. That now takes 30 minutes, and it is an awful lot more accurate,” he says. Given their number of staff and nature of work, Tanda was the perfect fit. “Let’s say a member of staff is contracted for 40 hours, with Tanda we make sure there\'s 40 hours log there, be it the time that they had on holiday, time they were off sick, time they were working. We always have a record of who was where and when, which is important for a whole host of reasons, without a doubt.” With these benefits, why don’t all companies shift to workforce management software? One reason is the cost. Investing in software intimidates many business owners and managers. But as Richard and Appletree Estates found, the cost isn’t high and is overshadowed by its benefits, “So we worked it out: It\'s .2% of our payroll cost to operate Tanda. We see that deliver back tenfold. Minimum. So as well as just the accuracy of what we’re paying, who we’re paying, and what we’re paying it for.” And with features like GPS clock-in, staff working off-site can use their mobile phone to start their shift. Read more: GPS Clock-in: Changing the way you track your mobile workforce Beyond scheduling and timesheets Tanda offers more than just rota scheduling and timesheets, and Appletree Estates is using other features to their advantage. “[We use it for] bringing in new members of the team on board. We use the employee onboarding system where we send them a text message and an email before they\'ve even turned up. So before they\'re here they\'re already registered,” he shares. Engaging your new hire before day one is an industry best practice. It ensures that the employee feels prepared when they come in. As Richard adds, “We have all the personal details, we’re saving time and they hit the ground running.” Tanda’s leave management system has also helped Richard and his team make sure that everything is accounted for. “We\'re getting all the benefits back, like the holiday management [process]. We\'re able to pick up when we\'re having problems,” he shares. Another feature that clients in shift work industries find useful are shift swapping and GPS clock-in. Shift swapping allows available employees to cover for those who are going on leave. GPS clock-in lets employees clock-in for work from a job site. All these features contribute to saving time, empowering employees, and growing the business. Free download: Planning for Success: How to build a perfect work rota Building workforce success “Tanda is one of a number of software initiatives that we\'re rolling out because we believe using web-based software is assisting us in delivering the management of our products and making it an awful lot easier,” Richard says. And technology is certainly helping Appletree Estates take on bigger projects. “We got some exciting projects to deliver. We are well on with a number of those so over the course of this year we\'ll be handed over under 20 units on one site. We\'ll be bringing in 40 or 50 [staff] and another site to the table.” With Tanda, Richard and his team won’t have a hard time building a successful workforce.

Building Workforce Success with Appletree Estates

15 May 2019

Industry Insights UK    |   

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 happy or not. “This is a result of businesses hiring and firing on a last-one-in, first-one-out basis during tough times,” he said. Mirroring this insight, employees’ active job-seeking fell by 7.2% from the third quarter of 2018. So why has employee confidence dropped? Contrary to popular belief, Brexit is only part of the reason. It’s true that Brexit impacted the political and economic outlook in the UK. And with April 12 fast approaching, the job market is likely to remain uncertain. However, the decline in employee confidence is also happening all over the world. But recruiters need not despair too much. The reluctance to change jobs doesn’t mean employees are satisfied with where they are. Despite the sharp fall in employee confidence, here are three ways to keep attracting talent. 1. Present clear career opportunities The job market may be uncertain, but some employees are still unsatisfied with their jobs. For many, this could be what determines if they’re willing to take the risk with a new employer or not. Notably, 45.6% of departing employees in the UK cited the lack of career opportunity as the reason they left. Also, 37.4% said that the lack of personal development was a dissatisfying attribute of their previous employer. This suggests that the way to attract new talent is to present them with clear career opportunities from the moment they are onboarded. When pitching to a prospective hire, let them know that your company provides the right guidance and advancement opportunities. According to global recruitment specialist Michael Page, 45% of Brits have never asked for career advice. It’s important to open up this venue to keep them engaged with their work. The same study revealed that 34% of Brits believe they missed out on opportunities due to lack of career guidance. All this indicates that effective onboarding, mentorship, and development programs matter to employees, regardless of industry. Free download: Making the Onboarding Experience Work for your Business 2. Reward dedication and talent Increasing your attractiveness as an employer during a low employee confidence period means understanding what matters most to them. For many employees, your willingness to reward dedication and talent can make or break the decision. Companies that value their employees’ contributions will attract talent no matter the economic climate. Conversely, failing to reward employees triggers their need to seek a career elsewhere. You can reward dedication and talent in several ways. First, reward employee attendance. Tardiness can mean disruption and a loss of profit for many companies. Shifts missed by several minutes cause chaos, especially in the service industry. Incentives for punctuality are typically received better than deducting pay for tardiness. That’s why giving out rewards works wonders for morale. Besides punctuality, it’s important to celebrate milestones of individuals and teams. Small tokens of appreciation go a long way in showing how much you value your employees. Read more: Show up for success! A step-by-step guide to rewarding employee attendance 3. Incorporate technology in the workplace Most employees across all age groups value the efficiency that technology brings to the workplace. But Millennials, who will make up 50% of the workforce by 2025, expect technology to be integrated into day-to-day activities. Gen Zs, who are now entering the workforce, have an even closer relationship with technology. These younger generations are not homogenous but they are increasing the demand for automation in all industries. Companies can leverage apps and other modern tools to attract new employees and empower them to do their jobs well. One way to integrate technology is through a dedicated work chat app. Tanda Chat, for example, lets you publish shifts, acknowledge progress, and deliver feedback. You can even share team updates to ensure that everyone is on the same page. Another way is to introduce GPS technology to track attendance. This helps to ensure you pay mobile employees accurately wherever they are. You can monitor your employees’ clock ins, breaks, and clock outs on one cloud-based platform. These are just two examples of what workforce technology can do for your business. Read more: GPS Clock-in: Changing the way you track your mobile workforce Stay attractive all year round Employee confidence has taken a dive in the UK. In the age of information, local and global economic trends affect individual decisions in fundamental ways. But while you can’t control employee confidence, you can control how you are perceived by talents. Companies that present career opportunities, reward dedication, and integrate technology into work tasks stay attractive regardless of trends. And leveraging technology allows you to deliver what employees want most. Investing in workforce technology not only increases your attractiveness to top talents but it also lets employees grow with your business. Today, there is software that allows you to schedule employees, communicate changes, and process payroll at a fraction of your current administrative cost. Employers also benefit from the efficiency they bring to the table. And best of all, workforce software safeguards your business by keeping you up to date with changes in the business environment.

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

10 April 2019

Clients & Partners UK    |   

“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 across the North West. Richard, who has been on site for a year, deals with many issues common to labour-intensive companies across the world. From processing timesheets to onboarding new staff, Appletree Estates saw a big gap in their operations. We asked Richard how Appletree Estates is eliminating these administrative challenges. Huge administrative burden “We\'ve been trying to fix the problem for two years or so,” he shares. “We have a team of about 30 at that time on paper timesheets, paper holiday forms, and a highly inaccurate process. So people weren\'t always here when they said they were gonna be here, weren’t always a hundred percent accurate in terms of remembering all the hours that they had to leave and et cetera.” Many companies that do their payroll manually experience the same roadblocks. Traditional ways of tracking attendance are inefficient and can even lead to disputes down the line. “That was a big driver, really, accuracy,” he continues, “But also the administrative burden was huge. We were doing 10 to 20 hours of management time to deliver [payroll], plus every single member of the team was spending at least 15 minutes a week doing their own timesheets.” When it comes to administrative work, minutes quickly turn into hours. And each minute spent in the back office doing timesheets or payroll could be spent on training employees or engaging clients instead. So Appletree Estates turned to workforce technology. Read more: 5 Benefits of Using Time and Attendance Software Game-changing software “Tanda is game-changing, really, so I save tens of hours of company time used to go into doing that time sheets for between 30 and 50 guys. That now takes 30 minutes, and it is an awful lot more accurate,” he says. Given their number of staff and nature of work, Tanda was the perfect fit. “Let’s say a member of staff is contracted for 40 hours, with Tanda we make sure there\'s 40 hours log there, be it the time that they had on holiday, time they were off sick, time they were working. We always have a record of who was where and when, which is important for a whole host of reasons, without a doubt.” With these benefits, why don’t all companies shift to workforce management software? One reason is the cost. Investing in software intimidates many business owners and managers. But as Richard and Appletree Estates found, the cost isn’t high and is overshadowed by its benefits, “So we worked it out: It\'s .2% of our payroll cost to operate Tanda. We see that deliver back tenfold. Minimum. So as well as just the accuracy of what we’re paying, who we’re paying, and what we’re paying it for.” And with features like GPS clock-in, staff working off-site can use their mobile phone to start their shift. Read more: GPS Clock-in: Changing the way you track your mobile workforce Beyond scheduling and timesheets Tanda offers more than just rota scheduling and timesheets, and Appletree Estates is using other features to their advantage. “[We use it for] bringing in new members of the team on board. We use the employee onboarding system where we send them a text message and an email before they\'ve even turned up. So before they\'re here they\'re already registered,” he shares. Engaging your new hire before day one is an industry best practice. It ensures that the employee feels prepared when they come in. As Richard adds, “We have all the personal details, we’re saving time and they hit the ground running.” Tanda’s leave management system has also helped Richard and his team make sure that everything is accounted for. “We\'re getting all the benefits back, like the holiday management [process]. We\'re able to pick up when we\'re having problems,” he shares. Another feature that clients in shift work industries find useful are shift swapping and GPS clock-in. Shift swapping allows available employees to cover for those who are going on leave. GPS clock-in lets employees clock-in for work from a job site. All these features contribute to saving time, empowering employees, and growing the business. Free download: Planning for Success: How to build a perfect work rota Building workforce success “Tanda is one of a number of software initiatives that we\'re rolling out because we believe using web-based software is assisting us in delivering the management of our products and making it an awful lot easier,” Richard says. And technology is certainly helping Appletree Estates take on bigger projects. “We got some exciting projects to deliver. We are well on with a number of those so over the course of this year we\'ll be handed over under 20 units on one site. We\'ll be bringing in 40 or 50 [staff] and another site to the table.” With Tanda, Richard and his team won’t have a hard time building a successful workforce.

Building Workforce Success with Appletree Estates

15 May 2019

Rota & Compliance UK    |   

Every year, problems with tracking time and attendance (and ultimately, wages) cause governments to apprehend and collect millions of dollars in penalties. Planning shifts, creating rosters, managing leaves, and keeping track of employees\' clock in and out are some of the most important things a business manager does on a regular basis. While some still use paper and punch cards in order to get these done, it can easily become tedious and prone to errors — especially if the company is growing at a steady pace. Luckily, with the age of technology comes automated solutions in the form of time and attendance software. Here are some reasons why it\'s worth investing on: Whether you\'re in need of a solution for simply creating rosters, or something that already integrates with your POS system and payroll software, or perhaps all of the above, an all-in-one platform is guaranteed to cut down admin work from hours to minutes. One of these software is Tanda, which provides an automated solution that covers ground from onboarding down to paying employees for the hours they worked. Read more: Why Fingerprint Scanners Don\'t Work for Time and Attendance Find out what Tanda can do for your business. Get your 14-day free trial today — no credit card required.

5 Benefits of Using Time and Attendance Software

10 May 2019

Industry Insights UK    |   

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 happy or not. “This is a result of businesses hiring and firing on a last-one-in, first-one-out basis during tough times,” he said. Mirroring this insight, employees’ active job-seeking fell by 7.2% from the third quarter of 2018. So why has employee confidence dropped? Contrary to popular belief, Brexit is only part of the reason. It’s true that Brexit impacted the political and economic outlook in the UK. And with April 12 fast approaching, the job market is likely to remain uncertain. However, the decline in employee confidence is also happening all over the world. But recruiters need not despair too much. The reluctance to change jobs doesn’t mean employees are satisfied with where they are. Despite the sharp fall in employee confidence, here are three ways to keep attracting talent. 1. Present clear career opportunities The job market may be uncertain, but some employees are still unsatisfied with their jobs. For many, this could be what determines if they’re willing to take the risk with a new employer or not. Notably, 45.6% of departing employees in the UK cited the lack of career opportunity as the reason they left. Also, 37.4% said that the lack of personal development was a dissatisfying attribute of their previous employer. This suggests that the way to attract new talent is to present them with clear career opportunities from the moment they are onboarded. When pitching to a prospective hire, let them know that your company provides the right guidance and advancement opportunities. According to global recruitment specialist Michael Page, 45% of Brits have never asked for career advice. It’s important to open up this venue to keep them engaged with their work. The same study revealed that 34% of Brits believe they missed out on opportunities due to lack of career guidance. All this indicates that effective onboarding, mentorship, and development programs matter to employees, regardless of industry. Free download: Making the Onboarding Experience Work for your Business 2. Reward dedication and talent Increasing your attractiveness as an employer during a low employee confidence period means understanding what matters most to them. For many employees, your willingness to reward dedication and talent can make or break the decision. Companies that value their employees’ contributions will attract talent no matter the economic climate. Conversely, failing to reward employees triggers their need to seek a career elsewhere. You can reward dedication and talent in several ways. First, reward employee attendance. Tardiness can mean disruption and a loss of profit for many companies. Shifts missed by several minutes cause chaos, especially in the service industry. Incentives for punctuality are typically received better than deducting pay for tardiness. That’s why giving out rewards works wonders for morale. Besides punctuality, it’s important to celebrate milestones of individuals and teams. Small tokens of appreciation go a long way in showing how much you value your employees. Read more: Show up for success! A step-by-step guide to rewarding employee attendance 3. Incorporate technology in the workplace Most employees across all age groups value the efficiency that technology brings to the workplace. But Millennials, who will make up 50% of the workforce by 2025, expect technology to be integrated into day-to-day activities. Gen Zs, who are now entering the workforce, have an even closer relationship with technology. These younger generations are not homogenous but they are increasing the demand for automation in all industries. Companies can leverage apps and other modern tools to attract new employees and empower them to do their jobs well. One way to integrate technology is through a dedicated work chat app. Tanda Chat, for example, lets you publish shifts, acknowledge progress, and deliver feedback. You can even share team updates to ensure that everyone is on the same page. Another way is to introduce GPS technology to track attendance. This helps to ensure you pay mobile employees accurately wherever they are. You can monitor your employees’ clock ins, breaks, and clock outs on one cloud-based platform. These are just two examples of what workforce technology can do for your business. Read more: GPS Clock-in: Changing the way you track your mobile workforce Stay attractive all year round Employee confidence has taken a dive in the UK. In the age of information, local and global economic trends affect individual decisions in fundamental ways. But while you can’t control employee confidence, you can control how you are perceived by talents. Companies that present career opportunities, reward dedication, and integrate technology into work tasks stay attractive regardless of trends. And leveraging technology allows you to deliver what employees want most. Investing in workforce technology not only increases your attractiveness to top talents but it also lets employees grow with your business. Today, there is software that allows you to schedule employees, communicate changes, and process payroll at a fraction of your current administrative cost. Employers also benefit from the efficiency they bring to the table. And best of all, workforce software safeguards your business by keeping you up to date with changes in the business environment.

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

10 April 2019

Most Popular

Product Updates UK

New Tanda Time Clock

Today we\'re excited to announce the upcoming release of a newly redesigned Tanda Employee Time Clock. Addressing the problem of recording accurate employee Time and Attendance is core to ensuring we service you, our customers. This is why, on the 29th of January 2019, an update to both iOS and Android will be released on the respective app stores. Any update from the app stores from the 29th of January onwards will download this new Time Clock. The new Time Clock features a bunch of improvements that are expanded upon below: A new redesign Clock breaks with break buttons Portrait & Landscape Orientation Smart shift status Facial detection Easier device reporting To get this new Time Clock now - download the Beta on both Android and iOS. Redesign New colours, new design and some obvious layout changes have been perfected and refined for this new Time Clock. A zappy keypad now sits on a deep navy background that ripples blue waves to the rounded edge of each button. Successful entry opens a vibrant and compact user interface that pops with judicious colours. A thin-blue timer encapsulates the \'close\' button and indicates when the Time Clock screen times out - gleefully sliding all contents away. Employee\'s information is smartly displayed within the shift card and clocked times are swiftly populated upon each action. This is the Time Clock of the future. Get Beta versions now. Clock Breaks with Break Buttons The Time Clock will automatically show/hide break buttons based on the Settings enabled in your My Tanda account. If your My Tanda account doesn\'t allow staff to clock breaks - your Time Clock will display just \'Clock in\' and \'Clock out\' buttons automatically. Read more on Displaying Break Buttons or our blog post on the release of multi-breaks. See it in action below: Portrait & Landscape Orientation Dock your tablet in whatever orientation suits. The new Time Clock will dock and send photos in portrait, landscape and even upside-down (charging ports are sometimes in funky spots). All features will work as expected. Smart Shift Status Knowing what stage of a shift you\'re in helps Timesheet reporting and accuracy. That\'s why we\'ve made the Time Clock smarter in detecting a shift status (whether it\'s started, on a break, near completion) to automatically render the correct button action. This will go a long way in answering common questions staff have: what button should I press? was I on a break or already clocked in? how long was the break I just took? and providing instant clarity during a shift. Facial Detection Making sure the correct staff are at work at the correct time is important for your business. Equally important is making sure the correct staff are clocking in. As an introduction for much cooler things to come, both iOS and Android support facial detection on the Time Clock. Device Reporting We want our customers to successfully manage their business, not their Tanda accounts. That\'s why we\'ve made reporting device information about your Time Clock as simple and as fast as  possible to Tanda Support and technical staff to help us assist you debug any issues. Read more about how to Send Device Info to Tanda. The Wrap This new Time Clock will provide quicker clarity to employees throughout their shift and help support the entire shift cycle. Users on Android 5.0+ and iOS Devices 9.0+ can download the Beta version right now and get clocking in. The Time Clock will be released in full for everyone on January 29th 2019 - to prepare for this release. Ensure you have: Your 8 digit setup code or login details prepared All pending clock ins sent prior to updating Read the FAQ If you have any questions, please contact support@tanda.co.

Events & Media AU Industry Insights

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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5 Benefits of Using Time and Attendance Software

Every year, problems with tracking time and attendance (and ultimately, wages) cause governments to apprehend and collect millions of dollars in penalties. Planning shifts, creating rosters, managing leaves, and keeping track of employees’ clock in and out are some of the most important things a business manager does on a regular basis. While some still […]

Show Up for Success! A step-by-step guide to rewarding employee attendance

“I have always been a quarter of an hour before my time, and it has made a man of me.” – Lord Horatio Nelson (1758-1805) Improving employee attendance has always been a puzzle for business owners and managers. In a 2017 CareerBuilder survey, 29% of respondents said they came in late at least once a […]

Product Updates

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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 […]

How to Eliminate Time Theft

Time theft is an unfortunate reality for many business owners. It can have huge impacts on labour costs as well as staff productivity and morale. Without the correct tools and systems, time theft can be difficult to catch, and even harder to stamp out. What is time theft? Time theft occurs when an employee bills […]

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 […]

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?

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