Tanda Blog

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Industry Insights    |   

Managers juggle different roles throughout the day. They set goals, coach employees, monitor performance, and control budgets and expenses. When they don’t do it effectively, employees become frustrated and can’t perform their best. In fact, a worldwide survey revealed that 40% of employees are dissatisfied at work due to a lack of help and support from their boss. Uncertainty about the workplace’s vision or strategy and heavy workload also factor into employee dissatisfaction. You can bet that this is because of an ineffective manager who doesn’t spend time on the frontline with employees. There are a couple of reasons why this is bad for any business. When managers aren’t on the frontline as often as they should be, they’re left guessing about day-to-day operations. They miss out on observing team dynamics and employee satisfaction. Engaging customers or responding to complaints about products and services is harder. And they become increasingly out of touch with both their team and customers. As a consequence, they don’t see why costs blow up and can’t figure out how to increase sales. The bottom line is that managers need to spend a significant amount of time on the ground. Few problems in service-based industries can be solved from behind a computer. So how can you keep your managers on the frontline? 1. Keep your managers mobile Don’t let your managers get stuck behind a desk. Keep admin tasks short by bringing it right to their smartphones. Tanda’s employee scheduling app gives managers the information they need to run a shift through their mobile device. It features automatic notifications and tools to respond to changes throughout the day. Managers can see who’s coming in for the day and when they start work. They can edit shifts without needing to sit down at a computer. They can even notify staff when new schedules are published, or when there are vacant shifts to fill. It doesn’t matter how many teams and venues a manager is handling because they can all be accessed from a mobile phone. They will be able to adjust rosters based on the flow of customers and other observations on the ground. Read more: Peak Season Rostering: How to use data to meet demand and raise profit 2. Keep an eye on staffing in real time Monitoring late staff and breaks, substituting unavailable staff, and calling in extra help are all part of running a shift. That’s where Key Alerts comes in. Key Alerts helps you make sure that staff stick to their rostered hours. It lets you know who clocks-in or out late, doesn’t take breaks, or takes breaks too long. Key Alerts, which comes for free with Tanda’s mobile scheduling app, also flags managers if staff are approaching overtime. Managers don’t have to sit at their desktop or constantly check their app to see who’s not in. The alerts come automatically every time. All bases are always covered with Key Alerts so managers can focus on helping employees identify ways to improve the business. 3. Lessen paperwork with Time Clock Questions Are employees clocking in too early without informing their supervisor? Are they consistently staying back into overtime without a known reason?  Instead of manually contacting staff about this and clarifying why, Time Clock Questions does this automatically. The feature asks staff relevant questions about their shift when they clock-in and -out of their rostered hours. You can customise questions and answer options to facilitate the process. Now there’s no need to call up staff manually to verify their reasons. The faster managers can complete timesheets or timecards, the faster they can get back to the frontline. Free download: Overcoming Employee Challenges in Shift Work Industries 4. Stay ahead with Shift Replacements Absences are inevitable, and good managers know that every unfilled shift adds burden to other team members and compromises overall performance. With Shift Replacements, managers can see which employees have indicated they won’t be able to work a shift. Once a replacement has been requested by an employee, the manager can go into Shift Replacements on their app. The number of replacements that need action is shown as a red bubble. Managers can offer these shifts to all available people on that team or just to specific people. Overtime, hours, and other information is shown to managers so that they don\'t get any nasty surprises in payroll. With calling for replacements out of the way, managers can devote time and effort to other more important tasks. Keep your managers on the frontline Managers need reliable data to get their work done. Looking at the numbers after a day’s work is good. But looking at what’s behind the numbers is better. Ideally, managers should be able to address issues in real time rather than at the end of the day. Rosters, sales, demand, and staff engagement all affect how well the team does. But many managers are swamped with paperwork. They’re spending more time in the back office than on the frontline with their staff. Managers who are unable to spend time training employees and engaging clients will not be able to have a clear idea of how to improve the business. Indeed, time spent in your office as a frontline manager is wasted time. Tanda helps keep managers in the frontline with several features made with shift work in mind. Gone are the days when managers are burdened with hours and hours in the back office. And the less time you spend on paperwork, the more time you have to pay attention to things that really matter. Managing staff, engaging customers, and growing the business are easier with the right technology. No matter how competitive the business landscape is, managers on the frontline will make a difference. Investing in workforce management technology to empower your managers gets you closer to cementing your place in your industry. Want to eliminate tedious tasks and keep your managers on the frontline? Start your free 14-day trial with Tanda today! No credit card required.

Four Ways to Keep your Managers on the Frontline

16 May 2019

Product Updates UK    |   

What\'s new in Tanda: April 2019 Every organisation needs to adapt and evolve alongside rapid changes in technology, customer attitudes, and the competition. It’s easier to do that if staff have buy-in to your business goals. And we know from plenty of case studies that treating employees like your best customer turns staff into your greatest brand advocates.   \'Treating your employees like your best customers turns them into your greatest brand advocates\'   This month, we released 7 brand-new features to help you build partnership with your staff, and be on your way to lower turnover rate, increased revenue, and higher profitability. 1. Protect your employees’ privacy by choosing which managers can see costs Cost is a sensitive topic in a lot of workplaces. Some managers are averse to others seeing their pay information, especially if it’s not relevant to their jobs. You can now restrict costs information to managers of your choice, ensuring privacy and avoiding potential conflict. This feature only works if ‘Allow managers to see staff costs’ is turned off. After doing this, you can go to the staff profiles to give individual permission. 2. It’s now easier to ensure leave requests have accurate hours On opening an existing leave request, you can now edit hours so they match part-time staff work hours. This means it’s quicker to achieve accurate leave hours in rosters and timesheets, and correctly pay staff in the process. If you need more help, here’s a detailed doc on how it works. This is phase one of building fully automatic leave. 3. Custom Permissions: Have more control on who’s in control Decide which roles can approve leave requests, add time clocks, or add or remove employees. For example, staff with team manager permissions can typically create rosters and add employees. But for some organisations, hiring is left to a general manager. Custom permissions allows you to customise Tanda and reflect how your organisation works. Where to find it. Head to general settings. Choose who can add/remove employees on the general tab, who can approve leave requests on the time off tab, and who can add time clocks under the clock-in/out tab. 4. Stay on top of rostering issues as they happen with Key Alerts Make sure employees are following rostered times without getting stuck on the back office computer. Key Alerts lets you know through the mobile app if an employee is late to clock-in or clock-out; did not clock their break; or is at risk of overtime. It gives you information only when there’s something to be done. We won’t alert you of staff who are following rostered times and breaks. Key alerts is only sent to the mobile app (not desktop/web). Download the app on your iOS or Android smartphone. Read more about key alerts, including how to set up, on our help docs. 5. Create up to a month’s worth of rosters on one page   When we launched Roster Overview a month ago, you were able to view shifts up to a month in advance. Now, you can view, create and edit shifts like you would in the typical weekly roster view. This is useful to those who manage big teams, multiple teams, or prefer to look ahead in terms of scheduling. See how to find it in your rosters page. 6. Find out why some staff are working outside their roster If you want to know why staff have clocked-in early (or late), clocked-out late, or why they clocked-in at all, you’d have to go to the individual to clarify. But now, you can create your own questions and set it to show up during the above situations. Learn more about how to use it on our help page. 7. In a rush? Clock them in now, onboard later. If you need staff starting ASAP, you can add them straight through Time Clock. All you need is their name and email. They’ll receive their unique 4-digit passcode and can clock-in straight away. Read more. Keep up to date with our latest updates on our full changelog.

Treating staff as cost centres wastes their potential for your business

3 May 2019

Industry Insights    |   

Managers juggle different roles throughout the day. They set goals, coach employees, monitor performance, and control budgets and expenses. When they don’t do it effectively, employees become frustrated and can’t perform their best. In fact, a worldwide survey revealed that 40% of employees are dissatisfied at work due to a lack of help and support from their boss. Uncertainty about the workplace’s vision or strategy and heavy workload also factor into employee dissatisfaction. You can bet that this is because of an ineffective manager who doesn’t spend time on the frontline with employees. There are a couple of reasons why this is bad for any business. When managers aren’t on the frontline as often as they should be, they’re left guessing about day-to-day operations. They miss out on observing team dynamics and employee satisfaction. Engaging customers or responding to complaints about products and services is harder. And they become increasingly out of touch with both their team and customers. As a consequence, they don’t see why costs blow up and can’t figure out how to increase sales. The bottom line is that managers need to spend a significant amount of time on the ground. Few problems in service-based industries can be solved from behind a computer. So how can you keep your managers on the frontline? 1. Keep your managers mobile Don’t let your managers get stuck behind a desk. Keep admin tasks short by bringing it right to their smartphones. Tanda’s employee scheduling app gives managers the information they need to run a shift through their mobile device. It features automatic notifications and tools to respond to changes throughout the day. Managers can see who’s coming in for the day and when they start work. They can edit shifts without needing to sit down at a computer. They can even notify staff when new schedules are published, or when there are vacant shifts to fill. It doesn’t matter how many teams and venues a manager is handling because they can all be accessed from a mobile phone. They will be able to adjust rosters based on the flow of customers and other observations on the ground. Read more: Peak Season Rostering: How to use data to meet demand and raise profit 2. Keep an eye on staffing in real time Monitoring late staff and breaks, substituting unavailable staff, and calling in extra help are all part of running a shift. That’s where Key Alerts comes in. Key Alerts helps you make sure that staff stick to their rostered hours. It lets you know who clocks-in or out late, doesn’t take breaks, or takes breaks too long. Key Alerts, which comes for free with Tanda’s mobile scheduling app, also flags managers if staff are approaching overtime. Managers don’t have to sit at their desktop or constantly check their app to see who’s not in. The alerts come automatically every time. All bases are always covered with Key Alerts so managers can focus on helping employees identify ways to improve the business. 3. Lessen paperwork with Time Clock Questions Are employees clocking in too early without informing their supervisor? Are they consistently staying back into overtime without a known reason?  Instead of manually contacting staff about this and clarifying why, Time Clock Questions does this automatically. The feature asks staff relevant questions about their shift when they clock-in and -out of their rostered hours. You can customise questions and answer options to facilitate the process. Now there’s no need to call up staff manually to verify their reasons. The faster managers can complete timesheets or timecards, the faster they can get back to the frontline. Free download: Overcoming Employee Challenges in Shift Work Industries 4. Stay ahead with Shift Replacements Absences are inevitable, and good managers know that every unfilled shift adds burden to other team members and compromises overall performance. With Shift Replacements, managers can see which employees have indicated they won’t be able to work a shift. Once a replacement has been requested by an employee, the manager can go into Shift Replacements on their app. The number of replacements that need action is shown as a red bubble. Managers can offer these shifts to all available people on that team or just to specific people. Overtime, hours, and other information is shown to managers so that they don\'t get any nasty surprises in payroll. With calling for replacements out of the way, managers can devote time and effort to other more important tasks. Keep your managers on the frontline Managers need reliable data to get their work done. Looking at the numbers after a day’s work is good. But looking at what’s behind the numbers is better. Ideally, managers should be able to address issues in real time rather than at the end of the day. Rosters, sales, demand, and staff engagement all affect how well the team does. But many managers are swamped with paperwork. They’re spending more time in the back office than on the frontline with their staff. Managers who are unable to spend time training employees and engaging clients will not be able to have a clear idea of how to improve the business. Indeed, time spent in your office as a frontline manager is wasted time. Tanda helps keep managers in the frontline with several features made with shift work in mind. Gone are the days when managers are burdened with hours and hours in the back office. And the less time you spend on paperwork, the more time you have to pay attention to things that really matter. Managing staff, engaging customers, and growing the business are easier with the right technology. No matter how competitive the business landscape is, managers on the frontline will make a difference. Investing in workforce management technology to empower your managers gets you closer to cementing your place in your industry. Want to eliminate tedious tasks and keep your managers on the frontline? Start your free 14-day trial with Tanda today! No credit card required.

Four Ways to Keep your Managers on the Frontline

16 May 2019

Product Updates 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

Product Updates UK    |   

What\'s new in Tanda: April 2019 Every organisation needs to adapt and evolve alongside rapid changes in technology, customer attitudes, and the competition. It’s easier to do that if staff have buy-in to your business goals. And we know from plenty of case studies that treating employees like your best customer turns staff into your greatest brand advocates.   \'Treating your employees like your best customers turns them into your greatest brand advocates\'   This month, we released 7 brand-new features to help you build partnership with your staff, and be on your way to lower turnover rate, increased revenue, and higher profitability. 1. Protect your employees’ privacy by choosing which managers can see costs Cost is a sensitive topic in a lot of workplaces. Some managers are averse to others seeing their pay information, especially if it’s not relevant to their jobs. You can now restrict costs information to managers of your choice, ensuring privacy and avoiding potential conflict. This feature only works if ‘Allow managers to see staff costs’ is turned off. After doing this, you can go to the staff profiles to give individual permission. 2. It’s now easier to ensure leave requests have accurate hours On opening an existing leave request, you can now edit hours so they match part-time staff work hours. This means it’s quicker to achieve accurate leave hours in rosters and timesheets, and correctly pay staff in the process. If you need more help, here’s a detailed doc on how it works. This is phase one of building fully automatic leave. 3. Custom Permissions: Have more control on who’s in control Decide which roles can approve leave requests, add time clocks, or add or remove employees. For example, staff with team manager permissions can typically create rosters and add employees. But for some organisations, hiring is left to a general manager. Custom permissions allows you to customise Tanda and reflect how your organisation works. Where to find it. Head to general settings. Choose who can add/remove employees on the general tab, who can approve leave requests on the time off tab, and who can add time clocks under the clock-in/out tab. 4. Stay on top of rostering issues as they happen with Key Alerts Make sure employees are following rostered times without getting stuck on the back office computer. Key Alerts lets you know through the mobile app if an employee is late to clock-in or clock-out; did not clock their break; or is at risk of overtime. It gives you information only when there’s something to be done. We won’t alert you of staff who are following rostered times and breaks. Key alerts is only sent to the mobile app (not desktop/web). Download the app on your iOS or Android smartphone. Read more about key alerts, including how to set up, on our help docs. 5. Create up to a month’s worth of rosters on one page   When we launched Roster Overview a month ago, you were able to view shifts up to a month in advance. Now, you can view, create and edit shifts like you would in the typical weekly roster view. This is useful to those who manage big teams, multiple teams, or prefer to look ahead in terms of scheduling. See how to find it in your rosters page. 6. Find out why some staff are working outside their roster If you want to know why staff have clocked-in early (or late), clocked-out late, or why they clocked-in at all, you’d have to go to the individual to clarify. But now, you can create your own questions and set it to show up during the above situations. Learn more about how to use it on our help page. 7. In a rush? Clock them in now, onboard later. If you need staff starting ASAP, you can add them straight through Time Clock. All you need is their name and email. They’ll receive their unique 4-digit passcode and can clock-in straight away. Read more. Keep up to date with our latest updates on our full changelog.

Treating staff as cost centres wastes their potential for your business

3 May 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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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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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 […]

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 […]

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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