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Feature Updates    |   

Tame the compliance complexity of having permanent employees with Tanda\'s Regular Hours of Work feature Live now: Record start times, end times, breaks, and teams for individual days of the week Soon to come: Fill rosters from Regular Working Hours Later: Fill leave request from hours, change history Tracking agreed hours of work is an essential piece of the management puzzle. There is a lot that goes into ensuring your team gets rostered correctly, receives the appropriate leave benefits, and is taking legally-mandated breaks. It\'s especially true if you have a mix of part-time, full-time, and salaried employees — all with different agreed hours. By the time you have finished crossing the i’s, it can feel like all that’s left to do is clock out and give yourself a break from all the mental gymnastics. Major aspects of work influenced by contract hours. Permanent employees are complicated. The reality is, tracking regular hours of work is only part of managing a team. It’s exhausting to keep track and manually implement them to rosters and leave requests. So how can you reduce this cognitive load and still complete these crucial management tasks? Introducing straightforward compliance with Regular Hours of Work Does that seem like an oxymoron? We\'ll show you how it isn\'t. Once set up, Regular Hours of Work keeps agreed-upon hours within Tanda. You don’t need to refer to any other system, digital or otherwise. That means more time for the important things: leading your team to do great work. Regular Hours of Work is the single source of truth. In future updates, Tanda’s rostering, leave, and other compliance features will treat it as a base. That means you can fill rosters and file leave accurately every time — and all with a couple of clicks. Live Now: Start and End Times, Split Shifts, breaks and teams We started with the most important feature. From today, you can store Regular Hours of Work on Tanda, including start times, end times, breaks, and teams. You can also split shifts into multiple entries/teams per day. Having this record in Tanda means one less system to keep track of. What\'s more, Regular Hours of Work will soon integrate with our Award Interpreter, which means compliance becomes extremely simple. Live Soon: Now that Regular Hours of Work can be stored, use it to make your work easier. In the coming weeks, you’ll quickly see the benefits as more features take advantage of Regular Hours of Work. Apply it to rostering, leave, and other compliance aspects. And because it’s all based on one set of hours, it’s fast, accurate, and easy to change. When these features are live, we will publish another article that explains them in more detail. Look out for our next post on your email or on the chat bubble. In the meantime, if you need more help on how to set it up, read our help article. Chat soon.

The highest degree of compliance precision: introducing Regular Working Hours

23 August 2019

Tanda    |   

Providing an easy-to-access Time Clock device at all times is one of the most essential ingredients of implementing a successful attendance policy. For fixed location businesses, the Tanda Time Clock App installed on a tablet device is the best method to ensure that employees always remember to clock in and out of their shifts. Over 100,000 staff clock-in each day with their app installed on a dedicated tablet. Using a tablet is cost-effective and frictionless compared to other methods, e.g. a point of sale terminal, a PC, or old school attendance devices like fingerprint scanners. Here are a few of the many benefits of using a tablet: 1. A tablet is a dedicated device Providing a dedicated device means less excuses. Placing the Tanda Time Clock tablet in a location where employees congregate prior to their shift commencement is the best way to ensure employees remember to clock in for their shift. Unlike a PC or POS system, there is no room for excuse that someone else was using the device. Clocking in takes just a few seconds per employee, and unlike other software that runs exclusively on employee mobile phones, there is less room for unfortunate incidents that hinder employees from logging their attendance, such as losing their personal mobile device. Service interruption is also a possibility for other systems; since a PC or POS system also serve multiple functions, it can also become distracting for employees to actually remember to clock in from time to time. For an effective attendance policy, you want to ensure there is no confusion when it comes to legitimate reasons for not clocking in, such as someone else actively using your attendance device for purposes aside from clocking in and out. A dedicated device makes enforcing the attendance policy fair and transparent, and makes it easy for anyone in your team to log in their hours. 2. Tablets are cost-effective The global popularity of the tablet device has slashed prices worldwide. The first tablet to hit the market at a global scale, the original iPad, retailed for around $800.  Today, consumers can get its competitor brand, Samsung, for around $160 a tablet. It’s now a lot more accessible for all business managers of any business size to acquire a device. Traditional workforce software vendors supply their own expensive branded devices, which they make money from, and strategically only their device will work with their software. Time and attendance software like Tanda makes no money from providing hardware, and gives clients the flexibility to select their own devices without hindering them from managing their workforce. 3. Tablets unlock additional functionality compared to old devices And because Tanda doesn’t limit employers the way they would maximise their device, there are also additional functionalities that can better help solve workforce management problems beyond recording attendance. For one, Shift Questions can record the reasons employees deviate from their roster, helping management identify the source of variances on timesheets. One such example might be when employees clock out later than their rostered finish time. It’s useful for the approving manager to know if that employee was directed to stay back, or had clocked off later for a different reason. With the Tanda Time Clock App, employees can be asked exactly this question, among many others, when clocking out later than scheduled. Another feature is Instant Onboarding, which allows a new employee to be rapidly deployed into Tanda by a manager using the Time Clock App, ensuring that new employees aren’t forced to hold parallel records until they are entered into the system. By getting rid of paperwork for the new staff, they’re able to get to work faster. Multi-breaks allows employees to easily nominate when they are taking breaks.  This is especially useful to businesses where employees might take more than one break. Team picker allows employees to accurately record when they change team or department using the Tanda Time Clock. This keeps cost reports accurate, and ensures employees who receive different rates for different roles have their payroll calculated with the highest degree of accuracy. In terms of security, the Facial Recognition Auto-approval is an optional measure to save time and add security to the timesheet approval process. Tanda leverages facial recognition technology to build a profile of the employee, ensuring that clock-in photos are given an additional layer of verification. Ready to take advantage of Tanda and its features on tablet?  Start your 14-day free trial today, no credit card required.

3 Reasons Why a Tablet Device is the Best Device to Clock-in

13 August 2019

Rota & Compliance US    |   

Josh, a manager at a local restaurant, is doing his payroll. He has 30 employees working different shifts at different wage rates. They had to do overtime a couple of days because the restaurant was pretty busy. A couple of people missed their shifts and he doesn’t know why. They have a time clock, but it crashed last Wednesday. Lucky they have a logbook for the employees to sign, right? Josh settles in for a long day of encoding clock ins and outs, and calculating pay. He takes the tips into account. He has to make sure everything is right because wage theft can get them sued. He barely leaves his office to check on the restaurant that day. He goes home well after hours to make sure the employees are paid on time. Sounds familiar? Many managers in America go through the same tedious process 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 doing the payroll can certainly make a dent in your overall profits. So how do you cut the process down and free up your managers’ time to do more important tasks instead? 1. Have a reliable time clock The biggest hurdle in creating an accurate timesheet is unreliable attendance records. Traditional punch clocks are prone to time theft. Buddy punching, time clock deception, and extended breaks cost companies millions. In 2017, a PollFish survey revealed that the U.S. economy loses approximately $373 million to time theft every year. Investing in a reliable time clock 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. Read more: Time Theft: Top 3 ways employees steal time and how to stop it 2. Use a timesheet calculator A timesheet calculator is the easiest way to manage the hours your staff is working. You only need to enter the hourly rate and start and end time of your employees. This free online timesheet calculator will work out the total amount of hours worked and the wage amount for your staff. You can even factor in the breaks they take during the day. So put your calculator away and let the online timesheet calculator do some of the work for you. Add as many employees as you want and print the results when you’re done.   Read more: Wage Theft in the US: How to stay compliant with labor laws 3. Invest in automation technology Having a reliable time clock and using a timesheet calculator can only get you so far. While these automate some processes, you still need to do a considerable amount of administrative work. If you have reliable time clock records but they don’t produce a timesheet, you will still need to transfer that data. This can lead to costly mistakes down the line. If you have a timesheet but it can’t be exported to a payroll system, you are going to be stuck in that back office for a long time. Investing in time and attendance automation technology can address these problems immediately. Tanda users find that saved employee data cuts down the administrative work to a fraction of the time. They publish schedules from the platform to avoid miscommunication. Then, they monitor their staff easily from their desktop, tablet, or mobile phone. Once the pay period is over, they simply export the processed timesheets to an existing payroll partner. They have more time to train their employees or engage their customers as a result. Read more: Breaking into Workforce Success with Spyder Surf Don’t let timesheets take up too much time Timesheets have always taken up the resources of managers across all industries. It’s a tedious but necessary part of running a business. Successful managers know how important it is to balance labor costs against delivering customer promise. Getting it right means expanding the bottom line faster. Transitioning to automation technology doesn’t have to happen all at once. Try it out with a free time clock, scheduling template, or timesheet calculator first and see what difference it can make. Once you know your way around it, you’ll be ready to explore the full range of features that will revolutionize how you do business.

How to Avoid Timesheet Mistakes (FREE Timesheet Calculator!)

12 July 2019

Feature Updates    |   

Tame the compliance complexity of having permanent employees with Tanda\'s Regular Hours of Work feature Live now: Record start times, end times, breaks, and teams for individual days of the week Soon to come: Fill rosters from Regular Working Hours Later: Fill leave request from hours, change history Tracking agreed hours of work is an essential piece of the management puzzle. There is a lot that goes into ensuring your team gets rostered correctly, receives the appropriate leave benefits, and is taking legally-mandated breaks. It\'s especially true if you have a mix of part-time, full-time, and salaried employees — all with different agreed hours. By the time you have finished crossing the i’s, it can feel like all that’s left to do is clock out and give yourself a break from all the mental gymnastics. Major aspects of work influenced by contract hours. Permanent employees are complicated. The reality is, tracking regular hours of work is only part of managing a team. It’s exhausting to keep track and manually implement them to rosters and leave requests. So how can you reduce this cognitive load and still complete these crucial management tasks? Introducing straightforward compliance with Regular Hours of Work Does that seem like an oxymoron? We\'ll show you how it isn\'t. Once set up, Regular Hours of Work keeps agreed-upon hours within Tanda. You don’t need to refer to any other system, digital or otherwise. That means more time for the important things: leading your team to do great work. Regular Hours of Work is the single source of truth. In future updates, Tanda’s rostering, leave, and other compliance features will treat it as a base. That means you can fill rosters and file leave accurately every time — and all with a couple of clicks. Live Now: Start and End Times, Split Shifts, breaks and teams We started with the most important feature. From today, you can store Regular Hours of Work on Tanda, including start times, end times, breaks, and teams. You can also split shifts into multiple entries/teams per day. Having this record in Tanda means one less system to keep track of. What\'s more, Regular Hours of Work will soon integrate with our Award Interpreter, which means compliance becomes extremely simple. Live Soon: Now that Regular Hours of Work can be stored, use it to make your work easier. In the coming weeks, you’ll quickly see the benefits as more features take advantage of Regular Hours of Work. Apply it to rostering, leave, and other compliance aspects. And because it’s all based on one set of hours, it’s fast, accurate, and easy to change. When these features are live, we will publish another article that explains them in more detail. Look out for our next post on your email or on the chat bubble. In the meantime, if you need more help on how to set it up, read our help article. Chat soon.

The highest degree of compliance precision: introducing Regular Working Hours

23 August 2019

Tanda    |   

Providing an easy-to-access Time Clock device at all times is one of the most essential ingredients of implementing a successful attendance policy. For fixed location businesses, the Tanda Time Clock App installed on a tablet device is the best method to ensure that employees always remember to clock in and out of their shifts. Over 100,000 staff clock-in each day with their app installed on a dedicated tablet. Using a tablet is cost-effective and frictionless compared to other methods, e.g. a point of sale terminal, a PC, or old school attendance devices like fingerprint scanners. Here are a few of the many benefits of using a tablet: 1. A tablet is a dedicated device Providing a dedicated device means less excuses. Placing the Tanda Time Clock tablet in a location where employees congregate prior to their shift commencement is the best way to ensure employees remember to clock in for their shift. Unlike a PC or POS system, there is no room for excuse that someone else was using the device. Clocking in takes just a few seconds per employee, and unlike other software that runs exclusively on employee mobile phones, there is less room for unfortunate incidents that hinder employees from logging their attendance, such as losing their personal mobile device. Service interruption is also a possibility for other systems; since a PC or POS system also serve multiple functions, it can also become distracting for employees to actually remember to clock in from time to time. For an effective attendance policy, you want to ensure there is no confusion when it comes to legitimate reasons for not clocking in, such as someone else actively using your attendance device for purposes aside from clocking in and out. A dedicated device makes enforcing the attendance policy fair and transparent, and makes it easy for anyone in your team to log in their hours. 2. Tablets are cost-effective The global popularity of the tablet device has slashed prices worldwide. The first tablet to hit the market at a global scale, the original iPad, retailed for around $800.  Today, consumers can get its competitor brand, Samsung, for around $160 a tablet. It’s now a lot more accessible for all business managers of any business size to acquire a device. Traditional workforce software vendors supply their own expensive branded devices, which they make money from, and strategically only their device will work with their software. Time and attendance software like Tanda makes no money from providing hardware, and gives clients the flexibility to select their own devices without hindering them from managing their workforce. 3. Tablets unlock additional functionality compared to old devices And because Tanda doesn’t limit employers the way they would maximise their device, there are also additional functionalities that can better help solve workforce management problems beyond recording attendance. For one, Shift Questions can record the reasons employees deviate from their roster, helping management identify the source of variances on timesheets. One such example might be when employees clock out later than their rostered finish time. It’s useful for the approving manager to know if that employee was directed to stay back, or had clocked off later for a different reason. With the Tanda Time Clock App, employees can be asked exactly this question, among many others, when clocking out later than scheduled. Another feature is Instant Onboarding, which allows a new employee to be rapidly deployed into Tanda by a manager using the Time Clock App, ensuring that new employees aren’t forced to hold parallel records until they are entered into the system. By getting rid of paperwork for the new staff, they’re able to get to work faster. Multi-breaks allows employees to easily nominate when they are taking breaks.  This is especially useful to businesses where employees might take more than one break. Team picker allows employees to accurately record when they change team or department using the Tanda Time Clock. This keeps cost reports accurate, and ensures employees who receive different rates for different roles have their payroll calculated with the highest degree of accuracy. In terms of security, the Facial Recognition Auto-approval is an optional measure to save time and add security to the timesheet approval process. Tanda leverages facial recognition technology to build a profile of the employee, ensuring that clock-in photos are given an additional layer of verification. Ready to take advantage of Tanda and its features on tablet?  Start your 14-day free trial today, no credit card required.

3 Reasons Why a Tablet Device is the Best Device to Clock-in

13 August 2019

Rota & Compliance US    |   

Josh, a manager at a local restaurant, is doing his payroll. He has 30 employees working different shifts at different wage rates. They had to do overtime a couple of days because the restaurant was pretty busy. A couple of people missed their shifts and he doesn’t know why. They have a time clock, but it crashed last Wednesday. Lucky they have a logbook for the employees to sign, right? Josh settles in for a long day of encoding clock ins and outs, and calculating pay. He takes the tips into account. He has to make sure everything is right because wage theft can get them sued. He barely leaves his office to check on the restaurant that day. He goes home well after hours to make sure the employees are paid on time. Sounds familiar? Many managers in America go through the same tedious process 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 doing the payroll can certainly make a dent in your overall profits. So how do you cut the process down and free up your managers’ time to do more important tasks instead? 1. Have a reliable time clock The biggest hurdle in creating an accurate timesheet is unreliable attendance records. Traditional punch clocks are prone to time theft. Buddy punching, time clock deception, and extended breaks cost companies millions. In 2017, a PollFish survey revealed that the U.S. economy loses approximately $373 million to time theft every year. Investing in a reliable time clock 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. Read more: Time Theft: Top 3 ways employees steal time and how to stop it 2. Use a timesheet calculator A timesheet calculator is the easiest way to manage the hours your staff is working. You only need to enter the hourly rate and start and end time of your employees. This free online timesheet calculator will work out the total amount of hours worked and the wage amount for your staff. You can even factor in the breaks they take during the day. So put your calculator away and let the online timesheet calculator do some of the work for you. Add as many employees as you want and print the results when you’re done.   Read more: Wage Theft in the US: How to stay compliant with labor laws 3. Invest in automation technology Having a reliable time clock and using a timesheet calculator can only get you so far. While these automate some processes, you still need to do a considerable amount of administrative work. If you have reliable time clock records but they don’t produce a timesheet, you will still need to transfer that data. This can lead to costly mistakes down the line. If you have a timesheet but it can’t be exported to a payroll system, you are going to be stuck in that back office for a long time. Investing in time and attendance automation technology can address these problems immediately. Tanda users find that saved employee data cuts down the administrative work to a fraction of the time. They publish schedules from the platform to avoid miscommunication. Then, they monitor their staff easily from their desktop, tablet, or mobile phone. Once the pay period is over, they simply export the processed timesheets to an existing payroll partner. They have more time to train their employees or engage their customers as a result. Read more: Breaking into Workforce Success with Spyder Surf Don’t let timesheets take up too much time Timesheets have always taken up the resources of managers across all industries. It’s a tedious but necessary part of running a business. Successful managers know how important it is to balance labor costs against delivering customer promise. Getting it right means expanding the bottom line faster. Transitioning to automation technology doesn’t have to happen all at once. Try it out with a free time clock, scheduling template, or timesheet calculator first and see what difference it can make. Once you know your way around it, you’ll be ready to explore the full range of features that will revolutionize how you do business.

How to Avoid Timesheet Mistakes (FREE Timesheet Calculator!)

12 July 2019

Most Popular

Tanda

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.

Feature Updates

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 US    |   

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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Don’t Quit! 3 Ways to Retain your Employees in 2019

Are your employees quitting faster than you can train new ones? Are you having trouble finding employees who will stay for more than 5 years? You’re not the only one. In 2018, the national average turnover rate was 22%, with resignations making up a whopping 16% of it. Layoffs and terminations only accounted for 6%, […]

5 Ways a Work Chat App can Boost Productivity

Ever needed to talk to a staff member while they were working outside? Or needed to inform them about changes the night before an event? For many employers or managers, communicating with staff can be a challenge. In trying to reach employees through available channels like social media, details can fall through the cracks. They […]

Employee Scheduling

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Can an Employee Scheduling App change your Business?

Every year, hundreds of businesses go under because of ineffective shift planning. When a shift isn’t staffed with the correct number of people, customers are disappointed and revenue is lost. In fact, 60% of consumers would stop doing business with a company if they are not met with friendly or satisfactory service. Staff level should […]

A Manager’s Guide to Modern Employee Scheduling

When you think of the average American worker, who comes to mind? Did you imagine a waitress on her second shift in a big city bar? Or did you picture a plant worker in an automobile factory? Over 80 million workers aged 16 and above work in these types of jobs and are paid at […]

Product Updates

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Introducing the Tanda Mobile App!

Tanda Time Clock Now Available for the iPhone

We at Tanda are excited to let you know that our Time Clock application is now available for the iPhone. This new version adds on our existing Android, iPad, and desktop time clocks. And just like those, this has the same set of features. It lets staff clock in with their unique PIN and a […]

Clients & Partners

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Connecting to Community with Grand Finale Desserts and Pastries

Justin Raha of Grand Finale Desserts and Pastries knows exactly why his business has been so successful. Starting out as a baker’s apprentice with a passion for pastry, Justin eventually founded Grand Finale, starting out with a focus on wedding cakes and chocolate. Further along, he diversified to include more types of baked goods and […]

Angel Assistance Spreads its Wings for Families in Atlanta

Attending Georgia State University on scholarship after living in a small town, Savannah Samples didn’t originally envision her part time jobs would eventually bloom into the business opportunity she’s pursuing today. The young founder of Atlanta-based total family assistance company Angel Assistance started out doing nanny work to support herself alongside full-time studies. “I always […]

Editor's Picks

Industry Insights US    |   

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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