Tanda Blog: Feature Updates

Feature Updates

The highest degree of compliance precision: introducing Regular Working Hours

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 […]

The last financial year in key feature releases

At Tanda, we move fast to solve the world’s greatest workforce challenges. We released over 200 features last year. Here are the major ones. The last 12 months have seen Tanda rise above the capabilities of traditional workforce software.  Our product team has focused on releasing features that help management to plan and execute the […]

We want you to use our software less. Here are 5 new ways to do it.

Have you ever changed numbers on Excel, and everything else changed too? How long did that take? I’m guessing less than the time it took to read this sentence. What takes seconds now took an entire day for an accountant or bookkeeper in the ‘60s. They had paper spreadsheets back then. So a small adjustment meant […]

Treating staff as cost centres wastes their potential for your business

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 […]

Team management should be an easy cruise, not a struggle for the surface

Key updates WHAT’S NEW IN TANDA – MARCH 2019 If you want to skip the opening , jump straight to these sections: Shift Replacements on Desktop: Receive and approve/decline cover requests Change Teams on Time Clock: Swap teams anytime on a clocked-in shift GPS Clock-Ins: Location-tracked clock-ins on the mobile app Automatic Breaks: Fulfil compliance […]

GPS Clock-in: Changing the way you track your mobile workforce

Karen is running late to work at a job site and can’t afford another strike on her record. She asks her coworker to clock in for her using her employee number and password. She arrives ten minutes late but her pay remains the same, with her employer none the wiser. This is called buddy punching […]

We’re changing leave, especially manual corrections. Here’s how.

Key takeaways We are building towards fully automated leave Features are released in stages over the next 3-6 months Eventually, staff can just enter the leave start and end date We’ll apply the correct hours every time All managers have to do is review and approve Our vision: never having to manually correct leave. Ever. […]

Not just selfie clock-ins and faster rostering: What you really get by choosing Tanda

WHAT’S NEW IN TANDA – FEBRUARY 2019 Choosing Tanda means choosing to get your time back. Time you can put into great things. Like expanding your business. Creating new products. Getting an hour of r & r. Anything but manually organising your team. That’s why we say ‘automated’ a lot in these posts. So this […]

Introducing Smart Templates

Creating rosters using templates is great because in one click you have an entire roster worth of shifts. But even with templates, there are still a bunch of edits that you have to make after it is applied, for example: swapping out staff who are now on leave or unavailable, assigning staff to vacant shifts, […]

Introducing the Tanda Mobile App!

  Tanda now has a mobile app, this means your employees have one simple location where they can see exactly when they are working and also let their managers know when they are unavailable or would like to file for leave. What your staff can do right now with the app As of now, your […]

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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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