The cost of a hospitality businesses staff can be a large portion of
the operating expenses for the business. It can also be the difference
between a profit month and making a loss. It is common practise to find
out the cost of employment when paying the staff. This practise makes it
close to impossible to reduce the cost of staff to a budgeted
percentage.
Best practise to reduce the cost of employment is to
know in advance what the costs of the wages are going to be. When a
payroll manager knows what the wage percentage needs to be they can
manage their roster accordingly.
By using applications brought to
the Hospitality industry by Menumate such as GoRoster a manager can
build a roster for next week based on their normal methods but instantly
know what the cost of that roster is including Holiday Pay, Insurance
(ACC), etc.
Then by comparing this to the average daily income
which is calculated by Menumate’s web reporting the manager can work on
the roster to trim it to be in the businesses budget requirements.
Staff rosters can be communicated by Email, SMS txt with the ability for
the staff member to confirm or query a roster.
Managing staff
can be extended to take into account the actual hours worked compared to
the roster time. The payroll manager can adjust the hours of work to
take into account the time previously paid when staff are late or leave
early. This information can be captured by your Point of Sale system
and reported back to the payroll manager.
Industry analysis has
shown that a roster prepared with no knowledge of the cost and a roster
prepared with total cost management compared to budgeted sales and in
advance can be 2% to 3% per annum less. In a business with $1,000,000
turnover a 2% to 3% saving in wage costs could be $20,000 to $30,000 of
profit added to the bottom line.
When the roster is linked to the
payroll system and then through to the businesses accounting system the
ongoing savings for the business continue to increase. For more
information on reducing wage costs talk to Menumate using the
Hospitality Performance Program
