Wage Woes - Know the Cost of Next Week's Wages, not Last Week's

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

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