costs

Navigating the 2018 minimum wage increase

December, 2017

Minimum wages are set to rise to $20 an hour by 2021 under the new coalition government. With the New Year upon us, the first of a series of incremental increases has already been announced. While this is great for employees, it will have a significant impact on hospitality and retail businesses across the country.

So, how will your business survive in this new environment? Here’s three tips that could help you mitigate the impact of this change.

Create a good employer brand

With the rise in labour costs, you’ll really want to attract the best possible talent.

Make your business somewhere people want to work by creating a culture that isn’t just incentivised by a pay check.

Celebrate excellence by providing rewards to well performing staff, such as naming them employee of the month; organise regular activities for your team to socialise and bond as a team; and offer all employees the opportunity for growth in their role.

Focus on efficiency

The old adage ‘time is money’ will ring even more true with increased labour costs. Focus on making sure you’ve got efficient systems in place so that your outgoings are as low as possible.

Implement a solid rostering system that allows you to know who is working and what they will be doing. Develop procedures that help you to stay in control of the business on a day to day basis, from knowing what stock has been ordered, to seeing your daily, weekly and monthly profit. Create open communication channels between your employees and human resources team, to make sure any issues get ironed out quickly.

Test and measure your systems and procedures, and repeat until you have it down to a fine art. The more efficient your team, the healthier your books will be.

Training

 Keep your employees at the top of their game with regular training. Not only do well-trained staff work more productively and create less errors, they also help to entice repeat customers.

Whether it’s a video tutorial, accredited hospitality paper, or upskilling by a more experienced member of the team, training of any kind is an investment in the future of your business.

The new minimum wage will come into play before you know it, so start getting prepared now.

Common mistakes made when calculating payroll costs

March, 2017

Knowing what your payroll costs are – daily, weekly, monthly and yearly – is an important part of running a successful business. It allows you to forecast future wage costs, ensures you don’t have any surprises come pay day, and gives you confidence in the stability of the business.

But do you know the TRUE cost of your roster? 

The mistake we often see is the assumption that payroll costs are only based on the number of hours worked by your staff x their hourly wage. This is a dangerous trap, as it only provides you with a snapshot of your TRUE payroll costs.

To get the whole picture, other factors must also be considered.

Holiday pay accrual

Your employees might not be taking a holiday this week or even next, but as a business you still have to pay them holiday pay as a percentage of their wages. It might seem incidental but it can quickly add up.

Salary and ‘backroom’ staff

It’s not just your front of house and kitchen staff that you need to pay. Don’t forget about your hard-working, administration staff – their salaries need to be factored into your overall wage costs too. And if the owner is taking a wage from the business, that’s another staff cost that needs to be accounted for.

Non-wage related costs

Every employer has obligations to pay levies on behalf of its staff to ACC or Medicare, as well as contribute to superannuation funds, like Kiwisaver. You may also have additional costs to pay, such as an employee clothing allowance. It can be easy to forget about these costs, as they often aren’t paid weekly, but they can push your wage costs much higher than you think.

Make plans now to save time later

September, 2016

Hungry hipsters = great profit margins!

Everyone makes a plan at some point in their life. Whether it’s for their wedding, family, business – or even just the weekend. Spontaneity is fun when it comes to road trips and skinny dips, but successful businesses need to think about the future and how to work smarter, not harder.

“A goal without a plan is just a wish.” – Antoine de Saint-Exupery

As a business owner, do you make plans for next week? What about the week after, or the one after that?

In the hospitality trade, a busy day can quickly become slow depending on the weather or who won the rugby, so a bit of planning can help you control your biggest cost – staffing.

It doesn’t have to take much time. An hour this week looking through your roster records could save you a headache next week. Look at what events are coming up, what bookings you already have, whether any employees are going to be on leave and how much you spent on wages last month. Even checking the weather forecast could be helpful!

Having a plan for next week that supports your overall business plan will motivate you to achieve your goals.

So, what’s your plan?

“Failing to plan is planning to fail.” – Alan Lakein

Not enough vs too many staff – get the right balance

July, 2016

Coffee

We’ve been in the roster software business for eight years now and have worked with a lot of hospitality businesses in both NZ and Australia. One thing we’ve learnt is that having the right number of employees is crucial to success.

Having too many staff will cut into your profit and leave workers standing around with nothing to do. Staff wages are one of the three largest expenses of a hospitality business and the only one that you can control, so keep a close eye on those costs.

Even more important is to have enough staff, otherwise your team will become stressed from working in an under resourced environment and customers will grow tired of waiting 25 minutes for a latte. That will lead to a bad reputation and, eventually, failure. Understaffing is the most common reason for hospitality businesses going under.

One way to find the right staffing balance for your business is to keep tabs on wages. Being able to see how much is being spent each day, week and month will help you determine whether you have the right number in your team.

Sign up to our mailing list and receive

5 Days of Expert Tips

To build more effective Hospitality Rosters

How to reduce staff no-shows

July, 2016

Hospitality

It’s Saturday night and dozens of people are starting to stream into your restaurant for a bite to eat. Your staff are ready and everyone’s looking sharp… except Dave, who was supposed to be there 15 minutes ago. Turns out he didn’t realise he was meant to be working and is away for an epic skiing weekend. Awesome for him – not so much for you.

(more…)

goRoster reaches 25 million rostered hours!

March, 2016

25 million rostered hours - goRosterLast month goRoster hit a milestone. 25 million rostered hours!

We’re thrilled to have reached this mark. Not only is this a phenomenal number of hours rostered, but it’s a real testament to all our clients who have seen the value and importance of rostering in the workplace.

Roster software should be treated as a core operational tool. In retail and hospitality, the most controllable cost of all is your employee costs. Working to targets and seeing where you may be falling short puts you in great stead for hitting your monthly revenue targets.

Jump on the trend, and lets get to 26 million!

So, what’s the real reason the Holiday season is considered so difficult for hospitality businesses down under?

November, 2015

Facebook Post (7)With the end of the year nearing, it won’t be long now until most Australian and New Zealand companies begin winding down, planning their summer holidays and organising what they’re going to do over the long break. However, while most people are winding down, hospitality businesses are gearing up for their busiest period of the year.

The ‘silly season’, as it is commonly referred to, involves non-stop christmas functions, large dinner bookings and end of year parties filled with celebration and revelry! With this comes  strong potential for increased revenue in most hospitality businesses. It’s also a time when your staff need to be performing at their best and pulling together as a team to get through the heavy workload.

The best-run hospitality businesses plan out their staff rosters well in advance to cope with the increased demand over Christmas and New Year – here are a number of key factors to help you get your staff planning working like a well-oiled machine and help your business be “Roster Ready” before the rush:

  • Plan your rosters well in advance

Best practice is to give staff as much notice as possible when they are needed to work. Good communication with staff is essential to fill out the rosters based on a regular template and plan a month in advance. You can then increase staffing levels based on known bookings and get a clear structure for the week.

Get off spreadsheets! – these only get you so far when you’re running a busy bar or restaurant and can actually cost you time later on when you’re trying to move shifts around and back-calculating wages

In addition, planning your rosters gives you the advantage of knowing your costs well in advance – and hence the revenue targets for each shift.

  • Deal with Unpredictability

It’s wise to compare revenue figures with those of previous years – this can be a great indicator for how things “might” go – but Christmas is a period where predictability can go out the window.

You won’t know whether people have plans to head out of town for the holidays. Or, maybe someone’s called together a last minute Christmas function and they urgently need a space to fit 50 people on one of the busiest weekends of the year! While most other holidays throughout the year people usually head off over the long weekends to escape the city, Christmas time is a season for increased nights out and spending.

Make sure your staff know when they may be called on at short notice to cope with unpredictable demand. Again, real time communications with staff is a real time saver when you’re an hour away from opening and someone has just called in sick.

  • image1Casual staff

Many people come and go over this period. Young and old, students alike often return home over the holidays to work and seek out casual employment to earn themselves some extra cash.

Employing casual staff means that you often have an influx of fresh blood, all of which require skills and training. This can often be difficult especially when you know they are most likely to resign once the summer is over and head back to their studies and/or full time jobs..

It’s important to ensure you have the right tools the look after the HR responsibilities that come with employing casual staff. Not only do you have to maintain all the correct paperwork, but you need to be able to visualise where you’re going to be able to slot these people into your staff rosters. Many employees request holiday leave over Christmas so it’s imperative you know exactly where to slot your casual staff and when, whilst also ensuring your matching employee abilities with each shift covered.

  • Employee holiday entitlements

For your payroll people, dealing with various public holidays scattered throughout the year is relatively simple to handle. But over the Christmas/New Year period, not only do you have a single public holiday to dish out employee pay entitlements for – within Australia and New Zealand you can have up to 4 public holidays within one week alone!

While most businesses have accounting and payroll systems to look after the numbers, at this time of year there’s a considerable amount of money going out of your business – especially because on the majority of those public holidays (Christmas Day, Boxing Day, New Years and the day after New Year’s Day) many places shut down completely. Hence, less incoming revenue!

You can only imagine the dreaded wage cost figure for that week if you haven’t planned it right!

Get Roster Ready

FINALLY: Celebrate success!

Finally make sure you celebrate with your staff at the end of a long week of hard nights. The holiday period is a busy time for hospitality and it takes a lot out of your team – make sure you roster in a team night out one evening as well!

Is Revenue A True Predictor Of Success?

June, 2015

Is revenue a true predictor of success?

“Success.”

Typically defined as: ‘the accomplishment of an aim or purpose.’ (1)

Success means a lot of different things to different people. Success may mean wealth, or it may mean happiness. It may mean fame, and for others it may mean power. But can revenue be a true predictor of success?

In the business world there is not right or wrong way to define success. It’s merely subjective. It is based on both the personal and  the business goals that you have in place for yourself. These can vary tremendously from one person to the next. Many believe that there is in fact only one path to success, and they simply choose not to consider other patterns of thinking. In their mind, this way of thinking is what will help them to reach their end goal.

It’s all in your ability to adopt change when it comes to your current systems and process, that will help you as you carve out your route to business success. If you begin to place too much confidence in your ability to make good judgements and decisions and solely rely on old patterns of thinking, you’re giving no weight to the environmental factors surrounding you that are constantly changing.

As we all know, the costs that typically make up a business are:

  • Your fixed Costs
  • Your variable Costs
  • Your employee Costs

And then you have your little shining beacon. Your profit.

Ask yourself. Are you measuring the right things? Many have the perception that they know what makes up the correct monetary equation to predict their profit. We believe this is a naive way of thinking unless you’re consistently taking into account the effects of both your controllable and uncontrollable costs. Unless you are 150% sure your decisions are supporting your overall goal for profitability – there will never be complete accuracy in your figures. What you are measuring needs to show:

  • Continuity in accuracy
  • And, the numbers need to hold the correct weight.

It’s like being the coach of a sports team. You’re employed to pick players based on their skills and their ability to play within the team. There needs to be continuity in accuracy and you must weigh up the importance of the correct statistics. What abilities are most relevant based on the current game and competition. The environmental factors.

So there you have it. Revenue can be a predictor of your success. If you choose to measure it correctly. 

(1) www.oxforddictionairies.com /definition/english/success

3 Monetary Basics You Should Continuously Be Reviewing

March, 2015

3 Monetary Basics You Should Continuously Be ReviewingDo you know who an incredible advocate for hard work was? Mary Poppins.

Bet you didn’t expect me to bring up that name of an old matriarch like Nanny from a 1960’s Walt Disney movie. But hey, she sure shined in the hard work department! Do you know what else is hard work? Running a business. If you don’t get it right, it can become a right royal pain in the finance department.

That catchy tune she sung…what was it? The one about sugar…oh that’s right!

“A spoonful of sugar helps the medicine go down.”

In my mind, the literal interpretation of this is that once you get the right recipe ingredient – it’s going to make your life a whole lot easier.

So, a spoonful of sugar huh? Lets break down what might go into this spoonfull of monetary goodness.

1.  Employee Costs

The typical hospo model follows the 30,30,30,10 rule of thumb. 30% employee costs, 30% fixed costs, 30% cost of goods sold, and 10% profit. Employee costs are the most controllable costs out those I have just listed. Get these right and you’ll be chugging along just nicely. With the right tools and technology managing employee costs is like riding a bicycle.

2.  Revenue

Your revenue should always be tracked directly against your employee costs. Seeing how the two track against each other gives you a much more accurate reflection of what you’re taking in at the end of the day. With a drop of revenue and a pinch of cost, you’ll be at your financial goal in only a matter of time.

3.  Additional Staff or Employee Related Costs 

These are comprised of different things depending on which country of which we are speaking. These cover things such as holiday entitlements, medical insurances, superannuations etc. The important part is to make sure you account for these costs each week to ensure when it comes to the end of the financial year everything matches up and all figures are succinct.

Get this recipe right to reap all the rewards you’ve dreamed of.

And who doesn’t love rewards…

87a840f9981a1df042824b2b073e98065bb5fac3

The Biggest Management Mistake You Don’t Want To Make

November, 2014

In any management role it’s important that your time is spent carefully. Fine tune those certain tasks where time spent can be reduced At the risk of sounding like a broken record…Bad rostering will hurt your business. A lot.

Rostering when executed incorrectly can be an utter time waster for you as a manager and for the overall smooth running of your business. The concept of no-shows is something that everyone in a managerial role has been faced with at some point in their career. So why is it that people sometimes don’t turn up to work? Or they turn up to the wrong shift, at the wrong time?

Too often we see businesses with employees who are constantly changing their minds, swapping shifts with their friends, complaining that they don’t have a social life, or simply that they’re missing out on the fun shifts.

Cloud based rostering is by far the best solution for you as a business. If you can place some of the onus back on the employee, you’re helping to eliminate any potential for error. The meticulous, precise nature of cloud based rostering helps to ensure that you’re making the best decisions for your business whilst enabling you to accurately forecast in both real-time and in the future.

In any management role it’s important that your time is spent carefully. Fine tune those certain tasks where time spent can be reduced. Rostering should be completed efficiently, effectively and when done correctly should help you gain a lot more control over your wage costs.

Don’t partake in bad rostering. Make smart choices.

If you want any advice on how to gain more control over your costs with better rostering, get in touch with us now or give our free trial a go here.

Mobile Analytics
Back To Top