Management Time is Money, Schedule it Wisely

Managers are More Expensive than Non-Salaried Staff

In many industries including retail, hospitality, food-service, hotels, and manufacturing, salaried management staff are usually several times more expensive than non-salaried staff at the same business. In many cases, one member of the salaried staff can be more expensive than five or six non-salaried staff members. In addition to their hourly-wage, managers are eligible for benefits such as life insurance, health insurance, expensive overtime, or additional perks like free food or discounted merchandise rates.

Example: Restaurant servers (waiters) in the state of Texas commonly receive less than three dollars per hour in compensation from the business (the rest of the minimum wage must be received in tips from customers during the shift). However, a manager at the same store may receive more than twenty or thirty dollars per hour, implying that the manager is “worth” between 400% and 1000% more than a single server.

Schedule Managers to do Management Tasks

Businesses should ensure salaried managers perform managerial tasks while on duty, and leverage non-salaried employees for work-related duties that do not require a manager. Some tasks that managers may be charged with during a regular work day could include performing quality control, placing vendor orders, building employee schedules, training employees, processing payroll, and working with customers. Whatever management does while at work, make sure that it is something that is representative of their cost to the business.

Managers should be able to jump in and work when other non-management staff members do not show up for work or unanticipated spikes in demand require more line workers. This ability implies that the business does a good job of cross training employees, and the business is not overly reliant on any one staff member. However, if it is common practice for managers to mop the floors or clean bathrooms because other staff members do not show up, than a re-evaluation of hiring and staffing practices is recommended.

Managers are routinely asked to create efficient schedules for their business on a weekly, bi-weekly, or monthly basis. Accurately scheduling the work force several weeks in advance provides employees with a defined work schedule and allows managers to estimate upcoming expenses (payroll is often the largest expense in retail, restaurant, hospitality, and similar industries). During the process of preparing an accurate schedule, managers will check employee availability, review request logs, consider federal/state/local and corporate regulations, update employee work preferences, revise employee capabilities and training, make overtime considerations, ensure minimum work hours all while maintaining budgets and other business requirements. The entire schedule process commonly occupies a manager for 10% of every week, costing the business at least several hundred dollars each week!

Example: A restaurant that employs forty non-management staff may have two assistant managers (a front-of-house manager and a back-of-house or kitchen manager), and a general manager. Non-management staff may make between $3 and $12 per hour, while managers may be salaried between $40,000 and $60,000. One manager spending 3 hours per week on the schedule will cost the business more than $4,000 per year! Now imagine that same store is a concept with one-hundred locations – that’s almost half-a-million dollars in wasted manager time building theoretical labor schedules annually!

Changing the Employee Schedule Uses Manager Time, Which is Expensive

In addition to creating the schedule, managers often change the schedule on a daily basis. Employees may become available (and want more shifts), suddenly be unavailable (illness or termination) and not able to work, or forget when they need to be at work. Shift swapping is also common in many industries and requires a manager to spend time on each trade , employees give up shifts that were assigned to them originally, or pick up shifts that others cannot work. A shift or request log may be used for employee initiated shift trades. Managers cannot monitor theft, interact with customers, train employees, or perform quality control at the business if they are in the back-office working on a labor schedule.

Example: A car dealership has three managers, each making an average of $70,000 per year. Additionally, the car dealership has more than one-hundred (100) non-management staff, including sales personnel and mechanics. On average six employees (6% of the non-management staff) call in to check their schedule or swap shifts on a daily basis, using a total of 30 minutes per day (5 minutes per call). The dealership is open 300 days per year, costing the dealership more than $3,000 per year in schedule change costs. It may take another 6 hours per week to schedule the staff , more than $10,500 per year in direct scheduling costs!

To ensure that management staff time is spent appropriately, use technology tools to perform tasks that can be done by computers. Software tools such as TimeForge improve staff retention, and decrease the amount of time that scheduling labor consumes. TimeForge includes a number of additional tools that will assist managers in time management, including a daily manager log book, payroll processing, and other similar tools.

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Updates to Employee Scheduling and Time and Attendance Software

August 21, 2008 , Lubbock, TX , It happens on every Friday of every work week in hospitality, restaurant, and retail businesses around the world. Employees call and want to know when they are scheduled to work during the upcoming week, but the manager hasn’t posted the schedule. Staff members are not able to plan their personal lives without the work schedule which creates conflicts and leads to employee terminations and resignations as soon as the schedule is posted. With labor scheduling software tools, management can reduce schedule conflicts, minimize turnover, and improve profitability at their business.

Managing a labor force requires scheduling part-time and full-time employees properly before they are needed for work and also tracking when employees clock-in and clock-out. Good managers reduce the difference between the theoretical work schedule and the actual hours worked while maximizing sales at the business. Improper employee scheduling leads to one of two circumstances:

  1. More employees are scheduled to work than are necessary – increasing payroll costs and reducing profits. Employees may be cut from the schedule without working their scheduled hours.
  2. Not enough employees are scheduled to work – decreasing sales and reducing profits. Employees must be called in to work, creating frustration and high turnover among personnel.

Neither option is desirable and the key to avoiding both situations is to monitor and refine the schedule at your business. As experienced managers know, building an accurate schedule takes several hours a week and must consider all of the following items:

  • Availability sheets
  • Communication and request log books
  • Shift swaps and trading
  • Minor rules
  • Scheduled breaks
  • Lunches
  • Employee notifications
  • Training and certifications
  • And many other factors …

Using TimeForge, a web-based labor management system, managers quickly build accurate schedules while reducing turnover, enhancing communication, and improving retention. The recently updated TimeForge provides more time saving features, new pricing plans, and now includes a powerful Daily Log.

With a comprehensive labor management tool, payroll expenses are reduced and employee turnover is continually monitored. TimeForge keeps managers out of the back office and puts them back on the floor where they can directly influence the profits of the business.

About TimeForge
TimeForge, www.TimeForge.com, develops easy-to-use software products to manage employee scheduling, time and attendance, and communication logs. TimeForge’s web-based product suite is designed to meet the demands of the retail and restaurant industries, providing solutions for both independent and chain operators.

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