The 2008 year has come to a roaring close and the staff at TimeForge would like to thank you for helping us provide powerful software that lets you compete in business, and be happy in life.

As many of you have probably discovered, TimeForge received massive updates on Wednesday and Friday.  These updates fix a number of software bugs that were reported, and it also includes more than two dozen brand new features available for TimeForge users.

Some of these new features include:

New Reporting Tools! We’ve have released a new reporting solution to provide you with greater control over sorting order, font sizes, and better reports.  All of the TimeForge reports have been re-written to give us enormous flexibility in the coming months.  Be prepared for new reports, and new ways to look at them (exporting to Excel will be available soon).

Automatic Sales and Inventory Forecasts! In addition to being able to track Manager Projections and Actual Values, TimeForge Sales will automatically predict and forecast sales and inventory values – accounting for factors such as seasonality, current staff levels, and others.

Corporate Level Employees! For our customers that manage multiple locations, you can now view employees at the corporate level – all locations in a single list.  Employee management has never been more simple!

Need to Track Certificates, Uniforms, or Employee Reviews? You can now track all of this using the TimeForge Certifications!  TimeForge Certifications can include tracking of test dates, the score received on the test, and when the test expires.  Certifications can impact the schedule, providing warnings when employees with expired certifications (or missing certifications) are scheduled to work.

Smarter AutoScheduling! The AutoScheduler has been improved to look at previous scheduling assignments, and learn how to better assign staff members.  The AutoScheduler can often build the same schedule that the manager would!  Less typing means that schedules are made faster so you can go home early.

Employee-Centric Schedules and Attendance! Need to find out when Sally or Tom works next?  Don’t want to have to go click on the schedule or search the attendance records?  No problem!  Go to your employee list, find the employee and click on “Edit”, and you will see two new tabs, “Schedules” and “Attendance”.  Find out when Sally or Tom is scheduled, or actually worked, in the upcoming weeks, or any previous time period.  Instantly change the schedule directly from here.  We even show schedules from multiple locations!

Break Improvements – Remove Breaks from Calculations. Some businesses track schedules by looking at the whole time that the employee is at work.  Other organizations prefer to ignore unpaid breaks (such as lunch breaks) in the time and cost calculations.  Both paid and unpaid breaks can now be removed from the schedule calculations by changing a few TimeForge settings.

Payroll Period Tracking – If you use TimeForge Attendance, you can now identify your payroll periods and run reports using these periods, rather than entering your own time ranges.  Payroll periods can be set up for weekly, bi-weekly, or monthly payroll.

Of course, there were numerous other minor improvements made to TimeForge, including a streamlined sign up process, easier template management, and much more!

It has been almost six months since the last TimeForge Newsletter went out – and we apologize!  We have been so busy adding new functionality and improving TimeForge that we haven’t taken the time to inform you about all of the new TimeForge features.  As most of you know, we performed a massive update to TimeForge on Thursday and Friday, delivering enhanced functionality just in time for Halloween (or, if you keep up with football, in time for the Texas Tech vs. Texas game)!

We have officially split TimeForge into three distinct products, and each product can be combined together as needed for your business.  These three products include:

• TimeForge Scheduling, our flagship product continues to be the best labor scheduling tool available – fast, streamlined, and easy to use!

• TimeForge Attendance, a powerful time and attendance package that can enforce the labor schedule, provide detailed employee time cards, and directly export your payroll!

• TimeForge Daily Log, a valuable communications tool useful for recording notes and numbers about maintenance, employee problems, deposit logs, sales figures, and much more!

Some of the improvements to the TimeForge products are detailed in Part 2 and Part 3.

Are complicated employee scheduling practices taking up precious time at your business? Are you making the best possible labor schedule? How much does a bad labor schedule cost? Did you know that TimeForge can reduce turnover, improve retention and increase profits at your business? Sign up today for a free trial!

In many businesses, employees are perceived as a required evil – payroll is a liability that is necessary to be in business.  Unfortunately, in many service oriented industries (such as retail, food-service, and hospitality industries), this attitude harms the business by increasing turnover, deflating morale, complicating legitimate hiring practices, and increasing employee training costs.  These problems are systemic in many organizations, creating dissension between salaried managers and non-salaried employees and increasing turnover.  Another, better, way to view employees is as assets to the business.

Training Costs Money Too

All new employees, even experienced hires, must be trained appropriately.  Employees should be trained in the corporate vision, customer service, and the details of their specific job.  Duties that each employee is responsible for performing will need to be demonstrated by a competent manager or trainer, and then must be repeated by the newly hired staff member.  Training entry-level workers can often take more than a week of management time, and properly training salaried managers may occupy several months.  In addition to the management time utilized training employees, new hires must be paid during their training.  Make sure that training is streamlined and hiring practices are refined to reduce the cost associated with hiring.  Consider Internet based tools to assist staff training, where appropriate.

Employees Become Lucrative Assets Over Time

Employees are expected to learn new skills while working, often referred to as “on-the-job training”.  Most work-related skills can be learned on-the-job, including new equipment skills, customer service skills, and business skills.  These new skills are passed to employees through interaction with managers and other employees at the business, and is the foundation of many promotions.  Hourly wage workers can grow into Assistant Managers.  Assistant Managers can climb the ladder to become General Managers.  General Managers become District Managers, or Vice Presidents.  Each employee becomes a trusted asset, and finding a replacement for an employee that leaves the business will always cost more than the direct salary of that employee.  In addition to training costs, there is an obvious and direct cost when employees are absent and customers are not adequately served.

Keep Assets (Employees) in Mind While Scheduling Work

When scheduling employees, managers should remember that employees are assets necessary to help the business grow and profit.  Employees that excel at certain job duties should be scheduled where their talents can improve business profitability.  Employee requests for time off, changes to the work schedule, and holidays should be honored where possible – and the business should establish rules and regulations to facilitate constant communication between employees and managers.

Turnover Is Expensive — Really, Really Expensive

Turnover is not cheap.  Indeed most managers under-estimate its cost and the learning curve of working in a new restaurant.  Approximately 70% of the cost of turnover is the loss of productivity before an employee leaves, as the employee’s attitude toward the business becomes detached and fewer customers are served.  Turnover in most hospitality-related industries (restaurants, bars, clubs, hotels) averages around 100% annually – meaning that a store with 30 employees has hired 30 employees in the last twelve months!  Using a cost of $2,000 per staff member, that is an annual turnover expense of more than $60,000!  Reducing turnover should b e a primary concern for any business.

Internet-based scheduling tools, such as TimeForge, can assist managers when building and maintaining labor schedules.  These tools can allocate labor appropriately for your business, track employee availability and time off, meal and break periods, and alert employees when their scheduling needs are, or are not, met.  Your business will not always be able to cater to your employee’s needs, but constant communication between salaried managers and hourly-wage employees will reduce turnover at your business and preserve the value of your employee assets.  Payroll may be a liability, but employees are business assets.

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.

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!

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.

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.

Read about punching in and out (and payroll), and labor schedules before reading this post.  Both posts contain information that will make this article make more sense.

Labor Metrics Help Control Payroll and Labor Costs

At the end of the week, time and attendance values will be collected to calculate wages and payroll for the normal “work week”. A side-by-side comparison of the actual schedule (time and attendance values) and the theoretical labor schedule will reveal a variety of metrics that can be used to manage the workforce. This practice of comparing the actual schedule against the theoretical labor schedule is commonly called “Actual vs Theoretical” or “AvT”. For example:

• Which employees routinely arrive for work on time? Consistently reliable employees are valued employees, arriving at work on time, and are the real workhorses of the business. Make sure to reward them for their efforts.

• Which employees are routinely late for work? This can cause a labor shortage during shift changes, and can disrupt other employees. These employees may need to be disciplined for routine tardiness.

• Which employees are routinely early for work? This increases the payroll expense, reducing profit for the business. Disciplinary actions may be required for these employees.

• Which employees do not show up for work, or routinely call in? These employees may need to be counseled and warned that they risk termination, as they are unpredictable in their work habits and lower morale for other staff members.

• Which employees are always available when another employee does not show up? These employees are willing to work on their days off – and should be rewarded for their efforts to keep the business running.

• Which positions are prone to high turnover? Turnover is extremely expensive to a business, and identifying areas with high turnover is the first step to take measures to reducing turnover.

• Which staff members are most tenured? Tenured staff are dedicated team members and should be rewarded for their efforts. Every effort should be made to increase the tenure of employees while reducing turnover and increasing profits.

• Which is more costly, the theoretical or actual schedule? How much difference exists between the two schedules?
  • If the theoretical schedule is more expensive, management is over-scheduling the work force and may be sending employees home without cause. This often indicates aggravated employees and increase turnover – decreasing profit for the business.
  • If the actual schedule is more expensive, management is not scheduling enough work in advance, and is then forced to call employees on their days off. This situation can also create aggravated employees and increase turnover. It often results in unnecessary over-time.

The ideal work environment has a 0% AvT ratio - employees worked when they were scheduled and management accurately identified the business requirements.

Labor, especially in retail and hospitality, is the largest expense which businesses directly control. Comparing metrics such as Actual vs. Theoretical allows management to maintain control of the business, thereby increasing profit. Many metrics can be compared manually using Microsoft Excel spreadsheets, but sophisticated scheduling software such as TimeForge, can calculate many of these metrics quickly and easily.

Are complicated employee scheduling practices taking up precious time at your business? Are you making the best possible labor schedule? How much turnover is created because of bad, or late, schedules? Did you know that TimeForge can reduce turnover, improve retention and increase profits at your business? Sign up today for a free trial!

New and existing TimeForge users received a major upgrade on Thursday night, as the TimeForge system was updated to provide more flexible scheduling, new time and attendance functionality, and brand new Communication Log features! Some of the new features include:

• Availability Requests have been upgraded and are now easier to use. Outstanding employee availability requests are presented as part of the schedule making process and employees are constantly informed of any changes to their availability.

• Never accidentally schedule staff before or after closing the store! Open and closing times can be configured while making the schedule, and warnings are displayed when staff are scheduled before the store is open or after the store is closed.

• Employees are automatically notified by text message when management approves a shift swap.

• Export punch-in and punch-out times to payroll for easy processing. TimeForge has partnered with CompuPay, a leading provider of payroll for small-to-medium retailers and restaurants. Hours can be exported to CompuPay with a single click!

• Easily identify which employees need to work in specific stations or sections, and schedule these positions with a single click. No more typing “Section 1” or “Pizza” or “Lane 3” when making schedules!

• In accordance with state and federal laws, each position (or job code) can have multiple pay rates, depending on the time of day. Always make sure that employees are paid appropriately!

• Employees can now search for a shift to pick up, or can pick up any shift that has been given up shift by another employee – if approved by management.

• Support for delivery drivers is now included! Drivers can enter tips and mileage for their shifts directly into the TimeForge Time and Attendance module.

• Support for break and meal periods has been enhanced, and managers can now create specific break and meal periods for each shift when building the labor schedule.

• Decisions about your business that include the weather can now be made directly from TimeForge. TimeForge includes weather forecasts on the “To Do Today” page.

• New reports! New TimeForge reports include summary reports for time and attendance, as well as several new scheduling reports.

• Are employees asking for the ability to print the schedule, or a copy of the request log? A setting inside of TimeForge will allow employees to print their own copy of the schedule, breaks, or requests.

• Does your shift need more information than TimeForge normally provides? You can now enter shift notes directly on to the schedule while building shifts!

• Significant improvements to TimeForge Attendance were made – time and attendance entries can be sorted a number of different ways, and a note can be entered for each attendance entry.

As always, feedback on the new TimeForge functionality is always appreciated!

We previously discussed that employee scheduling is hard, time consuming, and costly to a business. Where possible, businesses should use software tools to automate labor scheduling – saving time and money while improving profits makes a lot of sense! Once the employee schedule or the theoretical labor schedule, is complete, it is posted for all employees to see.

What's the Difference Between Schedules and Timecards?

The time and attendance system is one crucial aspect of managing labor. This system tracks the “actual schedule” worked by staff members. Each employee should have their own “timecard”, although computer systems have improved these paper systems over the years. At a bare minimum, this can be a paper card which has the time and date the employee arrived and the time and date the employee left, printed or stamped on the card. At many businesses, the Point Of Sale (POS) system or Property Management System (PMS) has a built-in time and attendance system which may be sufficient. More sophisticated time and attendance systems are available from payroll vendors, Human Resource (HR) software vendors, and best-of-breed labor management providers like TimeForge.

As each day of the theoretical labor schedule progresses, the following cycle likely occurs:

• An employee arrives at the business

• Before beginning any work, the employee clocks-in (or punches-in) to a time and attendance system, and management must be mindful of early and late clock-ins, and buddy-punching.

• The employee performs their work

• The employee may be given break periods, or meal breaks, some of which may be paid or required by law. These breaks should be recorded for Labor & Industries Audits (L&I Audits), corporate compliance, and to secure against potential labor lawsuits.

• The employee clocks-out (or punches-out), declaring any tips (if necessary), from a time and attendance system

• The employee leaves the business

Use Timecards for Payroll, Schedules to Plan Labor Costs

It is important to pay payroll expenses from the time and attendance system, and not the theoretical labor schedule. If management pays the employee directly from the theoretical labor schedule and the employee arrived later than scheduled, then the business is paying too much to the employee – reducing profit. If the employee arrived earlier than the theoretical labor schedule suggested, the business will not lose any money by paying from the schedule - however, a number of regulations are violated by not paying the employee for actual time worked. Employees, in all industries, are notorious for arriving to work 15-minutes earlier than scheduled, or leaving 10-minutes later than scheduled, requiring that employers pay appropriately for worked time. To ensure compliance with regulations and to reduce the loss in profits, the correct way to pay employees is with the clock in / clock out times from the time and attendance system.

Is employee scheduling complex at your business? Are you making the best possible labor schedule? How much time is thrown away while making a schedule every year? Did you know that TimeForge can reduce turnover, improve retention and increase profits through employee scheduling at your business? Sign up today for a free trial!

Although employee work schedules sometimes appear simple to create, building a “good” labor schedule is extremely difficult using traditional methods such as Microsoft Excel or pen-and-paper.  Managers must build a schedule so that qualified employees are available to meet the forecasted demand for service or goods.  And a good schedule accurately reflects projected sales for the upcoming week or month, providing adequate work hours for employees.

Labor Schedules Take Time to Create

The employee schedule informs employees when to arrive at work, and in some cases, when to leave.  In other cases, employees are “cut” from the schedule based on demand (or volume) at the business.  In almost every case, the labor schedule is created by management staff in the back-office or at home after hours – a point of discontent for most managers who must work longer hours and weekend hours to build schedules.

The steps to create a labor schedule reads like a long list of tasks, occupying several hours of management time every week:

1. First review the manager's log book and estimate or forecast upcoming sales and the demand for labor.
2. Next check the employee request log and availability sheets as well as individual work preferences while remembering which employees are minors or restricted in working.
3. Look-up required employee certifications; for example, an ABC license is required to serve alcohol at a restaurant or necessary certifications to dispense medications.
4. Identify trustworthy and experienced personnel to open or close the business.
5. Try to fairly distribute shifts while meeting employee minimum hour works, but do not exceed a maximum number of hours.
6. Make sure that employees are not likely to receive overtime if someone fails to show up on the schedule.
7. Identify convenient times to provide break and meal periods for staff members who are required to receive breaks.
8. Calculate the likely cost of payroll, being mindful of budgetary constraints – if the cost is too high, start over.

Juggling all of these factors to create a good schedule for the workforce is a complicated task that can consume more than ten-percent of a manager's time throughout the week.  In many cases, especially in owner-operator businesses, this schedule is posted late in the week for the upcoming week.  Posting the schedule late causes problems with employees and creates higher turnover and reduces tenure at the business – reducing overall profits!

The final version of the labor schedule, which the manager has likely spent hours creating, may be bulk-emailed out to the employees (if the manager used a tool such as Microsoft Excel and a schedule template to build the schedule), or more commonly, printed and posted on a wall in the back of the business (inside the management office, store room, or kitchen).

Theoretical Labor Schedules are Important for Staff

This posted work schedule is the “theoretical labor schedule” - it is the necessary labor needed to operate the business and meet expected customer demand.  The posted work schedule will change throughout the week as employees fail to show up, swap shifts with other staff members, arrive early or late, or business requirements change and employees are cut or added to the schedule.  The posted schedule should be saved and archived (as it was created by management) for later comparison to worked hours, and for issues arriving from Labor & Industries audits, availability conflicts, labor disputes, or even lawsuits.

Is your scheduling complex?  Are you making the best possible schedule?  How many thousands of dollars do you spend making schedules every year?  Did you know that TimeForge can reduce turnover, increase retention and increase profits through employee scheduling at your business? Sign up today for a free trial!

Do you own or operate a retail or restaurant company?  Perhaps your store sells collectibles, health food products, cell phone accessories or curtains and rugs.  Regardless of the goods being offered, tightly controlling your labor expenses in the current economic climate is crucial to generate a profit.  Relevant employee expenses including payroll costs, training, and turnover should be properly managed.  With the proper procedures and a set of tools to assist with the complex chore of managing labor, your business can increase profitability.

One key to managing a labor force properly is to schedule part-time and full-time employees before they are needed for work (a theoretical work schedule), and then track the scheduled work against when employees clock-in and clock-out (the actual worked hours), a process known actual vs. theoretical, or AvT.  Good managers reduce the difference (variance) between the Actual hours worked and the Theoretical schedule, while maximizing the sales for the business.

Improper labor scheduling will lead to one of two circumstances for your business:

1. Too many employees are scheduled to work, increasing payroll costs, and reducing profits.  Alternatively, employees are sent home (or cut from the schedule) without working hours they were promised on the schedule.
2. Too few employees are scheduled to work, decreasing the number of sales that are made, and reducing profits.

Neither option is desirable, and the key to avoiding both situations is to monitor and refine the AvT at your business.

Smart managers constantly balance employee satisfaction against the needs of the business in an effort to keep payroll costs down, reduce turnover, and increase profits.  Turnover is extremely expensive, and a 2004 study by the Employment Policy Foundation found that the average turnover cost of a single full-time employee is $13,355.  To recover from the effects of the turnover of a single full-time employee, a retail store would need to sell more than 3,000 pairs of khakis priced at $35 each.  A restaurant would need to sell more than 7,613 children's combo meals at $2.50 each.

One way to reduce turnover at your store is to implement a labor scheduling tool such as TimeForge, an online employee scheduling solution.

Peter Edwards, owner of Zeb's General Store in North Conway, New Hampshire knows that proper employee scheduling is key to managing a retail business, especially a seasonal business.  Peter chose TimeForge to help him manage full-time and part-time shift labor at his store. reducing employee turnover and lowering labor costs.  Peter uses templates in TimeForge to rapidly build schedules for his business, and TimeForge automatically emails and text messages the schedule to his employees on a daily basis – notifying employees of their upcoming work schedule and keeping his staff happy.

Peter had this to say about TimeForge:

I own a retail company.  We employ 15 full time employees, and between 5 and 15 part time employees depending upon our season.  I signed up for the 90 day trial period and have been using the TimeForge program for about 45 days.  I have found the program to be easy to use and it hits the mark with respect to our staff scheduling needs.  The email notification aspect of the program is a great feature that I am sure our employees will like.

The most important aspect of TimeForge is the incredible customer support.  Responses to the help menu item are emailed within 24 hours, and a live person actually answers the phone to respond to your questions.  I look forward to using TimeForge and would be pleased to talk with any prospective user of the scheduling program.

If you would like to see what TimeForge can do for your restaurant, hospitality, or retail business, then please sign up today for a free trial or contact our sales department for more information about TimeForge.

How long does it take to make an employee schedule for your employees? It should take less than 5 minutes! Did you know that TimeForge can minimize costs and increase profits through effective employee scheduling at your pizza, restaurant, hotel, bar, club, or retail business. Sign up today for a free trial!