Managing your Labour costs in the Australian market is tough!
Rightly or wrongly Australians are a paid well on the whole, which allows us to live a lifestyle that is the envy of the world. According to the OECD website https://data.oecd.org/earnwage/average-wages.htm#indicator-chart Australians earn on average $49,100 USD making us the 10th highest paid country in the world! The downside of this is, it makes running a business hard (not impossible but hard). Below are a few tips for managing your schedule to help maximise the productivity of your staff without overworking them. We have optimised this for hospitality and retail sectors but the principles could be used across many industries.
The first thing you need to do is pay attention to sales trends. Many businesses do themselves a disservice by rostering too many staff during non-peak times. Peak times are when your business does its largest amount of transactions/sales, think lunch time for cafes. By rostering the bulk of your staff during busy times you can increase sales and increase goodwill towards your business. Additionally, you’re not wasting money on staff when there are no customers to be served. So, try and take a snapshot of your daily sales and roster for your sales patterns!
One of the greatest things a hospitality business can do is give a 14-16-year-old kid their first job. It might seem like hard work but with proper training a young employee can become a great long term asset to a business. Additionally, if you make use of federal government incentives for traineeships you may be able to give a young person a real leg up while helping your business grow. Youth employee pay rates are also lower in certain markets and can help save your business thousands.
The famous line ‘Would you like fries with that’ works! Increasing your average check is one of the best ways to offset your labour costs. Let’s say you run a cafe, and you have 100 customers that order only a coffee every morning. If you can sell a $4 muffin to 1 in every 10 customers that is an extra $40 revenue for your business per day or $14,600 over the course of a year! If you can empower your staff to ask every customer in no time they will help grow sales creating more opportunities for your business covering their own wages and others with add on sales!
Not all of these solutions will apply to all businesses however focusing on implementing these 3 things you can potentially save thousands while not working your staff to the bone! To manage your roster better download our free rostering tool at www.yodelit.co