Are you spending too much on your labour?
Posted by Simon Ingleson. Jul 21, 2014.
It came to our attention that businesses were spending way above their industry average labour spend. The hospitality industry labour spend, for example, should be between 30% to 35% of revenue. After amazing feedback since the launch of our online employee scheduling software RosterElf, people have confessed to us that they are spending 45+%! That can equate to a total loss of $3000+ a week due to the lack of awareness and employee roster control by employers.
And that’s where we can help. Our rostering software enables you to budget for each site individually and automatically calculates your needed daily hours to stay on budget! To budget by labour percentage, all you need to do is fill in:
1. Daily Sales Target
This is what your expected revenue is for each day
2. Daily Labour % Target
This is what percentage of your revenue you want to spend on your labour. As stated before, all industries are different, but a great benchmark to aim for is 30%
3. Daily Average Pay rate,
This is your fully loaded payrate including the loadings and superannuation.
And then we do the rest.
Your calculated figures are then on screen as you roster. No more flicking back and forth from your roster to your budget and then to your calculator. With RosterElf, you can see your budgeted hours vs your actual and they automatically change as soon as you modify your roster, enabling you to always keep on track with your spend.
Start your free trial today!
Magically Simple Staff Rostering