Tips on Employee Management for Better Profitability
It’s no secret that uncontrolled labor costs can cause a business to stop operations altogether. Pay no heed to how employees are using their work time and you could find yourself or your company aboard the express train en route to “ClosedShopsville.”
One of the keys to having a cost-efficient workforce is of course, to use an employee scheduling software. However, if you can’t use one right away, there are still a number of ways where you can effectively supervise your staff and pinpoint the areas where you can make improvements in managing people and in keeping within payroll budget.
The first step is to take a step back and evaluate the way you and your employees are doing things. Could there be a better way of planning the schedule? Or are there perhaps better procedures than the one you’re currently using that could help employees get tasks done faster and then move on to the next? Check out these employee management tips and see how you can apply them in your own organization.
Check time sheets from time to time and see if they really coincide with the employee’s actual arrival and off time. After all, it never hurts for your staff to know that the boss is watching. For employees, there are so many ways of riding the clock, and an hour’s worth of work shaved off by even just a couple of employees can amount to precious labor dollars in actual expense.
Make a regular review of your payroll costs. If it’s not peak season for instance and there’s a significant (or even a not-so-significant) rise in labor expense look into that immediately. In addition, review the pay rates of your staff members of varying levels. While you can never lower the rates that have been given to them already, you can at least ensure that employee scheduling has been properly done, with the higher-paid employees evenly spread out among the various shifts. This way you can maximize the leadership and learning potential of both the senior staff and the beginners respectively.
Collect sufficient data and determine your employee to sales and employee to customer ratio. If you have too many employees and not enough sales or customers, then you’re spending on labor unnecessarily. Conversely, if you don’t have enough workers for a high time or season, you may be saving on payroll but lagging on the customer service end. Make sure all the factors balance out properly.
If you’re going to incorporate technology into your system, make sure you do so wisely. One such effective tool to ensure that employees are getting to work at the times when they are supposed to is a biometric clocking system. It requires the worker to have his finger or entire hand scanned as proof his presence. But while this type of equipment is effective for simple clock in and out purposes, it is not a very wise idea to use them for inserting PINs into a Point of Sale System particularly if you are running a business where workers may have greasy or dirty hands at any point. This can easily damage your equipment.
Ensure that only one supervisor or manager is taking charge of approving leaves and time-offs at any given time. This will prevent overlapping of approved time-off and leave requests. You will be able to properly accommodate employee’s requests, without your business suffering from having insufficient personnel.
While the above tips can go a long way in helping you achieve efficiency in managing your people, you will have an easier time if you have an automated staff scheduling service do all the work for you, like Ximble. You’ll be assured of efficient schedules, managed costs, and a lot of extra time to focus on other important matters. We offer a 14-day free trial so you really have nothing to lose with giving Ximble a try.