What Happens to an Organization With Bad Staff Management?

If your company uses outdated scheduling methods, or fails to optimize its scheduling requirements, then you could be bringing undue costs and stresses to your business. While these dangers may not be immediate emergencies, over a period of time, they can cost your business a lot of money, and prevent it from running at its fullest possible capacity.

Here are three hidden dangers lurking in your employee scheduling:

Overtime

According to the United States Department of Labor, employees who work over forty hours in one week must receive overtime pay for additional hours worked. Overtime pay is the equivalent of time and one half of the employee’s normal pay.

If your company accidentally schedules workers to work more than forty hours a week on a regular basis, then this can result in you having to pay a lot of overtime to your employees. Overtime work is fifty percent more expensive than regular work. So, if you’re constantly paying it due to scheduling mistakes, then this can really add up over time.

The result is that your company can lose a lot of money paying for labor that could be much cheaper if a proper workforce management tool was used, and if overtime was not required in the first place.

Under-coverage of your peak demand

For many businesses demand is much higher at certain times. For example, restaurants often experience peak demand at night on the weekend. If your company fails to schedule enough employees to work at peak demand, then this can cause your company to lose money.

The reason is because if you do not have an adequate amount of workers during these important times, then you will be unlikely to keep up with the demand. Not only can inadequate employee scheduling for peak demand times cause a failure to keep up with demand, but it can also cause customer loss due to frustration over wait times.

Overlapping skills and expensive resources

This can be a major problem, because it can lead to you spending too much money in a certain period of time. For example, if your company needs to make an expensive purchase on resources one week, but it also schedules a high amount of skills in the same week, this can lead to a cash flow problem.

Your company may burn through too much cash for the week and it could have trouble maintaining operations the next.

All of these problems can potentially harm your business but you can solve them with one simple concept, effective scheduling using an employee schedule maker.

Karin Jakovljevic

About the author

Karin Jakovljevic

Karin Jakovljevic is the head of marketing at Ximble, a powerful, cloud-based workforce management system, simplifying employee scheduling and time tracking for retailers, restaurants and small businesses.

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