The first step to reduce labor costs is predicting how these costs will affect your bottom line. But when your weather app can’t even accurately predict the conditions of tomorrow, how are you expected to forecast your gargantuan business costs? Don’t get trapped sans an umbrella in a rainstorm, and outfit yourself with Revel’s forecasting tools. With Revel Systems iPad POS, owners and managers have the ability to see projected labor costs and the percentage of sales, enabling them to set schedules in a way that ensures profitability and business success.
Once you have an understanding (hopefully it wasn’t too rude of a wakening) of your costs, use these three easy tips to reduce your labor costs:
1. Increase Technology: Investing in new technology, can not only help you forecast labor costs but track in real time human capital. Revel iPad POS can provide employee profit reports, track labor effortlessly, and manage the payroll. Implementing this technology can also automate workflows, helping your team speed progress across tasks and focus on what’s important. When you’re dealing with razor-thin margins in an unforgivingly competitive marketplace you need the best tools at your disposal to achieve profitability. Don’t forget to train your employees on the software to get the most out of your technology!
2. Reduce Employee Turnover: One third of new hires quit after six to nine months and each new salaried replacement costs six to nine months’ salary on average, showing there is detrimental loss when turnover is high. If your business does not have the bandwidth to raise salaries, there are similarly effective strategies to ensuring employee retention and building happiness through increased engagement that can cost significantly less. Deploying employee management tools fosters internal communication and creates a stress-free system for employees to gain visibility into their schedules and time off. Also, be sure to encourage an atmosphere of job growth by providing training, acknowledging benchmarks, and celebrating accomplishments.
3. Manage Staffing: Avoiding an under or overstaffed business and finding that perfect balance of employees can feel near impossible. Fear not, there are tools that can optimize staffing for an efficient, predictable, productive operation, that needs fewer employees to achieve the same results. For example, implementing a Restaurant POS can double as an effective house management system.
Labor costs are one of the largest costs businesses have to absorb and employees are, and will continue to be, a vital part of your business. As you navigate this paradox, keep in mind that creating an ecosystem that places value in your employees and giving them the opportunity to help grow your business will increase productivity and decrease labor costs.