As retail store manager you are facing a difficult multi-faceted challenge that can have a tremendous impact on the bottom line of your retail store. While one size does not fit all, three factors must be considered in every good scheduling plan: economy, efficiency and effectiveness.
#1- BE ECONOMICAL:
GOAL: Recognizing that payroll is one of the largest operating expenses, the key is remaining profitable while finding a balance between labour costs and scheduling enough employees to handle sales. Overstaffing costs money. Understaffing loses potential sales. REQUIRED INFORMATION: You will need the current payroll budget as provided by regional or district managers or corporate office. It is also helpful to have statistics from the previous year (or years) to see how busy the store was at particular seasons. Request or do your own analysis on the busiest times during your store’s operating hours. Calculate the average sales volume for identified periods. Valuable information can be pulled from Industry standards for your business and stores of comparable size. As your calculations and yearly history are recorded you can determine whether you are above or below this benchmark. Of course, you need detailed information on your employees, their level of training and other factors that impact store operations. SIMPLE STEPS:- Plan the cost effective use of your workforce based on sales by hour or by day
- Adjust your workforce based on daily or weekly sales reports\
- Schedule just enough people to keep running during slow times.
- Have a second shift come in just before a rush and stay just beyond the rush and a third shift come for the evening and store closing.
- Overlapping shifts offer relief during the busiest times of the day, allowing for employee breaks or and accommodating employees who must be late.
- Set your labour cost budget for each hour. Calculate this as a percentage of sales or use your industry standard as a benchmark, for example, 10% of sales for retail stores.
- As sales increase, increase your payroll budget, not the percentage.
- Establish a payroll budget and staffing requirements.
#2- BE EFFICIENT
GOAL: Get the most workable scheduling system in place and then stick with it. The amount of time a manager spends on scheduling can expand exponentially as more and more variables are accommodated. REQUIRED INFORMATION: Pull together everything pertinent regarding your employees and their duties. Have job descriptions for cashiers, sales and stock personnel. Define all jobs that are expected as part of the smooth operation of the retail location. Define those who will be full time, part time or do more than one job. Have sales reports by hour on hand as well as information to review daily, monthly and yearly sales. Estimates and forecasting will be built on this information. Traditionally, weekend and nights are usually busier than weekdays. You will also want to consider holidays and school vacations and any other differences in the routine of your store. SIMPLE STEPS:- Define the needs of your store regarding staff.
- Set your labour cost budget for each hour. Calculate this as a percentage of sales or use your industry standard as a benchmark, for example, 10% of sales for retail (according to Census).
- Schedule employees for each hour based on your hourly labour cost budget.
- Adjust your staffing based on weekly sales reports by hour
- Juggle employee availability
- Allow your employees to give you information about their schedule.
- Try to accommodate employees who want to work more hours some weeks.
- Utilize on-call employees to help fill in shift gaps. Inform them that they will be given an hour’s notice to come in.
- On-call employees are also useful if someone calls in sick.
- Identify trustworthy and experienced personnel for key jobs such as opening and closing
- Balance employee skills sets with each shifts’ needs
- Identify convenient times to provide break and meal periods for staff members who are required to receive breaks
- Monitor and forecast labour expenses
- Add extra staffing during peak sales periods
- Make seasonal adjustments by referring to last year's sales to find peak times and peak sales days.
- Post the schedule with lots of lead time, preferably two weeks to a month in advance, but at least one week ahead. Posting late causes problems with employees and creates higher turnover and reduces employee retention – reducing overall profits.
- Give employees a chance to review the schedule and be sure they can work the times you have scheduled them for.
- Make sure that staff is aware that if there is a conflict you are willing to work with them.
#3- BE EFFECTIVE:
GOAL: The bottom line is that you want to optimize staffing in order to satisfy customers and get the best return on your investment in personnel. REQUIRED INFORMATION: The best foundation for employee scheduling is thorough knowledge of the retail sector you are working in. Of course, detailed job descriptions and accurate performance evaluations will provide for informed decision making. Don’t overlook any legal implications that affect employees (age, hours, minimum wage etc.). SIMPLE STEPS:- Ensure that you have coverage needed during busy periods without overspending your payroll
- Communicate scheduling requirements clear
- Try to keep the same schedule each week so that employees can get into a routine.
- Let it be known that if they cannot cover their shift that they should not only come to you but see if they can get someone to cover for them
- Reduce turnover and improve employee retention
- Create motivation to retain your best employees and keep their passion working for the business
- Try to create a good rapport with your employees. This will cut down on the amount of scheduling changes you will have to make.
Employee Scheduling
