Labor costs are the largest expense at any hospitality business, and controlling them is a key area of focus. This diagnostic assignment identifies existing payroll inefficiencies as well as opportunities to increase efficiency and improve service. During our labor management systems analysis we:
Effectively adjusting payroll to meet changes in business volume is essential to meeting guest expectations and achieving profitability goals. Our analysis of variable staffing focuses on two major areas: historic utilization and current management practices.
We use computer modeling to record historical labor utilization and concurrent business volume for each department going back eighteen months to two years. This sampling enables us to analyze productivity and provide a historical comparison of labor utilization in each area. Our custom models measure the quantity of labor utilized at concurrent levels of customer activity to gauge the effectiveness with which labor is adjusted to meet changes in business volume.
Fixed payroll tends to fatten over time, negatively impacting profitability. Our analysis includes:
We identify opportunities for improvement in current labor management practices. We conduct in-depth interviews with department managers focusing on each component of the labor management process, specifically:
At the conclusion of our work, we meet with leadership to present our findings, conclusions and a recommended action plan.