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8 Tips to Improve Wages in Your Venue
One of your Club’s most valuable assets is staff. Employees provide the services that keep your customers coming back, however this comes at a price as employee wages represent one of your Club’s largest expenses.
Close monitoring and regular analysis of wages costs can assist your Club to improve bottom line results. In our experience, these tips can help you better manage this key operational area.
Improve your staff time sheets
Review time sheets each payroll period to ensure staff are paid for actual work performed. Incorrect time sheets could mean you’re paying more than what you should be.
Consider automating the process by purchasing electronic time sheet software. Smartphone apps and finger scanning technology are significantly improving the accuracy of time sheets whilst reducing the administration time required to manually process the data.
Get roster smart
Most clubs have seasonal periods where trade is quieter than others. Reducing the number of staff rostered on during these quieter times will have an immediate impact on your operating results.
Online rostering programs are an inexpensive and efficient alternative that allows managers to quantify wage costs in a timely and accurate way on a shift by shift basis. This gives them direct control for the wages outcome ahead of time.
Prepare a budget and understand KPI’s
An area that you should focus on within your budget is Wages KPI’s. Budgeting and planning are often underestimated as an effective way to reduce costs as it can be time consuming to do. As it forces you to focus on every aspect of your business, preparing a budget may reveal a number of cost cutting opportunities.
Engage an external payroll company to expertly manage your human resource and payroll functions. Outsourcing may offer you an efficient and cost effective service that gives you and your employees more time to focus on your core business.
Software, labour and overhead costs can be significantly reduced by removing the need for dedicated staff and IT infrastructure.
Develop your team’s skills
Training your employees to perform in more than one role creates alternatives throughout busy times and may negate the need for additional staff. Ensuring that you have the right mix of skill levels in your teams will also reduce costs by improving efficiency.
Check current pay rates
Ensuring staff are paid in accordance with the Registered and Licensed Club Award 2010 (if applicable) is purely management’s responsibility.
Obtaining an understanding of the award and your Clubs obligations for full-time, part-time and casual types of employment is critical. Using incorrect rates or employment types could create a significant and unnecessary dent in your cash flow.
Consider contracts and EBAs
One way to minimise your payroll processing costs is to enter into an Enterprise Bargaining Agreement with your employees.
Streamlining pay rates and allowances for all employees can provide efficiencies in the system as well as flexibility for your employees.
Ensure that the payroll system has controls in place to minimise the risk of fraud and incorrect payments.
Such controls include exception reporting, review of Masterfile amendments and manager approvals, regular reviews for false employees and duplicate bank accounts as well as ensuring that your payroll clerk takes leave regularly.