In a retail business one of the key measures is staff costs and how you organise your rotas to optimise profitability. Optimise here means to make the most money you can without compromising on the quality of the work that you provide your staff or the quality of the products and services that you provide to shoppers.
The calculation is simple. Put down your sales total (excluding from services) and then divide it by the hours that you are open. To add up the staff cost calculate the number of hours worked by each staff member multiplied by their hourly rate plus taxes; add these together and divide by the hours that you are open. Then divide the hourly revenues by the hourly staff cost and measure this percentage.
If you set a target to reduce the percentage staff costs, look at the jobs that you need people to do and when the quiet times are in the shop. Moving restocking to times when the shop is not busy is an obvious area for savings.
Your staff payroll is an investment and you need to help your staff generate more gross profit for every hour that they are working. Think about how to share the benefit of the upside, too!
The calculation is simple. Put down your sales total (excluding from services) and then divide it by the hours that you are open. To add up the staff cost calculate the number of hours worked by each staff member multiplied by their hourly rate plus taxes; add these together and divide by the hours that you are open. Then divide the hourly revenues by the hourly staff cost and measure this percentage.
If you set a target to reduce the percentage staff costs, look at the jobs that you need people to do and when the quiet times are in the shop. Moving restocking to times when the shop is not busy is an obvious area for savings.
Your staff payroll is an investment and you need to help your staff generate more gross profit for every hour that they are working. Think about how to share the benefit of the upside, too!
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