Introducing
Your new presentation assistant.
Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.
Trending searches
Understanding Labor Models
25
LABOR MODELS
Labor is a controlled cost
It is not just increasing how much revenue that comes through our doors, but it is also how we control our expenses (i.e. labor and food costs) that will make us successful
Why Labor?
What is a Labor Model?
Labor Models
For our purposes, we will define a labor model as the plans and procedures that are put in place to accurately forecast, schedule, and flex labor demands. It is also how you continue to improve labor performance as a cost to your business.
How to Measure
As a % of Revenue:
- This is similar to food COS, but is limited to using historic data, and is hard to forecast
How to Measure
With Metrics:
- We can use metrics such as FTE's, KPI/KVI's to get a better grasp on our labor
FTE - What is it?
FTE stands for Full Time Equivalent and is a way to measure how many total employees you have (Full Time and Part Time) in Full Time terms.
FTE?
40 hrs
38 hrs
22 hrs
16 hrs
32 hrs
- Total Hours = 148
- Divided by 40
- FTE's = 3.7/week
KPI - What is it?
KPI stands for Key Productivity Indicator and is a way to measure productivity of your team members and as a signal to adjust schedules.
KPI?
Let's Say:
Thursday you expect 72 departures from your hotel. 72/15= 4.8
You should schedule 5 housekeepers
1 Housekeeper can clean 15 rooms in a shift: the KPI is 15 rooms. 1-15 rooms requires 1 housekeeper, 16-30 rooms requires 2, etc.
KVI - What is it?
KVI stands for Key Volume Indicator and is a way to measure business volumes your team members and as a signal to adjust schedules.
KVI?
KPI and KVI are essentially the exact same thing, just using different terminology.
FTE, KPI, KVI,
now what?
2 Things need to happen to start improving how you scheduling and monitor labor
- You need to create Minimum Staffing Levels and Maximum Staffing Levels
- You need to find how you have been trending
Where to Start?
Minimum Staffing
Minimum staffing is the L.O.W.E.S.T amount of staff you need to operate. It is NOT the lowest amount of staff you would like....
Minimums
F&B - How many people do you need to feed 10 guests in your restaurant?
- 1 Cook?
- 1 Server?
- 1 Host?
Hotel - How many people would you need to clean and sell 1, 2, 3 rooms?
- 1 Front Desk Agent?
- 1 Housekeeper?
Valet - How many people would you need to park and retrieve 5 cars?
- 1 Valet Attendant?
Maximum Staffing
Maximums
All positions will have a max limit as well
- Your hotel has 150 rooms, so the maximum amount of housekeepers (1:15 rooms) might be 10
- Your QSR only has 3 cooking stations, you will only ever need 3 cooks
- Ala carte restaurants might only need 1-2 Lead cooks per shift
Creating Baselines
Baseline
Work with your local P&A teams to see what makes the most sense for your property, but take the total period covers and divide by you total period FTE's
- Previous Year?
- Last 6 months?
- Quarterly averages?
This will give you a reference point to start grading your future schedules against
Forecasting
You know your business better than anyone else, what changes in business levels are you expecting?
Forecasting
- Summer Concert Series
- Upcoming BlackJack Tournament
- Holidays
- Local Sporting Events
USE YOUR DATA!
Data
Whether it is a RMS system, Tableau, Avero, etc. Penn National is a company that thrives on data! Use past data to predict future business.
Start Basic
What is my KPI?
How Many Covers?
Typical Saturday night is 250, with the concert next door I expect 400.
- A Server can serve 54 guests
- A Cook can cook for 95 guests
- A Host can seat 200
- Lead Cook - 1 Max per shift
Do The Math
Do the Math:
Now Schedule!
400/54= 7.4
400/95= 4.2
400/200= 2
Lead Cook - 1 Max
Servers - 7-8
Cooks - 4-5
Hosts - 2
Lead Cooks - 1
Labor Models are always evolving!
Continuous Improvement
Walk the Walk
Inspect what you expect
How often do you physically do the job that your staff does?
- Do you time the task?
- Can you find obstacles to remove for your team?
How often do you talk to the experts?
- Your team members complete these tasks every single day, I gaurantee they have ideas to share?
- They want to do their job better, faster, easier, and most importantly - only once!
Get Granular
Start to sweat the small stuff...
We went over very basic KPI scheduling, using total covers per shift. What about breaking it down to covers per hour so you know exactly how long a shift should be?
Once you start to understand the big picture, and how to start evoking small changes, you will be more confident to dissect your business into smaller and smaller chuncks seeing just how far the rabbit hole goes...