According to a recent industry report, operating costs in the hospitality sector have peaked at a 12-year high. No matter what the size of your business, when costs start to rise this can eat into profit and make it challenging to grow. Payroll accounts for around a third of all operating costs so making changes to the way you manage your workforce can make a big difference. If you’re using ePOS within your business then there a number of ways in which it can have a positive impact on profitability by helping to keep operational staff costs under control.
Managing rising staff costs
For most UK businesses rising labour costs are a stark fact. Since the National Minimum Wage Act in 1998 average payroll costs have jumped from 17% to over 29%. It’s essential for any business to find ways to keep this operational expense within affordable margins and the transparency and insight provided by ePOS is one of the most effective ways to do it.
Streamlining staff scheduling
A good ePOS system will provide support when it comes to staff scheduling, including ensuring that this is being managed efficiently. Smart rota management can help to reduce operational costs by avoiding clashes or double bookings for a single position on a shift. Crucially, working with an ePOS will give you perspective on shift patterns and may also have time saving tools built in, such as being able to copy a rota over from one week to the next.
Supporting smarter budgeting
Depending on the ePOS system that you have there could be a number of different opportunities for using it to support better budgeting. For example, you may be able to reduce costs by identifying where there are more staff than really required to support sales. Projections can enable you to reduce the likelihood of having too many staff during lower sales periods and cut costs as a result. Some systems are able to automatically compare data, such as historic sales, against rotas and budgets to calculate staff costs so that you can see where positive change could be made.
Most ePOS systems today require staff to ‘check in’ at the start of a shift and then ‘check out’ when they finish. This gives the business complete perspective over key employee data, such as whether staff are starting on time, finishing early or working overtime. The use of fingerprint scanners and biometric data can make this even more accurate. This kind of transparency can be useful in a number of ways, for example ensuring that you’re not paying employees for hours that haven’t been worked. Some systems will also enable you to compare data, such as hours worked and scheduled hours, and to check patterns that arise over time.
EPOS has an essential role to play when it comes to operational costs, in particular the percentage that is dedicated to staff. The right system can enable your business to be more efficient, reduce wasted spend and identify key opportunities to save.