Top 5 Features That Will Save You Thousands in Labor Cost
When looking for a payroll provider, its crucial to look for software that fits your business. In the restaurant industry, labor is one of the biggest costs in running a business. Payroll software can be expensive and payroll mistakes are costly. Restaurants Canada notes that “more than 30 cents of every dollar spent at a restaurant, goes directly to payroll costs. ” When searching for restaurant payroll software, here are the top five features to look for:
1 - Pay Staff Only For Their Time Worked
To ensure that you are only paying employees for their time worked, invest in reliable time clock software that will also deter from "buddy punching". Buddy punching is a continuous menace in labor management. A fingerprint or photo stamp clock-in device will ensure hours are capture to payroll accurately.
2 - Streamline and Automate Payroll
Automating payroll is more than just saving your business money, it'll also save you a significant amount of time. If manually transferring data takes 5 minutes per employee every pay period, this activity alone will take 500 minutes per period or 216 hours per year!
It's even more frustrating when an error happens - you'll then have to re-audit your hours to look for the mistake. Rid yourself of this minuscule task and invest in a system that will automate employee hours directly to payroll!
3 - Automate Statutory Holiday Calculations
On average, a statutory holiday will occur every month, and depending on the number of employees you have, calculating statutory holidays can take days! Varying hours, positions, rates and deciphering who is eligible for statutory is time consuming, and errors can be costly. Start loving statutory holiday's again by investing in a platform that can help automate this process!
4 - Watch the Clock
What happens when an employee clocks-in 10 minutes before their scheduled shift? What about 15 minutes after their scheduled shift? If these hours are automatically being pushed to payroll - then you may be paying employees for unauthorized time. If your managers are reviewing each shift manually then you should really ask yourself - how efficient is this process?
Look for payroll software that automates your clocked hours to scheduled hours comparisons, and receive alerts for approvals in hours that are beyond budget. This feature alone will save you thousands.
5 - Sales Integration
Great, labor cost was 10% lower this month compared to last. Every restaurateur knows that labor is only half of the equation. A good restaurant labor management system will couple costs with sales, so you're in the position to properly assess how your restaurant is doing.
Integrating with your point-of-sales software will allow you to keep an accurate pulse on your labor cost!
It’s simple; classifying staff and ensuring their hours are accurate allows you to pay them for their actual time worked. Automating and streamlining payroll allows you to save time, money, and sometimes, your sanity. These payroll features will allow you to optimize your labor costs, and ensure you're able to properly assess your business.
When it comes to running a business leaning into software is a great way to succeed, instead of spending hours manually calculating things with software you can easily