Cost of Wages in a post COVID world.
With Australian labour costs amongst the highest in the world, particularly in hospitality, (per the Australian Financial Review) it’s critical you keep a keen focus on your Wages bill and roster.
With Jobkeeper support ending in 99 days, this MUST be one of your priorities!
Best practice for managing Wages includes:
Record Wages expense each week, in a separate register or spreadsheet
Don’t just leave it in your payroll system - you simply won’t look at it closely enough
The physical act of writing it down brings to your attention how much you are spending
Also show Wages as % of Sales Revenue (Wages/Sales x 100)
Keep track of Wages each week, both in dollars and %
Create a graph so you get the visual impact
Update the graph each week so you can see trends
Ensure most cost effective roster is in place (without sacrificing customer experience)
Closely watch the productivity of your staff
Involve your team in your thought process
Explain what you are doing and why
They are likely to be just as concerned as you are, Well, not exactly the same, but in their own way
Wages is one of your largest expenses. As such it warrants your full attention. Don’t leave it alone because it’s too hard. This requires business discipline.
Let me know if you need a hand
Peter