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Managing Your Environment
Part 1: Managing Labor to Create Sales
By Ray Ford
 Today, if you’re serious about improving service, you have to
look beyond lip service. The answer lies with a well-conceived action
plan. Service is a double-edged sword. On the one side is improved
service, the other the available hourly labor pool plus the cost of
adequately staffing and training your staff so as to provide the
desired level of service.
Adopt the Philosophy for Profit
 Managing labor is much more than just looking at numbers. We all know that labor is a big chunk of our expenses.
Our accountant, bookkeeper or POS system can always supply us with a
steady stream of data: labor as a percentage of sales, total daily
labor hours, number of persons scheduled per shift, etc. What managing
labor really means, though, is: The art of managing your labor force
(employees) so that you achieve a specific level of service which in
turn produces a pre-determined level of sales (sales projections).
Example: Rather than just saying, “OK, it’s Thursday and I want my
labor to be 24 percent tonight,” you take this approach. “OK, my sales
goal tonight is $2,000.
• In order to meet my service standards, I need four
cocktail servers, two bartenders, a barback and two host/
greeters/security.
• My ace bartender’s goal will be $450 on his
register, the other bartender $250, plus he’ll take care of the
cocktail staff. My head server will have a goal of $400, and each of
the other three servers will have a goal of $300 each.
• By achieving my $2,000 sales goal, my labor will be 24 percent.”
Scheduling labor is a manager function. Whether you personally do all
the schedules is not the issue. Setting scheduling guidelines and
approving schedules for each area is a manager function.
Take Specific Steps
Setting service standards and training the staff to be professional are
parts of managing labor. There are no simple shortcuts to enhancing
employee morale, productivity and retention of standards, while
improving guest service.
The job can be done, but not in one or two motivational, rah-rah
meetings. Management today must make a commitment to a plan that
encompasses the entire operation, one that’s as much a part of the
daily routine as unlocking the doors.
Experience tells us that employee motivation and training should be based on two important principles:
1. Employees are best motivated by achievements (goals).
2. Employees respond positively to the recognition
they receive from such achievements and the incentive rewards that they
produce.
Managing labor can be attributed to programs that help employees become achievers. Here are some possibilities:
• An internal communications/marketing plan.
Employees must not only understand what is expected of them, they must
buy into those expectations.
• A system that allows employees to receive the tools
that they need to get the job done. The elements that one needs to
achieve a goal must be provided, such as training, equipment plus
proper supervision, coaching/direction and support.
• An evaluation process that monitors performance.
One that manages equally and impartially. Honesty and integrity are
keys. Evaluate yourself and your business on a regular basis.
• A feedback system that is always timely and
constructive. It should let the person know: “How am I doing?” Feedback
should always list pluses and minuses while including recommendations
for improvement.
• Set up incentives and recognition programs so that
they are based on achievements rather than on competition. Be very
careful not to set up programs that overcompensate people who already
rate high on performance and cause everyone else to feel defensive and
alienated by the program and its goals.
• Break down unit goals into smaller, components. Set
specific goals with each individual. Encourage each person to reach or
exceed his or her personal goals. Show each person how his or her
individual goal contributes to the success of the overall unit goals.
• Work at focusing the group on their common goals,
not on beating each other. The competition is to achieve a certain team
or unit result. However, there is nothing wrong with
a little friendly competition among the members of the team. NCB
This is an except from Mr, Ford’s best selling book, "101 Ways To Make The Cash Register Ring!” Bar/Nightclub Management & Marketing, To order or learn more, click here: http://www.HospitalityIndustryResourceCenter.com.
A True Win-Win
Developing employee performance programs might appear to be quite a
large project. Just remember the analogy, “How do you eat an elephant?”
Answer: “One bite at a time.”
Once you start to take small, digestible bites, you’ll find that almost
everyone has the capacity to do this task. Don’t be afraid to ask for
some professional help if you get stuck in the “how” of the process.
The end result rewards most certainly will be worth the effort.
Properly conceived, structured and well-managed employee performance programs are a true win-win for all.
THE GUEST: Receives a higher level of service resulting in more perceived value.
THE EMPLOYEE: Receives enhanced job skills, which result in higher esteem and increased tips.
THE EMPLOYER: Wins with higher sales, more repeat business and a bigger bottom line.
Improving the guest experience is one of the major challenges we face
in the 21st century. Employee performance programs can produce an
excellent return by assisting you in meeting that goal.
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