The presentation discussed: (1) the current state and challenges facing the hospitality industry, including high labor costs, turnover, and regulatory compliance; (2) how workforce management (WFM) solutions can help address issues like scheduling, labor cost control, and compliance; and (3) the future opportunities for hospitality businesses to leverage WFM tools to improve profitability while maintaining service levels.
• Managing daily cash balances;
• Ensuring that cash flows are adequate to allow business units to operate effectively;
• Forecasting cash payments and anticipating challenges arising from limited cash flow;
• Maintain banking relationships and negotiating loans and merchant services for business units;
• Maintaining our accounts system;
• Preparing and presenting financial reports for meetings and investors;
• Working with executives and business heads to prepare budgets and track profit / loss performance by business unit and on consolidated basis;
• Creating solutions to new financial challenges by applying financial/treasury knowledge;
• Liaising with other departments and business units on a range of issues;
• Providing advice on financial matters impacting on the company as a whole;
• Taking responsibility for, and supervising the work of, more junior members of staff;
• Preparing financial reports and submissions to relevant government entities;
• Arranging financial audits and reviews as required;
• Banking money and cheques received and issuing receipts as requested or needed;
• Processing credit card payments received and transferring money from Paypal accounts;
• Maintaining and transferring money between bank accounts as required;
• Payment of invoices and fees as required or otherwise instructed;
• Manage payroll and MPF matters for Company, business units and subsidiaries;
• Recommend and maintain a system of policies and procedures that impose an adequate level of control over Finance Department activities.
• Managing daily cash balances;
• Ensuring that cash flows are adequate to allow business units to operate effectively;
• Forecasting cash payments and anticipating challenges arising from limited cash flow;
• Maintain banking relationships and negotiating loans and merchant services for business units;
• Maintaining our accounts system;
• Preparing and presenting financial reports for meetings and investors;
• Working with executives and business heads to prepare budgets and track profit / loss performance by business unit and on consolidated basis;
• Creating solutions to new financial challenges by applying financial/treasury knowledge;
• Liaising with other departments and business units on a range of issues;
• Providing advice on financial matters impacting on the company as a whole;
• Taking responsibility for, and supervising the work of, more junior members of staff;
• Preparing financial reports and submissions to relevant government entities;
• Arranging financial audits and reviews as required;
• Banking money and cheques received and issuing receipts as requested or needed;
• Processing credit card payments received and transferring money from Paypal accounts;
• Maintaining and transferring money between bank accounts as required;
• Payment of invoices and fees as required or otherwise instructed;
• Manage payroll and MPF matters for Company, business units and subsidiaries;
• Recommend and maintain a system of policies and procedures that impose an adequate level of control over Finance Department activities.
CASE STUDY ONE: Strategy and HR Planning at the Capital Hotel
The Capital Hotel is located in the capital city of a Central European country. In the past, its main clientele has been government officials and administrators in departments of state and managers of heavy industries visiting the capital on official government business. The room occupancy rate was on average is 50%. This custom has declined somewhat in the last two years, but it has been more than replaced by business- people from neighboring countries in the week and by foreign tourists at the weekend. The average room occupancy rate is now 75%; 60% of rooms are sold at 'rack' price and it is not uncommon for the hotel to be fully booked especially at weekends. Generally speaking there is greater demand for catering staff at weekends since many tourists like to take lunch in the hotel9s restaurant. However, there is lower demand for housekeeping staff at weekends as tourist customers generally stay for longer periods than business- people and make less demands on this service.
Currently the hotel has 240 twin rooms but an extension is now being built and next year there will be 345 twin rooms altogether plus a revamped leisure club with a brand-new swimming pool and spa (run independently as a franchise). The owning company, European Leisure Resorts, wishes to reposition the hotel, re-designing and re-branding the hotel as an up-market <boutique= hotel. A new name is proposed,
<The Garden Court=. A new General Manager has been <head-hunted= from one of Russia9s top hotels
and her mission is to transform the quality of the hotel while ensuring good value for money.
Competitive Pressures and Strategic Responses
During the last two years a number of international hotel groups have opened hotels in the city to cater for the new markets. All of these are known for their high standards of service. Prices are correspondingly high. The management of Capital Hotel believe that to compete they need to improve the standard of service whilst pegging prices some 10% below their competitors. A survey of customers has indicated that customers would like the checking-in process to be made quicker, for service in the restaurants to be speedier and more friendly and for the rooms and public areas to be decorated and furnished to a higher standard.
Hotel Staffing
There are three departments in the hotel – front-of-house/administration, housekeeping/maintenance, and catering. Reception work on a three shift system 8around the clock9. Housekeeping works on a single shift system (from 06:30-16:00) with some overtime working to cover evening cleaning duties. Catering operates a two shift system from 06:00-15:00 and 15:00-24:00. Housekeeping staff are usually idle for about 2 hours of their shift. By contrast catering staff are very busy for their entire shift. Staff in the maintenance division of housekeeping have very variable workloads, often working under low pressure during their normal 07:00
Universal Associate Scheduling in the Branch PresentationChad Davis
Join a Branch Manager from Jeanne D' Arc Credit Union as we review how she schedules universal associates at her branch and discuss just how impactful getting the most out of this valuable resource is.
Jeanne D' Arc Credit Union has been utilizing FMSI's Omnix Staff Scheduler™ to optimally schedule their branch employees at the right place and time since 2011.
This webinar will cover:
Incorporating complex universal associate activities into a forecasted scheduling engine
The specifics around how universal associate's roles blend with other branch employees
Tips for getting the most out of the valuable universal associate resource
FMSI Workforce Utilization Webinar SlidesChad Davis
Get a look at just how impactful not having the proper staffing levels can be to your organization when you attend this webinar brought to you by FMSI. Uncover insight for optimizing branch staffing plus strategies for improving productivity rates and enhancing or restoring profitability to your institution no matter how many branches you operate.
Brief information about Capacity and Demand...and what all measures are to be taken to balance that are also discussed.
In this we will discuss about:-
1. Capacity
2. optimum and maximum use of capacity
3. the UPs and downs
4. from excess demand to excess capacity
5. measuring and managing capacity
6. stretching and shrinking level of capacity
7. chasing demand
8. creating flexible capacity
9. demand
10. understanding demand pattern
11. analyzing demand by market segment
12. multiple influences on demand
13. strategies for managing demand
Facilities Management & its Role in Shaping the Future of African Commercial ...Andrew Mason
This is the slide deck that Andrew Mason-Workplacefundi Presented at the RICS Africa Summit 2019. The slides present a future outlook for the commercial real estate sector in Africa and how facilities management is changing from a non-core to a core driver of business. This will ultimately mean that all corporate real estate disciplines will merge into a single role for which facilities managers are best suited.
Facilities management sector is populated by a wide range of professionals from a variety of different backgrounds, many of whom have come to the profession with experience in the construction and servicing of buildings. There is little unanimity about the definition of facilities management but it’s about the effective management of place and space, integrating an organization’s support infrastructure to deliver services to staff and customers at best value whilst enhancing organizational performance.
While new software platforms & BIM had taken the facility management industry by a storm and allowed enhanced interdisciplinary collaboration, yet other changes are affecting the industry. The presentation provides insights into these factors including a preview of Global Facilities Management M&A and industry trends.
CASE STUDY ONE: Strategy and HR Planning at the Capital Hotel
The Capital Hotel is located in the capital city of a Central European country. In the past, its main clientele has been government officials and administrators in departments of state and managers of heavy industries visiting the capital on official government business. The room occupancy rate was on average is 50%. This custom has declined somewhat in the last two years, but it has been more than replaced by business- people from neighboring countries in the week and by foreign tourists at the weekend. The average room occupancy rate is now 75%; 60% of rooms are sold at 'rack' price and it is not uncommon for the hotel to be fully booked especially at weekends. Generally speaking there is greater demand for catering staff at weekends since many tourists like to take lunch in the hotel9s restaurant. However, there is lower demand for housekeeping staff at weekends as tourist customers generally stay for longer periods than business- people and make less demands on this service.
Currently the hotel has 240 twin rooms but an extension is now being built and next year there will be 345 twin rooms altogether plus a revamped leisure club with a brand-new swimming pool and spa (run independently as a franchise). The owning company, European Leisure Resorts, wishes to reposition the hotel, re-designing and re-branding the hotel as an up-market <boutique= hotel. A new name is proposed,
<The Garden Court=. A new General Manager has been <head-hunted= from one of Russia9s top hotels
and her mission is to transform the quality of the hotel while ensuring good value for money.
Competitive Pressures and Strategic Responses
During the last two years a number of international hotel groups have opened hotels in the city to cater for the new markets. All of these are known for their high standards of service. Prices are correspondingly high. The management of Capital Hotel believe that to compete they need to improve the standard of service whilst pegging prices some 10% below their competitors. A survey of customers has indicated that customers would like the checking-in process to be made quicker, for service in the restaurants to be speedier and more friendly and for the rooms and public areas to be decorated and furnished to a higher standard.
Hotel Staffing
There are three departments in the hotel – front-of-house/administration, housekeeping/maintenance, and catering. Reception work on a three shift system 8around the clock9. Housekeeping works on a single shift system (from 06:30-16:00) with some overtime working to cover evening cleaning duties. Catering operates a two shift system from 06:00-15:00 and 15:00-24:00. Housekeeping staff are usually idle for about 2 hours of their shift. By contrast catering staff are very busy for their entire shift. Staff in the maintenance division of housekeeping have very variable workloads, often working under low pressure during their normal 07:00
Universal Associate Scheduling in the Branch PresentationChad Davis
Join a Branch Manager from Jeanne D' Arc Credit Union as we review how she schedules universal associates at her branch and discuss just how impactful getting the most out of this valuable resource is.
Jeanne D' Arc Credit Union has been utilizing FMSI's Omnix Staff Scheduler™ to optimally schedule their branch employees at the right place and time since 2011.
This webinar will cover:
Incorporating complex universal associate activities into a forecasted scheduling engine
The specifics around how universal associate's roles blend with other branch employees
Tips for getting the most out of the valuable universal associate resource
FMSI Workforce Utilization Webinar SlidesChad Davis
Get a look at just how impactful not having the proper staffing levels can be to your organization when you attend this webinar brought to you by FMSI. Uncover insight for optimizing branch staffing plus strategies for improving productivity rates and enhancing or restoring profitability to your institution no matter how many branches you operate.
Brief information about Capacity and Demand...and what all measures are to be taken to balance that are also discussed.
In this we will discuss about:-
1. Capacity
2. optimum and maximum use of capacity
3. the UPs and downs
4. from excess demand to excess capacity
5. measuring and managing capacity
6. stretching and shrinking level of capacity
7. chasing demand
8. creating flexible capacity
9. demand
10. understanding demand pattern
11. analyzing demand by market segment
12. multiple influences on demand
13. strategies for managing demand
Facilities Management & its Role in Shaping the Future of African Commercial ...Andrew Mason
This is the slide deck that Andrew Mason-Workplacefundi Presented at the RICS Africa Summit 2019. The slides present a future outlook for the commercial real estate sector in Africa and how facilities management is changing from a non-core to a core driver of business. This will ultimately mean that all corporate real estate disciplines will merge into a single role for which facilities managers are best suited.
Facilities management sector is populated by a wide range of professionals from a variety of different backgrounds, many of whom have come to the profession with experience in the construction and servicing of buildings. There is little unanimity about the definition of facilities management but it’s about the effective management of place and space, integrating an organization’s support infrastructure to deliver services to staff and customers at best value whilst enhancing organizational performance.
While new software platforms & BIM had taken the facility management industry by a storm and allowed enhanced interdisciplinary collaboration, yet other changes are affecting the industry. The presentation provides insights into these factors including a preview of Global Facilities Management M&A and industry trends.
1. Labour Management Challenges
In the Hospitality Industry
Mark Patte, Account Executive - Canada
Synerion Workforce Management Solutions
2. Agenda
• Hospitality Industry – Defined
• Current State of the Hospitality Industry
• Rising Challenge/ Issues
• The Role of WFM for Hospitality
• The Benefits and Features of WFM for Hospitality
• Areas of Opportunity
• Areas of Risk
• The Future of Hospitality and WFM
2
3. Hospitality Industry - Defined
The Hospitality industry
“The scope of the hospitality industry comprises of a range of
businesses that provide services and facilities such as
accommodation, food and beverage, entertainment, gaming and
related products.
The term „Hospitality‟ has become accepted over the years a generic
word, which describes the well being of services and facilities related
to tourists and travellers”
Source: OTAGO Polytechnic University
3
4. Current State of the Hospitality Industry
Market Trends
• Highly diverse sector with many segments –
presenting a huge contrast and variety of businesses
and establishments
• Success often depends on differentiation and appeal
to the target market
• The Hospitality industry is one of the most dynamic
and competitive sectors of the national economy
4
5. Current State of the Hospitality Industry
Market Trends
2011 Facts (Source, Hotel Association of Canada and PFK Consulting)
• Generated revenues of $16.4 billion
• Generated “value-added” of $15.2 billion
• Generated Government Revenues of $7.2 billion
• Employed 283,000 people
• Total wages estimated at $8 billion
5
6. Current State of the Hospitality Industry
Market Trends
These industry identified issues have proven to be too complex for
one organization to solve alone, and require the aid of workforce
management solutions.
The set of workforce solutions is based on the hospitality
industry's priorities that address issues such as:
• Image
• Recruitment
• Retention
• Language Skills
• Employability/Soft Skills
• Consistent Training Models and Skills Certifications
6
7. Current State of the Hospitality Industry
Composition of the Workforce
Additional Statistics
• Huge growth in revenues over the last decade
• As much as 50% growth in Revenues in some sectors since 1999
• Hospitality industries provide many young people with
their first jobs
• In 2004 more than 21 percent of workers in these
establishments (specifically food services) were aged 16 to
19, about 5 times the proportion for all industries
7
8. Current State of the Hospitality Industry
Composition of the Workforce
Workforce Representation
• With a young workforce comes increasingly high turnover and
skill problems, resulting in high levels of:
• Vacant posts
• Hard to fill vacancies
• Skill Shortage Vacancies
• Internal Skills Gaps (where current employees lack necessary
skills for the job) affecting a large proportion of the current
workforce
(Source, Managing an Aging Workforce in Hospitality – The Centre of Research into the Older Workforce )
8
9. Current State of the Hospitality Industry
Composition of the Workforce
Labor Demands of the Hospitality Industry
• Hospitality operations operate on slim margins
• The control of labor costs is critical to being competitive and
to the survival of an operation
• As they commonly represent at least 30 percent of gross income
• Hospitality careers are often stereotyped as low-wage and
entry-level with little opportunity for advancement
• As a result, high turnover is a key challenge due to poor image, low
wages and relying heavily on the youth labor pool
9
10. Rising Challenges/ Issues
• The Hospitality Industry is facing pressure to generate revenue
in order to be in a position to contribute back to to the overall
growth of the economy
• Domestic and global uncertainties, such as 9/11, overseas
issues, health epidemics, and the fluctuating value of the American
dollar has put pressure and strains on the industries ability to flourish
• With the right WFM strategies in place, the industry has the potential
to expand to open more businesses, create more jobs and in turn
contribute to the vitality of every local economy
10
11. Rising Challenges/ Issues
Hospitality is a Labor-Intensive Sector
• Need to:
• Exceed Customer Expectations
• Control Labor Costs
• Retain Skilled Workforce
Profitability and success is rightly dependent on these factors
• Gaining efficiency in workforce productivity is about simply
planning: making sure the right numbers of people are in the right
place at the right time, doing the right job to be most effective while
preserving the desired service level
11
12. The Role of WFM in Hospitality
• To maximize yield and operate at full efficiency,
hospitality organizations must:
• Manage Excessive Labor costs
• Hospitality’s largest operating expense
• Balance Payroll Costs without compromising Guest
Services and Satisfaction
• Equip management with real time information to:
• Monitor staffing
• Analyze budget performance
• Control labor costs
• Focus on outstanding guest service
12
13. The Role of WFM in Hospitality
Top WFM Labour Challenges in Hospitality
1. Coping with the dynamics of workforce planning
• Understanding if there is a variance between the forecast and the actual planning is
crucial for budget control
2. Balancing between the different budget perspectives by the divisional
manager versus the department managers
• The divisional manager should be obligated to achieve the planned budget goals
whereas the department heads priority is to be prepared to uphold a high level of
service at all times by effectively allocating and supporting resources
3. Lacking visibility into the exact labor costs
• Differences between costs of employees can vary from 5-25% (dependent on skills and
experience)
• There is a need to schedule employees while being aware of the costs according to
budget
13
14. The Role of WFM in Hospitality
Top WFM Labour Challenges in Hospitality
4. Facing the risk of non-compliance with work regulations/ agreements
• Negligence to this can cost operations penalties at the end of the year and additional
labor expenses
5. Making inaccurate and unnecessary payments of attended hours
• Unauthorized early entries and late exists, outside of the schedule result in an
undesired increase of the budget
• Manual processing managed on spreadsheets and papers and manually typed into the
payroll system is time consuming and prone to error
6. Controlling outsource expenses
• Overpayments can results from direct, automatic payments to outsource providers as
there is limited control over the actual work that was provided
14
15. The Benefits of WFM for Hospitality
Key Benefits
Adopting WFM Solutions for Hospitality simplifies management of the
workforce, resulting in:
• Cut Costs, Increased Yield Management and Improved Guest Services
• Automate complex time and attendance calculations
• Provide integrated scheduling tools which match employees with the demands specific to
the operation
Example: Revenue peaks and valleys, seasonal occupancy trends, special event
fluctuations
• Reduction in the time required to manage the workforce
• Reduced time it takes to schedule labor resources in adherence with staffing guidelines
• Increasing manager and employee productivity spend on guest related function
(increasing yield and guest satisfaction).
• Efficiency - Controlled and reduced labour costs
• Quickly identify gaps between the budget forecast and planned schedules
• Alerts to warn of deviation to work hours, exceeding overtime thresholds, number of
shifts, rest time between shifts, number of consecutive days worked, etc…
15
16. The Benefits of WFM for Hospitality
Key Benefits
• Mitigate Risk and Ensure Compliance Administration
• Ensure compliance with complex federal, provincial and union requirements
• Reduced risk of statutory and/or union non-compliance and prevention of
grievances and penalties
• Automate Multiple and Unique Scheduling Challenges
WFM provides robust scheduling features focusing on areas such as:
• Occupancy/ Volume Forecasts, Arrivals, Departures
• F&B Outlet and Banquet Forecasts/ Covers
• Historical Analysis, Special Events, Weather Conditions
• Employee Availability (School schedules, minor rules, etc.)
• Employee Skill Ratings or Certifications
• Company and Unions Rules
• Best Practices
16
17. Features of WFM for Hospitality
Time and Attendance • Flexible work rules
• Fair, consistent and real time
calculation of pay polices, payroll
hours and gross pay for hourly and
salaried staff
• Complex wage
calculations, premiums, overtime,
OT distribution, holiday pay, and
more are automated
17
18. Features of WFM for Hospitality
Workforce Scheduling • Automate labor scheduling process
• Help ensure adequate coverage for
all departments and positions
• Accommodates forecasted
demand, employee
preferences, labor standards and
special conditions, etc.
18
19. Features of WFM for Hospitality
Accrual and Leave • Automatically accrues and tracks
Management employee benefits
• Example: Vacation and Sick
• Automates complex eligibility
requirements and scheduling
• Supports unlimited vacation, sick,
or lieu time plans, bank carry-
overs and forfeitures
• Provides scheduling features to fill
vacancies with optimal staff
19
20. Features of WFM for Hospitality
Activity Tracking and • Employees may hold multiple job
Costing positions
• With each position having different
rules, rates and manager approval.
• Tracks labor costs to
departments, projects, cost
centers, work orders, etc.
• Supports multiple job positions at
the time clock device.
20
21. Features of WFM for Hospitality
Point Tracking and • Automatically alerts managers when
Alert Manager labor thresholds or events occur so
disciplinary action can be taken
immediately.
Policy Compliance
• Helps ensure compliance by applying
Government regulations
• Including multiple pay rates, proper
overtime accounting, minor laws, meal
penalties, tips distribution, Union
policies, etc.
21
22. Features of WFM for Hospitality
• Accommodates hourly, salaried, and
Flexible Data remote employees by providing a wide
Collection Options array of time collection methods;
• Including badge terminal, biometric
terminal, telephone, web timesheet, smart
phones/PDAs, POS, etc.
• Interfaces with POS systems used to
capture employee punches and number
of covers.
Seamless Payroll • Automatic transfer of pay data to your
Integration payroll system. Speeds payroll
preparation, increases accuracy, and
eliminates data duplication.
22
23. Areas of Opportunity
The key areas of opportunity of using automated workforce
management solutions within the hospitality industry are as
follows:
• Reduced labour costs by improving workforce productivity
• Visibility into labour costs, specifically planned costs vs. actual costs
• Comply with regulation and working agreements
• Pay based on more efficient schedules and compared to actual hours
worked
• Control Outsource expenses
• Reduce administrative work
23
24. Areas of Risk
• Significant consequences can result from failing to address
the hospitality workforce management challenges and issues,
such as:
• Higher Operating Costs
• Lack of visibility into exact labour costs
• Exceeding budgets due to mismanaged planned vs. actual schedules
• Inaccurate and unnecessary payments to employees
• Uncontrolled outsourcing expenses
• Fines
• Regulatory non-compliance or union grievances
• Poor Image
• Reduction in customer service and satisfaction
• Creates a bad reputation within the industry – no repeat business
24
25. The Future of Hospitality and WFM
• Hospitality operations are starting to see an upward trend.
Dire need to implement WFM solutions to:
• Direct Improvement of Bottom Line
• Cut Largest Operating Expense: Labor
• Leverage Areas of Opportunity
• WFM solutions can be utilized to:
• Achieve optimum service levels and reduce staff costs. A WFM
system can ensure the right levels of staff are scheduled against the
right tasks at the right time to ensure optimum service levels
• This prevents wasteful overstaffing and reduced customer service
and satisfaction and sales through understaffing
25