linkedin.com/in/jonesderek. Meet Derek Jones. ⢠Follow me: @wolfeatram .... No exchanging overtime for paid vacation t
The Restaurant Survey Report Top Tips & Trends to Optimize Your Business
Meet Derek Jones Vice President Deputy.com, Americas • First job was picking cucumbers and squash by day, worked in a restaurant in the evening where we sold the harvest • First post-college job = Botany / Genetics Research Scientist • Passion for helping businesses grow
•
Connect with me: linkedin.com/in/jonesderek
• Follow me: @wolfeatram
Restaurants are facing tectonic shifts in the workplace.
Trend #1: The Rise of the Hourly & Younger Workforce
Trend #1: The Rise of the Hourly & Younger Workforce
OR
78 m
employees
60%
of the total workforce
+
80%
of hires made annually
=
Hourly workforce growing every year
Trend #2: Wages Increasing for Hourly Employees
Trend #2: Wages Increasing for Hourly Employees Bureau of Labor Statistics: Average hourly wage rose in 2016 by...
SHRM: Wages will grow an average...
2.9%
3.2%
over the previous year
Interesting side stat: Preliminary results from a Harvard Business School study showed that for every $1 the minimum wage increases, average-quality restaurants will fail (close) at a corresponding rate of 14%, reports KTVU.
every year
Trend #3: Increasing Wage & Hour Litigations
Trend #3: Increasing Wage & Hour Litigations In 2016, workplace class action settlements totalled
And DOL is increasing their enforcement!
$1.75 billion
...the 2nd highest number of wage & hour cases ever filed
Settlement value = 3x
75% success rate
in 2016 for wage & hour litigations over the past 2 years for employees filing wage & hour class action lawsuits (70% over 2 years) 2017 Annual Litigation Report by Seyford Shaw, LLP
Top Challenges of U.S. Businesses with Hourly Workers 2017 Survey Report This U.S. business survey was conducted to glean insight from U.S. businesses who employ hourly workers and understand the current challenges, priorities and measures they are taking to accommodate these shifts in the workplace.
About the Report Commissioned via online survey to 4,852 U.S. businesses with hourly employees (Deputy customers) ranging from 3-1,455 employees
All industries with hourly employees surveyed Four themes of questions: Profit, Competition, Regulatory, Labor
Top 3 Business Challenges 1
Revenue/growth profit margins
2
Employee retention/ turnover
3
Customer experience
39%
56%
Feel confident their business attracts the best employee talent anywhere
24%
23%
Anticipate a 26% or greater business growth rate over the previous year by the end of 2017
44%
Profit and Compliance Confidence
43%
Profit: Don’t feel that they are in control of their profit margins
The least important business challenge is...
Keeping up with Labor Laws/Compliance (5% report as top priority)
Compliance: Do not agree with the statement, “I feel confident with understanding changing labor & healthcare laws.”
56%
Insight: Businesses report to not understand or feel confident in the changing labor regulatory and healthcare environment, yet also report these are not as important.
Restaurant & Food Services Response Variances Responders were nearly identical to “all industry data”, but restaurant/food industry responders were more confident in their annual projections.
57%
57% of restaurant respondents anticipate a 26% or greater increase in business growth (+22% increase over other industries)
Restaurant & Food Services Response Variances When asked the open-ended question: “What are your best tactics for controlling profit margins?” , the most common answers included:
When asked the open-ended question: “What is your biggest compliance/regulatory challenge?” , the most common answers included:
Providing quality food
Overtime rules
Providing consistent, exceptional customer service
Minimum wage increases
Tightly controlling labor costs, inventory management and overhead (via cutting out waste and “buying low/ selling high”)
Exempt & non-exempt laws
Controlling marketing discounts also helped to widen profit margins
Tracking required breaks for hourly workers
Meeting labor & healthcare regulations
4 Tips to Avoid Wage & Hour Plaintif Lawsuits
Littler Legal Toolkit Overview (FREE) Toolkit is FREE. Includes templates Meal and Rest Break Policy Minimum Wage Policy Of the Clock Work Policy Overtime Policy Remote Work Policy Time Adjustment Request Time Reporting Policy Travel Time Policy MORE
www.deputy.com/littler-toolkit
50-State GPS Living Wages: City and County Criminal History: Restrictions on Employer Inquiries Business Expenses: Uniforms, Tools & Equipment Electronic Monitoring: Wiretapping & Eavesdropping Employer Access to Social Media Hours Worked: On-Call Time Pay Hours Worked: Reporting Time Pay Hours Worked: Split Shift Premium Requirements MORE
1. Classify employees accurately. Exempt or non-exempt. Keep & maintain clear job descriptions on file. Employee vs contractor status, heavy misclassification penalties (when in doubt classify as employee). Non exempt gets overtime pay and must properly track overtime.
2. Track/record everything. Protect yourself from back pay claims of unpaid hours worked. Includes tracking for 3 years of payroll, name, address, gender, work week, hourly wage, daily/weekly hours worked, total earnings, and overtime pay.
3. Pay employees timely & accurately. Ensure accurate timesheets into payroll. Don’t average hours worked/pay over two-week span. No exchanging overtime for paid vacation time (unless bill passes). How do you round hours?
4. Avoid tip-related lawsuits. Pay employees correct tipped minimum wage. No sharing of tip pool with non-tipped employees. Track times and wages worked for tipped work or non-tipped work. (20% max non-tipped work rule) All overtime for tipped minimum wage must be paid at full minimum wage (not subminimum wage).
Tips to Control Labor Costs
Work Opportunity Tax Credit The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers who hire individuals from eligible target groups with significant barriers to employment. •
WOTC can reduce an employer’s ef ective tax rate via a tax credit.
•
There is no limit on the number of employees submitted.
•
Credit is based on how many hours worked and how much they are paid.
Who’s Eligible?
Work Opportunity Tax Credit Step 4: Receive certificate, submit on taxes
Step 3: Work 120 -400 hours?
Step 2: Employee meet the qualified criteria?
Step 1: Complete form 8850 on date of hire and submit within 28 days
How Can Deputy Help?
1. Properly track time & optimize schedules. Avoid overstaf ng and optimize schedule for labor costing, POS sales data, profit targets, overtime, weather trends (i.e. forecast right amount of labor needed and see real-time wages vs. sales by the minute). Prevent early clock-ins, time theft, and buddy punching with geo-tracking and photo facial detection.
The Solution - Scheduling Automagically • Automate scheduling with cloud-based software • Automagically send reminders to employees each day they work • Automagically send info directly to their mobile device • Automagically send timesheet data to payroll • Allow managers to coach, train, inspire employees, and focus on building the business • Fill shift templates with the power of IBM Watson
Challenge - Communication • Text – no guarantee they received it… hard to manage conversations • Group chat (WhatsApp, etc) – not integrated with any other software • Email – ignores email • Phone call – people usually do not answer unknown calls via telephone in 2017 • Secure & Compliant – May not meet labor laws / overtime
The Solution - Communication • Ensure employees are getting the information . • Communicate multiple ways with the click of a button. (email, text, push notification) • Automagically populate shift information on personal calendars. • What happens when an employee calls in sick? Easily find replacements with the click of a button.
Challenge - Performance Management • Annual reviews are dead
•Employees (especially millennials) want instant feedback on how they are doing
The Solution - Performance Management • Realtime feedback on employee performance (in the moment) •Performance journaling is built in to manager workflows, boosting compliance and data quality •Produce manager snapshots or detailed reports •Improved engagement and career development for the best quality staf •Faster, better identification of, and response to, underperformance
Okay…Now what? Solve your challenges with a workforce management solution that fits your needs.
Over 35,000 workplaces globally use the Deputy solution.
Questions?
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