After inventory costs, the largest variable expense for many business owners is employees. Some months, employee expenses run high while other times it barely cracks a dent in your budget. What if there was a way to help reduce that variability while reducing costs and improving your operations?
There is a relatively easy solution: investing in a point-of-sale solution that can help with employee management.
Many modern point-of-sale software packages now come with standard labor management features that would have cost extra in the past. Thanks to the power of software, it’s now possible to have so much more in a smaller system with a lower price. Here are four features of point-of-sale systems that can help business owners with their employee management:
Clock In/Clock Out Features
It may seem obvious but business owners need to know when employees arrive and when they finish working. A point-of-sale system can help by serving as the spot where hourly employees can check in for their shift and then clock out when they finish.
The hours worked are reported in the point of sale and tracked each time period. Many point-of-sale software packages also come with the ability for managers to set up schedules that can be emailed or texted to employees. If the employees want to swap shifts or otherwise request time off, they can do that also.
In general, the clock in/clock out features just make it easier for business owners to run their establishment because it’s one less piece of software to purchase (since it’s included in the point-of-sale).
Track Labor Costs
With the point of sale tracking employee hours and compensation, it’s much easier to see (often in real time) how much money is being spend on labor. It’s an important calculation because, as we mentioned earlier, the cost of labor is one of the largest variable costs a business incurs each month.
Knowing the labor costs help predict profits (or losses) for each time period so it’s important to track. Also, having the labor costs handy can help with lots of other calculations including profit margins and total expenses.
Prevent Employee Theft
Employee theft can cost business owners big bucks. According to the National Retail Federation, the average loss from dishonest employees in 2016 was $1,233. With that type of money, it makes sense to consider a surveillance system in your establishment.
That said, the point of sale system can also help curtail theft. The first red flag that many business owners look for is a spike in no-sales, voided transactions and customer refunds. This can be a sign that something else is going on. How many of these incidents is too much? It’s hard to say but in general it’s best to be aware of the average number in a week and then try to investigate when there seems to be a rise.
Similarly, business owners should pay attention to product expenses to make sure there are no unusual spikes in those costs. For instance, if restaurant owners notice that certain ingredients need to be re-ordered more often than usual, it may be a sign of employee theft. In particular, liquor costs in restaurants and bars should be monitored to ensure that the bartenders are not giving out free merchandise.
Syncing With Payroll Software
Back in the day, it was no simple task to load data into payroll systems. Even in recent times, the job required business owners to export from one system into another system in order to facilitate proper payroll procedures.
Now that many payroll systems have the ability to accept data from outside sources, it’s typically easy for business owners to sync their employee data into payroll. In fact, many point-of-sale systems make it as easy as pressing a button to send the employee clock in/clock out data to a payroll company for processing.
It’s just one more way that point-of-sale has made employee management simpler for business owners.
Want to learn more about how a point of sale system can help with employee management? Request a demo today.