Employee Organization and Scheduling

1. Employee Organization and Scheduling • chapter 10

2. Opening Question How do human resources differ from other resources?

3. Employee Turnover Employees must have the right caliber skill set.

4. Turnover Rate (TR) Total employees for a year # still working - Turnover Rate = Average on staff during the year

5. Example 10a • =1.52 or 152% A company averages 77 employees throughout the year. It has 81 employees at year’s end and had 198 employees work there all year. What is the turnover rate? 198-81 TR = 77

6. Costs of Turnover • Administrative time for exit interview and paperwork. • Vacant positions may lead to overtime for others covering. • Insufficient staff can lead to reduced quality. • Advertising for new employees. • Time spent interviewing candidates. • Wages for the new hire and a trainer. • Time spent processing new-hire paperwork.

7. To Reduce Turnover • Look for a good fit when hiring • Conduct a proper orientation and training • Motivate and empower employees to help them feel valuable • Terminate bad fits quickly

8. Types of Employees

9. Full Time vs. Part Time Highly committed Work full schedule Lots of practice at job If exempt, work extra time w/o compensation Receive same compensation no matter how low business drops Often receive benefits Can fill in a vacancy without requiring overtime or a full day Easier to schedule as business changes Willing to work less than 8 hour shifts Get less practice at job May not always be available when needed

10. Full-Time vs. Part-Time • Highly committed • Work full schedule • Lots of practice at job • If exempt, work extra time w/o compensation • Receive same compensation no matter how low business drops • Often receive benefits • Can fill in a vacancy without requiring overtime or a full day • Easier to schedule as business changes • Willing to work less than 8 hour shifts • Get less practice at job • May not always be available when needed Part-Time Full-Time

11. Benefits Full set of benefits can add 35-40% to a salary. • Vacation • Holidays • Sick Leave • Health Benefits (medical, vision, dental) • Bonuses • Retirement • Meals • Workers’ Compensation (legally required) • Social Security (legally required) • Pre-tax savings account • Life and disability insurance • Transportation subsidy • Maternity/Paternity • Education/Training subsidy • Health/Wellness program • Profit Sharing

12. Fixed vs. Variable Costs Fixed Do not change as business volume changes. Variable Fluctuates as business volume changes vs. Labor is a mixed cost: part-fixed, part-variable

13. Defining a Job • For each employee, have Data for these comes from a job analysis – interviewing and observing employees and their supervisors

14. Job Description • Outlines the tasks an employee must perform. • Includes: • job title, • supervisor’s title, • position summary, and • specific duties • Should be realistic and complete.

15. Performance Standards • Observable and measurable • Outline quality and quantity standards for each bullet point on a job description • Facilitate fair employee evaluation • Help determine staffing levels for given business volume • Can be improved by changing work environment, tools, or training

16. Job Specification • Lists required abilities and qualifications needed to perform a job • Must relate to job description • Sets criteria for screening job applicants • Should not be written too narrowly

17. Organizational Charts • Visual depiction of company’s reporting hierarchy • Should match hierarchy in job descriptions • Employees should not report to more than one person

18. Scheduling Employees • Easier for businesses with consistent business levels • Restaurants and hotels are most challenging due to daily and hourly business shifts

19. Variable Staffing Needs Performance standards and forecast business determine number of employees needed at a given time. This formula is redone for each position type. # of Guests # of employees = Production Standard (in guests)

20. Example 10b • = 2.4 • Always round up to maintain quality • Answer is 3 servers. A café forecasts 60 guests per hour for lunch. Standards state a server can handle 25 guests per hour. How many servers should be scheduled for this lunch shift? Guests 60 # of employees = = Production Standard 25

21. Scheduling (cont.) • Forecasts should be broken down by hour or quarter-hour to determine employees needed each hour (not just all day). • Business history helps forecast hourly volume. • Final schedule balances employee constraints (full vs. part-time, available hours, etc.) with hourly forecast; also accounts for additional work like prep and clean-up time.

22. Scheduling (cont.) • Scheduling Guide helps with scheduling tasks that don’t fluctuate greatly with business. • Schedulers must factor in employee skill level, vacation requests, and wage rates • Should try to minimize idle employee time • Evaluate schedule efficiency in the real world to see how to improve in the future

23. Fixed Staffing Needs • Salaried staff scheduled based on when duties should be performed, not on business volume. • Multiple supervisors should not oversee the same group simultaneously. • At least one manager should be available when customers or employees are present. • Salaried employees should always be scheduled for 40+ hours weekly (unless taking vacation).

24. Scheduling Advice • Post schedules one week in advance, so employees can plan personal life to avoid conflict with work. • Advance posting allows time to correct errors. • Last minute scheduling changes should not impact the same employee every week (or that employee will get frustrated and may quit).