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Are you prepared for the extra costs of the National Living Wage?

Back in November of 2015 I produced the article “What effect is the Living Wage likely to have on your organisation?” The article was assessing the effects the introduction of the new legislation would have on businesses and what measures they could take to minimise any potential negative impact.

More recently I have come across the article: “What small businesses can do to manage the extra costs of the National Living Wage.” This I found to be a particularly refreshing read, as it provides some particularly useful advice in ensuring that your organisation is in the best possible position to manage the transition.

The article focuses on 3 topics in particular that if considered effectively, will put your organisation in a much stronger position when the legislation is introduced in April 2016. These are; “financial planning for the National Living Wage,” “Improving staff performance to offset the additional costs” and “Getting the right skills.”

So how is this relevant to us here at Thinking Software? Well of the 3 topics mentioned our Time & Attendance solution, Rota Horizon, can assist with helping achieve the first 2. With reference to Financial Planning, this is one of the system’s key objectives, helping to ensure unnecessary spend is kept to a minimum and optimum operational efficiency is achieved.

As mentioned in the previous article, within the Rota Horizon you have the ability to specify employee pay rates. This coupled with understanding exactly what hours these employees have worked means that we can forecast exactly what the payroll costs will be for each department. In fact using the Department Summary Report you can compare this information against your budget and ensure that you remain within this.

The article goes on to pose the questions: “How many of your low earning staff are actually over 25? Of those, how many are paid under the NLW’s required £7.20/hour? What therefore would the net increase be to your business?”

This is particularly relevant to how Rota Horizon can help in ensuring you select the most viable members of staff within the Department Rota. The ‘Best Choice’ Function allows you to select different parameters to achieve this, ensuring that those that are paid less are prioritised or perhaps avoiding paying staff overtime as this is paid at an additional rate.

With reference to “Improving Staff Performance to offset the additional costs from the Living Wage,” the article goes on to state:

“You should look at improving the productivity and performance of all employees. By carefully managing staff performance you can help to ensure the investment you put into your staff is returned. To achieve this, you should;

  • Have regular two way conversations to assess performance, and set future objectives and targets
  • Proactively manage lateness, absence etc. to ensure that poor attendance is minimised
  • Are clear with staff about the responsibilities of their role and helping them to understand the consequences of poor performance”

The second bullet point also highlights one of the main purposes for introducing a Time & Attendance solution. Rota Horizon provides you with the perfect Workforce Management tool to do this through a number of different methods. The system contains over 400 Time & Attendance reports. In terms of lateness you can view ths on the department rota where a question mark will remain against their clock in time on their planned shift.

Otherwise you can run the missing swipes report which will highlight exactly which clocking information is missing in a time period specified by you. The Rounding Exceptions Report will highlight if there is anything abnormal with reference to an employee’s clocking time (ie Clock in late, Clock out early, Clock out significantly later than finish time). Finally the Planned Vs Actual Report will highlight people’s Actual Clock in & out times compared to when they were planned to do so.

If you believe that your organisation could benefit from a Time & Attendance solution then please do call us on 0800 854 471 or contact sales. At this stage we appreciate that this may well be very much an exploratory conversation to learn more about the software which we very much welcome.

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The Old Farm, Asthall Leigh
Oxfordshire, OX29 9PX
United Kingdom

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