Recently, I came across the article; “Tesco to slash pay for staff working Sundays, late nights and overtime as it ramps up drive to cut costs.” While this makes rather depressing reading for the Tesco employees, it is particularly relevant to the work we do here at Thinking Software.
The article states that: “Staff at Tesco will be told next week that pay rates for working Sundays and Bank Holidays, late nights and overtime hours are set to be slashed as the supermarket giant seeks to cut costs.”
When a company’s actual sales are not working in line with those that have been forecast, then in fairness, the logical thing for a business to do would be to analyse it’s operational spend and try and reduce this to make up the short fall. This would appear to be the approach that Tesco are opting for which may prove prosperous for the company, but at the cost of employee morale.
That said, the articles also goes on to say that: “Tesco has been under severe pressure over the last few years, suffering unexpected financial reversals, while having accounting irregularities exposed that have led to litigation in the US. Now UK investors are set to launch a huge damages claim, saying they lost tens of millions because of the accounting scandal at the supermarket.”
So while no doubt Tesco will be wanting to consider their employees, offering them the best rates of pay possible, in a tough financial climate and with other financial pressures looming, sometimes the only option to survive is reduce expenditure internally.
So how is this relevant to us here at Thinking Software? Well, our Time & Attendance solution, Rota Horizon, has the sole purpose to actively drive down spend and increase operational efficiency with reference to Staff Planning. So you can plan and understand exactly what hours staff have completed, providing you with forecasting and budgeting figures, as well as providing you with a tool that can export the accurate hours to populate any payroll system.
From the article, I am taking the forecasting and budgeting aspect as the most prominent, as clearly Tesco have assessed that by implementing these changes to their pay rates, it will have a dramatic effect on their bottom line.
In Rota Horizon we have a Department Summary which provides all the information you require. Within the system you have the ability to specify exactly what hours employees will work, at their exact pay rates, taking into account additional they will get for working overtime etc. The department Summary will highlight this against your budget, ensuring you remain within this. If you are exceeding this it provides the necessary information to prompt you to amend the rota so you can find more cost effective way of completing this to stay within budget. More information on this can be found on our website at: Rota Horizonota Horizon
Rota Horizon also has an employee profile where you can store information with reference to that individual that includes specific rules with regarding the way they are paid. Below highlights the screen you will be presented where you can specify an employees pay rates. Even better, if you do use any form of payroll software (ie Sage, Pegasus etc) then these values can be imported directly from that system. Then when it comes to completing payroll, you can export the exact hours that your employees have worked, matched against the correct pay rates to essentially complete your payroll for you.
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. Please also feel free to request a no obligation demonstration of the software by clicking here.
To read the article discussed please click here.