Tag: hospitality

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Should You Implement Tip Pooling? Pros, Cons, and Best Practices for Restaurants

Summary

  • 77% of diners say that quality of service influences how much they tip, which begs the question: should tips be pooled and distributed to the whole team? 
  • Tip pooling is an arrangement wherein tips earned are pooled together and redistributed among all eligible restaurant workers. 
  • Payroll software simplifies tip and wage calculations, helping employers stay organized and compliant 

Tipping in restaurants isn’t just about the food; it’s about the entire dining experience—and it relies on teamwork. Serving food is as important as cooking dishes, cleaning plates, and resetting tables. While a study shows that 77% of diners say the quality of service influences how much they tip, it’s worth considering: should tips be shared beyond servers and also among the broader team of restaurant employees that contributes behind the scenes? After all, a good experience is a collective effort involving both front-of-house (FOH) and back-of-house (BOH) staff. This is where tip pooling comes in.

Tip pooling in restaurants defined

Everyone is familiar with the traditional tipping model: diners pay a voluntary but socially expected tip of at least 15% for good service. This is usually a cash tip directly handed to their server and kept by that server. Tip pooling is a formal arrangement that allows the restaurant to collect all gratuities and then redistribute the total amount of tips between workers.

Tip pooling is based on the idea that a gratuity is given for the overall dining experience, not just how quickly and politely the food was served. This means kitchen staff, bartenders, bussers, and front-of-house hosts all share in the reward.

The way the mandatory tip pool is handled can vary from restaurant to restaurant. There is no legally mandated method of working out how tips are pooled. Common ways of working out the tip split include:

  • Percentage-based pooling – Tips are pooled and redistributed according to pre-established percentages.
  • Role-based allocation – Tips are split based on roles, e.g., 60% to servers, 20% to bussers, and 20% to bartenders. 
  • Hour-based distribution – This method is based on the number of hours an employee worked in a shift. The employee will get tips that are proportional to the hours they worked. 
  • Shift-based pooling – Tip pools are created on a per shift basis, and only employees who worked a particular shift are eligible to get tips from the pool. 
  • Team-based pooling – Tips are distributed among teams. For instance, FOH workers get 70% of the pool, while BOH staff receive 30%.
  • Points system – Staff earn points based on their roles, experience, or contribution. At the end of the shift, points are totaled, and each point is assigned a dollar value calculated from the total tips earned.
  • Equal distribution – The most straightforward method wherein all tips are pooled and divided equally among all eligible staff. For instance, a pool of $1,000 is equally split among 10 employees. Therefore, each one takes $100 each.  
  • Combination or hybrid method – It’s the employer’s prerogative how to structure a tip pooling system. Therefore, the option to use a method or two from usual structures may be needed to address specific concerns.

What you need to know about tip pooling laws

Given how central tipping is to the service industry economy, it’s no wonder it’s been a legislative battleground. Federal law governing tips has undergone several significant changes over the years, including who’s entitled to keep their tips, who’s eligible for tip pooling, determining tip-facing occupations, recordkeeping rules for employers, and how tip credits can come into play. 

But after all of the rigorous changes, from new rules being enacted to some being repealed, here are the fundamental principles of federal tip laws:

Tips are exclusive to employees

The US Department of Labor strictly prohibits employers, including managers and supervisors, from keeping any portion of employees’ tips, whether the tips are received directly or via a tip pool. They are explicitly not allowed to demand, request, or coerce staff members to surrender their tips outside a legally compliant tip pooling or distribution system. 

Tip pooling

Employers can establish a system to manage gratuities and require employees to pool tips. However, managers and supervisors are not eligible for tips from these pools. It could include, however, non-tipped employees such as kitchen staff as long as the employer doesn’t take a tip credit and pays employees the full minimum wage. 

Tip credit

Employers can pay employees less than the federal minimum wage through a tip credit. For instance, employers can pay as little as $2.13 per hour if tips bring the employee’s total earnings to at least the federal minimum wage. 

If an employee performs dual roles, the employer can only take a tip credit on the job that has tipped tasks such as serving customers. For instance, an employee is working as a server and a janitor. In this case, the employer can’t use a tip credit for the hours the employee performs janitorial work because that’s not a tipped job. 

Service charges

Unlike tips, service charges are mandatory fees added to a client’s bill and are considered as property of the employer. Should restaurant owners choose to allocate a portion of the service charges to employees, those amounts would be classified as wages, and not tips. However, employers can use those amounts to meet federal minimum wage requirements under the FLSA.

Some states impose additional rules around service charges. For instance, in New York, restaurant owners must explicitly disclose how service charges are allocated in contracts, invoices, or menus. If a portion of the service charge will be shared with employees, the allocation must also be disclosed.

The main thing to remember is that unless a formal tip pooling system is in place, tips belong to employees, not the restaurant. While restaurants are allowed to bring in a tip pooling system, best practice says it should be done with the employees’ agreement and clearly explained in their contracts.As always, with any labor legislation, there may be local or state laws relating to gratuities. For instance, California doesn’t allow employers to take tip credits. Be sure to check your exposure or seek legal advice in this area before proceeding with any decisions regarding the income of tipped employees.

The pros of tip pooling

The main benefit of tip pooling is that it addresses the imbalance between front-of-house servers and other staff by pooling gratuities and disbursing them to all staff. Although well established, traditional tipping is an erratic way of being paid. Tips can also be vulnerable to discrimination since they rely entirely on social expectations rather than legislation. This means that even for serving staff who benefit from tips, the amount earned can vary wildly depending on myriad factors.

Tips can also create an “us and them” situation between front-of-house (FOH) and back-of-house (BOH) staff. Most restaurants experience this friction, where cooks and bussers are out-earned by servers simply because one group earns tips and the other doesn’t. Hiring kitchen and other backroom staff is easier when they’re not at a disadvantage compared to tipped front-of-house workers.In theory, tip pooling can strengthen teamwork by encouraging a greater focus on the overall dining experience.

The cons of tip pooling

Anything that impacts how much money staff takes home each shift is bound to cause friction, and tip pooling is no exception. As you’d expect for a system that takes money from one group and hands some of it to others, it’s divisive. Implementing such a system can introduce negativity into the workplace if handled poorly.

While some locations have found a workable tip pooling model, with buy-in from all staff, there is a strong chance that it simply takes a small pool of money and spreads it more thinly. Research has shown that although diners expect and prefer their server to keep all of their tips, a tip pooling system doesn’t change the amount people tip.

Tipped employees mostly rely on their tips more than their contracted salary to make ends meet. This means anything that cuts into that income can have an immediate impact on their quality of life and, by extension, their engagement at work. Introduce a tip pooling system to an existing restaurant, and your best front-of-house staff, the ones used to earning the most in tips, may well leave for a restaurant that uses traditional tipping to maintain their income level.

Tips for implementing an effective restaurant tip pooling system

Implementing a tip pooling arrangement is a balancing act. When done right, it can foster teamwork and fairness. However, if mismanaged, it risks impacting employee retention and morale. If you believe every team member contributing to the guest experience deserves a a part of the tip, getting it right from the start is crucial. Here are some practical tips for building a tip pooling system: 

Create clear and fair policies. 

While there’s no specific FLSA-mandated structure to building a tip pooling system, creating a system that works for your team is essential. Employers must develop a policy that is fair to all employees. Start by assessing your operations and determining the best distribution method. Should tips be allocated based on roles, hours worked, or shifts? Outline clear factors for determining allocations to ensure everyone understands and agrees on the system’s fairness.

Monitor, evaluate, and adjust.

Like any company policy, your tip pooling rules should not be set in stone. Since they directly affect employees’ wages, reviewing them regularly is crucial.  Is the system meeting your team’s needs? Are there gaps in fairness or clarity? Gather feedback and make adjustments as needed to enhance employee reception or ensure compliance with legal updates.

Understand the legal framework.

While you have the flexibility to structure your tip pooling policy, it must comply with federal and state laws. It is essential to understand the Fair Labor Standards Act (FLSA) and any applicable local regulations regarding tip pooling and wage distribution. Maintaining compliance ensures that your system is both fair and lawful, helping you avoid costly penalties.

Communicate with your employees.

Transparency is vital to successful implementation. Explain the policy to your employees during onboarding and provide them with accessible resources for reference, such as an employee handbook. Managers should also be prepared to address questions or concerns along the way. 

Use technology to stay on top of tip pooling calculations

Managing a restaurant involves many complexities, and handling payroll for various staff and teams is challenging on its own. Adding tip pooling to the equation can make it even more demanding.

The good news is that technology can simplify the process, ensuring that eligible employees receive the tips they rightfully earn.

Workforce.com is a system that can do that and more. Here are some of the ways it can help you manage tip pooling and wages.

  • Classifying employees – Workforce.com automatically knows who’s entitled to what. Whether your tip pooling system is based on roles, shifts, or hours worked, it can make accurate and automated calculations based on an employee’s qualifications. This can be easily set as early as onboarding and updated anytime on the system.  
  • Centralized records – Employee profiles created during onboarding sync across scheduling, payroll, and attendance systems, reducing errors and duplication. That means there’s only one source of truth for wages and tip calculations. 
  • Automated tip pooling – Tips can be pooled and distributed automatically, in line with your chosen method, and integrated directly into payroll. Workforce.com even allows integration with your POS to calculate and share tips seamlessly.
  • Streamlined payroll – Simplify payroll calculations, even with pooled tips. Payroll computations even with pooled tips are simpler. Workforce.com’s payroll system automates calculations, from hourly wages, deductions, and tip distributions, using employee data and predefined rules. No complications every pay period, just accurate wages, all the time.
  • Recordkeeping – Employers must adhere to recordkeeping rules regarding tip pooling. Stay audit-ready with detailed records of tip pooling distributions. Workforce.com ensures compliance and provides accessible data for employee inquiries or regulatory checks.

If implementing a tip pooling system feels overwhelming, let Workforce.com simplify it. It can help you comply with wage laws while streamlining the entire process. Ready to see how Workforce.com can help you with tip pooling, payroll, and managing your restaurant team? Book a demo and see it in action.

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8 Top Hospitality Trends & Statistics (2023)

Summary

  • The hospitality industry is growing at a steady rate. – More

  • Hospitality businesses face seven supply chain challenges. – More

  • Unemployment rates in the sector have decreased significantly. – More

  • Restaurant profit margins and revenue are increasing slightly. – More

  • Hotels saw record-high average daily rates and revenue per available room in 2022. – More

  • 853 million passengers flew with US airlines in 2022. – More

  • Leisure travel is a priority for most people. – More

  • The outlook for business travel is looking similar to 2019. – More

The hospitality industry is one of the fastest-growing industries in the US. With over 15 million people employed in various roles and sectors, this industry plays a critical role in driving economic growth and providing customers with unforgettable experiences. 

Hospitality covers a number of sectors, including the hotel industry, the travel industry (including business travel), and restaurants. For HR professionals and employers in the hospitality and tourism industry, staying informed about trends and statistics is crucial for making informed decisions that can positively impact their businesses. 

In this article, we will be presenting some insightful industry statistics and trends that will help you gain a better understanding of the current landscape of the sector.

The hospitality market continues to grow despite inflation

The hospitality industry, like practically any other sector, is experiencing a slow and steady recovery from the effects of the coronavirus pandemic. The market grew from $4,390.59 billion in 2022 to $4,699.57 billion in 2023, presenting a compound annual growth rate (CAGR) of 7.0%.

The Russia-Ukraine war has proven to be a hurdle for economic recovery as the conflict brought about sanctions across countries leading to inflation and supply chain disruptions. Despite this, hospitality sectors are expected to grow to $5,816.66 billion by 2027 at a CAGR of 5.5%.

The industry faces 7 supply chain challenges

Research by the AHLA and Avendra shows that there are seven market forces that have an impact on commodities and the supply chain:

  • Inflation – hospitality-related products will continue to see inflation rates between 5 and 10% for the next few quarters. This is more than twice the historical average.
  • Tight labor market – while the unemployment rate might be improving in the hospitality sector, other industries that it relies on, such as manufacturing and the retail trade, are still dealing with labor shortages. They have had to increase wages to retain workers, and this cost will be reflected in the cost of the goods and services they provide to the industry. 
  • Product availability – manufacturers and producers are rationing their products to catch up to their demand backlog. To avoid delays, hospitality businesses need to communicate well in advance with distributors. 
  • High product demand – has contributed to increases in the price of energy and items like seafood, beef, cooking oil, coffee, and to-go packaging. 
  • Russia-Ukraine war – has had an impact on inflation. 
  • Energy prices – Oil and energy prices are volatile due to supply constraints and the possibility of a recession.  
  • Transportation challenges and lead times – we are seeing high levels of US national average freight rates. Ocean and freight rates are decreasing but are still higher than pre-pandemic levels. Lead times on equipment and textiles are longer due to delays in the Asia-Pacific region.  

Leisure & hospitality unemployment rates have reduced drastically

According to data from the US Bureau of Labor Statistics (BLS), the average annual unemployment rate in the leisure and hospitality industry in 2022 was 5.8%. This represents a 43% drop from the previous year and the third lowest in 10 years. 

The lowest rates were recorded in 2018 and 2019 at 5.7% and 5.2%, respectively. The COVID-19 pandemic saw unemployment rates skyrocket to 19.4% in 2020, largely due to the mandatory closures of many hospitality businesses. Last year’s decrease means that the industry’s unemployment rate has reached pre-pandemic levels, which is particularly impressive considering the country was also going through labor shortages and the Great Resignation. 

Restaurant profit margins and revenue have increased slightly since the pandemic

In the past year, restaurants experienced increases in both profit and revenue since the pandemic. 

Food service establishments reported an average revenue of $1.5 million in 2022 – a 7.4% increase from the year before. This increase was not felt across the board. Restaurants with over 80 seats were more likely to experience a revenue increase. A number of restaurants with smaller capacities actually experienced a decrease in revenue compared to 2021. 

Average profit margins were at 10% in 2021 and saw a slight increase in 2022 to 10.6%. Once more, higher-capacity restaurants were more likely to see an increase in profits. Establishments of 120 seats or more reported profit margins as high as 13%.

The food service industry is reported to see continued growth in 2023. The National Restaurant Association forecasts $997 billion in restaurant industry sales in 2023. This is partly due to higher menu prices. 

Hotel industry rates and revenue are reaching new heights

According to hotel industry statistics by STR, 2022 saw record-high average daily rates (ADR is the average paid for hotel rooms in a specific period) and revenue per available room (RevPAR). In 2022, ADR was up 13.6% from the pre-pandemic levels (2019) and reached $148.83. 

RevPAR is a crucial KPI for most hoteliers and owners in the hotel market. It is calculated by multiplying a hotel’s ADR by its occupancy rate (the ratio of rooms rented to the total available rooms). In 2022, the industry’s revPAR was $93.27, 8.1% higher than in 2019. 

Hotel occupancy rates, on the other hand, were still 4.9% lower than pre-pandemic levels at 62.7%. 

The report showed that hotel bookings and overall industry growth were not linear or even. The occupancy rate varied greatly depending on the month and season. In January 2022, the rate was 12 to 14% lower than 2019 levels, while less than 1% lower in October. 

Watch: The 2023 Hotel Industry Outlook with AHLA President & CEO

US airlines carried 853 million passengers in 2022 

The airline industry is on the road to recovery as domestic and global travel continues to increase, but air travel has yet to reach pre-pandemic levels. 

In 2019, US airlines carried a record-breaking 928 million passengers right before the onset of the pandemic. Travel restrictions brought these numbers down to just 3 million in April 2020.  

In 2022, US airlines carried 853 million passengers, a 30% year-to-year increase from 2021 and 8% lower than the record-breaking 2019 numbers. Of these, domestic travel accounted for 751 million passengers, and international travel accounted for 102 million. 

Most people are prioritizing and planning leisure travel this year

According to the American Express 2023 Global Travel Trends Report, the appetite for travel and tourism is alive and well. Eighty-five percent of respondents indicated that they plan on taking at least two leisure trips in 2023. Seventy-eight percent stated that they consider leisure travel as an “important budget priority.”

The research uncovered four major trends in travel tourism:

  1. Tourists want to discover hidden gems and “lesser-known destinations” while also supporting local communities.
  2. Travelers are looking toward pop culture when making decisions on where to travel and why. 
  3. Food is an integral part of the travel experience. 
  4. Restorative vacations are increasing in popularity, where travelers prioritize mental and physical self-care. 

These trends were found to be particularly prevalent among Gen Z and millennial respondents. 

Business travel is nearly back to “normal”

In a survey of 100 global corporate travel managers, Morgan Stanley found that business travel has bounced back from the COVID-19 disruptions. Many respondents believe that business travel budgets and expenditures are either back to pre-pandemic levels or, at least, very close. This is despite the fact that the costs of airfare and lodging are higher than pre-pandemic levels. 

Furthermore, there is an expectation that travel budgets in 2023 will be anywhere between 6% to 10% higher than 2019 levels. Corporate airfare budgets, for example, are expected to be 9% higher.

Three other trends affecting the business travel industry are:

  1. Global hotel room rates are expected to rise by an average of 8%. 
  2. In an attempt to cut costs, travel managers are looking for cheaper alternatives to upscale hotel brands for business trips. Thirty-one percent of respondents are disregarding hotels altogether and opting for short-term rentals instead. 
  3. Virtual meetings are still considered alternatives to business trips. It is expected that nearly 18% of business travel will be replaced with virtual meetings. The digitalization of business trips is not just a cost-cutting measure. Sustainability is also a driving factor as companies are looking to be more eco-friendly.  

Simplify & streamline hospitality operations with Workforce.com

The hospitality industry shows promising signs of recovery after what has been a turbulent few years. It has never been more important for businesses, from neighborhood restaurants to hotel chains, to find ways to improve labor efficiency and maximize profits. 

Our workforce management software for hospitality helps you simplify hospitality employee scheduling, improve communication, and optimize labor costs.

To find out more, get in touch with our team today.

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How The Amenity Collective improved employee and customer experience with Workforce.com

From your local community pool to the most lavish condominium complex in your state, the landscape for hospitality services is changing rapidly – and for the Amenity Collective, it’s only the beginning. 

“There’s a massive opportunity to leverage technology, to not only provide a better customer experience but also deliver a better employee and owner experience for our subsidiary companies,” says Adam Chen, CIO of the Amenity Collective. 

The Amenity Collective is a suite of lifestyle and hospitality businesses consisting of three main subsidiaries: American Pool, Heartline Fitness, and LIVunLtd. With thousands of locations spanning the east coast and the Sun Belt, and with up to 10,000 seasonal workers, the Amenity Collective provides a gamut of services including spa and concierge work, pool and gym equipment upkeep, lifeguard staffing, and much more. 

Their rapid expansion and propensity for success are due mostly in part to a laser focus on curating employee and customer experience. 

“Customer experience is one of our core values,” says Brian Buccino, CEO of LIVunLtd. “Our success is directly correlated with best in class experience for our customers. But we also have to balance that customer experience with the experience of our employees.”

CHALLENGE

After experiencing tremendous growth over the past few years, the Amenity Collective began to pinpoint several operational pain points throughout their workforce. One of their biggest challenges was delivering a consistent employee and customer experience across a growing and highly decentralized organization. 

“When we grew through acquisition, we bought really strong companies, but they all outgrew their legacy manual processes,” says Dan Cohen, the Amenity Collective’s COO. “Our goal was to figure out how to bring on a workforce management tool that would allow us to operate digitally.” 

Inefficient scheduling and attendance practices, in particular, were dragging down employee and customer experience. “Our staff was spending an inordinate amount of time just trying to work our old system” reflects Chen. “It took a lot of legwork.” 

These inefficiencies caused high overtime rates, unnecessary admin work, and concerning levels of absenteeism. Something had to change.  

SOLUTION

Management knew that in order to improve customer experience, they first needed to improve employee experience – and that began with addressing the issues plaguing their scheduling and attendance systems. 

“We wanted to find solutions that would adapt to our unique business model – Workforce.com fit that bill,” says Chen. “Being able to leverage a system like Workforce.com has allowed us to free up time within our employee base to focus on other areas.”

With Workforce.com, the Amenity Collective introduced automation to their scheduling and time tracking practices. Their formerly decentralized workforce management became unified on a single, cloud-based platform, serving to enhance administrative work and improve customer experience across all three subsidiaries. 

RESULTS

The Amenity Collective is now able to drill down where and when they are overspending on labor and administrative work. Their scheduling and time tracking are combined into a single, streamlined system, increasing the accessibility of actionable data. As a result, both employee and customer experience have greatly improved – here’s how they got there:

85% reduction in administrative work

Before Workforce.com, managers spent about 20 hours a week on basic administrative tasks like creating schedules, approving timesheets, and managing call-outs. Less than a year into using the software, they have now cut admin time down to 3 hours a week on average, boosting overall employee experience and productivity. 

“With Workforce.com, we’ve been able to reduce the time our staffers spend publishing schedules by 85% – that is a huge efficiency gain for our organization and for our employees,” says Chen. “What that allows our employees to do is spend more time building stronger relationships.” 

50% drop in overtime

In less than a year, the Amenity Collective has reduced the occurrence of overtime across their entire organization, resulting in lower labor costs and fewer cases of employee burnout. 

“We were floating around a 10% overtime rate with our employee base. Not even a year into using Workforce.com, we’ve already reduced that 50%,” says Chen. “That is a massive savings for us.”

70% decrease in absenteeism 

Once all staff began checking schedules and clocking in and out on the Workforce.com app, missed shifts dropped from 10% to a mere 3% throughout all three subsidiary companies.

“Workforce.com lets us immediately see when somebody doesn’t clock in for a shift,” says Chen. “We are able to fill those gaps in the schedule and make sure that our gym or pool doesn’t stay closed. Workforce.com has given our teams that insight, that visibility, and we’ve been able to meet our employees where they are.”

Guaranteeing staff coverage in this way has kept locations up and running, client obligations fulfilled, and facility users satisfied. 

Comprehensive API integrations

To ensure business operations flowed together seamlessly, the Amenity Collective required strong integration capabilities from all their software. Workforce.com fit perfectly within the organization’s software stack, syncing data in a way that optimized employee experience. 

“Workforce.com is an incredibly powerful tool, especially with its integrations,” reflects Chen. “We have an integration with Salesforce … simultaneously, we have an integration with Workday as our HRIS platform. Workforce.com sits in the middle, where we can really auto-schedule to our demand.” 

Together, the Amenity Collective and Workforce.com are scaling amenity management services to new heights. “We can now be more confident that as we scale and get more business, we’ll actually get it in a more profitable way,” Cohen says. 

By overhauling their approach to scheduling and attendance, the Amenity Collective now leads a rapidly expanding market.  Successfully lowering labor costs and boosting admin efficiency has, in turn, improved both employee and customer experience tremendously. 

“This is a very fragmented industry,” says Chen, “but there’s a huge opportunity … and we’re at the forefront of that change. Using best-in-class technology providers like Workforce.com allows us to get new clients to market faster. It gives us a standardized process to implement best practices across all of our markets.”

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Preventing employee time theft in restaurants

Summary

  • Employee time theft is when employees are paid for work they did not do

  • Employee time theft can come in various forms

  • Restaurant managers can prevent time theft with workforce management software

As a manager of a restaurant, when you think of employee theft in the workplace your mind may automatically go to blatant examples, such as staff stealing equipment, cash from the register, or even snacking on supplies. However, there’s a less blatant form of workplace theft: employee time theft.

While employee time theft is not always easy to spot, the impact is. Employee time theft directly impacts labor costs, and sadly, it’s not uncommon. Time theft can be prevented by investing in innovative time tracking software that ensures maximum employee productivity at all times.

What is time theft?

Time theft is when an employee is paid for time they didn’t work. It typically applies to hourly employees rather than exempt employees. Therefore, as a restaurant manager, you are at a high risk of being a victim of employee time theft.

What does the law say about time theft?

Unfortunately for employers, there are no explicit federal time theft laws, which puts businesses in a vulnerable position. While there are ways some businesses may be able to recoup losses through a civil suit, there is no guarantee this will be successful. So, employers need to make sure they’re doing everything they can to prevent time theft in the work environment.

Recognizing time theft in restaurants

There are different forms of time theft. Here are the major ones to look out for:

  • Falsifying timesheets: This is when employees misrepresent work hours. For example, an employee only worked 30 hours in a week, but they doctor their timesheet and say they worked 45 hours. If your restaurant uses temporary staff from staffing agencies, this is something to watch out for. A restaurant in Florida found it had $10,000 added to its payroll costs when a temp agency worker fraudulently misrepresented his work hours.
  • Buddy punching: This is when an employee clocks in and out for a coworker. If an employee is running a few minutes late and doesn’t want this to be recorded, they may ask a coworker (who’s already in the restaurant) to clock in. The reverse can also be true, employees can leave their shift earlier than scheduled, but have their buddy clock out for them.
  • Extended breaks: Employees may take too long on lunch breaks or go for unauthorized breaks like smoke breaks. This is likely to happen where there’s easy access to a back door.
  • Doing personal tasks during the workday: Instead of clearing tables, wait staff are surfing social media on company time or sneaking off to the restroom to take personal calls. A 2020 Digital Distraction & Workplace Safety survey revealed that the average employee spends 2.5 hours each workday looking at digital content that is unrelated to their job.

Uncovering time theft in your restaurant

While time theft can be difficult to prove, here are a few pointers that you may realize at your workplace:

 How to prevent time theft

Prevent time theft by using innovative scheduling and timekeeping software that ensures there’s no lost productivity from employees.

Use accurate scheduling software

According to the Fair Labor Standards Act (FLSA), employers must pay staff according to what’s recorded on the timesheet. Therefore, it’s important that your scheduling software creates the right shifts in the first place. Moreover, all schedules should properly align with hours reflected on timesheets, as this will prevent paying employees for hours they didn’t work.

Use an automated time clock solution

Eliminate the risk of falsifying time cards with a time clock app. Here’s how it works:

    • Staff clock in and out in an app with their personal IOS and Android devices.
    • Managers can guarantee the right worker is in the right shift, at the right place, at the right time with unique clock in/out passcodes, electronic photo verification, and GPS location data. This will directly eliminate buddy punching.
    • All clock-in data is automatically recorded, and the app generates electronic timesheets — the perfect solution for business owners who are tired of using stacks of binders full of paper timesheets.

Give your managers the ability to manage operations during the day

Provide your managers with a time and attendance system that stays on top of employee productivity. Managers should be able to monitor employees remotely — all from a computer or mobile device. This kind of monitoring should take the form of a live timeclock feed and tardiness notifications.

Managers should also receive notifications when employees clock in and clock out for breaks. With these instant notifications, it’s possible to cross-reference clocking in and out with the shift schedule to make sure there are no discrepancies in break times. Giving managers the ability to manage operations during the day ensures they can easily spot time theft.

Create and enforce firm time and attendance policies

Create attendance policies and communicate them clearly to your staff. Your staff might be unaware of their actions and how they can be perceived as time theft, so it’s important they know what time theft is and how they may be breaking company policy.

Make sure time and attendance policies include clocking in and out procedures, break periods, and cell phone and social media usage when on the clock. It’s crucial that employees know what time theft is and understand that it will not be tolerated. If necessary, make sure policies are enforced with disciplinary actions, as they may act as a deterrent.

Provide an enjoyable work environment

Burnout, low pay, and minimal benefits may make employees more likely to commit time theft. Employers should provide staff with enjoyable working environments where they feel valued, taken care of, and respected – this always helps reduce time theft. Consider implementing something like an employee reward system to create a culture of positivity and motivation. You could also regularly grant time off — or add in an extra shift — for workers who excel in their roles.

Prevention is better than a cure

While you can’t go back in time to stop prior time theft, you can certainly take steps to prevent it from continuing. Use automated workforce management software to empower employees to make the most of the hours they’re scheduled for. Contact us today to learn how you can get started.

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How short-staffed resorts can optimize scheduling

We live in the time of “The Great American Labor Shortage.” The leisure and hospitality industry faced a high unemployment rate of 39.3% in 2020, which, combined with the high number of job openings, reveals just how understaffed the sector is.

The World Travel & Tourism Council estimated a labor shortfall of 690,000 workers in the tourism and travel industries in 2021. Vail Resorts is one of many resort companies facing this problem. A shortage of chairlift operators, lift engineers, and snowcat drivers has delayed the resort’s ability to open doors to its skiing visitors.

Why has COVID led to a shortage of talent?

According to the Colorado Sun, lots of resorts in the country are in the same predicament as Vail Resorts. This widespread lack of active workers in the industry can be attributed to several reasons — all tied to the COVID-19 pandemic:

  • COVID fears: Staff doesn’t want to return to work because they’re scared of catching the virus.
  • Poor management: Resort management let go of many people last year, and one of the possible reasons they may not be hiring anyone back is to help recover from the profit lost during shutdowns.
  • Parental caregiving during the pandemic: The COVID-19 pandemic led a number of schools across the country to shut down. Parents without access to childcare are forced to remain home and are unable to rejoin the workforce.

In order to prevent the loss of customers whose needs are unmet, resort managers must optimize their scheduling while short-staffed.

To optimize scheduling while being short-staffed, you need to:

1. Use labor forecasting

Estimate sales demand by using labor forecasting software to look at historical sales data and then schedule shifts accordingly. You’ll be able to schedule your scarce labor smartly to meet sales demand. For instance, you might be able to schedule more experienced employees when the sales demand is high.

Sales demand is likely to fluctuate post-pandemic, and managers need to ensure that worker scheduling can adapt easily to meet sudden demand shifts.

You can also forecast labor demand by individual departments and monitor whether, say, more employees need to be scheduled in mountain operations versus lodging at a ski resort. For instance, a lot of people may be coming to ski for the day but not booking rooms for the weekend, meaning the level of scheduled labor needed will vary between the two departments.

2. Make schedules agile and adaptable

Prepare schedules in advance, two weeks at a minimum, to give employees the ability to communicate their need for coverage in the event of unforeseen scheduling conflicts.

Use hospitality employee scheduling software to centralize scheduling and increase your staff’s commitment to shift adherence. By using mobile technology like shift swaps and replacements, you minimize any last-minute scheduling changes, increasing both administrative adaptability and staff agility.

You must also manage leave requests in a timely manner to avoid being short-staffed. You don’t want too many employees taking leave at the same time. Discuss leave requests with each staff member to avoid any scheduling surprises down the road. Staff members should be encouraged to put in leave requests by giving at least a few days’ notice, so you can plan schedules in a timely manner.

3. Increase employee engagement

Focus on improving your overall staff experience. If your employees feel engaged, they are more likely to show up and do their best work and provide the best service.

With a centralized communication tool, it’s possible to quickly notify staff of timely updates or important company announcements. Getting your message out there efficiently on a unified system properly engages staff, makes them feel valued, and solves issues in disconnected communication with management.

Another way to increase employee engagement is to open up more avenues for staff to provide shift feedback. Employees may feel inclined to report on how various aspects of their shifts, from coworker cooperation to issues in staffing levels. Having the ability to give management feedback like this empowers employees, making them feel more valued. This leads to engaged and productive resort staff, even in the face of a shortage in labor.

You should also offer incentives to engage employees and boost their morale. Workers are happier when they’re well compensated. A lot of restaurant and hotel owners are offering higher wages to attract and retain employees. For instance, an ice cream parlor raised wages to $15 an hour and filled all of their 15 open positions immediately. As per Hotel Tech Report, higher pay rates can decrease absenteeism and control employee turnover, which is good news for short-staffed hotels and resorts.

Replicate these successes and improve employee motivation by offering a higher pay rate during busier shifts and during peak season.

4. Automate breaks

Employees need breaks so they don’t feel stressed or overworked, factors that often lead to staff attrition.

Between multiple departments with varying needs, resort management already spends too much time preparing employee schedules manually — up to 12 hours a week. Short staffing levels only add to this time, causing even more headaches for management. In the midst of all these hurdles, scheduling and enforcing breaks might slip between the cracks.

Solve this by implementing employee scheduling software that automatically applies legally compliant breaks to every employee’s schedule. These breaks should be easily monitorable by both employees and managers alike, ensuring short-staffed teams stay well-rested and productive. Leadership should receive notifications when employees miss breaks, and they should be able to track a live timeclock feed to know when and where workers are taking their breaks.

5. Cross-train employees

Train employees to handle a broad range of tasks so they’re more well-rounded and well-equipped to deal with short-staffing challenges. The best way to do this is to encourage your staff members to mentor and train each other.

Start by making a list of everyone on your team and include their job descriptions. Think about the expertise each role requires and then pair positions that share similar skill sets. For instance, you can pair up wait staff with those working in the front office team, both client-facing roles. The wait staff team members would learn how to perform check-ins, check-outs, and make reservations, and the front office team members would learn how to serve customers at the restaurant.

If all of your staff are cross-trained and multi-functional, they’ll be able to fill in for each other. It will become possible for you to rotate your staff across different departments to meet varying customer needs.

Proper WFM practices mitigate short-staffing pains

Workforce management can be quite complex for individual departments to handle, especially while short-staffed. By uniting staff on one platform and deploying the tips above, it’s possible to have executive oversight on staffing needs. If you’d like to overcome the challenges of the short-staffing problem at your resort, get in touch with us today!