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Dear Edie: The corporate office is always asking me for labor reports. How can I show the corporate office that I am on top of my labor costs? -- Spending Hours Doing Reports

Edie Lowe
Posted by Edie Lowe on December 16, 2020

Dear Spending Hours Doing Reports,

Analyzing historical payroll reports and revenue forecasts can take hours. Time is at a premium these days with managers working multiple frontline shifts in addition to running the hotel. The good news is that you have a better option at your fingertips. We know from looking at our own benchmarking data that the hotels seeing the biggest savings in labor are completing the 5-Minute Daily Labor Check-In™ at least five days a week. With only 5 minutes per day, you can easily prevent overtime, fix productivity (MPR) problems, spot trends, and make profitable staffing adjustments.

In addition, completing the 5-Minute Daily Labor Check-In™ automatically gives your corporate team the accountability and insights they are requesting. The 5-Minute Daily Labor Check-In™ will quickly become a habit that you cannot live without. Who should complete it? Every manager who schedules labor in the hotel should use this tool. The General Manager (or Director of Finance) should complete after other managers within the hotel. PRO TIP: Remember to fix missing and unknown punches prior to completing the 5-Minute Daily Labor Check-In™. 

Here is a high-level breakdown of the tool:

  1. Summary - What portion of revenues were spent on labor? No calculator required.
  2. Dept Issues - What departments need help maintaining hours within plan? Identify where you need to spend your time.
  3. Housekeeping - Which Room Attendants need coaching to meet the target Clean Time and productivity standards?
  4. OT Risk - Actual Hours Worked + Schedules. Who is at risk of overtime by maintaining their current schedule? Is this “necessary” overtime or “junk” overtime that can be avoided?
  5. Finish - Make actionable notes for improvement and adjustments. Comments are saved once you click “Complete Check-in.”
  6. The Corporate team can see your progress and review any notes provided.

PRO TIP: Make the 5-Minute Daily Labor Check-in™ a part of your regular management stand up meetings at least once per week. After three weeks you’ll see a shift in mindset by your managers. They will learn that labor is not just the biggest cost in a hotel, but it is the most controllable investment which is critical to the whole team’s success. Use the 5-Minute Daily Labor Check-In™ to improve your bottom line.

Topics: Hotel Profitability, Labor Costs, Scheduling, reports