It’s always difficult to eke out a profit in the food retail industry. Even for the most successful grocery stores, margins are always razor-thin – every store has a long list of expenses, ranging from real estate to restocking inventory to the energy for refrigeration, heating, cooling and lighting. All of these costs add up.
They’re also very difficult to control. You do everything possible to control the cost of stocking your shelves with food products – your inventory is your inventory, and it’s not getting cheaper. There is, however, one item in the budget that is too often overlooked where managers have the ability to rein in their spending and help the business become more profitable – labor. This is something I discussed in depth in my recent article on “Payroll Planning” on GroceryHeadquarters.com.
Just about every retail organization can save money by using better strategies for human capital management. For many businesses today, the process is sprawling and uncoordinated. They’ve got countless employees, all working different hours for different wages, and it’s difficult for them to get a handle on the big picture. Of course, it doesn’t help that they’re using outdated solutions for managing the staff – solutions that have changed very little in the last few decades.
It’s time for these companies to get with the times. Modern technology for HCM is dynamic, it’s cloud-based and it has the analytical clout to help business leaders save money.
For example, Ceridian’s Dayforce HCM solution offers grocers a beacon of hope. It’s a single application that transforms the way stores do business, providing practical and proactive solutions to manage labor costs. Do you want to save money on staffing while still keeping your sales high and your customer service strong? With Dayforce HCM, you can do it.
This should be a key priority in the grocery industry. Supermarkets by their nature bring high volumes and low margins. It’s common for stores, even successful ones, to see profit margins of only 1.5 or 2 percent. With increasing costs of business, like health insurance, it’s only becoming more important that businesses take action and reign in their labor expenses.
Therefore, without further ado, here are two key ways that a single HCM solution can help grocers save money.
Scheduling workers and managing costs
The first step toward effective human capital management is setting that initial schedule. Labor is initially scheduled as required by applying the business, union and regulating agency rules. Whether a grocer schedules based on their knowledge of the market, a budgeted amount, a ratio of labor to forecasted sales or based on key performance indicators, Dayforce HCM can match the grocer’s sophistication to post an initial schedule that gets the right people in the right place at the right cost.
Managing life events
Of course, you can surely expect the actual labor schedule to deviate from the initial plan as unanticipated life events happen during the pay period. Some fluctuation is normal. Fortunately, Dayforce’s Labor Cost Now can provide real-time insight into the variance between your scheduled costs and your actual ones. You now have the ability to plan and adapt using a single, SaaS-based solution for scheduling, timekeeping, payroll and just about all of your other human capital management functions.
Learn how Ceridian customer, PSK Supermarkets, has increased margin every pay period by an average of more than 50 basis points with Dayforce HCM!
Carlos Gonzalez is Director of Customer Success at Ceridian. Follow him on Twitter @gonzalezce7.