As a small retail business owner, you are challenged daily by balancing the costs you must incur to do business in the modern world and the revenues that are becoming more difficult to secure. As the competition for customers, products, and even employees intensifies, so must your attention on running a tightly efficient operation. You need to regain control over your cost management, especially in the hyperactive, competitive retail marketplace of today.
Placing your business in a position of financial security involves many moving pieces. While many retail owners cast an eye primarily on product inventory and competitive pricing, this approach leaves inevitable gaps through which revenue floats away. Where can you begin to look for the places that are springing leaks in your bottom line? What solution can you turn to put a halt to the hemorrhaging of valuable resources?
Introducing a Technical Solution to Identify a Key Area of Cost Management Neglect
It is important to gain an understanding of how your revenue is doing from the time it enters your accounts until it is paid out to employees, suppliers, and any other parties. Knowing this, you can easily get to the bottom of where you may be unexpectedly paying out too much, or bringing in too little. This requires that you take decisive actions that aid your ability to see exactly what your revenue is doing.
The ideal action item to accomplish this is to introduce a technical solution that presents you with a clear picture showing where and how your money moves throughout your business. Equipping yourself with this gives you the tools you need to perfect your revenue streams and introduce deep cost savings into your business. Once this is in place, you will catch places where your cash is being wasted, and with results that are not all that surprising.
An important piece of a typical business structure that causes an initial gasp of shock among small retailers is seeing just how much cash is lost in staff management. But, when you pause to think about this area, you will quickly come down from the state of surprise and adopt a “well, duh” mindset. Technical tools can easily help you take control of expenses in this area, especially when those tools are packaged as part of one, highly innovative, POS solution.
Alleviate Payroll Leakage through Advanced POS Automations
Taking full control of your labor costs will quickly restore a significant amount of money onto the positive side of your virtual ledger. The cloud-based data analytics that a next-gen POS solution delivers to you provides the ability to quickly administer performance metrics as well as to monitor staff production with precision. You also gain ease in staff scheduling, reducing the amount of time you must spend wrangling with multiple calendars.
The cost reductions you can gain with processing payroll via an innovative POS platform can be seen first in timekeeping and scheduling. The seamless blending of staff schedules with inputted data from employees clocking in and out can be monitored automatically and alert you when certain thresholds are exceeded. This drastically reduces mistakes when paychecks are calculated, providing revenue protections for both you and your staff.
The accuracy of this improves, even more, when your POS vendor provides an app that you and staff can use for timekeeping and schedule maintenance. You can use the data gathered from basic payroll and sales functions to design scheduling procedures that for the most part remove manual intervention. You can even introduce a process based on sales and staff data that can automatically monitor transaction voids and returns to prevent product leakage while giving you another key employee performance metric.
Using this information will give you clarity around which of your staff is your top performers. This gives you a strong foundation upon which you can build an employee incentive program, as well as to provide additional training for those who seem to be falling behind. These work to boost your customer service to higher levels, while building staff loyalty through investing in the development of their skills.
Creating a Customer-Focused Approach to Staff Performance Metrics
The development of staff production metrics serves two key purposes: to ensure that your staff is fully trained and to provide a top-level of customer service. You already know that using the data that a feature-rich POS solution provides allows you to establish alerts around voids and returns. In addition to loss prevention, these can serve a customer service purpose if the monitoring reports are customized and the POS solution can deliver the required data.
For example, if certain employees see a higher rate of product returns with a variety of customers, they may be overpromising. Or, if an employee is voiding sales at a rate three times higher than your store average, this may indicate that they need additional POS terminal training. Whatever scenario you can think of, it is important to operate with the customer experience in mind. This way, your processes and the way your staff works can be modified before any complaints arrive or the flow of customers begins to taper off.
Implementing a New Retail Labor Cost Management Strategy Requires Technical Talent
Reining in the labor costs of your retail business is a great way to introduce new, cost-effective processes that stimulate business and professional growth. Reducing waste in this area will not only give you back valuable breathing room in your bottom line but will allow you to deepen our investment in other areas of your business. The technology available to you is game-changing, but requires an expert level of talent to get the job done efficiently and at a minimum of cost.
Building a cost management strategy requires a cutting-edge POS platform to be at its center. Using a third-party POS consultant with high levels of demonstrated retail experience ensures that you get a perfect fit through the technology they introduce to your business. This gives you a smooth-running, revenue efficient business operation that allows you to focus your time on broadening the reach of your brand voice.
Letting talech drive your retail labor cost management initiative provides you with a technical solution that gives you back control over all financial aspects of your business. We achieve this by diving into your staff management and will recommend a technical solution to drive forward a streamlined employee management strategy. Contact us today or sign up for a demo and to learn more about how talech can be a valued asset in your arsenal.