9% reduction in labour costs
With the release of our Timestation app we’ve had a chance to visit all our existing customers and see how they’ve been using the new features on Bizimply. When we visited Margaret at the Lovely Food Company we were delighted with what we heard.
Here’s what she told us…
We’re all using Bizimply and we are big fans of the system. Time spent in the office has been halved, and the managers are delighted that it offers a great way of highlighting productivity on their shift – in particular, it allows them to record specific cleaning performed that day, or any extra sales achieved…
…It’s the Labour Sales forecast that has been the most useful tool since it was launched. We have managed to reduce our labour costs by 9% by simply reviewing the forecast and making simple changes before publishing the roster…
…The notifications tab now alerts us if we roster anyone for more than their agreed daily hours, and the Net Labour cost gives an accurate cost before the week starts. By cross checking the hours used against the net labour cost, we are able to move people around to reduce overall costs…’
So these are the facts about employer contributions and how forecasting can help:
Your employees are costing you more in 2014. Your Revenue P30 is higher in 2014 than the same time last year.
What is causing this?
PRSI rates have increased from Jan 1st 2014. Staff earning up to €356 per week incur employers PRSI of 8.50%. This rate has doubled since 2013 from 4.25%, so for the restaurant industry monitoring staff cost has never been so important.
What can I do?
Be aware that any staff member earning over €356 per week, will cost you 10.75% Employers PRSI, while staff earning less than €356 per week will cost you 8.50% employers PRSI.
Staff earning up to €252 per week have no PRSI liability, but once over this threshold they are liable for Employees PRSI.
By keeping an eye on your schedule forecast and setting simple notifications about employee hours on Bizimply, you can see when staff move into a higher rate of PRSI contributions and make slight adjustments to move them back into the lower rate. It’s worked for the Chop House.
Bizimply is paying for itself and helping to save money for our customers. We’re delighted.