Chapter 6: Managing Employee Work Schedules

The Fundamentals of Effective Work Scheduling

  • Managers are responsible for scheduling the correct number of employees in the correct positions at specific times. This ensures that products and services meet quality standards while successfully managing labor costs.

  • Scheduling vs. Crew Schedule:

    • Scheduling: The general act of assigning employees to work shifts.

    • Crew Schedule: A well-thought-out plan developed based on expected business volume, required staffing levels, and expected labor costs. It must balance the needs of the operation and customers with those of the employees.

  • The Six Steps of Managing Employee Work Schedules:

    1. Determine budgeted labor cost.

    2. Create a master schedule.

    3. Develop a crew schedule.

    4. Distribute and adjust the crew schedule.

    5. Monitor employees during shifts.

    6. Analyze after-shift labor information.

Determining Budgeted Labor Costs

  • The initial step in scheduling is identifying the funds allocated for labor, which are found in the approved budget. Managers must plan the schedule to ensure the operation does not exceed this budget.

  • Components of Labor Cost:

    • Wages: Monetary compensation based on the specific number of hours an employee works.

    • Fringe Benefits: Indirect payments for items such as vacation, holiday pay, sick leave, and health insurance.

    • Salary: A fixed amount of money paid for a specific time period that does not change regardless of the number of hours worked.

  • Budgeting Formulas and Examples (The Driftwood Bar & Grill Case):

    • The Driftwood Bar & Grill has a budget of $62,760\$62,760 for waged employees for the month of June (3030 days).

    • Average Daily Wage Formula:

      • Labor (Wage) budget÷Days in month=Average daily wage\text{Labor (Wage) budget} \div \text{Days in month} = \text{Average daily wage}

      • $62,760÷30=$2,092\$62,760 \div 30 = \$2,092

    • Average Daily Hours Formula:

      • If the average hourly wage is $20\$20, calculate maximum daily hours:

      • Average daily wage÷Average hourly wage rate=Average hours per day for waged employees\text{Average daily wage} \div \text{Average hourly wage rate} = \text{Average hours per day for waged employees}

      • $2,092÷20=105\$2,092 \div 20 = 105

    • Weekly Hours Calculation:

      • Average hours per day×Days open per week=Average hours per week for waged employees\text{Average hours per day} \times \text{Days open per week} = \text{Average hours per week for waged employees}

      • 105×7=735105 \times 7 = 735

The Master Schedule Foundation

  • A master schedule distributes the budgeted hours across different positions based on the expected number of customers. It establishes the count of employees needed in each role and their total working hours.

  • Primary Purposes of a Master Schedule:

    • To ensure enough waged employees are on hand for prompt, efficient service and proper food preparation.

    • To plan waged labor expenses in alignment with budget goals.

  • Master Schedule Requirements:

    • A separate master schedule must be developed for every shift (e.g., each night).

    • It serves as the template from which the individual crew schedule is created.

  • Forecasting and Data Usage:

    • Sales History: Records showing the number of customers on previous days. Point-of-Sale (POS) systems provide reports on revenue, customers served, and menu items sold.

    • Sales Forecasts: Estimates of future sales based on past records, adjusted for current local and national trends.

    • Influencing Factors: Customer counts are affected by holidays, seasonal shifts, community activities, and the economy. Local trends generally impact operations more directly than national trends, though unemployment and international events also influence dining habits.

  • Cross-Training as a Managing Tool: Cross-training allows employees to perform tasks outside their standard role, providing the flexibility needed to meet goals during slow or busy periods. Examples include:

    • Combining host and cashier roles during slow periods.

    • Bartenders serving in the lounge during slow times.

    • A cook with food safety training performing dishwasher duties.

    • A dishwasher performing basic vegetable prep to assist or replace a cook.

Developing the Employee Crew Schedule

  • An employee schedule is the actual assignment of specific people to shifts based on the master schedule. It requires a balance between the operational needs and employee flexibility.

  • Communication Protocols:

    • Employees should be informed of operational changes (menu updates, upcoming promotions, hour changes, or road construction) so they can plan their personal time accordingly.

  • Time-Off and Vacation Requests:

    • Managers should "block off" weeks of heavy revenue volume where vacations are not permitted.

    • Policies may specify a limit on how many people can take time off simultaneously.

    • Seniority often determines vacation priority (those working longest get first choice).

    • Requests should be submitted in writing and well in advance.

    • Day-off requests are often sudden but should ideally be submitted at least one week before the schedule is finalized. Conflicts can be resolved via seniority or a "first come, first served" basis.

  • Family and Medical Leave Act (FMLA):

    • A federal law for businesses with 5050 or more employees.

    • Grants eligible employees up to 1212 weeks of unpaid leave in a 1212-month period.

    • Applicable for childbirth, adoption/foster care (within one year), caring for a spouse, child, or parent with a serious health condition, or the employee's own serious health condition.

    • Employees must be reinstated to the same position at the same pay rate upon return.

  • Employee Absence Policy:

    • Guidelines for reporting sickness or emergencies.

    • Employees must contact managers as soon as possible and estimate their return date.

    • Some operations require a doctor's release before an ill employee can return.

Fair Labor Standards and Child Labor Protections

  • Fair Labor Standards Act (FLSA):

    • Federal law governing minimum wage, record keeping, and child-labor standards.

    • Minors (14 and 15-year-olds):

      • May only work non-school hours.

      • Max 33 hours on a school day; 88 hours on a non-school day.

      • Max 1818 hours in a school week; 4040 hours in a non-school week.

      • Work cannot start before 7:00 a.m.7:00\text{ a.m.} or end after 7:00 p.m.7:00\text{ p.m.} (extended to 9:00 p.m.9:00\text{ p.m.} from June 1 through Labor Day).

    • Minors under 1818 are prohibited from operating power equipment.

  • Overtime Management:

    • Overtime (Legal): Hours worked beyond a threshold (usually 4040) that require premium pay, typically 1.51.5 times the base rate.

    • Calculations:

      • Hourly pay×1.5=Hourly overtime pay\text{Hourly pay} \times 1.5 = \text{Hourly overtime pay}

      • $20×1.5=$30\$20 \times 1.5 = \$30

    • No-Show: An employee who fails to report for a shift without notifying the manager.

    • Overtime Sources: Customers staying past closing, or no-shows. Managers should never plan overtime into a schedule as it wastes payroll dollars.

Schedule Distribution and Adjustment Procedures

  • Schedule Details: Every schedule must include the dates, employees' names, scheduled work and off days, start and stop times (marked \text{a.m.} and \text{p.m.}), the preparation date, and the manager's name.

  • Timeline and Distribution: Schedules should be distributed approximately 77 to 1010 days before the start date. Distribution methods include bulletin boards, paychecks, email, or an internal intranet.

  • Adjustments and Contingencies:

    • Contingency Plan: A set of actions for emergencies or unexpected events.

    • Shift Leaders: Waged employees who perform regular tasks while also training staff and answering work-related questions.

    • Floaters: Employees designated to fill in for those taking time off.

Leveraging Technology for Labor Analysis

  • Technology allows managers to compare scheduled labor hours against actual hours worked in real time.

  • Variance Analysis:

    • Variance: The difference between the budgeted expense and the actual expense when the budget goal is not met.

    • Variance Cost Calculation:

      • Hours variance×Average hourly rate=Additional labor cost\text{Hours variance} \times \text{Average hourly rate} = \text{Additional labor cost}

      • 31×$20=$62031 \times \$20 = \$620

  • AI and Data Tools: AI-driven tools help identify variances and suggest proactive staffing adjustments. This improves employee engagement by streamlining schedule changes and pinpointing the causes of labor cost overages.

Professional Management Schedules

  • Management schedules should be developed with high standards of fairness and in accordance with company policy.

  • Key Managerial Scheduling Concerns:

    1. Salary Status: Most managers are salaried and not restricted to a specific hourly count, though they still have scheduled hours and often work longer than waged staff.

    2. On-Call Status: Management schedules may include "on-call" periods. For example, a dining-room manager may handle kitchen issues if the kitchen manager is off, with the general manager as the final contact.

    3. Mandatory Supervision: At least one manager must be on duty whenever employees are working to handle emergencies. Furthermore, state laws often require one person on-site to be certified in food safety and sanitation.

Questions & Discussion

  • What is the main goal of creating an employee schedule in a restaurant or foodservice operation?

    • To ensure the right number of employees are in the right positions at the right times to meet quality standards while controlling labor costs.

  • What is the first step in developing an effective employee schedule and why is it important?

    • The first step is determining budgeted labor cost. It is essential because it sets the financial limits that the schedule must adhere to ensure profitability.

  • Identify three different methods that restaurants use to budget labor costs.

    • Using monthly operating budgets, daily averages based on monthly totals, and calculating allowable hours based on average wage rates.

  • What is the primary purpose of creating a master schedule?

    • To distribute budgeted hours across positions to ensure customer service needs are met without exceeding labor cost goals.

  • Why is it important to create separate master schedules for each shift?

    • Because customer volume and staffing needs fluctuate significantly between different daily periods, such as breakfast, lunch, and dinner.

  • What impact can inaccurate sales forecasts have on operations?

    • Inaccurate forecasts lead to overstaffing (wasted labor cost) or understaffing (poor service quality and stressed employees).

  • Why is open communication between managers and employees important for scheduling?

    • It allows employees to plan their personal lives, increasing the likelihood that they will be available for work and reducing turnover or call-outs.

  • What key details should be included on an employee schedule?

    • Dates, employee names, status (work vs. off), specific start/stop times, preparing manager's name, and preparation date.

  • What does a variance in labor hours indicate?

    • It indicates a discrepancy between the planned budget and actual spending, signaling a need for manager intervention or corrective action.

Key Terminology Index

  • Contingency plan: Actions to take during emergencies or unexpected events.

  • Cross-training: Training an employee to do tasks outside their normal position.

  • Employee absence policies: Guidelines on how to report an inability to work.

  • Employee schedule: A list of specific employees assigned to work shifts.

  • Fair Labor Standards Act (FLSA): Federal law setting wage and child labor standards.

  • Family and Medical Leave Act (FMLA): Law allowing unpaid leave for medical/family reasons.

  • Floater: An employee used to fill in for others.

  • Fringe benefits: Indirect monetary compensation (insurance, sick leave).

  • Labor cost: Total of wages and fringe benefits paid to employees.

  • Management schedule: Work plan for salaried and shift-leading staff.

  • Master schedule: Planning tool showing positions and hours needed for a shift.

  • No-show: Employee who misses a shift without notification.

  • Overtime (legal): Hours worked beyond standard limits requiring premium pay.

  • Overtime (scheduling): Extra hours assigned that may lead to premium pay.

  • Point-of-sale (POS) system: Technology used to track revenue and customer data.

  • Salary: Fixed periodic compensation for employees.

  • Sales forecast: Predicted future sales based on data and trends.

  • Sales history: Past data regarding customer counts and items sold.

  • Scheduling: The process of determining when employees are needed.

  • Shift leader: A waged employee with additional leadership duties.

  • Time-off request policy: Rules for requesting vacations or days off.

  • Variance: Difference between budgeted and actual expenses.

  • Wages: Pay based on hours worked.