The performance results of retail organisations are for a large part dependent

on the deployment of employees. In this, an appropriate Workforce

Management strategy is crucial for the achievement of corporate objectives.

Labour costs are typically one of the biggest costs and often also the only place

where influence can be exerted. That’s why it makes sense that much attention

is paid to the management of labour costs. But how do you consistently ensure

that your employees are always motivated and optimally productive?

Due to stiff competition and pricing wars, the retail branch is currently feeling the

pressure on profit margins. The economic situation results in certain segments

consistently seeing a reduction in profits, making cost control and cost reduction a

priority. In order to attain and/or hold a good market position, cost reduction is not

enough. Good store performance and provision of services to customers is essential for

revenues and profitability. Every organisational formula or entrepreneur will have their

own objectives.

“The right person with the right skills in the right place at the right time” is a commonly

used mantra among suppliers of Workforce Management solutions. In practice, however,

most WFM solutions are targeted at the efficient scheduling of the available staff, aimed

at minimising idle hours/over-time hours and simplification of the administrative process

of staff planning and time registration.

Commonly no, or too little attention is paid to the determination of actual staffing needs

based on the corporate objectives and forecasted revenues. The danger arises that too

much emphasis is placed on labour costs savings and simplification of the administrative

process. The consequence of this is that work pressure and stress will increase amongst

employees, resulting in a reduced quality of service to customers and poorer store

performance. The danger is ultimately that the organisation’s desired objectives are not

achieved, and because of this will require further cost reductions.

It is therefore crucial for retailers to strike the right balance between the desired store

performance figures and the lowest possible labour costs. This appears at first to be a

dilemma – but the right WFM solution can set the retailer apart from the competition and

can make the difference between achieving the objectives or failing to do so.

White Paper De Vries WFM

Optimal store performance and management of labour

costs: Dilemma or an integral approach?

Realisation of optimal store performance

within the labour costs budget

plan people smarter

Gartner states that WFM varies greatly per sector. The needs within retail are completely

different than those in the manufacturing industry or a call centre, for example. That’s

why it is recommended that a WFM supplier is selected that has considerable experience

and expertise in that specific sector and offers a solution that is fully customised to that

sector. (Gartner, Understanding the Fragmented Workforce Management Solutions

Market, 2011)

De Vries WFM shares this view and that if you truly want to provide enhanced quality of

services you must fully understand the sector and all of its aspects. With 30 years of

retail experience, De Vries WFM considers itself a specialist in ‘Retail WFM’.

Gartner further states that labour standards are essential for the staff planning process.

Without labour standards it is very difficult to establish and optimise labour cost budgets

(Gartner, Hype Cycle for Human Capital Management Software, 2012).

It is therefore important to establish and acknowledge the labour standards prior to

starting the implementation of a WFM solution.

In order to achieve appropriate staff planning, retail organisations will have to precisely

determine the work needs are and ensure that the realisation of the staffing schedule is

optimally coordinated with this demand. These are based on the objectives and ambitions

of the organisation, the applicable standards and the sales forecasts.

But this is easier said than done. An increasing trend we see in retail is the acquisition of

ever-more ‘flexible’ work schedules, resulting in an increasing amount of employees with

flexible contracts and varying work times. The higher service needs of today’s customers

has lead, amongst other things, to extended opening hours and rising personnel costs.

Intense competition demands constant attention from retailers with regard to labour

costs and optimal store performance. Moreover, we also see increasing requirements

with respect to ‘Work-Life balance’ and the increasing significance of employee

engagement.

A government study in the UK, conducted by David MacLeod en Nita Clarke, defines

“engagement” as:

"a workplace approach designed to ensure that employees are committed to their

organisation's goals and values, motivated to contribute to organisational success, and

are able at the same time to enhance their own sense of well-being” (David MacLeod &

Nita Clarke, Engaging for success: Enhancing performance through employee

engagement, 2009).

In these times of economic uncertainty, managers must not make the mistake of

assuming employees will continue to work hard and not leave the company out of fear of

being laid off. This mentality has a counteractive effect on motivation and engagement

and will have a lingering negative effect on the organisation.

plan people smarter

Gartner suggests that organisations with an ‘engaged workforce’ are more successful

than organisations that do not have such involvement from employees, and that adoption

of modern Workforce Management solutions contributes to motivated and engaged

employees:

“Time and labour Scheduling is normally justified with efficiency cost savings, but there is

a strong engagement benefit, too. If deployed effectively, modern T&L systems allow

greater workforce scheduling flexibility. For many employees, the ability to structure

working hours flexibly is a significant motivator to being engaged. Leading retailers now

position shift flexibility as a major factor when recruiting. Don't ignore the engagement

angle to shift planning” (Gartner, Reach Peak Performance Through Employee

Engagement, 2012).

The WFM solution especially for retailers

De Vries WFM has a Workforce Management solution which is specifically developed

based on wishes and requirements in the retail sector. This solution allows retailers to

strike the right balance between the desired store performance figures and the lowest

possible labour costs.

The core of our R&R-Web 3 Workforce Management solution customised specifically for

retail is:

Staff planning is based on standards and revenue forecasts: Scheduling occurs

according to the actual work demands i.e. it is not based on employee availability but

rather on the need to perform certain activities

Effective and efficient planning of customer-related, merchandise-related and other

activities, in which maximum productivity and effort by staff is achieved: not only an

improvement of the administrative process, but truly optimum and cost-effective

planning schedules for employees

Integration of the CAO (CLA) and legislation is consulted during the planning process

in order to give insight into the eventual labour costs, and simplifies remuneration

without errors

Automated time registration system which records hours actually worked

Employee engagement through Employee Self Service (ESS), allowing the appropriate

level of attention to be paid to the 'work-life balance' and employee motivation and

performance.

Employee Self Service plays an important role for motivated and engaged staff. With the

Employee Self Service module, employees have the opportunity to be involved in the

staff planning process. Employees can view their schedule online at any time, view their

availability and request days off or sick leave. Changes to the schedule are emailed or

texted (SMS) directly to the employee. Employee Self Service simplifies the

administrative process and reduces mistakes due to miscommunication. ESS facilitates

greater employee engagement, motivation and independence.

plan people smarter

The choice of the right WFM software is the first step – an optimal use of it is crucial for

results. Adequate training and guidance of staff will lead to an efficient and effective use

of the software and greater productivity.

Choosing for a WFM solution not only means acquiring software, but also means opting

for an effective in-house method for managing staff planning. In time we have seen that

when Management together with, for example, heads of department use the software in

an appropriate and efficient manner to optimise internal processes, they will

consequently achieve maximum revenue: labour costs reduction, improved store

performance and fulfilled and engaged employees.

Furthermore, commitment on the part of supervisors and Management is essential for

the success of a WFM project.

What have our clients achieved?

Our clients have seen store performance figures rise, labour costs reductions of up to

10% and a significant decrease in administrative burden; not to mention more motivated

and involved staff.

Through the use of R&R-Web 3, forecasted and actual labour costs will align with each

other increasingly, affording optimal control of labour costs.

The Dutch supermarket industry, in which De Vries WFM is one of the market leaders,

boasts some of the lowest labour costs in Europe and best store performance figures as

well.

Want to find out more about our WFM solution, the R&R-Web 3 product suite, and how it

can help you to control your labour costs and improve store performance, do not hesitate

to get in touch with us at: 0318 582828.

De Vries WFM is part of Info Support International Group, an international

organization with over 350 employees and specializes in software

development. Headquartered in Veenendaal.

- plan people smarter -