If you have ever owned or managed a restaurant or retail store, you know the struggle of the last minute call-out or the employee who quits, leaving you stranded with no talent.
Often times, you have to go fill a shift to ensure you don’t lose a revenue opportunity, risk a poor customer experience by being understaffed or have to close your doors all-together.
Companies with small labor pools will always be at a disadvantage, be scrambling at the last minute and be more likely to provide a poor customer experience. Consider these two scenarios:
- In Company A, Melissa owns a fast-food pizza company that typically staffs 7 people on a Saturday night. 3 are general Kitchen/Counter Team Members, 1 is a Manager and 3 are delivery drivers. Melissa has 12 people that work for her, which means that she’s used up over 50% of her labor pool on Saturday nights. When Prom, final exams or summer comes, she’s often scrambling last minute to fill new job positions, train and on-board employees. Quality suffers when her employees must take on more responsibilities to cover for the missing individual(s), time-to-door delivery starts to slip, customers write bad reviews.. and the stress seeps in.
- In Company B, Bob also owns a fast-food pizza company that staffs 7 people too. The only difference is that Bob has a labor pool of 24 people who are trained and ready to work at any given moment. On a Saturday night, he only uses 33% of his labor pool. In the event of a call-out, an employee quitting or a last-minute change of schedule for an employee, Bob is covered. Forge sends out a push notification to all his employees and someone in the 66% comes to pick up the shift.
Now consider another scenario:
- In Company A, Melissa still only has 12 employees and only two of them are servers. When Server #1 asks for time off last-minute to take her Dog to the vet, Melissa says no because she knows the likelihood of Server #2 being able to come in last minute is slim-to-none. Server #1 quits because she knows Bob down the street is hiring.
- In Company B, Bob now has 25 employees in his labor pool and 5 servers, because Server #1 from Melissa’s restaurant joined his labor pool. When Server #2 asks last-minute for the night off to study for a big exam, Bob doesn’t worry – he has 4 other servers who get push notifications about Server #2’s change in plans on Forge and Server #5 agrees to work.
Now if you’re a business owner, do you want to be Melissa or Bob?
You might be thinking – we’ll there are other costs associated with large labor pools – mostly increased liability.
But at Forge, we’ve found that the decrease in cost with a larger part-time vs full-time staff, the reduced costs associated with last-minute hiring, and the lost revenue and brand reputation from providing a poor customer experience deeply outweigh the increased liability. Not to mention, our software makes it dead simple for your entire team to be hired and scheduled (and rescheduled if they need to change shifts) without you lifting a finger.
If you’re interested in learning more or modeling how this can work for your business, schedule a demo here.