Labor Management and Cost Control

Competencies Understand labor budget Identify labor hours based on FTE and attendance Create staff schedule based on attendance and conducive to quality programming Manage and monitor labor cost Recruiting/Wages Collaboration with Labor Team

Labor budget Target Budget: The Staff Wages % of the Net Tuition determines total wages allocated for Program Staff. April 2015 $ x36.1% = $33682 This suggests the Total Wage allocation is $33682 to spend for program staff for the month. Or $ per week (4 wk cycle). Divide the Total Wage by the average hourly wage to determine how many hours can be utilized each week. $ / $11 = hours (average wage can be found on the weekly scorecard. Divide the total wage by to total hours)

Director must understand the difference between the Actual vs Target Budget Scenario #1 WORST CASE! In this example the actual net tuition greatly exceeded the target but unfortunately the labor cost also greatly exceeded the target It is agreeable that a higher revenue means higher enrollment and may require additional labor cost but should it have been $11552 more?

Director must understand the difference between the Actual vs Target Budget Scenario #2 Bad Case! In this example the actual net tuition was not met and the labor costs were overspent 31.6% of $ would yield $33438 for labor program staff cost However, $34256 was spent or 32.4%

Director must understand the difference between the Actual vs Target Budget Scenario #3 Best Case! In this example the actual net tuition target was met and labor cost budget was not over spent Although % would have yield $35467 for labor, only $32930 was spent or 30.7%

The most important factor for the labor cost is to determine hours required. These hours are based on daily attendance for each room. The hours should be sufficient maintain compliant with licensing regulations and provide a service conducive to our Brand Promise. You can proactively determine what your weekly labor dollar allocation is every week based on actual net tuition using the labor projection tool to the right. In this example, 786 hours is required. A successful team will ensure to use 786 hours even though the budget allows for more. In the event the variance in hours was negative, a successful team will continue to be vigilant about labor hours, make adjustments to the schedule when possible, continue to work with all other supports to increase enrollment / revenue.

OnCare Profiles Full Time Equivalency is associated with labor hours. Ensure accurate OnCare entries ACTIVE children must have: Enrollment Date, Primary Classroom, Program The Program selection is based on the ratio used in that particular classroom and not necessarily based on the child’s age. Schedule NOTE: School age children attending summer camp should have their schedules changed to reflect an accurate FTE and the Program should be changed to Summer/Off Track. Run a Data Download report to verify each child ‘s profile as the information above. All Active employees must have: Classroom assignment (for Teacher Assistants not assigned to a particular classroom because they are “Floaters”, select “floater” for their classroom). Position Title ( should be the SAME as their job title in the payroll system). a schedule based on their assigned hours/shift.

Tracking Attendance Tracking attendance is critical in developing a schedule that will ensure adequate coverage for ratios, breaks and relieving staff on time. Directors must ensure compliance of the following: OnCare Check In/Out All families including managers and teachers with children are required to check their child in and out daily Verify for compliance using time and attendance reports Address any non- compliance immediately KidReports Ensure complete training for all teachers Check Director dashboard to ensure compliance Address any training and no-compliance issues immediately Flash counts Directors /AD’s/LTP’s must record cumulative attendance every 15 or 30 minutes during drop off and pick up for every room Review attendance tracking data to determine patterns of attendance and adjust staff schedule accordingly

Directors must create a WRITTEN Daily Staff Schedule Based on attendance Indicates the number of children expected in that room on that day List every teacher assigned to a room and include her hours as well as break time Enter the total hours each teacher works Total labor hours required in the infant room on Monday Indicate the teacher(s) covering breaks as well as the time Record attendance every minutes during drop off and pick up There is a tab for each day of the week The template for this schedule is on the intranet and includes instructions for initial set up

The only way to determine the total labor hours required for any room is by tracking attendance. Once that number is determined, it should not flex drastically unless there are significant changes in attendance and/or enrollment. Track attendance daily! Not only when your labor is in trouble There will be changes in attendance through out the year that may require the need to adjust some schedules such as Summer and during the holidays.

Monitoring labor hours Monitor hours used vs hours required using the Staff Hours Summary Report from OnCare. If it was determined 100 hours are required for Monday but the Staff Hours Summary Report indicates using more, it is necessary to investigate the reason. Monitor clock in/out and breaks Audit time cards periodically through out a pay period or at least when the time cards are printed and signed by employees. Address any issues with the employee instead of sending a general or memo. Monitor overtime Schedule meetings during a holiday week when possible. Utilize part time employees for marketing and/or after hours events when possible. Monitor Compliance It’s important to train new employees on expectations for labor. It is also necessary to review the expectations/policy/protocols with tenured employees as well Be consistent. Be Fair. Address all non compliance issues promptly.

Scorecard review

SILK ROAD Step One Post a job requisition as soon as there is a need to add or replace a staff Post one requisition for each job needed. Step Two Review resumes promptly. If applicant is a “walk in”, invite them to upload their resume. Step Three Complete the Offer Extended Part I and Part II before the persons first day of employment

Wage Negotiation Consider the Education and Experience of the candidate Consider the position – a candidate with an AA filling a Teacher Assistant position may have less responsibility than a Teacher. Consider the financial status of the school – the lower end of a wage tier may be a better financial decision when the target revenue is not met and/or labor is overspent,

Complete Forms Accurately Use the most up to date version Status Change Form Complete top section with employee’s ID, Name, Center Location and Effective Date Provide information in Comment Box as of ten as possible Submit all terminations/resignations promptly New Hire Action Notice (director section) List education and credentials. Be specific for example when a candidate has “some college” add non ECE related or ECE related. Do the same for any Degree listed. List verified years of experience Request certificate, degree or transcripts to verify education and credentials

Labor Team Collaboration Recruiting - additions/replacements Transfers Promotions/Demotions Status Changes Terminations/Leaves New hire packets Report sub hours weekly