1. Maintaining Optimal Labor Cost
Computer Ingenuity Associates
Maintaining Optimal Labor Cost

2. “Why” – Answer the right question
WHAT
HOW
WHY

3. WHAT is Optimal Labor Cost
Labor Cost % Sales
Revenue
$276,792
Payroll Dollars
$49,150
Payroll Cost % Sales
(Payroll Dollars/Revenue)
17.76%
Occupancy
80.2%
Average Rate
91.57
Midscale
Labor Cost
Target
17% to
19%

4. HOW to Optimize Labor Cost
Tracking and Measurements
Labor Standards
Forecasting Volume and Revenue
Scheduling
Seeing problems before they occur
Cost of Turnover
Wage Survey
Benefits Survey

5. “Why” – Answer the right question
Success is not 0 – 1
Selling a room for “something” is better than it sitting empty
I need to keep my good employees working
We’re in our slow season
It will average out in the end
I don’t have time to do all that
My staffing is easy

6. “Why” – Answer the right question
OUR SAMPLE
Keys 75
Occupancy
80.2%
Average Rate
$90.00
Revenue
$1,724,625
Net Income
15%
$258,694
Payroll Reduction
-1%
17,246
Benefits Impact
Raw Payroll
$299,125
PT&EB (Burden)
$55,962
Burden % Payroll
18.7%
Payroll Reduction w/Burden
$20,350
Payroll Reduction % increase NOI
7.9%

7. Standards accurate at a micro level
CIA Software
Optimizing Labor Cost
Awareness
Habits
Standards accurate at a micro level
Balanced Approach to Labor Management
Meaningful conversation about Details not Averages

8. Labor Performance Standards
Both Consistent Service and Maximum Profit
Takes habit and bias out of scheduling
Prevents over or under scheduling
Makes service consistent
Creates accurate labor cost projection
Maximizes profit by controlling expense without impacting revenue
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9. Labor Tracking
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10. Cost of Turnover
Cost to Cover - # of days you are short an employee and someone is covering for them, or you are not doing their job.
Advertising – Newspaper or website fees to advertise openings.
Background Check – Cost of criminal background checks, drug test, etc.
Training – Cost of your (someone else) time to train an employee, taking away from other work.
Ramp Up – Cost of time that a new employee can not work a full shift or completely alone.
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11. How can CIA help? sales@ciasoft.com Midscale Partners
Computer Ingenuity Associates, Inc.
Hotel Labor Optimization
Midscale Partners
$400 per year license
Free analysis and recommendations