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Always overworked or overstaffed? The importance of predictive workforce management: why no business should have to choose between overworked employees or excessive labour costs.
In most businesses, people are the most valuable—and pricey—assets. This is especially true for the retail and restaurant space where happy staff equals happy customers and higher revenue. But stretch your team too thin, or have them sitting idle and quality inevitably takes a hit: unhappy staff also means unhappy customers and lower revenue.
Accurate predictions allow companies to prepare for busy periods effectively, ensuring they have the right number of employees, in the right positions, at the right time to meet customer demands without overworking their staff or losing money. Being able to schedule your workforce effectively is also crucial for maintaining an engaged, efficient and loyal workforce that are happy to give top-notch customer service.
Easier said than done (by humans)
Translating sales numbers into staffing requirements is a complex task. Different menu items and sales channels (eat-in, delivery, drive-through) require different staff compliments — weekday sit-in lunch looks different on a payday, and very different from the drive-through service on mid-month Monday evenings. Even within the same day, lunch and dinner usually require different combinations of staff to handle the change in demand, such as higher demand for individual servings at lunchtime versus family meals over dinner.
One of the most significant challenges in workforce management is predicting those peak hours and demand fluctuations, with precision. And ‘humans’ are notoriously bad at it. We simply aren’t able to account for and weigh each of the many the factors that influence demand. Forecasting the demand around movable holidays, like Easter or Ramadan, variable events such as paydays, long weekends, even using backward-looking approaches, is particularly challenging for ‘humans’. This is where predictive analytics and advanced forecasting models have a significant impact. We’ve seen a reduction in forecast errors by two-thirds, plus we’re able to completely eliminate the outliers.
Reduce Forecasting Errors
by Two-Thirds
It's not just about plugging numbers into a machine
Predictive workforce management isn’t merely a numbers game. We leverage a broad mix of data, from economic trends, to specific sales channels, combined with 7 years’ of industry-specific knowledge to produce an optimal staffing blueprint, per location, hour and position for each of our clients.
We can break down our forecasts to predict busy periods within a day and across different channels, such as eat-in, delivery and drive-through. This granular level of detail allows us to translate sales forecasts into specific staffing requirements by position, channel and menu mix. And we have put ourselves to the test. In an experiment where we pitted our forecasts against those made by some of Hungry Lion’s store managers, our forecasts were consistently 20% more accurate than even the most experienced managers.
Ready to improve your workforce management?
"And we have put ourselves to the test. In an experiment where we pitted our forecasts against those made by some of Hungry Lion’s store managers,
our forecasts were consistently 20% more accurate than even the most experienced managers."
And the benefits?
The advantages are multifold: from significant wage savings by avoiding overstaffing during slow periods and understaffing during peak times to proactive long-term planning, allowing companies to anticipate changes and prepare their workforce accordingly.
1. Improved service times and customer satisfaction
The right number of the right staff, in the right position during peak periods leads to faster service times and higher customer satisfaction. When employees are not over- or under-worked, they can perform their tasks more efficiently and provide better service to customers. It also frees up managers, freeing up staff to focus on what they do best: managing staff and serving customers, instead of being locked into complex sales calculations. And, of course, satisfied customers are more likely to return and ‘spread the word’, increasing the company’s revenue and reputation.
2. Wage savings and operational efficiency
Optimising staffing levels based on accurate forecasts also leads to significant wage savings. Businesses can avoid overstaffing during slow periods and understaffing during busy times, ensuring that labour costs are aligned with customer demand. This efficiency not only reduces unnecessary expenses but also improves overall operational performance.
3. Proactive long-term planning
Businesses are able to plan for long-term workforce needs. By anticipating changes in sales channels, customer behaviour, and external factors such as school holidays, companies can proactively recruit and train staff. This proactive approach prevents the need for last-minute hiring and ensures that new employees are adequately trained before being placed in demanding roles.
4. Enhanced employee well-being and retention
The most profound impact, however, is on employee well-being and retention. Predictable schedules and balanced workloads foster a supportive work environment, reducing burnout and turnover rates, reducing the need for constant recruitment and training. Employees are more motivated and loyal, ready to deliver exceptional service. It’s a win-win situation: employees feel valued and supported and a strong, motivated workforce ready to deliver excellent service is maintained.
5. Understanding and addressing staff needs
To achieve sustainable workforce management, businesses must understand the factors driving employee satisfaction and retention. This involves analysing various aspects such as the number of shifts employees work, the certainty of their schedules, and their overall workload. By identifying and addressing these factors, companies can create a more engaging and supportive work environment. For instance, providing employees with certainty in their schedules allows them to plan their personal lives better, leading to improved work-life balance. Ensuring that employees are neither overworked nor underworked helps maintain their motivation and productivity. By fostering a positive work environment, businesses can reduce turnover rates and build a dedicated and loyal workforce.
In the delicate balancing act of workforce management, predictive analytics emerges as the hero, rescuing businesses from overworked staff and excessive labour costs. Retail and restaurant sectors, where the happiness of employees directly influences customer satisfaction and revenue, benefit significantly from precise staffing predictions, creating a sustainable workforce management strategy that benefits everyone—employees, customers and the bottom line.
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