October 2006
Workbrain looks at the next wave of workforce optimisation - using traffic data to refine workforce deployment.

In the face of shrinking margins, demanding customers and stiff competition, today's retailers are searching for a significant competitive advantage. Given that a retailer's greatest asset, and largest controllable expense is its workforce, retailers implementing a solution that optimises schedules and gives real-time visibility into labour practices will reduce costs and improve sales and customer service.

Often retailers rely on historical sales data to optimise schedules. However, technological advancements have enabled retailers to use their store's transaction numbers during a certain time period, and compare them directly to traffic data to improve conversion rates. By leveraging this consumer traffic data with sophisticated workforce management tools, retailers can create schedules based on both historical sales data and the potential sales opportunity represented by customer flow. This concept, "scheduling to the opportunity," is an approach that focuses not on past business performance, but rather on the potential retailers can achieve.

Leading retailers who implement workforce management solutions to optimise the deployment of their people, do more than reduce labour costs - they can focus on improving customer service and increasing comparable store sales. Consumers are increasingly sensitive to levels of service they receive and are quick to react when dissatisfied. Therefore retailers must begin to focus on the top-line benefits of optimisation to drive bottom-line improvements.

But what steps can retailers take to address the concept of incorporating store traffic to create competitive advantage through enhanced workforce management?

Many retailers are burdened with managing workforces through disconnected, antiquated processes i.e. spreadsheets or whiteboards. A 2005 Workbrain Survey showed that whilst retailers are convinced of the benefits of a workforce management solution, 62.8% of respondents still use inefficient practices in the form of semi-automated or manual processes.

Technology can help reduce overstaffing by matching labour with demand and by eliminating understaffing to ensure optimal sales are realised. Achieving this optimal balance of employees to customer demand requires sophisticated forecasting and scheduling solutions. The benefits include effective enforcement of pay and work rules, reduced costs, improved internal communications and compliance. These benefits strengthen a retailer's ability to thrive in a competitive industry by lowering costs and improving productivity.

By using 'real-time traffic intelligence' schedules can be created for anticipated traffic as well as historical sales data. Unlike transactional data, which only tells retailers what happened after a shopper has made up their mind, traffic data is highly actionable. The data helps executives make the most informed labour decisions and ensure sales associates are scheduled to service shoppers entering the store and ultimately, further increase sales. When traffic data is used as a key input to an industry-focused schedule optimisation solution, retailers can ensure the right people, with the right skills, are in the right place at the right time - at the lowest possible cost - transforming a retailer's business performance.

Retail experts agree the true indicator of a store's potential is accurate traffic data - quantifying the store's incoming sales opportunity. This shift in perspective represents a quantum leap for retailers. Those who implement solutions to "schedule to the opportunity" are arming themselves with tools to make better business decisions and gain a significant competitive edge.

Client Insight: Holt Renfrew

THE CHALLENGE
Holt Renfrew wanted to optimise its labour management processes with a workforce management solution that integrated seamlessly with existing HRMS and Payroll systems.

ISSUES FACED

Inaccurate and untimely workforce information and records;
Manual, intensive processes for calculating and recording time and pay rates;
Inefficient, paper-based staff scheduling and time and attendance system;
Limited management control of overtime, payroll accuracy and holidays;
Lack of visibility into key workforce metrics.

WHY WORKBRAIN?
Workbrain was chosen for its proven technology and robust functionality, meeting Holt Renfrew's requirements for a single suite of tightly integrated workforce solutions. The service-oriented architecture tied seamlessly to existing systems and could interface with their biometric readers.

RESULTS

Payroll accuracy has increased and driven a gross payroll reduction of up to 4.5%;
Significant reduction in time spent by managers on administrative tasks;
Real-time insight into store staffing costs;
Faster decisions on resource allocation improving customer experience.

Contact
Workbrain
www.workbrain.com