About the Episode
This is a “minisode” of “Corralling the Chaos”, focused on providing guidance for event staffing companies to improve their bottom line. Angela discusses several strategies such as speeding up invoicing, managing overtime, reducing the no-call, no-show rate, and managing state unemployment rates.
Meet Your Host
– Angela Alea: President & CRO of LASSO, Host of Corralling the Chaos
Overview
– Importance of cash flow and speeding up the invoicing process
– Issues with rounding up time for payroll
– Managing overtime and the importance of knowing overtime exposure ahead of time
– The problem of no-call, no-show and its impact on billable hours
– Importance of a good applicant tracking system
– Overlooking payroll and state unemployment rates
Listen
Watch
Takeaways
Takeaway 1: Utilizing automated time systems can significantly improve cash flow and invoice speed in the event staffing industry.
Angela opened the webinar by focusing on the critical issue of cash flow and speed of invoicing in the event staffing sector. Automated time systems were cited as key tools to accelerate this process: “the moment that the last staff clocks out, you should be able to prepare and send the invoice,” said Angela. Angela also highlighted that sophisticated time systems could handle complex calculations that often delay companies from sending out invoices.
Takeaway 2: Rounding time in payroll can cause unexpected costs and should be managed carefully.
Angela pointed out that many companies round up the time when paying their employees, which can increase several expenses such as overtime and workers’ compensation. “When you round up, time works. So in that example, they clock out at 350 and you’re paying them till four, you are increasing a number of things. You’re increasing your overtime expense… The other thing you’re doing by doing that is increasing your workers comp expense,” Angela explained. Instead, Angela suggested that rounding time should be used for billing, not payroll.
Takeaway 3: Proactively managing overtime can prevent unexpected costs.
Angela underscored the need for proactive overtime management to avoid unexpected costs. “Knowing ahead of time that you’re going to have overtime exposure, not after payroll, not when it’s time to invoice” was a key point made by Angela. Angela emphasized the importance of equipping supervisors with the tools and warnings to manage overtime effectively in the field.
Takeaway 4: Reducing the “no-call, no-show” rate can significantly impact the top line.
Discussing the common problem of “no-call, no-show” in the event staffing industry, Angela suggested ways to reduce this rate and increase billable hours. Angela recommended introducing processes and utilizing technology to minimize the impact of these lost billable hours.
Takeaway 5: Monitoring employee behaviors can minimize state unemployment expenses.
Lastly, Angela discussed the potential hidden cost of state unemployment and highlighted the need to track employee behaviors. “Are you tracking behaviors within your talent pool? Who’s showing up late? Who’s engaging when you ask them if they’re available, who’s responsible and showing up?” posed Angela. Angela suggested that monitoring these behaviors can influence the company’s state unemployment rate and ultimately save costs.
Insights surfaced
– Automated time systems can speed up the invoicing process and reduce the need for complex calculations.
– Rounding up time can increase overtime and workers comp expenses, which can be reduced by accurate tracking of working hours.
– Knowing overtime exposure ahead of time can prevent companies from absorbing the cost.
– A high no-call, no-show rate can lead to significant financial losses. This can be reduced by implementing processes and technology.
– Investing in a good applicant tracking system can help in recruiting and maintaining a reliable workforce.
– Payroll processors should be paid per active person, not per position booked or per check issued.
– Tracking behaviors within the talent pool can help manage state unemployment rates and reduce payroll taxes.
