Top-down labour management and training

by Alastair Scott | Mar 14, 2025 | Thought Leadership

As we all know, hospitality is a people business and people have emotions, views and habits which they may be resistant to changing. This means decision-making can be an emotive subject, and labour costs and targets are probably one of the most sensitive areas to address. Opinions vary widely on what constitutes the ‘right’ labour cost, making it one of the most hotly debated topics in the business. While some managers believe that senior management’s cost-cutting measures hinder sales, especially during peak periods, others argue that excessive spending leads to inefficiencies and wasted resources. Striking the right balance is no small feat.

Often when these managers leave the business to run their own, they immediately invest in labour with the sound knowledge that their business will thrive. They see an opportunity to prove themselves right and show their previous bosses to have been mean, corporate profit chasers. But typically, after about twelve months of investment in labour, which often translates to losses, they hit the cold economic reality that they cannot afford as many staff and have to cut back. In doing so, they may inadvertently undercut their own operations, leading to reduced service quality and, in some cases, the collapse of their businesses. These experiences impart a hard-earned lesson: overstaffing is far riskier than understaffing.

The key takeaway from these scenarios is that effective labour management requires precision. A corporate target for labour costs is futile if managers lack the training to achieve it. Understaffing and overstaffing are symptoms of the same problem: a failure to manage labour strategically. For instance, running a shift with five team members can produce dramatically different outcomes depending on the quality of leadership and planning. Without effective shift leadership, even the best resources can be underutilised, leaving teams feeling overwhelmed and wrongly attributing poor performance to understaffing.

This is where the importance of top-down labour management and training really becomes noticeable. Setting standardised labour practices and clear expectations alongside introducing feedback loops and hands-on training will be extremely effective in embedding better labour practices into the business.

A poorly managed afternoon shift, for example, might neglect critical slack tasks, setting the evening team up for failure as they struggle to catch up. This domino effect not only impacts operations but also affects team morale and customer satisfaction.

This underscores the industry’s pressing need for labour management training. Training not only equips teams with practical skills but also helps change entrenched habits that hinder progress. Poor habits, such as inefficient time management or inadequate task prioritisation, are pervasive. Training teams, managers and ops managers to be better is the only way to help them. But how? Breaking these habits requires a carefully balanced approach that combines enforcement with support—what might be termed the ‘carrot and stick’ method. Tightening rotas without providing the necessary training leaves employees frustrated and ill-prepared, while training without enforcing changes risks making the effort redundant. It is only by combining these two elements that businesses can break free from the cycle of poor service and high staff turnover.

The path to improvement cannot be rushed. Effective change requires targeted training that addresses specific aspects of labour management. For example, quieter shifts present unique opportunities to reset and prepare for busier periods, but these opportunities are often wasted without proper training. Similarly, kitchen management demands specialised training to ensure efficiency and coordination in one of the busiest and most critical areas of any hospitality business. Each aspect of labour management comes with its own set of challenges, and each requires a tailored training programme to address them effectively.

Ultimately, the success of any labour management strategy hinges on a commitment to investment—not just in staffing but in training. A well-structured training budget is not an expense; it is an investment in the future success of the business. Approaching labour with the same mindset as before but with fewer people is a recipe for failure. Instead, the focus must shift to delivering the right training, supported by precise execution and a willingness to adapt. This is the path to long-term success in an industry where the demands are constantly evolving.

Alastair Scott is CEO of S4labour and owner of Malvern Inns.

Getting Ready for Labour Cost Increases in April

by Abby Henson | Feb 20, 2025 | Thought Leadership

April’s wage increases will soon hit in full force, leaving operators in need of smarter operational strategies to offset costs and maintain profitability. It will be no easy feat, with labour costs expected to increase by around 8.3% in total, before additional increases outside of legislation. 

“This increase is just the starting point, to retain talent and ensure fairness, many operators will feel pressure to raise wages across the board, not just for those on the NLW. This could lead to a significant overall increase in labour costs.”
Alastair Scott, CEO of S4labour and owner of Malvern Inns.

Supervisors often earn just a bit more than their team, and sometimes assistants, working more hours, earn less. This issue also affects kitchen staff, putting pressure on the industry to maintain pay differentials, which is unsustainable. 

We estimate industry pay could rise by 10%, depending on factors like the proportion of young workers and under-21s paid at higher rates. 

Differentials aside, for an average site that takes £20,000 a week on a 30% labour ratio, this will be an increase of roughly £25,896 a year. Tackling this cost alone will require operators to plan labour more effectively, to stay on target every week and drive productivity in teams enough to keep reporting profit and not loss.

As a pub or restaurant operator, how do you plan on approaching these increases?

In our guide, we want to help you get ready for April by helping you face the upcoming cost increases with the smartest operational strategy. We cover everything from forming new habits (and what habits to form), to utilising data.

Download and read now:  

The Benefits of Time and Attendance Systems in the UK Hospitality Sector

by Tony Rhodes | Feb 18, 2025 | Thought Leadership

As one of the largest employers in the UK, managing labour effectively is no easy feat for the hospitality industry. Accurate time and attendance tracking is hugely important to reduce fraud, ensure fair pay and maintain legal compliance, and the use of digital systems to do this makes this process a lot easier. In this article, we are outlining the benefits of time and attendance systems in hospitality:  

The Hidden Payroll Drain: How Just 6 Extra Minutes a Shift Adds Up to £172.77 Per Employee

Let’s talk about lost minutes—because they cost more than you think. 

Meet Sarah, a team member working in a busy restaurant. She clocks in and out for three shifts a week, every week. But before using S4labour, small discrepancies in timekeeping meant she was often overpaid by six extra minutes per shift. 

Sounds tiny, right? Barely worth worrying about? 

• Six extra minutes per shift = £1.20 in extra pay (at £12/hour) 
• Three shifts per week = £3.60 of accidental overpayment 
• 48 working weeks per year = £172.77 lost per employee 

Multiply that across a team of 12 employees? That’s over £2,000 lost per year – just from minor payroll inaccuracies. 

How does this happen? 

• Employees forget to clock out exactly on time. 
• Managers round up shifts instead of down. 
• Manual timesheets and payroll adjustments introduce errors. 

How does S4labour fix it? With Photo ID clock-ins, geo-location tracking, and real-time sync with the rota, employees only get paid for the hours they actually work. That’s £172.77 saved per employee, per year—straight off your wage bill.

1. Reducing Time Fraud and Payroll Inaccuracies

Time fraud in the workplace can take many forms, from buddy punching—where employees clock in or out on behalf of absent colleagues—to managers rounding up hours and manual timesheet errors. These discrepancies can lead to inflated labour costs, payroll errors, and unnecessary expenses for businesses. Digital T&A solutions, such as facial recognition, or mobile GPS tracking, effectively eliminate this risk, ensuring that only the right employees log their working hours. 

• Prevalence of Time Theft: Time theft, including practices like buddy punching, can lead to significant financial losses. Studies indicate that companies may lose up to 7% of their profits due to time theft. For instance, a company earning £100,000 annually could lose £7,000 to such practices. (iris.co.uk) 

• Employee Theft Statistics: In the 2023/24 period, there were 6,244 reported cases of theft by employees in England and Wales. Although this reflects a slight decrease from the previous year, the numbers remain concerning. (statista.com)
  

2. Paying Staff for Actual Hours Worked

Traditional rota-based pay systems often result in discrepancies where employees are paid based on scheduled shifts rather than actual hours worked. This can lead to overspending on labour or, conversely, underpayment disputes. Digital T&A captures real-time attendance data, ensuring payroll aligns precisely with worked hours. 

• Unpaid Overtime: Over five million UK workers collectively worked approximately two billion unpaid hours in 2018, averaging 7.5 hours per week per worker. This unpaid labour equates to about £32 billion annually. (journals.sagepub.com)

3. Compliance with Legal Requirements

Hospitality employers must adhere to various employment laws, including: 

• Working Time Regulations 1998 – Ensuring staff do not exceed maximum working hours and receive adequate breaks. Employers are responsible for taking reasonable steps to ensure compliance. (visitbritain.org) 
• National Living Wage (NLW) & National Minimum Wage (NMW) – Guaranteeing workers are paid in accordance with their logged hours. Accurate T&A systems help prevent underpayment issues, which can lead to legal penalties. 
• Visa and Right-to-Work Compliance – Preventing unauthorised employment of individuals with restricted working hours (e.g., student visas). Automated T&A systems provide auditable records, reducing the risk of non-compliance with visa restrictions and right-to-work regulations, avoiding potential fines from regulatory bodies such as HMRC or the Home Office. 

4. Enhanced Workforce Productivity and Efficiency

With accurate attendance data, managers can analyse trends to optimise shift patterns, reduce labour costs, and enhance operational efficiency without compromising service levels. 

• Impact of Time Theft on Productivity: Time theft not only leads to financial losses but also affects overall productivity. For example, an average employee might steal up to 4.5 hours per week, amounting to six weeks of lost productivity per year. In monetary terms, this could mean a loss of approximately £3,300 per employee annually, based on the UK’s average hourly salary of £14. (iris.co.uk) 

5. Improved Employee Satisfaction and Transparency

Clear records eliminate disputes over hours worked and foster a culture of accountability, leading to higher job satisfaction and retention rates. 

• Fair and Decent Work Agenda: Implementing fair work practices, including accurate time tracking, contributes to better working conditions. This approach emphasises fair wages, reasonable work hours, and job security, aligning with the principles of the Fair and Decent Work Agenda. (hospitalityandcateringnews.com) 

Conclusion

Implementing a robust time and attendance system in the UK hospitality industry is no longer a luxury – it’s a necessity. By reducing fraud, ensuring fair pay, and supporting legal compliance, businesses can create a more transparent, efficient, and financially sustainable workforce. Investing in the right technology is a step towards operational excellence, benefitting both employers and employees alike.