Labour Cost Control Flashcards
What is the labour turnover rate?
A ratio of the number of departing employees to the total number of employees on the staff, usually expressed as a %.
What are the steps involved in managing high labour turnover?
Recruiting, interviewing, selecting and hiring replacement personnel.
How does sales volume affect productivity per employee?
Increases in sales volume will result in increased productivity per employee up to their maximum capacity.
What is the impact of size on labour cost control?
Larger operations have more flexibility in controlling labour costs because cooks can be assigned more tasks as needed.
How does effective training affect employee turnover?
Restaurants with effective training programs tend to have employees who report greater job satisfaction and better service.
What are some common areas covered in labour legislation?
- Minimum wages
- Provision for overtime
Define minimum wage.
The least dollar wage before deductions that an employer is permitted to pay each employee in a covered category.
What influence do labour contracts have on labour costs?
The presence/absence of labour contracts influences labour costs, including wages and fringe benefits.
What are fringe benefits commonly associated with unions?
- Vacation pay
- Sick pay
- Employees’ meals
- Health insurance
What is deferred compensation?
Compensation received by an employee after the conclusion of their period of employment.
List two important forms of deferred compensation.
- Pension benefits
- Social Security
What factors affect employee productivity?
- Training
- Employee compensation
- Management quality
- Work environment
What is the impact of using part-time staff on labour costs?
The use of part-time staff vs full-time staff can significantly impact labour costs depending on wage differences.
How does location affect labour costs?
Labour costs vary by region; rural areas often have lower pay scales, while urban areas have higher pay scales.
True or False: The layout of a kitchen affects employee efficiency.
True
What is the impact of equipment condition on labour costs?
Old equipment in poor condition often requires more time to accomplish tasks compared to newer equipment.
How does the number of hours a restaurant operates influence labour costs?
A restaurant open for more meals will generally have higher labour costs than one open for fewer meals.
What role does competent management play in labour costs?
Good management creates a conducive work environment that optimizes performance at minimal cost.
What is the relationship between menu options and labour costs?
Menus with a greater number of options result in higher labour costs due to increased preparation time.
Fill in the blank: The cost of labour is always affected by management’s ability to _______.
[plan, organize, control, direct, and lead]
How does weather affect restaurant labour costs?
Poor weather can reduce sales volume, leading to more employees on hand than required.
What is the significance of training in foodservice operations?
Training ensures employees understand established standards and can perform at that standard.
