Archived How are store sales figured and applied to hours
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oath2order
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??????
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As likely a formula as any.
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What about the standard deviation and the confidence interval?
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The stl makes sales projections for the month & gives them to dtl, spot Corp gives the hours. Then, cuts hours when sales are not made.
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At one time I had found on here a post that said for every $1k in sales lost/gained you lost/gained 10 hours. I thought it was saved in my large archive of info, but I can't put my finger on it... There is a formula akin to what I mentioned I just don't remember the exact numbers to plug in to it...
BUT Jan. falls outside of that especially in looking to clean up all the over spending from the last few months of the year. 100 hours just went POOF here, after a previous 100 loss. Several others in the area same thing.
Hopefully I find it or some one else posts it.. when I was actively following it, it seemed pretty accurate... Now I just deal with the hours given to me and then watch them evaporate.
BUT Jan. falls outside of that especially in looking to clean up all the over spending from the last few months of the year. 100 hours just went POOF here, after a previous 100 loss. Several others in the area same thing.
Hopefully I find it or some one else posts it.. when I was actively following it, it seemed pretty accurate... Now I just deal with the hours given to me and then watch them evaporate.
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It Used to be, for every thousand dollars we were up or down in sales, we had to add or cut 7 HOURS.
It was easier to cut right then and there when we were down in sales, with this formula.
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That must be an interesting process.
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Ash has the correct answer.
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You can't add fractions together until you make the denominators the same number. Just saying.
Uh, the STL does not make the sales projections. Corporate makes those. If, however, the STL thinks the projections are going to be way off (say the nearby university is going back to school a month earlier because they switched from quarters to semesters), I think they can ask for it to be adjusted.
I don't know exactly how sales converts into payroll hours, but I bet it's fairly complicated and sucks (mostly because it gives so few hours, but that's more profitable so that's what they're going to do).
However, I do know how the flex calculator works. Basically, if you do really well or really badly (in sales) during the month, you gain or lose payroll for that month. Each month starts fresh. There is a cushion of 3%; if your sales are within 3% (above or below) your forecasted sales, then you do not gain or lose any hours. After that, you gain/lose the same percentage of payroll that you have done in sales.
For example, if you do 2.5% better than your forecasted sales, you will not gain any payroll. But if you do 4% better than forecast, you will earn 1% of your payroll. If your monthly payroll is 10,000 hours, then you will have gained 100 hours. If you do 3.01% better than forecast, you gain .01% of your payroll. If you do 10% worse than forecast, you will lose 7% of your payroll.
This means that if your store starts out by missing sales by 5% for the first week of the month, your STL might start slashing hours. That could be a trend that continues and makes you lose tons and tons of hours by the end of the month. Plus, one bad snowstorm (like some parts of the country are seeing now) can easily make you miss sales by tens of thousands of dollars, or potentially even close the store for the day (closing might actually be better because you'd save the payroll, I guess). A store could be doing 2.90% worse than forecast going into the last Saturday of the month (just barely making enough to maintain payroll) and then miss that Saturday by $30,000 and end up missing payroll for the month.
I don't know exactly how sales converts into payroll hours, but I bet it's fairly complicated and sucks (mostly because it gives so few hours, but that's more profitable so that's what they're going to do).
However, I do know how the flex calculator works. Basically, if you do really well or really badly (in sales) during the month, you gain or lose payroll for that month. Each month starts fresh. There is a cushion of 3%; if your sales are within 3% (above or below) your forecasted sales, then you do not gain or lose any hours. After that, you gain/lose the same percentage of payroll that you have done in sales.
For example, if you do 2.5% better than your forecasted sales, you will not gain any payroll. But if you do 4% better than forecast, you will earn 1% of your payroll. If your monthly payroll is 10,000 hours, then you will have gained 100 hours. If you do 3.01% better than forecast, you gain .01% of your payroll. If you do 10% worse than forecast, you will lose 7% of your payroll.
This means that if your store starts out by missing sales by 5% for the first week of the month, your STL might start slashing hours. That could be a trend that continues and makes you lose tons and tons of hours by the end of the month. Plus, one bad snowstorm (like some parts of the country are seeing now) can easily make you miss sales by tens of thousands of dollars, or potentially even close the store for the day (closing might actually be better because you'd save the payroll, I guess). A store could be doing 2.90% worse than forecast going into the last Saturday of the month (just barely making enough to maintain payroll) and then miss that Saturday by $30,000 and end up missing payroll for the month.
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Hours just get cut. It doesn't matter how much you beat sales, they're going to cut anyways for some bullshit like "other store in the district is missing payroll so all the stores have to help make it up".
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Let's stop all the bullshit and tell the truth. The bosses get incentives for cutting hours and maintaining payroll.
I don't think anyone was denying that. Profit is the bottom line of all of this, and decreasing payroll is one of the easiest ways to increase profits.
mrknownothing
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But none of the variables have been defined as numbers, so it doesn't matter yet.
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But none of the variables have been defined as numbers, so it doesn't matter yet.
Only Spot knows the variables, and he isn't talking!
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I've never worked for an Stl that didn't want to use every hour of payroll he could just for his bonus. All he has to do is MAKE payroll to get his bonus. Every Stl I've had has wanted to spend every hour he could.
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