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Oct 3, 2016 6:47:59 PM
In order to effectively manage a club, decisions have to be made on a daily basis involving employees and how to manage them. Clubs take on the same risk as a large business when it comes to labor law compliance, but many do not have the same resources to confidently face evolving regulatory compliance, and many are finding liability for non-compliance costly.Read More
Jul 31, 2013 3:25:00 PM
What is the single biggest expense item in your club's budget? If you are like most clubs, your answer is labor and related expenses. For an average club, payroll, taxes and benefits combines to be 53% of total expenses. So, if your club is looking for ways to reduce expenses (and what club aren't these days), labor control is the first place you should look for savings. Plus, now more than ever, employers need control of employees' time and attendance data with flexible reporting to comply with increasing Labor Law changes and to ensure proper reporting on real-time hours to meet those requirements.
Nov 12, 2010 9:53:00 AM
Some time ago I was asked about our club’s work week that went from Friday to Thursday and why we paid every two weeks instead of semi-monthly or monthly as some clubs do. There are several important reasons for this that every manager should know, as they relate to the needs of employees and the efficiency of the operation.
1. With the bi-weekly pay period every employee can look forward to a paycheck every two weeks on Fridays. Most, if not all, employees live paycheck to paycheck and a more frequent schedule of paychecks makes it easier for them to budget and allocate their income to cover ongoing expenses.
2. Given the overtime pay requirements of the Fair Labor Standards Act where non-exempt employees are paid time and one half for all hours worked over 40 in a week, we start our work weeks on Friday to have our historically busiest days of the week (Friday, Saturday, and Sunday) early in the period.
This way, if we incur employee shifts of greater than 8 hours on those days due to high business levels, we have the opportunity to adjust schedules or send employees home early on our traditionally slower days (Monday through Thursday), thereby avoiding overtime costs. Over the life of an operation, this could potentially save hundreds of thousands of dollars in overtime pay.
3. As we have often said, payroll costs are the single largest expense in hospitality operations and require the greatest vigilance to control. One of the best tools managers can use to understand and control those costs is to benchmark payroll hours and costs on a pay period basis.
With semi-monthly or monthly pay periods, a manager cannot compare like to like – a primary caveat of benchmarking. With a semi-monthly pay period the number of days in a pay period can vary from 14 to 16 depending upon month and leap years. Also, since pay periods can start and end on any day of the week depending upon the calendar (instead of the constant and comparable Friday through Thursdays in bi-weekly pay periods), there may be some pay periods with anywhere from 4 to 6 weekend or busy days. This makes it impossible to compare pay periods on a like to like basis, thereby diminishing the value of benchmarking. The same applies to monthly pay periods.
4. While reading the book Nudge, Improving Decisions About Health, Wealth, and Happiness, I came across this interesting statement:
“It is true, of course, that some nudges are unintentional; employers may decide (say) whether to pay employees monthly or biweekly without intending to create any kind of a nudge, but they might be surprised to discover that people save more if they get paid biweekly because twice a year they get three pay checks in one month.”
What a pleasant surprise to find that our club, though unintentionally as it may have been, had created a “nudge” to help its employees save more for their futures!
Ed Rehkopf, Senior Vice President, Club Resources International. Club Resources International is a portal website for the club industry providing a wide array of operational resources, articles, and best practices for the club industry. The website can be found at www.myclubresource.com.
Topics: time and attendance, Human Resource, business process, club management, professional development, labor management, employee management, club payroll, reduce costs, save time, benefits, changing payroll
Sep 8, 2010 8:16:00 AM
An estimated 60% of clubs who make the decision to change payroll providers do so effective January 1st. If your club is looking for reduced costs, improved efficiencies or better integration, now is a great time to evaluate your payroll process for January 1, 2011 improvements.
Because so many clubs are facing the challenge of shrinking budgets and decreased administrative staff levels, any opportunity to potentially reduce expense and save time deserves a closer look. Payroll processing is a great candidate to evaluate given the time consuming and tedious nature of handling a club's payroll.
Should your club evaluate its payroll/HR systems?
Take a moment and consider when the last review of your current provider occurred. With some payroll companies, particularly some of the larger providers, fees seem to creep up each year. Payroll companies often offer discounts and low rates to acquire new clients with the strategy of increasing margin through add-on charges and price increases.
If your club has not evaluated their payroll provider in more than a year, then it is definitely time to take a fresh look and ensure your club is receiving the maximum value for return on investment. The following questions can help with making the decision to evaluate your club's current payroll provider and take a look at other options available.
When to start the process for a January 1 conversion...
If your club is considering a January 1 conversion, the time to begin the process is now. In order to take a systematic approach, adequate time must be allowed to do your homework and research your payroll options before making a decision.
To allow adequate time to do a reasonable evaluation and cost/benefit analysis of making a change, you should target evaluating systems during the September/October time frame and make a decision no later than early November to be prepared for a January 1 conversion.
Budget a couple of weeks for information gathering and analysis. Following your research stage, set appointments with vendors to see the work flow and understand the specific strengths of each system.
Finally, request a detailed proposal to evaluate the soft and hard costs of a change. Don't fall into the trap of evaluating on price only but look at improved efficiencies, time savings, risk management, improved morale/retention and other factors that are related to the payroll and human resource function of your club.
What criteria drives the clubs' payroll decision?
As with any major decision, the first step is take an honest appraisal of your current system to identify its strengths and weaknesses. Once this step is completed, you can move forward with comparing your current solution to other available options.
Some considerations in evaluating companies for a fit with your club include:
Kick the tires at ClubPay's 4th Quarter Webinar Demonstrations...
If you just want to kick the tires and see what your options are, ClubPay is offering a complimentary, no pressure, no hassle set of webinars in September. This will give you insight into our two most popular club management solutions - ClubPay and ClubTime. ClubTime is an integrated labor management and time keeping solution and ClubPay is our full-service outsource payroll solution.
Hope you found this post helpful; you can register for the webinars on our website at Attend a Webinar.
Aug 6, 2010 2:14:00 PM
Are you finding you are expected to do more with less in your position as Club CFO or Controller? For some time now, we have observed an industry trend towards increasing the role of the CFO/Controller as it relates to human resource management.
I am privileged to speak with Club GM's, Controllers, CFO's and HR Directors on a daily basis and frequently get feedback similar to the above described trend. While the words may change between conversations, the common theme is club staff increasingly are wearing multiple hats.
In many cases, this involves the CFO/Controller picking up additional HR responsibilities. If this is hitting you square between the eyes, download our complimentary white paper to help you establish a strategy to effectively deal with these changes.
Download "Help, I'm the Controller, not the HR Director" here and let us know what you think.
We hope it helps!
May 4, 2010 11:36:00 AM
Recently I completed 90 days of the most intense exercise regimen I‘ve ever endured. While the program was worthwhile for the physical benefits, the real value came from the lesson I learned in self-discipline. The principle the program is based in: deciding, committing and succeeding, have reshaped the way I do business and approach life...
The program I participated in is called P90X (http://www.beachbody.com/) and many of you may have seen the infomercials, partaken in the program or had friends who have participated. The program's marketing message of "muscle confusion" and "getting ripped in 90 days" succeeds in motivating but fall far short of preparing one for the intensity of the workouts. However challenging, it was worth it and I did achieve some tangible results which I'll share with you in a moment.
Understand, when I say intense, I am not just referring to the difficulty of completing the exercise but the amount of time dedicated to each workout and the frequency of workouts. Each workout lasts between 60 and 90 minutes and the program calls for working out 6 times a week. Given a busy lifestyle including two businesses and three kids (ages 3, 5, 13), the commitment aspect was more intimidating to me than the physical aspect. I am sure many of you can relate - making a commitment like this is a life changing decision.
By the end of three months, I had exercised 72 times in just 84 days! There were a few times I worked out twice in one day or did not work out until after midnight but one way or the other, I survived each one. In addition to time constraints and stretching my physical limitations, there were many other barriers that arose during the course preventing me from reaching my goal.
For example, I suffered from severe allergies and endured three sinus infections during the first six weeks of the program. Many of my workouts occurred inconveniently on the road in hotel rooms, at odd hours and in between business meetings. Additionally, my three year old daughter decided to create a new challenge of her own by refusing to go to sleep until she was absolutely sure I had completed the night's workout. She would find evidence of this by observing me lying in the floor out of breath and in a heap. OK, bedtime!
The workouts seemed physically impossible (at first) and there were obviously not enough hours in the day to complete them. Furthermore, the interruptions, distractions and "reasons" not to do it were nearly immeasurable. Interestingly though, it turns out the real value gained from this experience came about as a result of these and many other challenges encountered. It seemed with every additional obstacle, I began to realize how compelling it can be to procrastinate or give up. How simple it is to find a "reason" not to follow through and then rationalize your decision.
How often does this same principle play out in our work and personal lives? We know what we want to do and make a commitment but ultimately identify a reason not to keep going. Think about your job - what frustration have you repeatedly committed to change but are still living with? What about your personal life? Do you have a relationship that needs repair, a habit that needs to change or a problem that needs to be fixed but you never seem to get to doing it?
Too frequently we stop one prayer, a single step or just shy of the required effort to reach our goal. It has been said, the tragedy of life is not "failure" but "lost potential" in all the times we gave up too early. This experience has affirmed my belief that perseverance is the number one predicator of success. Sure, we may get lucky now and then but think back to your biggest successes and I'll bet you will find a common theme. You kept getting back up when knocked down, you stuck with it when others gave up and you refused to yield to challenges. In short, you persevered.
I wish I could report that I had a total body transformation as some of the participants on the infomercial and website appear to have had; my physical results were not quite that impressive. However, I did see some significant improvements in weight, strength and flexibility. I lost five pounds of fat, gained six pounds of muscle, increased strength by nearly 100% and saw flexibility improvements beyond measure. I feel better, eat better, sleep better, have more energy and accomplish more daily which I attribute to the empowerment of an increased positive attitude!
In conclusion, I challenge you to ask yourself "Where do I need to step up my game?" Do you have physical, professional, financial or personal goals you want to pursue but keep finding a reason to give up on? If so, we invite you to share your goals and your success stories here by commenting on this article.
"You do not have to be great to start but you have to start to be great." -Joe Sabah
Mar 19, 2010 12:18:00 PM
I recently made a presentation at the HFTP Development Conference in New Orleans related to helping Controllers at Private Country Clubs deal with expanding human resource management responsibilities. In preparing for the presentation, I discovered there are a variety of conditions that are contributing to a potential "perfect storm" related to the payroll and human resource functions at private clubs. Within this blog post, I'll lay out what those conditions are and how they may affect your club. In part 2, we'll talk about what you can do to protect your club and yourself.
I call the current situation a "perfect storm" not to be an alarmist, but to bring attention to circumstances which are occurring in clubs today that may have a serious adverse affect tomorrow. The major factors influencing potential future issues include:
Let's dig a little deeper into each of these contributing factors and why it should matter to you, your General Manager and your Board of Directors.
Without doubt, we are in the midst of one of the more difficult economic times of our lifetimes. This means many people, including your club's employees are under financial duress and extraordinary stress. Even though your employees are working, they may have spouses or extended family members that are unemployed. They may also be dealing with a home foreclosure, short sale, evaporation of savings accounts and home equity or any of a host of stressful situations. These types of stressors sometimes spill over and can affect one's work life even when not directly related to one's job. Productivity, attitude and employee relations can all suffer and this can create problems, sometimes big, costly problems.
Unemployment rates are at historical highs and the "real" rate of unemployment is much higher than the reported rate. This "real" rate includes underemployed and those who have "given up". Additionally, unemployment compensation has become easier to get and has been extended well beyond the traditional allowable time line. This has a multi-faceted affect on clubs. You may find that a segment of your employees see unemployment as a viable alternative to working with reduced hours or working at all. This type of culture can be a morale and productivity killer. Additionally, who funds unemployment? The employer of course... brace yourself for a freight train of increasing premiums, it is coming. This will be a huge factor in future budget years.
We are living in a time when businesses in America are literally under attack. There are currently over 70 Acts affecting benefits, labor and employment and this is only on the federal level. Every state tacks on hundreds more laws and statutes related to how you hire, manage, pay and provide benefits to your employees and you are required to keep up with and comply with each one. If you don't, your club can be held liable and in many cases, you may be held personally liable as well.
Don't think this is a problem that is going away. In an average year, there are over 200 changes to employment related federal law again and all signs point towards increased regulation by the current administration. The very first bill signed by President Obama was the Lilly Ledbetter Act - extending the statute of limitations to file an equal pay lawsuit. Other examples of how this administration is making it more difficult on business (and private clubs are small businesses) is to greatly expand the qualification for the American Disabilities Act (ADA) and to extend and complicate COBRA Benefits.
Our next trend is simply a result of the first three factors. A poor economy combined with rising unemployment and growing regulation leads to an increase in litigation. Have you noticed the increased frequency and boldness of Trial Attorney advertising related to employment? If you can't find a job and can't pay your bills, just sue someone! It is easier than ever to do so and it is happening with increasing frequency. Business Week ran an article that stated Fair Labor Standards Act lawsuits have "exploded nationwide" and the problem has only gotten worse recently.
Finally, the icing on the cake is that in this environment, an industry trend is rising to eliminate so called "non-essential" positions (often including HR Director) and migrating these responsibilities on to another staff member (usually the Controller). In effect, at the most critical time to stay on top of HR issue, we are dumping the responsibility on a staff member that is most likely under trained and too overworked to handle these additional duties. This may indeed prove to be a "penny wise, pound foolish" strategy, only time will tell. What may happen is clubs may indeed find some short term savings from consolidating duties and reducing labor overhead but long term find themselves with much larger expenses and more ominous challenges.
Having solid payroll, human resource and compliance processes in place should be viewed as an investment, not an expense. Similar to an insurance policy in nature, you might save some money by canceling the policy in the short term but what happens if the club burns down?
Topics: outsource, tom howard, time and attendance, club management software, payroll, business process, club management, professional development, labor management, club payroll, reduce costs, save time, benefits, changing payroll
Nov 10, 2009 8:26:00 AM
Sep 28, 2009 6:53:00 PM
An estimated 60% of clubs who make the decision to change payroll providers do so effective January 1st. While mid-year conversions are typically very easy to make, if your club has not done so recently, it certainly makes sense to evaluate your options at year-end.