Managing Labor Costs

Productivity standards are developed by considering the labor hours needed to perform assigned tasks. During a designated observation period, employees are asked to perform their jobs, adhering carefully to all established policies and procedures. They are carefully observed to ensure compliance. For example, cooks would be expected to follow all standard recipes, take scheduled rest breaks, and meet the required quality standards. This process of analyzing productivity is called a position performance analysis.

The employee is observed over several shifts. At the end of each shift, the supervisor completes a report, as shown in Figure 13.4, which indicates the name of the employee observed, the meal period considered, the number of meals prepared, the number of hours worked, and number of guests per labor hour. The supervisor also records comments on workflow, adequacy of service, problems that arose, etc.

Figure 13.4 Position Performance Analysis

Position:

Name of employee:

Shift:

Supervisor comments:

General comments:

Recommended meals/labor hour for this position 30

Performance review by:

Restaurant Manager

Figure 13.4: Position performance analysis

Tools like this can help you identify the productivity of each staff member. Perhaps one cook is capable of producing 40 meals to the same standard in the time it takes another cook to produce 30. The first cook is more productive, and therefore a better choice to schedule on the busier evenings. You may also use this analysis to set goals and identify development options.