Labor standards are used to determine schedule needs and evaluate labor performance
LABOR PRODUCTIVITY MEASUREMENTS
There are several significant measurements used to evaluate labor. No one measurement alone can give an accurate assessment. We suggest using all of the measurements below in combination to first schedule labor, and then to compare the actual ratios with the scheduled.
Labor standards can be determined by observing guest service levels at different levels of staff and sales. Labor standards should be applied to each job position. Covers tends to be a more significant measurement than sales dollars. There should be consideration for the strength of individual workers scheduled for a given shift
LABOR STANDARDS: set quality and quantity levels of staff for different levels of sales.
NOTE: A Lower Labor Cost/Sales does not necessarily mean better labor control. A higher average check for the day will increase sales with the same amount of covers, yielding a lower Labor Cost %, but the same Labor Cost/Cover ratio. A lower Labor Cost% could also be an indication of understaffing, which will have a negative affect on guest satisfaction.
The key to using labor standards and productivity measures to evaluate labor performance is to look at the daily performance with the week-to-date totals. It is impossible to project business volume accurately every day, so daily labor productivity will fluctuate. But a manager who controls labor will see consistent productivity over the course of a week.