A labor standard is at its simplest definition, the amount of time required to complete a task or set of tasks to an agreed upon outcome. This could be the number of rooms or credits a housekeeper should complete in a shift to meet the expectations set by the property, or the number of covers a server should typically handle in a meal period while still giving the level of service agreed to for that restaurant.
Labor standards must be established for each job, and are the basis for determining how long it takes to perform tasks associated with a specific job. A study is often performed that records how long a task should take, to develop accurate labor standards. Once determined, the labor standards are associated with KBIs. Standards can be Shift Related, Task-based and/or Spread related.
Why Use Standards?
Standards provide a tool for consistent performance that can be tracked and measured. They provide defined direction for the employee performing the task in that they know specifically what is expected of them.
How are Standards Developed?
Standards can be developed through a number of different means, the most common being through historical analysis of hours and volumes to simply determine how the operation has performed to date. While this will give a baseline approach, it does not substantiate these standards as being correct.
True standards are developed through processes involving task lists, actual observations of work, and times to complete this work. This is followed up with checklists detailing that the work has been completed to a level of acceptance set by the property to match what it offers its guests.
KBI's are the Key Business Indicators on which all staffing guidelines are built. They are countable factors, which, either alone or in various combinations, assist in determining staffing needs when combined with appropriate work standards. For example, a KBI for a morning coffee break is a relevant variable for the Stewarding job that performs this task. When you create the labor standards for this job, you will attach this KBI and any others that are relevant. Note that there must be at least one KBI attached to every job.
Over time, historical data helps you identify the percentage of a KBI that ordinarily occurs at any time, on any day. LMS uses this data to determine demand. Based on the labor standards, requirements are calculated and employees are assigned to work at the right time to meet the demand.
Types of Labor Involved in Standards
Labor standards can be based on combinations of different types of work. The most common are referred to as Fixed and Variable. Fixed work is a set amount of tasks and time required, regardless of any increase or decrease in volumes associated with the work. For instance, there is a certain amount of cleaning required in a lobby and hallways simply to open the doors for any level of business. This cleaning, which is not based on any predicted business level, is referred to as fixed.
Another example of fixed work is in the kitchen. The labor required to set the kitchen for a meal, otherwise known as mise en place, would be fixed labor. The kitchen will have a set amount of fixed preparation that has to take place to simply open the doors of the restaurant. After that, the work becomes variable according to how many guests are forecast for the meal.
On the other hand, there is work that is totally variable. This is work that technically does not need to be done if there is no volume predicted. Cleaning a guest room is purely variable work. If there is no one staying in the room there is no need to clean it. (There are always exceptions, but the general rule here is that this is variable work.)
In LMS, there are numerous combinations of the above work types that can be used when building standards for different jobs. In addition to the different types of labor, there are also many ways to measure and assess productivity for positions once the work has been agreed to.
Standards can be based on the many different measurements. The following are the most commonly used:
- None – Straight 8 hours (or whatever the work rule calls for) per day. This standard is commonly used for support positions such as accounting and human resources where shifts are not dependent on guest demand. Standards are based on total hours needed for the day.
- Minutes per Unit – Used in restaurants to designate how many minutes a server actually devotes to a cover (guest). Also used for kitchen work.
- Hours per Unit – A different way to look at the same information as above.
- Units per Hour – Could also be used for housekeeping rooms or even restaurant covers.
- Units per Shift – Used frequently in Housekeeping to allot room attendant work. For instance, 16 credits per shift or 15 rooms per shift.
Volume Ranges – Ranges can also be used, especially in banquet situations, to allocate a fixed number of hours for ranges of volumes. For instance: 1-25 covers would take 8 hours of cook time while 26 - 50 covers might take an additional 4 hours or 12 hours total. This is a good method when increases in volume do not necessarily need identical increases in labor.