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Overcoming Shortages Through Supplier and Labor Management Strategies

Overcoming Shortages Through Supplier and Labor Management Strategies

American hospitality businesses are coming up on the two-year anniversary of sudden shutdowns. While some recovery has brought improved revenues, major industry-wide labor and supply shortages have hampered operations and guest sentiment.

To overcome these factors, organizations need to take advantage of every opportunity to attract and retain workers through savvy labor management tactics while maintaining strong supplier relations.

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Managing Supplier Relations

We’ve discussed the importance of choosing the right suppliers and negotiating good purchasing deals with them. However, it’s just as important how you manage ongoing relationships, particularly when it comes to receiving and paying for goods.

The theory is simple: make sure you get and pay for exactly what you ordered. Which means checking you’ve received the right quantity of the right product in the right condition and within the use date – and especially that the delivery note and invoice match the order.

Thankfully, you can take steps to make it second nature. First, set specific days of the week for deliveries where possible. Accepting and checking deliveries should be part of the regular routine, rather than an ad hoc activity.

You should have a copy of the order on hand to check against items and quantities. Use three-way matching to make sure you are in line with any pricing agreements in place. This means making sure that the invoice matches the goods received note, original order, and any amendments that you have recorded at delivery – not just quantities, but price differences too. By automating the three-way matching process with the right purchase-to-pay solution, you can set up your deliveries so you only deal with exceptions, saving crucial time.

There is an element of labor management in supplier relations. Operating as a company vendors want to do business with creates mutual trust and promotes long-term efficiency. Maintain clear and advanced communications, make ethical decisions to honor your contracts, and pay on time.

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Attracting Talent

Effective labor management begins weeks before a first shift. Having an engaging and stress-free hiring process attracts more applicants, allowing managers to find the best candidates of the labor pool. With the proper applicant tracking system, candidates have a short and engaging application process while AI analyzes submissions, promptly putting the best resumes in front of managers. This saves managers time while helping to fill the missing pieces in your teams in a timely manner.

Once an offer is extended, managers need to emphasize new-hire onboarding to ensure employees are set up for long-term success in their positions. Training throughout the past two years has involved much more trial-by-fire learning than managers would otherwise prefer, but developing short and engaging training materials can partially mitigate this.

Further nurturing skills over the long-term through continued training programs helps ensure even tenured employees have a better understanding of their jobs. Over time, upskilled employees become perfect (and cheaper) candidates for management positions.

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Retaining Current Talent

The labor shortage likely has some of your teams in a pinch, and overburdening them with extra responsibilities will only drive further burnout. To keep these employees passionate and engaged, you’ll need to consider making changes to tangible benefits and work-life balance.

To retain burnt-out workers in a tight labor market, you’ll need to think outside the box. Adding traditional benefits may do the trick, but many operators do not have the extra budget to commit to these long-term.

Instead (or in addition), look for effective, easy-to-adopt perks that bolster your labor management and incentivize employees to stay on. Increasing hours for part-time workers, allowing more PTO days, offering paid sick leave, and advanced scheduling notice are just a few perks employers have adopted to ensure talent remains bought-in.

On-demand pay offers another perk to your employees, one that eases financial stress through early access to paycheck funds. Since it’s an early withdrawal of funds earned from prior shifts and not a loan, this perk comes at no cost to employees.

Fuego provides daily pay services – also at no cost to integrate for the employer. For HotSchedules customers, Fuego On-Demand Pay offers earned wage access – while leveraging existing HotSchedules data. In addition to early paycheck withdrawals, workers with HotSchedules and Fuego can view their clocked shifts to calculate available funds and view earnings potential for upcoming shifts.

With supply chain and labor shortages holding up operational efficiencies, operators need every tool at their disposal to drive adequate revenues. Providing a full range of back-office tech solutions under a single sign-on, Fourth empowers your teams to maximize revenue and minimize costs.

Schedule a demo today to see which solutions your business can best utilize: https://www.fourth.com/request-demo/

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