Labor Standard Benchmarking - A Part of the Process

Although your property’s actual labor performance should be evaluated using labor standards driven by actual volumes, as a part of the development process your models should be benchmarked against your competitive set and applicable industry norms. The trick is to understand the true value of the exercise.

Each job class should be carefully defined in order to fully understand its current labor structure in terms of paid productivity (satisfying volume demand), paid non-productivity (breaks, lunches, pre-shift meetings), and OCS Work (Opening, Closing, and Side Work). Each aspect of the job class labor structure can then be benchmarked against both your competitive set and industry norms, but (and this is a big but), this exercise will only get you so far with overall labor optimization.

Too often I see organizations search for a “quick fix” through benchmarking - without taking the time to ensure that all aspects of labor management are in place. Volume forecasting, employee scheduling, and headcount staffing all have to be correct before labor efficiencies can be realized. Individual components of the job class structure may pass a benchmarking test but this in itself does not ensure that optimum labor efficiencies will be realized.

I am, however, a big believer in benchmarking as the part of the labor standard development exercise because it applies more reality to each aspect of the labor structure I am modeling. Benchmarking can often point me toward efficiency opportunities when I am required to model results that fall outside of my experience with norms (but I also have to be prepared to learn something new when this occurs). I do not, however, view benchmarking as a quick fix or as an easy way to optimization. Benchmarking as a tool can help others to better understand how the current operations "fits" into the its competitive set or within the industry at large but in of itself will not bring about what you are truly looking for - optimized labor effectiveness. It is just a part of the process.

Table Games Scheduling Biases

Many of you seem to be interested in the efficient staffing and scheduling of Table Games. For sake of the discussion, here are my Table Games Dealer and Supervisor schedule development biases:

1. Do not start variable labor when hourly forecasted table demand is declining. Solid advice for all scheduling strategies, not just Table Games.

2. Do not start variable labor more than two hours in advance of hourly forecasted table demand increasing (one hour in advance would be even better if your forecast is great). This strategy gives Shift Management more time to get games open and provides the potential to "spread" play more smoothly as the day opens.

3. Schedule staffing to allow all required tables to stay open two hours after hourly forecasted demand peaks. Shift Management can reduce staffing as necessary as the play dies off late.

4. Develop the entire schedule working from the top (peak hourly table requirements), down to the base (minimum hourly table requirements), not the other way around. Just watch how much inefficiency is created early in the day.

5. Scrutinize the minimum staffing scheduled for all game types, but especially watch minimum Craps staffing. Most Table Games Departments create a separate schedule for Craps Crews, keep in mind that these Dealers can (and will), often deal other game types during their scheduled shifts.

Put another way, here are the practical results of my biases:

1. Early Out potential should be planned for on midweek Mid Shifts.

2. Early Out potential should be planned for on weekend Grave Shifts.

3. Early Out potential should not be planned for on any Day Shift.

For example, if hourly demand appears to decrease at 2:00 AM Monday - Friday, and holds until 4:00 AM on Saturday and Sunday, for efficiency I would recommend that the overall pattern of primary start times be 6:00 AM, 2:00 PM, 8:00 PM, and 10:00 PM (with additional shifts layered in to "fit" demand, probably at 10:00 AM and, say either 4:00 PM or 6:00 PM). The Midweek "Early Out" shift would be the 8:00 PM start time; this is where I would concentrate Part-Time Dealers on the schedule. On weekends a part of the 10:00 PM start time would represent Early Out "opportunity" so I would again populate this start time with a number of Part-Time Dealers but would plan my 10:00 PM closers (the number required from 4:00 AM to 6:00 AM), as being Full-Time.

Now you may suggest that developing a Dealer and Supervisor schedule based on a peak staffing plan can in some cases violate my bias of not bringing in labor more than 2 hours in advance of Day Shift demand rising (based on early guest demand not typically rising until 10:00 AM or later), this is because I place an even greater emphasis on staffing to maximum guest demand periods. The number of daily 6:00 AM starts would therefore need to be scheduled carefully so as to only extend the 2:00 AM to 6:00 AM midweek minimums (or the 4:00 AM to 6:00 AM weekend minimums), until two hours prior to the forecasted Day Shift hourly table demand beginning to increase.

A Dose of Reality

Want your labor standards to be accepted and used by an operational department? Consider adding a dose of reality.

The most common mistake I see made by Casino Labor Analysts is that they attempt to model labor standards in a manner completely foreign to the target department’s operational strategy for deploying labor. Often the mistake is manifested by the analyst modeling a productivity standard instead of a true labor standard; the two standards are, more often than not, quite different in design and in how each type is used.

Here is a quick test you can apply to your newly-created labor standard – can it be supported (worked), by the department at all hours of the day and on every day of the week under all operational conditions? If so, you have probably got your methodology correct. If not, go back to the drawing board.

Another reality mistake common with Casino Labor Analysts is with their use of the wrong volume indicator to replicate demand for employee services. A quick tip – revenue indicators should rarely used to replicate demand for service. In most cases you should stick with volume indicators representing guests, such as food covers, floor occupancy, hotel arrivals, planes, trains, and automobiles. Ok, maybe not trains or planes, but you get the idea. Casino employees for the most part service internal and external guests, so stay with a guest-driven demand reality as you develop job class labor standards.

Speaking of volume indicators, you should be careful summing a really big one with a really small one in order to create a single demand driver. An example of this would be the summing of Slot Occupancy (big number), and Table Game Occupancy (smaller number), for a given time period into a single indicator called Casino Guests. While potentially appropriate when used to drive Security post assignments, this overall indicator will not work so well for other job classes such as Casino Beverage Servers (where you will need to model individual labor standards based on discrete guest types in order to gain acceptance).

You should also reality check to see if the labor standard can actually be scheduled by the department. To do this you first need to calculate the number of full-time and part-time employees your standard calls for on a weekly basis, then, model daily schedules using these headcounts. After you make it all fit compare your results to the department’s existing schedule to understand just how much change (and potential pain), will be associated with them converting to your standard. Remember, too much pain = not much gain.

Finally, for financial reality your labor standards will need to be converted into the language of the Property budget. Here is when productivity modeling usually comes into play as the department will require financial approval for the labor to be used and for the associated employee benefit costs.

Employee Schedule Change Management

Few things are as important to both casino employees and casino employers as the work schedules in place; therefore, making changes to employee schedules should reflect the interests of the entire organization and should be supported by all levels of leadership. Determining what factors identify the need to change an existing employee work schedule should be carefully considered with the interests of both operations (the work), and employees (the workers), then balanced to be realistic for both. Many Casinos have attempted to adopt a “just in time” strategy for developing employee schedules, creating multiple start times and shifts lengths in an effort to closely match changes in hourly demand, only to discover later that the resulting schedule is difficult to manage operationally and drives dissatisfaction and turnover with their employees. Again, realism is the key and the final test which should be applied before change is implemented.

Strategic operational changes, such as adjustments to hours of operations, the opening of new venues, or the creation of new work assignments will often establish the driver for employee scheduling change. The need for change can also be driven by seasonal demand patterns, the creation or movement of casino marketing or promotions, significant employee turnover, or by a change to the Department or Property organizational structure. For whatever the reason, the need for change should be identified through careful analysis by Operations, Finance, and Human Resources in order to fully understand the risks and rewards associated with changing employee schedules.

Key to the identification of need for change is an understanding of the volume indicators that represent demand for employee services with the use of indicators, both forecasted and actual, and to test the current employee work schedule for validity. Several aspects regarding volume indicators should be kept in mind. First, the indicator must be relevant to the work being performed by the Job Class. Second, the indicator should available from a reliable source, preferably from a system source instead of being manually created. Finally, the indicator should be readily available for all required time periods being forecasted.

One of the common mistakes made by casinos is with their frequent use (and abuse), of actual, system-reported volume data. Yes, actual volume is required to fuel trend forecasting models and to create labor forecasts, but analysts should take care not to perpetuate negative business performance by using actual data from time periods when guest service fell short or when targeted revenues were not realized. Casino Analysts should not indiscriminately feed actual data to their models from time periods representing good business performance as well as bad, instead, a careful review of business performance should be undertaken to insure that volume data used to produce forecasts is an accurate representation of the desired business performance.

Finally, the volume forecast must be translated into the number of employees required with the results being applied to the current employee schedule to see if a change is actually needed. Adjustments to current employee schedules should be resisted unless significant operational and financial outcomes are to be realized as a result of making the change.

Besides, in the Casino and Hospitality business an even bigger need for change may be just around the corner. Don't wear out your employees unnecessarily.

Quality versus Costs

It should come at no surprise that a property which has really good labor margins also usually has really good guest feedback scores. Why? Because more often than not that property’s leadership is focused on using labor resources to provide a quality guest experience instead of simply being focused on reducing labor expenses.

At first this may sound like a paradox, how can a quality focus actually improve labor margins and reduce labor costs? Two ways: first, because if guests appreciate and recognize the quality experience they receive they will return more often and spend more money (higher volumes typically result in better margins), and second (listen closely now, labor managers and labor analysts), the delivery of a quality experience requires a lot more planning and analysis effort than if you simply wanted to cut expenses. To deliver quality you will be forced to adopt a more detailed and disciplined approach to labor management and because of this you will find more opportunities to reduce unnecessary expenses along the way.

Simply put, quality requires discipline and focus, cost cutting, well, that just takes cutting.

Delivering quality takes flawless execution from everyone in the organization and most especially from the labor planning and the labor scheduling aspects – get these parts wrong and no matter how comprehensive and detailed the hiring, training, management, or service initiative are the whole thing will fall flat. Organizations that are relentlessly focused on providing quality do not miss with their allocation of labor resources; they find their costs savings along the way as they eliminate waste and re-focus their staffing to provide the type of experience that brings their guests back.

A wise person once said that if you focus on quality then quality will improve and costs will go down. If you focus on costs then costs will increase and quality will go down. Hands down the best advice I ever got in this industry. As you analyze and plan for labor requirements and how they are to be allocated look first from a quality perspective, if you are successful then very often the costs will take care of themselves.

Desperate Email

Want a sure sign that the General Manager of a Casino or Hotel has lost confidence in the labor plans in place at their property? Look for their desperate email! You know, the one that comes out on the day before a major event, that comes out on the Friday before a federal holiday weekend, that comes out just before a visit from the corporate office – it reads something like this – please watch your labor! Let’s control overtime! Make sure that your Managers look for early out opportunities! Please help me, I’m desperate!

Want to know another sure sign with the sending of desperate email? It means that the General Manager has not taken the time to fully understand and to be an integral part of the labor planning activities at their property. Why? Because if he or she had actually taken the time to understand and to be a part of the plan then either the email would come out all the time (if the plan were under development and needed encouragement), or would never come out at all (because the plan in place is mature, tested, understood, and reliable). Knee-jerk messages are symptomatic of knee-jerk management, and of lazy management to boot.

As a property leader my message to Managers before a big event is to relax! Have fun! You have worked hard to prepare for this, so enjoy the action that being at a busy property brings! Aren’t these the reasons we got into this game in the first place? Don’t we live to see our guests having a great time making memories at our properties while we enjoy our biggest revenue and profit days? We have analyzed our prior performance over similar events and time periods. Weeks in advance we planned out every aspect of the event with our Marketing and Operational Departments. We have forecasted our anticipated volumes and we have scheduled our employees accordingly. In short, we are ready, and the last minute is not the time to second-guess ourselves. Let’s have some fun and watch our Department Teams in action!

If you are a property leader and you find yourself at the keyboard ready to generate some desperate email, ask yourself, why? Why do I lack the confidence that my Managers can plan in advance and that they can execute under pressure? What part of the labor plan needs more attention so I can be more confident of the outcomes? What do I need to do to become more involved in pre and post-forma marketing analysis? What message do I really want to send to my Managers and Supervisors on the eve of a big event or weekend, one of encouragement or one of fear?

Go ahead and start typing, because in the end you either have to get busy or get desperate.

Understanding Minimum Staffing Levels

No question 2009 has been a tough year on the Casino and Hospitality Industries. Low guest counts and reduced revenues have made the past year one of the most challenging for operations. For those of you in labor analysis, however, there has been one bright spot to all of this – there is no better opportunity to truly understand minimum staffing levels than during prolonged periods of low volume.

Okay, let’s get this clear from the beginning – no one likes (or wants), low volume to occur. It is times like these, however, when your organization needs solid analysis on minimum staffing levels more than ever, because your operators are probably experimenting with never-before used strategies to manage their labor margins. Managers can see a new picture of their operation during periods of low volume and are highly motivated to try new strategies for delivering great guest service with less.

I can’t tell you how many times I have been told by operators that the minimum staff required is different from one day of the week to the next. Don’t buy it, a true minimum staff requirement should hold up under all time periods. Volume demand should always carry the staffing requirements up from its base, getting your operators to understand this concept will help you gain acceptance to the overall staffing plan and will help when employee schedules are created using your analytical results as a guideline.

Also remember that the true minimum staffing requirement may be zero, with coverage picked up by another Job Class or by a Manager. Always apply a reality check to your proposed staffing adjustments, my favorite is, can your guests tell that you have made a change? After revising your staff plans has your sequence of service been compromised during low-volume time periods? If so, go back to the drawing board. And don’t experiment on your guests – try out your revised staffing plans with mock openings to truly understand the impact your adjustments will make on service delivery.

The Enemies of Labor Expense Management

For your consideration I would like to present a rogues gallery of the Enemies of Labor Expense Management (listed here in no particular order):

Expense Enemy #1 - Poor Employee Scheduling

A.K.A.: Bad Planning, We’ve Always Done It This Way, We Need a Schedule Re-Bid.

Here’s a news flash for you Casino and Hospitality Finance Executives – those FTEs counts you are trying so hard to manage did not just appear out of the void, that labor was planned to be there several weeks ago when the schedules were posted. It is amazing to me how much effort is put into managing labor after it has already been worked and how little effort it takes to effectively control expenses if (1) employee schedules are based on standards driven by accurate forecasts and (2) the posted schedules contain the appropriate allocations of Full-Time and Part-Time Employees. By the way, you can maintain employee satisfaction with scheduling if you create fairness and consistency with your work rules.

Expense Enemy #2 - Excess Full Time Headcount

A.K.A.: We are the Employer of Choice, We Can’t Hire Part-Time, It’s Too Hard to Manage Part-Time.

This Enemy has been hiding out for years on the Benefits Line, but, as the Recession has turned over many rocks, look what was found blinking underneath – too many Full Time Employees! In many cases the over-hiring of Full Time was brought about because Leadership had simply talked themselves out of hiring Part Time, not realizing that some jobs are inherently part-time (i.e., most toked and tipped positions), and that the appropriate use of Part-Time staff would actually insulate their Full-Time staff from negative turnover (because Part-Timers will, in most cases, happily work evenings and weekends). This enemy is hard to get under control (usually through attrition or layoffs), but easy to prevent (new-hire and replacement requisitions managed by FT and PT headcount staff targets based on accurate labor standards).

Expense Enemy #3 - Indifferent Management

A.K.A.: We Needed the Overtime, The Budget is Wrong, We Are Short Managers.

Great quote from Yogi Berra - "I never blame myself when I'm not hitting. I just blame the bat, and if it keeps up, I change bats. After all, if I know it isn't my fault that I'm not hitting, how can I get mad at myself?"

Hmm, sounds like several SVPs and GMs I have worked with over the years. Control indifference by creating management accountability for controlling labor expense, by recognizing and rewarding Managers who actually control their labor expense effectively, and by providing training and support for Managers who need additional help with controlling their labor expense.

Expense Enemy #4 – Lack of Management Systems

A.K.A.: We Don’t Have the Time, We Are Trying to Get Open, We Don’t Need a System, We’re Not Big Enough.

Ignorance is not bliss when it comes to managing a business. Yes, a comprehensive business intelligence / labor management system will take some time to implement, and yes, there will be a learning curve. But think of it this way: every dollar you save on the Salary, Wage, Overtime, Training, and Benefit Expense Lines can be re-invested in Marketing (driving business), and in Guest Service (keeping business). No matter how large the Operation is, the right Business Intelligence tools can empower Leadership with visibility into how they can improve the bottom line. Ignorance is the real enemy here because a comprehensive Business Intelligence System geared to proactive labor management, once properly implemented and utilized, will save you money. Don’t talk yourself out of one.

Traits of a Great Labor Analyst

A few weeks ago I posted on the merits of hiring analysts on the basis of potential or skill. Later, while discussing this topic with a good friend the conversation turned to identifying what traits actually make up a great labor analyst. While we agreed that no one characteristic was most important, here are some of the common strengths we found as being consistent with the great analysts we have worked with in the past:

Entrepreneurship – Great analysts approach their job as if they were building their own business. Call it being resourceful, call it taking initiative, the very best know where to get information and how to get things done. They look outside the box for new and valuable reporting products and analytical services to offer their customers (be it Finance, Operations, or Human Resources), and develop client relationships that keep their customers coming back. One of the first things I look for when initially working with an analyst is how much difficulty I have competing for their time – if they already have a steady stream of activity being generated by their Property’s Department Leadership then I know that they have a good “business” going.

Personal Skills – A great analyst is adept at building trust relationships with Operations. Let’s face it, from an Operator’s perspective a meeting with the labor analyst if barely preferable to a having root canal work done. Great analysts interact well with others and are skilled in asking questions and leading discussions, as a result they create relationships that are built on a mutual understanding of both fiscal and operational goals. Operators will actually want to partner with them because they trust the analyst to accurately represent the operational environment in which they work, and it is trust that brings about decisions and agreements.

Business Knowledge – Great analysts almost always have a varied background, either from multiple businesses or from having worked at multiple Properties. Never falling into the “this is the way we do things” rut, they bring a larger perspective to the table based on a rich background of operational experience. An observation (and this is perhaps why so many large Casino Companies seem to struggle with labor and operations analysis) – many organizations regard analysis positions as “entry level” and as such candidate are often hired directly out of school with little or no actual business experience. Hmm.

Being “Sharp” – Call them analytical, say they have technical skills, or just refer to them as being really, really smart. Analysts go by a lot of descriptions; I just say that the best of them are known as being “sharp.” Usually the Property GM will label them in this manner, when you hear this term referred to an analyst you know you may just have something. Note – the best analysts seem to be able to discuss technical concepts with Operations without becoming “preachy” or talking down – I have witnessed some of the smartest analysts get nowhere because they wanted to wear their intelligence on their sleeves. Real intelligence knows how to frame a discussion to get maximum value and buy-in. Trust me, the last thing Operations wants is to think that they need to go back to math class in order to understand the message.

Focus – Great analysts have the ability to focus on providing business value. They have a full understanding their organization’s strategic and tactical goals and find new a creative ways to solve business problems with their output. Efficient and effective, no opportunity is lost by a great analyst when it comes to delivering value, be it a report format, a budget review, a training exercise, or just as a meeting participant. Great analysts look through and use seemingly mundane tasks as opportunities to further business performance. They stay on point, never rest on their laurels, and embrace a “what have you done for me lately” attitude in their output.

These are just some of the traits we identified as being present in the great labor analysts we have worked with. How many of these characteristics can you apply to your own analysis staff?

Shift Work Design and the Responsibility of Analysis

Much has been written on the potential impact of Shift Work on Employee Wellness, especially when an overnight shift is required. The Human Species by nature is diurnal, as such we naturally organize our activity around a day-night 24-hour cycle called a Circadian Rhythm where most activity takes place during the day and sleep takes place during the night (some mammals are nocturnal and do the opposite). Within this 24-hour cycle are rhythms of our body’s alertness, temperature, and a variety of other physiological functions; central to the theory of Circadian Rhythm is the concept of an Anchor Period, or, a 3-4 hour period when our bodies demand for sleep is strongest in order to preserve the day-night cycle. Loss of anchor sleep potentially disrupts the natural 24-hour cycle and can lead to chronic fatigue, a variety of illness, and a loss of productivity. Preservation of sleep during the Anchor Period preserves the Circadian Rhythm and potentially offset the negative aspects of performing night shift work.

While an individual may develop over time their own unique Anchor Period, it is generally recognized that the period between 2:00 AM and 6:00 AM is when our body’s natural demand for sleep is at its strongest. Now contrast the 2:00 AM to 6:00 AM Anchor Period for sleep with the three classic shift design strategies:

Continental Shift – Most often used in Europe (although I have seen this shift used in some Table Game Departments), the Continental Shift sets up a 2:00 AM start of day.

Casino Shift – Developed originally to coincide with the Gaming Day (drop-to-drop), the Casino Shift normally sets up a 4:00AM start of day.

Production Shift – Designed around factory production schedules and set up to correspond with the 24-hour Pay Day, the Production Shift normally sets up either a 7:00AM or a 8:00AM start of day.

When reviewing the three basic night shift patterns the value of the Casino Shift becomes immediately apparent, as this design affords its participants the ability to sleep at some point within the 2:00 AM to 6:00 AM Anchor Period. Research has shown that the Casino Shift preserves more quality sleep and is preferred by a majority of participants. Cognitive impairment is reduced on this shift and work performance is generally improved.

Whenever possible I design labor standards which preserve the Anchor Period for sleep when there are employees in the Job Class who will be working night shifts. While Casino drop schedules can vary from one property to another, I believe that it is the responsibility of analysis to take into account not only the business aspects of labor management but to act in the best interest of employee wellness too.

Take a look at your Property’s night shift designs by Department and note those which allow for the preservation of Anchor Period sleep. Compare your findings to your Departmental Employee Feedback survey results, you may just find there is also a corresponding pattern of enhanced overall employee satisfaction when quality sleep is preserved.

Forecasting Federal Holiday Weekends

A Four-day Federal Holiday Weekend normally represents a tremendous boost in business volume for Casinos. Guest service plans are put to the test and everyone wants to put their best foot forward with a full house watching in order to maximize gaming revenue and employee tipped income. In order to focus the available staff on maximizing profits there should be a solid set of employee schedules based on a comprehensive forecast of daily and hourly guest volumes. And while no advice can be considered hard and fast when it comes to forecasting, here are some tips that may help you become more accurate in predicting how much daily and hourly volume will occur during these very important Friday through Monday holiday time periods:

Divide and Conquer. Separate your daily volume forecast activity from your hourly volume prediction – in most cases you will be more accurate if you to focus on each independently. For example, you should finalize your Saturday forecast of Coin-In independently of how you feel that Saturday volume will be distributed on an hourly basis. Here is a tip – don’t over-analyze your daily volume forecast, pick a representative sample of similar past historical days as a trend reference and then make a call. And remember this bit of advice - always ask for feedback from both Marketing and Operations on Daily volume predictions but rarely ask for assistance on developing forecasts of hourly volume. In the case of hourly volume, Marketing will typically over-estimate the impact of a holiday weekend promotion on hourly volume patterns while Operations will usually give you the worst-case staffing experience they can remember. Neither will help.

Fridays and Saturdays stay closer to Trend. In many cases the actual daily volumes reported for the Friday and Saturday of a holiday weekend will stay very close to recent (non-holiday), trends. Test this theory by reviewing the actual holiday week from prior years with the historical Fridays and Saturday’s leading up to the weekend. Watch for a potential “displacement effect” produced by local Guests moving their normal visitation patterns from one day to another – in the case of Friday and Saturday, if the holiday is more family-centric then some of your higher-frequency Guests may move their normal visitations to earlier in the weekend in order to spend more time at home on Sunday and Monday.

Make the Call on Sundays and Mondays. Here is where the rubber hits the road, for in most cases one of these days will by higher in volume than the other (and both will normally be higher than their recent trends). Remember that on most Federal Weekends either the Sunday or the Monday will be focused on family / religious activities while the other day will be “free” - and that will be the day when the volume increase will really hit. The trick is which day will be high and which low? For the answer look to previous actual volume recorded on the same holiday weekend in prior years, then, review any local event / concert / promotion which could change this year’s daily volume pattern.

Sundays will be like Saturdays (and so on). You have probably heard the old adage that says the Sunday will be like a Saturday and the Monday will be like a Sunday. From an hourly volume percentage this is pretty close to correct – as a starting point. Again, look for area events and activities that could disrupt or displace this pattern, but guest arrival / departure habits usually remain strong and will carry over to holiday Weekends.

Account for Area Events. Federal weekends are noted for large area events and community activities. For example, is there a huge fireworks display in the area? If so, this could reduce the volume during the hours leading up to and during the show, usually family-type events will not produce a big late rush as everyone tends to go home together. Big sporting events (either local or national), may also have an impact on volumes, especially in the area of Table Drop and Poker Rake. Watch for table volumes to lag leading up to and during the event, then brace for a late rush (especially if the home team wins). Remember that Slot volume is usually less impacted by competing sporting events than Table Games / Poker volume.

Finally, don’t forget about the rest of the Holiday Week’s daily forecasting, as in many cases the actual volumes reported for the Tuesday through Thursday time period will be significantly lower than their normal trending, (with Tuesday being the most impacted through Thursday being the least). If you see this trend available then capitalize by reducing the number of employee hours scheduled throughout the balance of week so that any potential overtime expense driven by the big weekend is minimized.

Analysts – Hiring for Potential versus Skill

Here is an interesting overview by Dr. Charles Handler on the relevance of hiring for potential versus skill. Reading it I am reminded of the many times I have been asked by Casino Organizations to interview their analyst candidates, usually as a part of the final selection process prior to an offer being made. As an interviewer I always looked for specific traits in an analyst candidate – the ability to communicate effectively using a variety of mediums, a background exposed to critical thinking, and, most importantly, the ability to “sell” a specific idea or viewpoint. In short, I generally espouse a strategic view of candidates during the hiring process.

Dr. Handler has challenged my strategic thinking by making an excellent tactical point on the need to understand the culture of the hiring company when determining which candidate traits actually represent the best “fit.” For example, if the hiring company does not possess the mentors required to develop a candidate into a polished analyst then raw potential will usually remain just that – having not actually accomplished anything. Also representing the tactical argument is the pain threshold of the hiring organization. In cases where a Casino is desperate for analytical output I would recommend that a more experienced candidate be brought on board so that already-acquired industry skills can be put to immediate use. Short of bringing in independent consultants to assist the organization, the tactical hiring for skill in these cases would seem to make good business sense.

As Dr. Handler suggests, the reality of the situation probably lies in between on the hiring of potential versus skill. A careful understanding of the hiring organization’s business situation, culture, and ability to develop potential should be undertaken prior to beginning the hiring process. Knowing the correct balance of the strategic and tactical needs in advance will allow the best candidate to receive the offer.

Labor Management System Philosophy

Here is a link to a short magazine interview I gave several years ago (called Improving Collaboration), my comments here will shed some light on my philosophies regarding the selection of a labor management / labor scheduling system.

From my comments you can take that I feel that there is a cultural "fit" that needs to be respected when selecting a labor management software package. I have in the past worked with Casino operations who quite clearly were attempting to institute software packages whose core design philosophy was at odds with the culture of their organization (with predictably unsuccessful results).

The core design of Labor Management / Labor Scheduling systems generally fall into one of three categories:

1. Rostering Systems. Generally lower in cost and in many cases not suited to entire Property or Enterprise installations, rostering systems can be very comprehensive in the production of daily and weekly employee schedules. In many cases rostering systems work off pre-planned templates which represent forecast demand (in Casinos these are called Spreads), so this type of program is generally less comprehensive in developing labor forecasts and complex labor standards. The specialized rostering system approach has been somewhat successful in the Table Games market.

2. Time and Attendance Systems. Usually developed in the school of "better labor management through clock management" thinking, these systems are notable for their interface capabilities to time clock systems. By the way, it is generally the sale of time clock systems that purveyors of these systems crave, for that reason there has been in the past less of a commitment to consistently developing and supporting the labor management aspects of these programs. One big advantage of these systems is the somewhat forced usage by operational departments, because one thing is for sure, Operations has to edit time clock records on an on-going basis. Look for a track record of installation success with these types of systems because all of the time clock companies seem to be jumping into the market now.

3. Resource Management Systems. Typically skewed to the fiscal aspects of labor management, resource management systems are typically the most comprehensive in allowing complex labor standards to be configured and reported, and generally have the most built-in volume forecasting tools. Scheduling tools run the gamut from rudimentary to very comprehensive. The best of this breed also has built in budgeting modules, although in most cases the Casino Industry has favored the Excel Add-In approach with budgeting software. Again, look for a good track record of installation success with these type of systems, in many cases, the companies designing / developing in this area are in the market for consulting fees (so initial costs may be higher than with a straight software purchase).

There are many competing labor management / labor scheduling products on the market, understanding the core design values of each will help when making the proper selection for your organization's needs.