Bonus Pocus, Karen Lur of aAdvantage Consulting

Copyright © aAdvantage Consulting 2014. All Intellectual Property Reserved. -1-www.aadvantage-consulting.com

9 January 2015

G.R.O.W. Seminar – Bonus Pocus


01Bonus Pocus – To pay or not to Pay

Copyright © aAdvantage Consulting 2014. All Intellectual Property Reserved. -3-

What are your greatest challenges today?


What are your greatest challenges today?

Singapore’s F&B Labour Crunch is Here to Stay by Jay From BigSpoon in For F&B Operators

4 Causes Of Labour Crunch• MOM’s Foreign Labour Policy• Lack of local Workforce • Negative Singaporeans’

perception of F&B jobs • Lack of work satisfaction

http://bigspoon.sg/blog/author/jaybigspoon-sg/

http://bigspoon.sg/blog/category/fboperators/


Singapore Workforce Engagement Study (SWES) 2014

For SME, Rewards and Recognition is important in driving Employee Engagement

Clear of roles and goals

Empowered

Staff work well together

Work-life harmony

Confident of leadersImmediate supervisors

Staff's behaviours

New and better waysOpen communication

Rewards and recognition

Training and development

Career growth

Job security

Customer-focused

Hig

her

agr

eem

ent

Low

er a

gree

men

t

Lower importance Higher importance



For Accommodation and Food Services, Work-life harmony and Rewards and Recognition are important in driving Employee Engagement


Empowered


Work-life harmony


Staff's behaviours




Career growth

Job security

Customer-focused

Hig

her

agr

eem

ent

Low

er a

gree

men

t



02How and How much to Pay?


What is the best approach to manage performance ?

Restaurant Business Goals

Department Goals e.g. Kitchen, Service

Individual Goals

Performance Bonus

Performance Management

Goals : KPIs SalesCostNo of CustomersTraining & Development

Kitchen• Total Food Cost• New Creation• Kitchen Hours

Chef’s KPIs• Inventory Cost •Wastage Cost•Best Seller

Restaurant Overall Goals

Sous Chef’s KPIs• Inventory

Turnaround•Preparation time

2 months of bonus


What is the best approach to manage performance ?

Competency Level 1 (Staff e.g. Service Staff)

Level 2 (Manager e.g. Head of Service)

Level 3 (Head of Division e.g. Restaurant Manager)

ServiceOrientation

Able to providefriendly, helpful and cheerful service and meet customer satisfaction

Makes concrete attempts to add value to others to improve the situation or to make things better for the customers

Recommendsappropriate approaches which may be new and different from those requested by other

Working in Teams

Understands how own role contributes to the objectives of the team and consistently delivers.

Works in a positive and supportive way and tries to overcome barriers that may hinder team working

Co-ordinates teams across departments/divisions and involves the team in the creation of goals aligned with the organisation's objectives

Restaurant Values

Competencies

- Core & Functional

Job Competencies -Behaviours

•Salary + Merit Increment•Promotion•Training & Development

Competencies

Performance Management


SNEF Survey (Nov 2014) on Salary Increment & Bonus payout

Annual Increment %

Actual 2014 Projected 2015

No. of Companies No. of Companies

0 0 0

>0-1 0 0

>1-2 0 1

>2-3 12 18

>3-4 29 28

>4-5 24 23

>5 3 0

Bonus (excluding AWS) months

Actual 2014 Projected 2015

No. of Companies No. of Companies

0 0 0

>0-1 1 0

>1-2 35 36

>2-3 17 19

>3-4 7 8

>4-5 4 1


03What Else Can We Do?


SHRI National Workplace Happiness Survey 2014

Employees of voluntary welfare organisations and local small-and-medium enterprises (SMEs)

are also happier at work, compared to those in multinational corporations…

The top happiness drivers include :• brand identity • culture• positive emotions.

People want to have some form of control …. over their work-life arrangement. .. want to be given a better direction….areas they can grow with the organisation.



For Accommodation and Food Services, Work-life harmony and Rewards and Recognition are important in driving Employee Engagement


Empowered


Work-life harmony


Staff's behaviours




Career growth

Job security

Customer-focused

Hig

her

agr

eem

ent

Low

er a

gree

men

t



Help them achieve Work-Life Balance ?

Happy Employees, Happy Customers• Part-time schemes

permanent, short-term no restriction on no. of hours• 5 day work week • For mature employee -Job Trial/ New joiners buddy• Emphasis on People Management training

Innovating People Practices• Part-time schemes(eligible for merit allowance, incentives as well as recognition Awards)• 5 or 6 day work week• Fun & close-knit environment, open communication culture• Management training on part-time/mature employees


Build a Career for them? (Progressive Wage Model & Development)


SWES : Top 3 reasons from respondents working in SME

Reasons for promoting the organisation

Culture of the organisation

“… good working environment …”

“… family oriented environment …”

Immediate supervisors

“… understanding boss …”

“… good boss to work with …”

Good colleagues

“… friendly colleagues …”

“… colleagues are helpful …”

Reasons for NOT promoting the organisation

Uncompetitive compensation package

“… pay is low …”

“… few benefits …”

Long working hours

“… long working hours …”

“… no work life balance …”

Poor leadership

“… management is unprofessional …”

“… management does not perform well …”

Note: Promoters are respondents who rated “9” and “10” for their eNPS®.

Note: Detractors are respondents who rated “0” to “6” for their eNPS®.


Build an Extended Family for them? Binding Culture

Kinship, Friendship, Partnership.. I have staffs who are close to me Like my family and relatives… I make sure that I treat them with utmost respect and dignity and now, these are People who have never stopped Giving support..” Mr Loi (Entrepreneurs Digest Sep/Oct 2014)

A Home Away from Home (Caring Culture)• Monthly Budget for Healthy lifestyle • Health Surveys, Lunchtime Talks & Healthier Staff food• Sports and Family events• Supportive of Telecommuniting arrangements


Culture Capital – Share of Heart

Firms of Endearment (FoE) outperformed the S&P500 by 1649% over a 15 yr period

Loyalty, Respect, Integrity, Trust, Joy, Authenticity, Empathy, Compassion


Restaurant Overall Business Goals

Department Goals (e.g. Kitchen, Service, Bar)

Individual Goals

Heartware

Hardware (systems)


Resources


Industry Resource and Support


aAdvantage Consulting


Seamless TransformationFrom Vision to Results, we enable aseamless transformation process with ourfull suite of integrated solutions.

Sustainable ImplementationWe partner you through bothorganisational and personal transitions byestablishing systems and processes andimplementing effective peopleengagement programmes.

Data-Driven InterventionWe breathe life into data, draw insightsand develop strategies to create relevantand impactful interventions.

Partnership for SuccessWe share your vision, goals andchallenges and take our engagementsbeyond the transactional, with the beliefthat a client’s success is a mark of ours.

Our Value Proposition


Single point-of-contact solution partnerOur Integrated Solutions

• Strategic

• Implementation-focused

• Results-driven

• Sustainable


Our Clients across Sectors

Private Sector Public Sector

http://www.ntuclearninghub.com/

http://www.ntuclearninghub.com/

http://www.ema.gov.sg/

http://www.ema.gov.sg/

http://www.jtc.gov.sg/default.htm

http://www.jtc.gov.sg/default.htm

http://app.mof.gov.sg/index.asp

http://app.mof.gov.sg/index.asp

http://www.customs.gov.sg/

http://www.customs.gov.sg/

http://www.moh.gov.sg/

http://www.moh.gov.sg/

http://www.mnd.gov.sg/

http://www.mnd.gov.sg/

http://www.msf.gov.sg/

http://www.msf.gov.sg/

http://www.nyp.edu.sg/

http://www.nyp.edu.sg/

http://www.nlb.gov.sg/

http://www.nlb.gov.sg/

http://www.psd.gov.sg/

http://www.psd.gov.sg/


From Vision to Results

Partnering

clients in achieving

impactful implementation and

seamless transformation for

sustainable growth.


From vision to results

Bonus Pocus, Karen Lur of aAdvantage Consulting

Business

intellectual property

goalsempoweredstaff

singapores fb labour

cheerful service

service stafflevel

best approach

greatest challenges

food services