Labour Management
Labour Management Calculator Explained:
What is this?
This calculator shows you the two most frequently used measures of wages in a retail business.
What does this tell me?
There are two key wage measures in this calculator: Gross Margin Return On Labour (GMROL) which shows you the wages cost as a percentage of GP$, and Wages % shows you the wages as a percentage of Sales.
Why should I use it?
To help you manage and contain your costs. By showing both the key measures (GMROL and Wages %) you can track your wages costs more carefully. If the percentages are low it can often mean a stressed staff, missed sales or that you have improved efficiencies. Higher percentages might mean reduced profit by employing too many staff.
Caution
You should be aware that sometimes a higher wages % can be good, or bad depending on the situation and lower wages % can be a good or bad thing depending on the situation. Any changes to the wages % is a business decision, this calculator simply provides you with the data.