Comparing sales to labor costs is a critical financial metric for businesses. This comparison reveals how efficiently a company uses its workforce to generate revenue. A high ratio indicates that a significant portion of sales revenue is being spent on labor, potentially impacting profitability. Conversely, a low ratio might suggest understaffing or inefficient labor utilization. By tracking this ratio over time and benchmarking it against industry standards, businesses can identify areas for improvement in workforce management, such as optimizing staffing levels, improving employee productivity, or negotiating better wages or benefits. In this article, we will go over how to view sales, labor, and sales vs labor data in connecteam.

Important Information:

To view the sales and labor report on connecteam navigate to the activity tab and the sales vs labor tab. Let's go over what you can see below.

If you have both sales data and labor data then at the top you will see a summary of the dollar amount received from total sales, the amount spent on total actual labor, and the percentage of labor costs for the date range selected.

Next, you will see a bar graph of your sales and labor data along with the labor percentage metric.

At the bottom, you'll be able to receive a breakdown of this data per day.

💡Tip: At the top right-hand corner you can customize the view to daily, weekly, or monthly and adjust your desired date range.

If you have not integrated your POS system, but your employees are tracking time with you have enabled pay rates capability, then you will only see labor data in your report. Take a look at how this appears below:

If you have connected your POS system to connecteam but are not using pay rates or your employees are not clocking in then you will only see sales data in the report. Take a look at how this appears below:

If have yet to integrate your POS with connecteam and you have not set up pay rates then you will not see any data in the activity tab. In this case, you will be promoted to integrate your POS system and activate pay rates as seen below.

Now that you have got the basics down let's go over customizing your report to view different locations or groups of employees.

To filter sales data for branches/locations select the sales drop-down in the upper left-hand corner and mark the location(s) whose sales date you want to view. Please note that the options seen here are based on locations you have set up in your POS system.

To filter for groups of employees click on the labor drop-down in the upper left-hand corner and mark the group(s) whose data you want to view. Please note that the options seen here are based on smart groups you have previously set up in Connecteam.

Integrate Connecteam & Lightspeed Restaurant (K Series) Point of Sales (POS)

Pay rates

Smart Groups

Starting Guide to Time Clock

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