What Is Job Classification? Also known as job valuation, job classification is the process that an organization uses to fully evaluate the complexity, scope, duties, and responsibilities of a position within the company. Job classification is used to ensure that the job title for each role matches both its standards and job specifications. While job […]
What Is Prestige Pricing? Prestige pricing, which is sometimes also known as image pricing or premium pricing, is a pricing strategy where an organization purposely puts a product or service at a higher price point. This is usually to provide the consumer with the idea that the product is of higher quality. By and large, […]
Many employees dread performance reviews, but they’re an important part of any business. In addition to performance reviews, you may have heard the term performance improvement plan — this is the plan or strategy that comes out of employee performance reviews. What Is Performance Improvement? Performance improvement is a strategy that is often classified under […]
What Is the Definition of Inventory Turnover Ratio? Inventory turnover ratio is commonly used to calculate how much inventory a business has sold and then replaced. This is specified over a certain amount of time. In order to calculate your inventory turnover ratio, you’ll first need to calculate your average inventory. Inventory turnover ratio is […]
What Is the Definition of Food Cost Percentage? Food cost percentage is one of the most critical metrics in the restaurant business. It can mean the difference between a profitable restaurant and one that isn’t. High operating costs and the cost of the food itself are some of the biggest challenges for a restaurant business. […]
What Is the Definition of Par Level? Par level has nothing to do with golf for business – it’s a key metric that you need to be tracking if you’re in the restaurant business. At its simplest, your par level is the amount of stock that you require to run your restaurant and meet customer […]
What Is a Variable Cost? A variable cost is a cost incurred by a business and is associated with the number of services or goods it produces. When a business is producing more goods, the variable costs will increase – and as you might imagine, if the volume decreases, so does the variable cost. Variable […]
What Are Fixed Costs? Unlike variable costs, the fixed costs incurred by a business don’t change no matter how many sales it makes. Fixed costs are the opposite of variable costs. You may have heard the term fixed costs used interchangeably with “overheads.” Overheads and fixed costs, though, are not the same. It’s possible to […]
What Is Time to Fill? Time to fill is often mentioned alongside time to hire – but there’s a difference. Time to fill measures the number of days it takes you (or your HR team) to fill a job position. This is calculated from the day the job was posted until the day that the […]
What Does Statutory Employee Mean? Statutory employees are independent contractors who are treated as employees when it comes to tax withholding if they meet certain conditions. Employers are generally not allowed to withhold taxes for the majority of independent contractors. Since statutory employees are neither considered independent contractors nor employees, slightly different rules apply. In […]
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