Bunnings Warehouse: Analysis of 'Bank of Hours' Roster & its Impact

This report analyzes the 'bank of hours' roster system at Bunnings Warehouse, where employees' hours are averaged, leading to sending them home during slow periods and expecting them to work overtime during busy periods. While Bunnings views this system as beneficial for both customers and ...Read More

Management accounting
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To: the Board of Directors of Bunnings Warehouse
From: Consulting Services
Date: 14/09/2018
Subject: ‘Bank of hours’ in Bunnings Warehouse
The employees of the Bunnings Warehouse were not happy with the ‘bank of hours’ roster
method. The staff triggers complaints of the rostering practise which is followed by the
hardware chain Bunnings Warehouse. The famous hardware chain of Australia known to
have send the employees back home during the slow periods in order to make up the hours in
the busy times. The rostered hours of the full time and the part-time employees are averaged
and therefore, the employees and send back home during the lean season.
The chief operating officer of the Bunnings Warehouse states that the ‘bank of hours’ roster
system can be seen as opportunity and can provide a lot of benefits to the customers as well
to the team members. However, this kind of roster method of Bunnings Warehouse can be
termed as a weakness as in this way it can lose many qualified employees. There are lot of
strengths and opportunities of this particular hardware chain. Bunnings ranks firsts in the
hardware chain in Australia. It aims to provide its customers the best range of home
improvement products along with lowest price policy and the best service. It has a wide
network of around three stores in Australia. They also provide various loyalty programs and
cheap prices. Bunnings Warehouse is also one of the biggest household hardware retail chain
in the country. They also provide consultants who are highly trained in order to perform
specialized jobs in homes. Bunnings warehouse also faces many threats of which one is
facing competition from the hardware retailers in the country. As there are presence of many

new entrants, the hardware chain faces huge competition. The firm does not have a good
marketing experience. It also has a high hosting cost. The union is trying hard to abolish the
roster system of bank of hours as the employees are missing out thousands of dollars while
working overtime in the busy times. The employees are send home during the lean season
and are made to work hard without paying extra during the peak season. According to the
employees the bank of hours does not allow them to spend time with their family. However,
the practise of averaging the working hours is legal under the Fair Work Act. However, the
union of the Retail and Fast Food Workers wanted the roster system to be abolished.
The ‘bank of hours’ system has both supporters and distractors amongst the workers. The
issue can be seen as opportunity as the system of the bank of hours as it can provide benefits
to the staff along with the customers. The staffs can be made to work during the peak season.
However, the issue of ‘bank of hours’ roster can also prove to be a threat to the company.
Some of the opportunities of Bunnings Warehouse are providing new technologies according
to the changing customer preferences and tastes. New technologies are also becoming
available. The strengths of the Warehouse includes high quality products provided by them. It
also has an access to global market and also stays open 24/7. Bunnings Warehouse also faces
huge amount of tax and administration cost from the government. It was found out that it had
been confirmed by the Bunnings Warehouse that they are reviewing their roster method of
bank of hours. It was objected by the Retail and Fast Food Workers Union that they were
missing out thousands of dollars by working overtime and not been paid. The firm then
agreed for renewal trying to abolish their practice. Many qualified and experienced
employees might leave the popular hardware chain if this kind of roster method persists. The
system of ‘Bank of hours’ also affects the family time of the employees. Therefore, the
system of ‘bank of hours’ can be used as an opportunity during the peak season by making
the employees work overtime and sending them back during the lean season.

The management accounting tools are used for different types of budgetary control for
controlling and planning various activities of business. The consulting services will help the
famous hardware chain by providing them with more experienced employees who can handle
the pressure in the peak season efficiently. The consulting services will also provide
employees who are specialized in different skills, to Bunnings Warehouse. In order to
overcome the weakness the consulting company can also provide good marketing strategy.

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