By and large, the biggest cost a business has to shoulder is the cost of its employees. It’s the cost of your workforce. It’s the labor costs. From the employees perspective, it goes relatively unnoticed but, for you, wow, these can add up fast. It’s one of the reasons why businesses find themselves having to make individuals redundant or even trim generous amounts of so-called fat from entire departments.
But what if there was a different solution?
Now, the cost of hiring, training, improving and retaining employees will always be a large cost. It has to be. Thankfully, there are numerous strategies that can help you drastically shrink this overhead without having a negative influence on the output and productivity and efficiencies, and we’re going to go through the best examples right now:
- Specialists Are Expensive
Don’t get us wrong, hiring specialists that have top-notch skills in a particular niche or task are essential to a business. They bring unrivaled value to their role. However, they are also more costly and drive up the payroll numbers without offering your business the chance to handle different needs. Our advice: cross-train your employees. Enrich them. Teach them new skills, qualities and responsibilities that aren’t necessarily part of their specialist job. Sure, these newly acquired skills won’t become their day job, but you’ll find you’re better equipped to handle a surge in growth and limit the negative effects when staff call in sick or leave.
- Technology is Your Best Friend
The reason why Apple and it’s technological buddies can bring out new generations every six minutes is that they always find a way for their tech to make our lives easier. That’s what it thrives off. As such, you should try and give your employees all the hardware, software, apps and equipment they need to be more effective at their job, which could save you a significant chunk of cash. Perhaps you have a store with a huge floor space, in which case, something as simple as a floor burnisher and our floor care solutions could save on your labor costs. Alternatively, you might find that improving your field management and collaboration software makes your remote employees way more effective, and that’s the end game, right?
- Outsourcing Is Not The Enemy
It is the buzzword that has taken the business world by storm, and for good reason because outsourcing specific tasks allow you to manage a surge in demand without having to shoulder permanent costs. In fact, studies show that outsourcing a job or task to an experienced professional can save you as much as 60%. Let’s say you want to add a blog to your marketing strategy; either you can bring on a full-time employee for, let’s say, $28,000 a year, or you could hire a freelance creative copywriter to write two blogs a month for $9000 a year. The key to making it work is to know when to outsource and what to outsource but, as a general rule of thumb, try not to outsource your core business tasks.