Staffing is a Huge Expense, so don't let staff cost escalate
Save Labor Costs, without cutting staff, by using this Free Checklist to look at 7 key staff costs in your business
Save Labour costs – FREE CHECKLIST
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Save Labour Costs by looking at these 7 areas
Staffing is a Huge Expense!…Don’t let staff cost run amok
Anyone can save labour costs without reducing staff, it is simple just take a look at your people’s:
* Fit
* Cost
* Spend
Say What? Aren’t Cost and Spend the Same? Nope, not in this context…
Fit is about the right activities and skills needed in the various parts of your business to make it run efficiently and effectively (and profitably)
Cost is about your commitments; Salaries, wages, and related taxes etc that are your payroll. The stuff that still costs you money whether your staff are on holidays or not.
Spend is about the “discretionary” extras related to having employees. These extras can be quite comprehensive – from the costs of morning tea, to Christmas parties and how fancy is the toilet paper each person is allocated?
So yes, from an accounting point of view Cost and Spend are very similar, but here I have used different words to try and separate the concepts of the money you know you are in for year in year out, and the money that adds to your staff costs (sometimes quite unchecked).
This process is about ensuring you think about what you want and then gain clear information as to what you have. You can then make make informed decisions about what you want to change. By undertaking this process regularly you will also curb “cost creep” and remain a lean and fit, profitable business.
Don’t forget that you are not starting from scratch, it may take a few months to get from where you are to where you need to be – especially if you wait for staff attrition before you adjust your skill sets etc.
