Labour Cost
Labor Cost Cutting Strategy
In a sluggish economy, it is more important than ever for businesses to cut costs. Knowing how to reduce the cost of paying employees without reducing product quality, dropping employee morale or otherwise sacrificing the way you do business can be the difference between being in the red or the black at the end of the year.
Stop the Overtime * Don't pay overtime unless it is absolutely necessary. Remember that you must pay non-exempt employees 1 1/2 times their normal rate for any hours worked over 40 in a week, so the idea is to cut out the extra hours, not just the pay.
Spend some time going over the essential labor needs and figure out how to more efficiently get the work done without pushing your staff over 40 hours. Make a plan that you can put into action and you will see an immediate considerable deflation in your labor cost.Do not violate any provisions of the Fair Labor Standards Act by asking people to work overtime without overtime pay. This can result in serious problems for your business.
Voluntary Schedule Cuts * Sometimes all you need to do to improve your labor cost is to ask for volunteers. Do not ask your employees to work for free, but ask them if they would be interested in working a shorter week, according to Womans-Work.com.Before cutting overtime for essential employees and resorting to any other methods that may not be favorable to your staff, choose some employees you feel may like cutting their work week down by a day or two each week. You may be surprised to find that several people would love a three- or four-day work week.If enough employees are willing (and possibly excited) about shorter workweeks, the significant savings may prevent further action.
Use Temporary Services * Use a staffing agency to fill necessary positions without the cost of hiring new fulltime employees, according to Womans-Work.com.Temporary workers, or "temps," may be on a different line in the budget than your
In a sluggish economy, it is more important than ever for businesses to cut costs. Knowing how to reduce the cost of paying employees without reducing product quality, dropping employee morale or otherwise sacrificing the way you do business can be the difference between being in the red or the black at the end of the year.
Stop the Overtime * Don't pay overtime unless it is absolutely necessary. Remember that you must pay non-exempt employees 1 1/2 times their normal rate for any hours worked over 40 in a week, so the idea is to cut out the extra hours, not just the pay.
Spend some time going over the essential labor needs and figure out how to more efficiently get the work done without pushing your staff over 40 hours. Make a plan that you can put into action and you will see an immediate considerable deflation in your labor cost.Do not violate any provisions of the Fair Labor Standards Act by asking people to work overtime without overtime pay. This can result in serious problems for your business.
Voluntary Schedule Cuts * Sometimes all you need to do to improve your labor cost is to ask for volunteers. Do not ask your employees to work for free, but ask them if they would be interested in working a shorter week, according to Womans-Work.com.Before cutting overtime for essential employees and resorting to any other methods that may not be favorable to your staff, choose some employees you feel may like cutting their work week down by a day or two each week. You may be surprised to find that several people would love a three- or four-day work week.If enough employees are willing (and possibly excited) about shorter workweeks, the significant savings may prevent further action.
Use Temporary Services * Use a staffing agency to fill necessary positions without the cost of hiring new fulltime employees, according to Womans-Work.com.Temporary workers, or "temps," may be on a different line in the budget than your