Paying employees is one of your biggest monthly costs and it’s one that you can’t really avoid. Without a good team behind you, your business isn’t going to be a success. But when times are tough and you’re struggling to cover all of your staff costs, what are you supposed to do? You might think that getting rid of some staff members is the best thing to do but that isn’t necessarily true. The more people you get rid of, the harder it is to bring in more revenue and get yourself out of financial trouble. What you need to do is find a way to spend less without reducing employee numbers. These are some of the most effective ways to cut staff costs.
Manage Schedules Properly
Not managing staff schedules properly can easily lead to an overspend. If you’ve got loads of members of staff working when you’re not that busy, you’re paying people that don’t really need to be there. Equally, if you are understaffed during a busy period then your customer service will suffer and the business will lose money. That’s why it’s essential that you manage your schedules effectively and the best way to do that is to implement rostering software. Usually, businesses using rostering software systems spend less money on staff costs because they’re using people more efficiently. If you use software that can make good projections about how many staff members you’re likely to need on a given day and make sensible suggestions about scheduling, you can make sure that you’re not overstaffing and spending money unnecessarily. By organizing your schedules better, you can also find ways to cut a few hours at the start or end of a person’s shift where there may have been an overlap in the past.
Automation is a great strategy if you’re trying to cut your staff costs. If there are menial tasks that take up a lot of your employee’s time, you should consider implementing new software to automate those parts of their job. This is one of the major advantages of business technology because it makes employees more productive. But it also gives you an opportunity to cut some hours if people are getting their work done in a shorter space of time. Either that or they can spend that extra time working on something else that brings more money into the company. That way, you see more returns on your investment in staff costs.
Use Cross Training
If you have dynamic employees that can fulfil more than one role, you can utilize people where needed and reduce the overall number of employees that you need. For example, if you train somebody on your marketing team to run your social media accounts, you don’t have to pay the salary of an extra person to do that for you. They can do it alongside their current duties and you’ll save a lot of money. You should always look for cross training opportunities like this so you can make your employees more flexible.
If you can reduce your staff costs, you’ll save a lot of money that can be redirected into the business to push growth.