Archive for July, 2013

Keeping Labour Costs on Par

July 30th, 2013

If you are looking to reduce labour costs or just generally maintain lower cost percentages, there are some ways you can approach it:

Hire efficient employees at higher rates – while keeping more senior staff members around may cost more per hour or per annual wage, they can save you money. One efficient employee that can do the job of two less productive employees will typically cost less in the long run. After all, one employee at $20 per hour costs less than two employees accomplishing the same tasks while getting a rate of $15 per hour each ($30 combined). Hiring the more …

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Be Cautious About Paying Employees Cash Under The Table

July 19th, 2013

While it may not be the “right” way to pay employees, you may choose to offer payment to some under the table. Effectively, what this means is that payment is in cash, and that it is not put on the books. From this perspective, taxes do not need to be paid by either the employees or the employer. Cash is most typical, strictly because it can change hands without being tracked. While paying employees with cash isn’t something that is really encouraged, it is done whether businesses admit it or not and proceeding with caution is integral.

Stick to casual …

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Keeping Labour Costs on Track

July 13th, 2013

Regardless of the type of business that you operate, calculating labour costs is an essential part of the process. Your labour costs factor into the big financial picture of any business. The target percentage does vary by business and a number of other factors. However, some things that always need to be considered when it comes to keeping labour costs on track.

A focus on time management skills – labour costing involves knowing how to do the math correctly, and planning the weekly schedule accordingly. In order to meet these targets, you have to set realistic goals regarding what can …

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Incentives for Employees Helping Maintain Budgets

July 6th, 2013

If you have employees that help you keep on cost with regards to labour and other staffing budgets, you may not be able to immediately compensate them for the decreased hours immediately. But, you can demonstrate your appreciation, and offer them incentives to maintain focused on labour budgets in the future.

Bonuses – if staff earn performance-related bonuses, flexibility with shift times should be a factor that can be rewarded. After all, these individuals are helping your company by volunteering to take fewer wages by working shifts shorter than scheduled.
Offer additional benefits – allow employees to earn extra vacation …

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