Are Your Employees Costing You Too Much?
Most entrepreneurs and CEO’s are unable to run their company without the help of their team of employees. Although their staff is crucial to the smooth running of the business, though, there is no getting away from the huge cost that employees are. After all, you need to fund their wages, vacation and sick leave, and monthly pension payments. But these aren’t the only way your employees will end up costing your company money. In actual fact, there are some very surprising ways they could be draining your bank account. Take all of the following, for example.
High Staff Turnover
Do you find it difficult to keep hold of your staff? If so, this is something you need to try and improve as a high staff turnover can be very expensive. That’s because you will be spending a lot of your time going through the whole recruitment process over and over. This will mean that some of your workforce will be distracted with interviews, which can cost you your business’s productivity. If you outsource all of your recruitment, you might have some very hefty freelancer invoices on your hands at the end of each month!
It’s important that you regularly train your staff, especially if they are relatively new hires. This is something that you can scrimp on. Ideally, this should be an investment. Unfortunately, all of the best investments are quite expensive! You might want to outsource your IT training to an IT Support firm or hire a training specialist to come in and lead your sessions for you. These are excellent ideas, but will increase your overall expenses.
All of your staff deserve breaks throughout their day. They are entitled to one lunch break and a few coffee breaks spread out evenly through the day. Sure, all of these breaks are known to help keep employee motivation and productivity high, but they are also bad news for your accounts. That’s because time taken away from their desk is time they are not working. And when you add up all that time, you will see that it is costing your business an awful amount of money. It’s just there’s not much you can do about it, I’m afraid!
Workplace bullying shouldn’t ever happen but, unfortunately, there are some offices around the country that still have issues with it. It can create a toxic company culture and be very demotivating for employees, even the ones who aren’t directly involved. Whenever a company’s productivity and motivation are reduced, such as through workplace bullying, it will end up costing the business a lot of money. So, if you suspect that you have a bully in your office, it is really important that you stand up to them and do something about it. Once the issue has been solved, you’ll find your staff’s motivation increase, alongside your profits!
As you can probably see, the key to cost-effective employees is to try and keep them as motivated as possible!