Cost reduction strategies are a necessary aspect of improving profitability. Since talent is typically the highest expense for most businesses, associated costs are often the target of such strategies. However, many companies approach cost reduction in a way that, while saving money in the short-term, adversely impacts their long-term margins. For example, eliminating certain perks or programs may result in immediate cost reduction, but it can also harm employee morale and productivity, which over time hurts outputs and thus profits.
Invest in a Better Time & Attendance System
In a wide range of industries – particularly those where shift work is common – labour costs are significant, and unfortunately overcompensation is common. Buddy punching, unsanctioned breaks, long lunches, early departures, etc., all amount to less time spent at work for the same amount of compensation. This affects employee outputs and makes your business less productive.
Improve Labour Costing Accuracy
Cut Down on Payroll Inefficiencies
All of these budget reducing ideas are part and parcel of an effective workforce management solution. By deploying these strategies within your workforce management system, not only can your employment costs be reduced, but other areas of your business can benefit as well.