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Any good entrepreneur or manager knows that having a great team of people working for
you is the key to succeeding in your business, but great employees are a huge expense and
entrepreneurs need to always be vigilant about keeping costs in check, so, here are some
tips for controlling payroll costs without screwing your employees.
Firstly, consider hiring teleworkers and/or allowing your current employees to work remotely.
If you're in an expensive location like New York City, having the flexibility to hire
someone in a less expensive locale could allow you to get top notch talent for a lower price
simply because the cost of living and average salaries are lower in some parts of the country
or the world as compared to others. That programmer from Missouri may be just as talented as the
one in Greenwich Village, but is probably quite a bit less expensive.
Secondly, if you provide a kick-*** work environment and non-cash perks to your employees, they'll
probably be a little more forgiving when you can't offer huge raises or bonuses every year.
Really listen to your employees and try to get creative about offering the perks that
they want and keeping salaries in line with what your small operation can handle.
Along those same lines, offer your employees great opportunities for training and development.
Helping someone pay for a part-time MBA program, for example, and being flexible about letting
them leave early once a week to get to class is much less expensive than a hefty salary
hike, but the benefits are clear to the employee and he or she will be less inclined to make
a fuss about salary when they see the future benefits they'll reap by sticking around.
Finally, make sure that you've taken a hard look at your operations and that everyone
working for you is really necessary. This isn't to say you should go out of your way
to fire people, but it's often in the best interest of your company's bottom line to
give each employee a bit more responsibility and a bit more salary as opposed to hiring
a whole nother employee. If you have shift workers, take a look at traffic vs. shift
hours and make sure you don't have more people than necessary scheduled at once.
Employees are always going to be a major cost to any business, but if you manage them intelligently
you can keep a great team happy without over-spending.
Now I'd like to hear from you: what tips can you share for keeping personnel costs down
while still having a great team and keeping your business flowing smoothly? Let me know
in the comments below and if you're not already watching at catecosta.com, make sure you get
over to the site and join the conversation. While you're there, don't forget to sign up
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