Your employees are a key asset in keeping your business running smoothly, but they’re not an insignificant business expense. Here are few strategies for controlling your payroll costs without shortchanging your staff, limiting your growth potential, or jeopardizing customer service.
- Allow employees to work off-site. Giving employees the option to work remotely when their physical presence isn’t needed can shave money from your overall payroll costs. In fact, Bloomberg BusinessWeek reports the potential savings can be as much as $8,000 a year per employee. Beyond that, telecommuting allows you “to hire qualified employees in less expensive geographic locations, which is especially useful if you are located in an expensive metropolitan area,” says Sam McRoberts, a startup adviser who founded Vudu Marketing. Workplace flexibility also can contribute to greater employee happiness, productivity, and retention.
- Compensate employees with more than money. Yes, you need to pay your employees a fair wage or salary. But there are ways to make employees feel appreciated — and get them to do more work — that have nothing to do with dollars. Instead of immediately hiring additional staff when the workload increases, remind your employees how important their contributions are to your business, says Deborah Sweeney, CEO and owner of MyCorporation. “Make sure all employees make the most of their time and are aware that a new hire may yield lower raises. Instead of more staff, experiment with increased pay for higher performers,” she suggests.
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