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American Home Business Network: Reduce Payroll Costs, Save Staff

Monday, September 14, 2009

Reduce Payroll Costs, Save Staff

By Steven Schlagel

With the economy in a slump. many small businesses are struggling financially. There are only two ways to improve your bottom line. You can increase revenue or reduce expenses. With customers not spending like they were, increasing revenue may be impossible. One of the biggest expenses is payroll, but can you cut this cost without reducing staff?

A profit and loss or income statement will show the biggest expenses in a business. Generally, for a product-based company, those are inventory, insurance and payroll. You may need a reduction in inventory, but it isn't likely. You should shop around for more affordable insurance coverage but your biggest expenditure with some serious flexibility will likely be payroll. There are ways to reduce your payroll costs without cutting staff.

Some companies reduce the amount they pay for benefits by shopping for a less expensive policy. Company parties could be held on-site instead of in the local hotel's banquet room. You may feel a need to temporarily reduce bonuses and perks - just let them know that it's only temporary.

Review your overtime and cut it drastically! Review productivity and tardiness issues with individuals instead of just covering this with overtime pay. Consider cutting back hours instead or reviewing whether you pay lunches before you resort to layoffs. If it works for your business, consider a 4-day (10 hour shift) work week to reduce utilities on the fifth day.

Research has shown that for every 100 hours of paid productive time, you are paying for at least 2.3 hours of non-productive time. This is called presenteeism or lost time when employees are present. Before you start laying off individuals, see if you can improve productivity to maximize your payroll dollars.

Productivity is reduced by employees who come to work sick, manage personal problems by phone, take smoke or unnecessary bathroom breaks or socialize with coworkers. Often employees are reluctant to call off when they are sick or to use counseling services if they are experience personal problems or job stress.

Most companies use disciplinary action to control absenteeism and productivity issues. There can be more effective ways to deal with this like offering "paid time off" vs. sick and vacation time so employees can use their time as they see fit without fear of being penalized. Also offering telecommuting or flexible scheduling can allow employees to be more productive and improves loyalty. Also offer wellness programs and employee assistance to help your team cope with health, financial or legal issues.

You will build loyalty and improve relationships with your employees if you try other actions before resorting to layoffs. Small reductions in other areas can be enough to save positions. Be sure you consider some of these tactics first before you take that last, though sometimes necessary, step.

About the Author:


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Feature Article: Make the Leap to Home Based Business Success

Feature Article: Make the Leap to Home Based Business Success
Copyright © Stone Evans, The Home Biz Guy
http://www.PlugInProfitSite.com/main-21753

Before you can have a successful home based business, you must first possess 3 "intangibles." These are things that must come from WITHIN you.

 ===> Intangible 1 <===

First, you must have a strong WHY.

Why MUST you have a successful home business? What is driving you? What is it that you CAN'T have in your life anymore and/or what is it that you absolutely MUST HAVE now?

For me, I couldn't stand working 12+ hours a day anymore and missing the experience of my children growing up. I also absolutely HAD TO HAVE the freedom of being able to control my life and finances through a little box (laptop computer) that I could carry with me anywhere in the world and not be tied to anyone's time pressures or demands but my own. That was my carrot and my stick. I felt a great pain deep in my gut of missing out on my children's lives and the incredible freedom that succeeding in a home based business would provide for me. I found my why. You MUST find yours.

===> Intangible 2 <===

You must BELIEVE that it is possible.

If you don't believe that it's POSSIBLE for you to have a successful home based business or make your living from home, you won't. It's that simple.

For me, figuring out that it was possible was just a matter of realizing that many other people were ALREADY making great money working from home. If they could do it, I could too. It would just be a matter of figuring out what those people were doing and then adapting it to my situation.

There is no shortage of undeniable PROOF that people (millions of them) are making money working from home. Just get online and do some research and you'll find countless testimonials and stories of REAL PEOPLE making real money on the Internet. Or head to your local bookstore and you'll find the same documented evidence of this fact. Truth is, it's getting easier and easier to make money with your own home based business.

I've always said that "affiliate marketing" (a simple way to make money from home) is the job of the future. In the "old" days, you had to go to a potential employer, apply for the position and hope for the best. Now you can simply go to any company you want, fill out their affiliate application and start work immediately. Affiliates are the new working class. In fact, making money with affiliate programs or making your living on the Internet is WAY MORE than possible. It is pretty much (or will be soon enough) unavoidable now. Affiliate marketing is the "job" of the future that's already here TODAY.

===> Intangible 3 <===

You must be willing to MAKE THE LEAP.

Ready, FIRE, then aim... This is the operating philosophy you MUST adopt to succeed with a home based business.

That's backwards for most people who like to aim before they fire. The fact is that home based business success is a moving target... The only thing constant about it is change. You need to stop analyzing the game and simply jump into it. You can't learn from the outside... You have to be IN THE RING to truly understand it.

The lesson here is that you will never really be READY to start a home based business. You simply have to start one. It's like having children... You're never really ready, but when it happens you adapt and grow. This is what I call "Making the Leap."

The good news is that the cost of failure with having your own home based business is very small. In the "brick and mortar" world you need to evaluate things very carefully before you decide to open up a business. It's almost always necessary to invest thousands of dollars to get an offline business off the ground. However, on the Internet you can often start a successful business for less than $100. The Plug-In Profit Site is a great example of this: http://www.PlugInProfitSite.com/main-21753

You simply need to get IN THE GAME... Each moment that you stay "out there," you're wasting valuable time that you could be learning and skills necessary to build a successful home based business. In fact, if you're not in the game yet, you're ALREADY behind the times. Make the leap to creating a successful home based business today!

About the Author:

Stone Evans, The Home Biz Guy has helped thousands of people in over 200 countries around the world start and run a successful home business. Discover 3 easy steps to start your own home business and subscribe to The Home Biz Guy's FREE Home Business Secrets Mini-Course at: http://www.PlugInProfitSite.com/main-21753



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