Growing small businesses (SMB’s) has more administrative overheads as organization scales up.
This often leaves small business owners on the defensive end of trying to solve many issues, making it more difficult to reach the next level.
As a consultant to many small businesses, here’s the 6 best ways I recommend to reduce your labor costs.
How to Reduce Staff Turnover
We all know that constantly hiring new staff is expensive. There’s time and money in recruiting, interviewing, training and bringing productivity up to speed for each new staffmember.
A previous client told me it cost them upwards of $4000 for each new staff they hired!
If your business is turning over staff within a 3 month basis you definitely need to assess the working conditions and culture of your business (this excludes seasonal businesses of course).
To reduce staff turnover you should:
- Pay your staff competitively
It’s all about the money, money, money. People need to fill they are being paid adequatley or they’ll look elsewhere
- Have a clear onboarding process
69% of employees who undergo effective onboarding are more likely to stay with an employer for at least 3 years
- Review staff performance regularly
Timely pay increases will help you retain staff longer
- Offer professional growth and training
You can minimize the number of workers on a shift without sacrificing efficiency by cross-training your staff.
- Show staff recognition
Talented people are drawn in by more than just money. Reward your staff by showing them some love
- Give staff autonomy with schedules
An online rostering system like RosterElf empowers staff to manage their own shift swaps but gives managers full control of the process
- Offer work-place flexibility
Employees who are given ample flexibility are 4 times less likely to become a retention risk.
- Build a strong company vision and culture
If your staff turnover if high, so too will be your labour costs. Fixing this is imperative to reducing your labour costs.