Looking over your cash flow, you’ll notice one expense popping up over and over again, and it’s a big number. Without it your business can’t grow and you can’t get a break! Whether you pay wages weekly, fortnightly or monthly, if you are not truly aware of where these dollars are going, it can hit your back pocket hard.
There is a simple rule; slower times call for less staff, but you could be out of pocket during the busy season and have no idea why! Here’s how to reduce your payroll and increase your profits at the same time…
All too often hardworking business owners are held almost to ransom by certain employees that are infecting the team with bad attitudes and behaviour, which not only reduces morale, it also affects productivity and consequently profits fall through the floor.
You know the type of person I am talking about! This employee is adequately skilled, and some cases highly skilled and can produce results, however their bad attitude, negativity, gossip and continual whining and moaning impacts the rest of the team and also consumes valuable head space in your mind. It could be fear of having no one to fill the role or loyalty that may be somewhat misplaced that is preventing you from asking them to move on. Nevertheless, letting this person go is one of the best things you can do for yourself, your team, and the business.
Here is why…
1) As soon as they are gone, other team players will share with you what a relief it is that they are no longer part of the team, and will also share other aspects of how their bad behaviour impacted the team. It’s almost like the skeletons are out of the closet.
2) The rest of the team will step up, to cover for their short fall because they’ll respect your decision for letting them go.
3) Thirdly, it will be an absolute relief to yourself, even though there may be short-term discomfort with less employees, you can finally sleep at night knowing this person is not continuing to infect your team, talk badly about the business and pull down the image of you and have the hard work that you have put into developing your organisation.
Now…I didn’t say that this is going to be an easy decision or an easy conversation with this destructive type of team player, however it is a simple one that you know you should and must act upon.
At least when you look over your expenses you’ll know that every cent spent on payroll is worth it for the great team you have in place.
Contact us if you would like some assistance with your payroll.