How to Reduce Your Company’s Labor Costs
Salaries and wages are one of the largest costs for any company and can feel like the most difficult to control. But it doesn’t have to be this way. At LCAF Payroll, we eliminate the stress that comes with payroll by providing full-service payroll options. We’ve also put together a list of areas to help you reduce your labor costs, making wages and budgeting less stressful. Read on to learn more:
False Reporting, Extended Breaks, and Overstaffing
Better management in three specific areas will help you reduce excess labor costs:
1. False reporting: Business owners prefer to have faith in the honesty and integrity of every employee, but in reality, some people are willing to cut corners to get ahead. When companies rely upon self-reporting for hours worked, the door for employee dishonesty will always be open.
2. Extended breaks: Not only are employees legally entitled to their breaks, they also deserve them. However, chronically returning to work late amounts to theft of company time and money. Consider a full-time employee who takes an extra five minutes on every break. That’s liable to reach two hours per month of paid break time. Multiply that by the number of employees and the number grows exponentially.
3. Overstaffing: When your business is overstaffed, some of your employees may have nothing to do. This allows for a series of problems to occur, such as standing around and waiting for necessary tasks to present themselves. In turn, this presents opportunities for distracting other employees who do have something to do, reducing productivity. Less productivity means more money wasted.
How LCAF Payroll Can Help
LCAF Payroll’s ancillary attendance and time-keeping services can help with false reporting, extended brakes, and overstaffing. With our time-keeping bundle, we can ensure that employees clock in and clock out to the minute.
To limit overstaffing, you can use the “reports” feature in our system to analyze on-the-clock employee hours against sales records. This will help you adequately staff your business during rush hours and prevent overstaffing during slow hours.
We also provide extensive payroll reports with every single payroll. These reports offer detailed explanations of labor hours worked, how much of the payroll is paid out to each employee, and total labor expenditures. These reports come standard with every payroll and are excellent for understanding the ins and outs of your labor expenses.
At LCAF Payroll, we pride ourselves on offering the most streamlined and efficient payroll services available. Contact us today for more information about our services.