The #1 way to reduce labor overhead costs is to pay less for high quality work. Simple, right?
If you have been in business for more than a few days then you know that task is anything but simple. You may think it is an impossible task. High quality help can be difficult to come by and very expensive. For many business owners, the high cost of labor can stand in the way of growth. The costs for employers to bring on and maintain new employees continue to increase which ultimately impacts costs to consumers and profitability. Fortunately, there are options for reducing labor overhead costs without sacrificing the quality of work. You can start by rethinking what it means to bring people on to help with increased labor needs. This shift in thinking will open your eyes to cost effective options that you may never have considered.
Rethink what it means to bring on additional help for labor needs
The traditional model of hiring new internal employees as company labor needs increase is costly. For example, in the past when a business owner needed help taking customer calls, the only option was to hire more in-office help. Bringing on a new staff member means taking the time to find, hire, and train that person. If the person is fulltime, there are factors like insurance, paid time off, and other benefits that come into play. All of these elements make hiring a new person a big commitment. Each new hire requires an investment of time, energy, and money. Constantly redirecting those elements from company growth for new hires can have a negative impact on expansion and profitability. Fortunately, advances in technology have provided business owners with new options when it comes to getting additional help with labor needs.
Cost effective option for reducing labor overhead costs
Thanks to advances in technology it is not necessary to bring on a new staff member every time you need additional help. Instead, you can work with an outsourcing company to get help with many of the tasks that, in the past, required a new hire. A high quality outsourcing company will have a team of well-trained employees that can handle a wide range of tasks related to running a business. For example, instead of hiring an internal staff member to help with tech support, you can get tech support through an outsourcing company. Because everything is connected via the internet, you can get tech support remotely as needed instead of hiring a new staff member. You can use an outsourcing company to help you with a wide array of tasks that run the gamut from general to specialized. Even industry specific tasks such as medical billing and coding can be outsourced to a high quality firm. Working with an outsourcing company frees up resources for you to invest in growth and the hiring of high level people who are key to the success of your business.
High quality labor at a reasonable price is not an impossible dream anymore. You have access to a pool of qualified labor through outsourcing. You can learn more about your outsourcing options by setting up a call to discuss your specific needs. The time commitment required to explore this option is much smaller than that required to regularly find and onboard new staff.