Lucrative Firms provides this man tips to save money

What Lucrative Firms Don’t Want To Share (But We Will)

Learn how to cut costs & reduce employee turnover

When you hire someone, you need to invest in that person, which has a mushrooming effect on your company. The hiring process itself is costly. It is possible to spend large on the hiring process, then further on upskilling and training someone who may thereafter decide to move to greener pastures. This is a disheartening and expensive process to repeat. For small companies or startups, such repetition can be unaffordable. Other realities confront one, such as a global economy trying to rebuild after the severe impact of pandemic lockdown regulations. Many businesses struggle to stay afloat, never mind dealing with the competition and finding new markets to expand. Add to this employee turnover − this can cripple a business, whether large or small.

What is the solution to reducing employee turnover?

Happy employees will stay the longest. However, it is a truism that many employees will outgrow a position or a company. There is also the possibility of the company not being able to offer recruits the salary and benefits they demand. Employees may linger while deciding which way to jump, costing you in productivity while they vacillate. Often employees simply hop over to your competition, furnishing them with your business secrets. The most common challenges for a business are a limited budget and managers being inefficient in managing employees.

Why did you hire your employee in the first place?

Employees are hired for specific jobs based on their job skills. Nearly 45% of their time is spent on tasks they are overqualified for, causing tension. Managers may not pick up the cues put out by unhappy staff, leading to the employee losing heart and losing patience, simply jumping ship. At that stage, management is powerless to retain the employee. A clever business trick is, therefore, to outsource work. This eliminates the mundane and time-consuming tasks for a skilled worker, reducing employee turnover. Virtual assistants or remote workers achieve these tasks and at a fee much lower than paid to your onsite staff. You can cut salary costs up to 70%. If your total salary costs are $1 million per year, you could save up to $700 000 per year. While a virtual assistant does the mundane work, your onsite workers can focus on their core tasks. You then gain the maximum from your employees, increasing their efficiency and productivity.

How to cut costs?

Besides the massive savings you can gain when outsourcing repetitive work, there are benefits: you do not need to spend on a workspace, which means no computer costs, or printer hiring costs, no large office to hire, no stationery costs, no office treats, such as coffee and other items to keep in the company kitchen. Such may not seem costly; however, these costs accumulate over time.

What’s next?

Decide what you want – save money, or waste money? After all, you become an entrepreneur to be independent, not to work for yourself. You cannot accomplish everything on your own. You need help! Then again, employees can be costly. You want to make the best use of them after hiring them and while they are still there. Outsourcing is the staffing solution for those repetitive tasks that you and your core staff can do without focusing on your actual work. Contact us! Best book your free consultation and let our expert discuss the solutions available for you. We also recommend a course by Mads Singers − Effective Management Mastery course. Learn how to manage people, hire great people, learn the tricks of how to dismiss staff. Most importantly, learn how to delegate work. You will find yourself on your desired path to success.

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