A Realistic Look At Your Staff Costs
Updated: Feb 28, 2022
How The Right Rostering System Helps You Reduce Staff Overheads
Every smart business leader knows that their workforce is their most valuable asset. Having a high-performing team, a highly competent stable of managers and supervisors, or a roster of creative, capable and motivated staff will enable you to deliver more than what is expected from your business, no matter how small or new your organisation may be. The talent and hard work of the human capital of a small start-up can rival the state-of-the-art facilities, high-tech equipment or large coffers of most big businesses.
To make sure the organisation optimises its talent pool, it is important that its leaders have a clear and realistic view of how much they spend in staff costs. The most obvious way to determine how much retaining each person costs the business is to look at his or her salary. However, the total cost of employing your staff is more than just the sum of their weekly or monthly wages. You also have to factor in other expenses, such as your tax contributions for every person, health care benefits, sick leaves, annual leaves, public holidays, superannuation contribution, equipment costs, training and skills development funds, and more.
There is no single, accurate formula for determining actual employee costs because the required contributions vary from person to person, and policies differ from one company to another. What’s for sure is that all these small and big ticket items can add up to what the true costs of employing your workforce are.
What’s alarming is that these costs can significantly shoot up because of poor staff management. Under-staffing, over-staffing, failing to hire the right people, inability to utilise people’s potential, overworked or low performing personnel and other manifestations of a poorly planned human resources strategy can bring sizeable, often undetected expenses to a company. Poor people management can require repeated correcting of mistakes, loss of customers due to poor service, time wasted in over-long training periods, layoff costs, repeated rehiring and retraining expenses, and lost opportunities, which can all negatively impact the business bottom-line and lead to considerable loss of market share.
Having the right staff planning system will enable business leaders to accurately track, monitor, control and predict their employee expenses. By having a complete overview of the workload, schedules, deliverables and expected outcomes in any given period, organisations can implement an efficient rostering system that ensures they have the right people and the right number where and when they need them. This creates a highly efficient and balanced workflow that benefits all stakeholders: it helps businesses in reducing staff overheads, it keeps employees achieve work-life balance, and it allows customers to enjoy consistent, reliable and top-notch products and services every time.
Accomplishing these interconnected objectives is proven to bring business growth, innovation and continued success.