Cutting costs: maximizing results
One of the greatest mistakes companies make is (attempting) proactive cost cutting via reduced employment wages. Ever heard of the saying 'you get what you pay for'? There's a reason it's a saying. We're just sayin'.
There is such a thing as ethical employment and we work to teach this to all of our clients. Providing a livable wage is the quickest way to cut costs through reduced employee turnover. The secondary quickest way to cut costs is to not be a jerk of an employer since most employees in today's day leave their manager, not the company but we digress and that's a different blog post found here.
How does this translate? It may seem counter-intuitive, however new hire costs are one of the biggest (and most hidden) financial bleeds a company typically has. The average new employee takes approximately 90 days (3 months) to on-board and fully become independent in most primary and secondary functions of their role. When looking at maximizing results, it's important to have a robust on-boarding plan which is a financial investment in of itself. Again, this is a different blog post to come - in the meantime, we'll help you out and give you the following amazing (and free!) resource: lmgtfy.com and plug in 'on-boarding strategy'.
Cutting costs primarily comes into play over the course of time that a firm spends posting, interviewing, screening, hiring, training, and subsequent performance. If this process has to be repeated more than 1x in 2 years per position, the company is near guaranteed to be in the red.
Moral of the story - either invest into educating those in charge of hiring or contract with a company who can train those to do so. Reach out today about a free consultation on best hiring practices or joining our exclusive small business manager membership group - firstname.lastname@example.org