17 Sep How to succesfully cut the operational and labour costs and become more efficient and more competitive?
Reducing the costs in medium and small business and change the processes in the way to consume fewer resources doesn’t have to be a complicated task. In most of the cases, it just means thinking of some smart steps
outsource the PROCESSES that consumes the resources UNNECESSARILY
One of the processes that uselessly and unnecessarily consumes employees’ time and also important resources, is the back office processes: such as: order processing, data entry, repetitive tasks, dispatching, customer service support, afterhours support, call center etc. To solve this problem and to reduce the costs, the advice of the experts is to use an operational leasing of this type: outsource the activity. Such a solution will provide you with the process that the company needs to operate and make profit, without unnecessarily burdening the company’s employees with additional responsibilities. We include here the process end to end and in case of issues and problems, the outsourcer will deal with it so that your company’s activity is not affected in any way. You can use a rate calculator to evaluate the monthly costs of such a service according to your needs.
The beauty of it and the good news is that not only specific processes can be outsourced. We are talking here about any possible services related to accounting, payroll, distribution, marketing, and the list can go on endlessly, depending on the specifics of your business and needs.
CUT labour cost
Here are 5 ways to reduce personnel costs.
Large organizations rely on sizable and productive workforces to perform at a high level and deliver results to their customers.
As a result, labor costs represent a significant proportion of expenses. You need to be sure not only that you have sufficient human resources to maintain production, but also that you attract and retain the right talent by offering competitive salaries.
In addition, there are many other financial factors to consider beyond the obvious costs, such as recruiting and paying staff, productivity losses that occur when vacancies go unfilled, or hiring the wrong person for the job.
When you need to control your labor costs, working with an outsourcing professional is one of the fastest and most effective ways to do so. Here are some of the best examples of how working with an outsourcing service provider can help you manage your workforce costs:
avoid inappropriate employment.
Such employment is a scenario that everyone wants to avoid. Recruiting someone who turns out not to be the right fit for your organization, or who simply isn’t capable of doing the job to the required standard, is a waste of time, money and effort for all parties. It can also be demotivating and damaging to morale.
On a purely financial level, it has been reported that a bad hire can cost the business 30% of the employee’s first year’s earnings.
One of the biggest benefits that can be gained from working with an outsourcing partner is the significant increase in the quality of employment. Outsourcing service providers specialize in recruiting the right people for specific roles by taking a rigorous and proven approach to candidate screening, analysis and reference checking.
less advertising spend.
Much of the financial commitment involved in hiring workers comes from the need to market and advertise available roles on job boards and other platforms. There is an understandable temptation to position and promote your vacancies in as many channels as possible, but this can be an expensive way to approach recruitment.
The right outsourcing services partner can give the best applicants quickly and easily by providing access to the right talent pool.
This takes a lot of time and hard work out of the job posting process and identifying the right candidates. Staff members who would be asked to do this work will be given more freedom and flexibility to focus on other tasks that could generate more value for the business.
reduced administrative burden.
There is a lot of administrative work involved in managing human resources, from scheduling changes to managing overtime and payroll. For large enterprises with large and diverse workforces, these activities can become extremely complicated, costing the HR team and the company a lot of time and money.
When you make the decision to team up with an outsourcing service provider, you benefit from the opportunity to offload much of this administrative responsibility. If you often use flexible workers during busy periods, for example, you can rely on an outsourcing specialist to analyze available capacity, bring in the people you need, and take care of processes like onboarding and payroll management.
In many industries—manufacturing being one of the clearest examples—seasonal trends and fluctuations in demand dictate businesses’ output and, consequently, their need for staff.
If you want to always use the most efficient resource, flexibility should be an essential part of workforce management. The services and expertise of an outsourcing profesional can help you optimize your flexible hiring and align your talent supply with your production cycles.
Technological innovation makes a vital contribution to the continuous evolution of business, and most companies have something to gain by adopting new systems and technologies to optimize key processes and provide more time to focus on other aspects that needs attention. These processes also reduce the risk of human error, which can have big financial implications.
An outsourcing services partner can help you keep up with the latest technology developments and decide which tools will benefit you the most.