Earn More for Your Dollar – Wages & Salaries
Would you like to earn more from your business spend? If the answer is Yes, then Into the Blue NZ Limited have the solutions to help you gain more from your expenditure.
We are different because we back ourselves to achieve a win-win outcome! For qualifying businesses our services will come at ZERO RISK – No Profit Improvements, No Fees.
This is the sixth in a series of posts. In this post we will discuss how to obtain better value from your wages & salaries spend. For most businesses wages & salaries is one of their biggest spends, yet many of them don’t understand the actual make-up of the spend as they don’t review it to identify exactly how those outgoings are benefitting their business (or not).
So, what should you be doing?
- Wages & Salaries should be identified separately.
- Review your overtime spend as it may identify staff shortages.
- Review the time spent on rework and the causes of rework.
- Review your direct wages / non-direct wages & salary ratio.
- Review your productivity levels.
You should always remember that most of the income generating work is being completed by your direct labour force and that an efficient and highly productive workforce is gold.
Before cutting direct labour it is highly advisable to conduct a thorough investigation as the repercussions can be detrimental to your business. For example, high overtime costs can be an indication of not enough staff, high rework, and low productivity, all of which can be remedied by good management.
The indirect (nonproductive) vs direct (productive) staff ratio is a good measure to see if your business is top heavy.
It is our experience from using our Rapid Profit Radar Diagnostic, that many business restructures usually result in cutting underutilised clerical and management positions and the employment of additional direct labour to reduce overtime.
For most mature businesses we offer a Zero-Risk policy… No Profit Improvement – No Fees.
For more information please either reply to this post or email profit@intotheblue.co.nz
For more information on creating or improving a business model please call John on (021) 625-871, and further more information please visit Into the Blue.
