The cost of labor tends to be one of the most significant line items in a business budget. When your clients need to cut costs, they may start looking at laying off members of the team. And while this is one way to trim the budget, it’s certainly not the only option. Check out our guide to helping your clients slash their labor costs (without reducing the workforce).
How Labor Costs Creep Up
According to the U.S. Bureau of Labor Statistics, an employer spends approximately 70 percent of the budget on wages and salaries. As a business grows, the workforce typically multiplies to handle the additional workload. Indirect costs also factor into the total amount spent on labor, such as training and recruitment.
The following industries tend to have the highest costs associated with labor:
- Consulting (management, IT, etc.)
- Education (public schools and higher ed)
- Hospitals
- Medical group practice management
- Investment and portfolio management
But a business operating in nearly any industry can be impacted by the high cost of labor, particularly when its employees use manual or flawed methods for managing time and processing payroll.
Hidden Costs
Some of the most common factors in the rising cost of labor include overtime, inaccurate hours, and high turnover rates. When employees work overtime, the additional pay may not have been factored into the budget, causing the actual cost to far surpass the expected total. Inaccurate hours also mean employees may be earning more than they were budgeted for, impacting the total budget.
High turnover rates can wreak havoc on a business budget, as recruitment costs are at an all-time high. Constantly having to fill positions, spending the time and money associated with finding and bringing on new hires, is a costly way to do business.
Offer an Integrated Solution
The answer to these common issues? Offering your clients an integrated solution that ensures accurate hours, which translates to accurate paychecks. As a Swipeclock partner, you can provide access to the tools your clients need to manage their workforces and slash labor costs.
An automated timekeeping solution eliminates payroll surprises due to accurate hours, every pay period. Your clients can set up alerts when employees are nearing overtime, as well as create schedules that reduce the need for hours to go beyond 40 in a workweek. Clock lockout functionality prevents employees from clocking in early and earning some extra money while they wait for their shift to start.
If your clients have remote or on-the-go workers, a mobile timekeeping app is a must. Tracking time eliminates the hassle of trying to figure out hours after the fact or manage with a manual spreadsheet.
Explore the flexible partner program and find the option that works with your business needs and goals. You’ll get access to the tools outlined above, which your clients need to keep costs down while maintaining high levels of productivity. Plus, partners get ongoing support, pre-built resources to generate awareness, and so much more.
Reach out to [email protected] to get started!
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