As you review your expenses each month and try to find ways to increase your working capital, you cut costs wherever you find waste. While it’s important to spend your money wisely, sometimes extra expenses are worth it if they make your employees satisfied. When you choose which services to cut, make sure to leave these systems alone.
If your employees do not have the equipment they need to move products, you will experience shipping delays, decreased productivity, and increased annoyance from your clients. Your employees are also at greater risk of hurting themselves as they try to lift heavy boxes. Whenever you hear that your employees need a new cart with spring loaded casters, approve the request immediately. They cannot complete their jobs without these essential tools.
Your human resources department does not directly contribute to your profits because these employees do not manufacture or sell products. Still, they make sure that your working environment is welcoming to all employees and that hostile situations are de-escalated. Without your HR team, you cannot handle the flow of complaints in a manner that satisfies your workers. As a result, this group plays a critical indirect role in increasing your profits.
Employee Benefits Packages
Depending on how many employees you have, what their hours are, and how much money they make, you may be required to offer health insurance. Once you have created your benefits packages, do not take away services such as dental or optical insurance. While these options seem expendable, since you aren’t legally required to provide them, your employees will become angry if you take them away.
Although you may not like to admit it, a critical part of your job as a business owner is keeping your employees happy. To prevent complaints, do not cut these services.