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Productivity Over Payroll: The Other Side of the Coin

February 24, 2019

The bottom line of any successful organisation is the careful synergy between cost and profit.  In this day and age, many companies will encounter difficulty in regards to managing a tight payroll budget while constantly trying to stay ahead of the competitive curve.  In  truth, the maxim “more is not necessarily better” can be applied here.  In simpler terms, it is far better to have a smaller staff that is highly productive than a larger one in which only ten per cent of the employees are meeting the expectations of management.  So, let us examine some ways that will enable a business to make better use of what may very well be a highly talented workforce.

Encourage “Outside of the Box” Discussions

MP900382637There is nothing that is more discouraging to a motivated employee than if he or she feels that their input is not desired.  In fact, a staff member may very well have great ideas on how to increase sales while decreasing overhead.  Should they believe that their opinion matters little, their work is likely to suffer.  Instead, it is an excellent idea to hold monthly meetings that embrace any and all suggestions that employees will have.  The result will be a happier staff and a greater diligence towards work; a happy employee will naturally work harder.

Reward Success

Another pitfall of some of the largest organisations in the world is that there is little (if any) reward for personal achievement.  Instead, workers are simply “on target” or “satisfactory”.  Eventually, the employee will begin to realise that he or she will get paid the same amount of money as long as they remain merely “satisfactory”.  After all, why would they work harder for no reward?  On the contrary, individual success needs to be regularly recognised and applauded.  This can be in the form of a gift voucher, a monthly sales competition or indeed any system that recognises hard work and dedication.  Higher levels of productivity and less expenditure on payroll are wonderful ancillary benefits to this approach.

 Cut Out The Bad Apples

There is such a concept as being “too nice” in an office environment.  It is not entirely uncommon for one-third of the staff to be literally “carrying” two-thirds of workforce.  This will accomplish a few things.  First, it is obvious that payroll is being wasted on those who are not fit in their current positions.  Secondly, those who are performing their work will begin to resent the pressure that they feel placed upon them to meet nearly untenable levels of production.  These valued employees will quickly become exhausted and may even voluntarily leave the organisation.  So, one should never be afraid to objectively evaluate staff performance and when necessary, to make a slight cull.  This is simply good business sense.

These are three of the best methods to help increase productivity while cutting down on payroll costs.  Naturally, such methods can be adapted to different situations and should they all be used in conjunction, valuable funds can be saved while the entire office staff will be happier and more motivated to perform well.

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