Being able to reduce labour costs, regardless of which type of industry you’re working within, is a great way to increase your company’s profitability. Labour is one of your biggest expenses—you must pay employees to be present, whether they’re being productive or not. But cutting your labour costs without affecting customer service can be difficult. Here are three ways to reduce your labour costs without causing a negative effect to the rest of your business.
Changing the way you schedule your employees’ shifts can reduce labour costs from your monthly expenses. Examine your previous sales activity, such as when your peak periods are, when your employees are most productive, and your clock-in and clock-out times. Your employees may be clocking in 15 minutes before their shifts are supposed to start, and all those extra minutes will add up. You may also be scheduling too many employees during certain hours when you’re not actually that busy.
By examining your previous sales activity, you’ll be able to see trends that are more or less consistent, and you can schedule your employees accordingly. By rescheduling based on sales activity, you’ll reduce labour costs for the times when you don’t need so many staff members on the floor or when employees are present but unproductive.
Automate Your Systems Up Front
The less time your employees have to spend handling cash up front, the more time they’ll have to spend on other tasks, like cleaning or helping customers. The time it takes to accept, count, give and organize cash at the register adds up and lowers your employees’ overall productivity. By automating your systems up front, you can lower labour costs by reducing the amount of workers you’ll need while still maintaining the same level of customer service.
Using counterfeit detectors can save on the time it takes for your cashiers to verify bank notes, while also increasing security and decreasing fraud. Using cheque scanners, if you accept cheques, saves your cashiers the time it takes to manually enter all the information—the scanner quickly uploads the information for them. Using currency recyclers also reduces the amount of time it will take for your cashiers to go back and forth from your safe to deposit and grab more cash as needed. You’ll always have enough cash on hand for your transactions, and your customers won’t be ignored while your employees are handling cash.
Use Back-Office Cash Management Solutions
Similar to automating your cash management system up front, using back-office cash management solutions can help you reduce labour costs at the end of the night. Counting and reconciling large amounts of cash takes time. Your employees can be sitting in the back for an hour or more just balancing their totals and recounting cash.
Luckily, manual counting and sorting cash is a thing of the past. You can automate your back-office procedures to include cash management solutions so machines do most of the work. Your employees will spend less time counting, so they can clock out quicker and save you money. Using bank note and coin sorters and counters guarantees accurate counts every time, and you save valuable time each day by quickly processing thousands of bills and coins without the hassle of doing it by hand.
You can efficiently reduce labour costs at your business by optimizing your schedule, automating your systems up front and using back-office cash management solutions. Streamlining your cash management operations can save you money and increase your company’s profitability.