In the past year, there’s been a fair amount of discussion of minimum wage. Alberta has become the province with the highest minimum wage at $15 an hour. Ontario was set to join it by increasing minimum wage from $14 to $15 per hour in January 2019, but a wage freeze has just been put in place.
The trend is clear, however, and you can even see it in the United States. Cities like New York and Seattle have written higher minimum wages into law. Minimum wage is set to continue going up with inflation.
In places where the minimum wage has already increased, businesses felt the pinch. Overhead costs increased without an increase in revenue, sales, or productivity. Budgets were squeezed, and your bottom line may have taken a hit.
In the face of these changes, business owners can look to technology to help them manage costs more effectively. If minimum wage increases have put pressure on your budget, it may be time to automate cash handling.
1. Automation Saves Time
Without looking at the other benefits for a business, it’s easy to see why automated cash handling helps. It saves time.
In business, time translates into money. The more time you spend performing a task, the more money you’re spending on it. By comparison, the investment in the equipment to automate cash handling for your business is more economical.
2. Increase Productivity by Automating Cash Handling
If automated cash handling saves the business time, your employees will have more time on their hands. The time they used to spend handling cash can be redirected towards other activities in the business.
For some businesses, this might mean your cashiers can stay on the floor longer or serve more customers. They may even be able to deliver better customer service.
This increases productivity by allowing your staff members to get back to the tasks that really drive your business.
3. Automation Reduces Overhead
Automating cash handling can help you tame those overhead costs. Minimum wage increases can push your expenditures higher, but technology can help you reduce your reliance on minimum wage workers.
Since your employees can spend more time on customer service and less time handling cash, they’re serving more customers and increasing productivity. In turn, you may not need to staff as many people at any given time. You may be able to reduce the amount of overlap between shifts as well.
The bottom line here is your overhead costs are reduced.
4. Cash Handling Becomes More Accurate
Another way automated cash handling can contribute to your bottom line is by reducing the number of errors made. It’s much easier to coin and sort coins and bank notes correctly with the right technology. Coin and bank note recycling also reduces the potential for errors.
The fewer errors that are made, the less time you need to devote to discovering them and correcting them. More accuracy reduces time and effort, as well as expenditures on cash handling procedures.
5. Operate with Minimal Cash on Hand
One of the other advantages of automated cash handling is that it reduces the amount of cash you need to have on hand. Coin and bank note recycling keeps the cash flowing through the business. In turn, you can reduce what you have on hand to top up tills and dispense floats.
Again, this reduces your overhead. You may not need to run to the bank to buy change, and you can keep less on hand. It’s definitely a step towards a lean operating mentality, which gives you greater flexibility.
Minimum wage increases can put pressure on businesses. Automating cash handling is just one great way to meet the challenges increased minimum wages put on your bottom line.