Despite employees are the most valuable of your resources, they are very expensive they cost you so much money and the complete reality is that unless every employee pays their way a lot of your money could end-up down the drain!
When you do not know which of your employees is yielding profit for you, how much you are spending on them or whether you are operating at a profit, this short article will enhance you with vital news. And it will make you adjust and be over the situation.
But how do you know which employee is working beneficially for you, especially if your employees are spread all over the country For all you know your money could be leaking away drop by costly drop, like oil from a leaking petrol tanker.
Here come the five steps you can use quickly to seal off the leaking petrol tanker!
Theorize The Money
What can't be estimated can't be improved. The first step is to get your employees to use timesheet. A timesheet records the number of hours into a table cell in a spreadsheet or software form each day. Activities are often grouped in a project. There are many excellent timesheet systems available.
Estimate
Secondly, estimate the true hourly cost of your employee per hour. You can work out a percentage to add to your employee hourly rate that will cover all overhead, pension and health care payments, the cost of holidays and sickness (which are non-productive for you but still need to be paid for).
Get Feedback
How about a report that shows how an employees activities is being monitored and what he actually spends his time on, it may be the secret of all times, revealing reports would be available if the data is entered accurately. The information keyed by your employees is priceless jewel. This must be put together to make up the basis of reports. How about a report that shows the total of hourly costs of every employee working on a project.
Monitor
This will give you the opportunity to be very sure if your costs are decreasing or growing. Consequently, you will see the positive outcome of any changes you have implemented. Closely monitor and manipulate the reports you have, it must consist of a daily, weekly, monthly, and annual format and the information as accordingly.
Sit Face to Face And Talk
Some employees might be completely ignorant of how they cost the company. Of course, this step has to be done carefully, unless you have a real problem to sit face to face with your employee. Let the employee know the actual cost implication of his time and let him know how much each activity he is into with costs the company, this is the exclusive step. Show each of them the timesheet of all other employees, so that no employee will think hes being targeted for preferential treatment.
With the specified feedback, stoppage or reduction of wasteful and expensive activity and focus on activities that are literally profitable will lead to increment on your profit immensely from your employees. Monitoring employee activity in this way can truly be an enlightening experience.
And you must also know that your employees need constant training and retraining for them to be introduced and perfect their skills, and they must be enlightened on time management.
