One of the biggest expenses in most businesses is the labor to keep the business moving, so it follows that one of the areas of expenditure with the biggest potential for unplanned (and unnecessary!) blowouts is also the labor force. There are a huge variety of ways in which your employees can actually be cash-suckers, rather than profit makers. Today we look at 5 of the most common cash-sucking employee problems, and how technology and policies like time attendance tracking can solve them.
1. My employees get very little done in a shift
Employee productivity is a complex web of many different factors. Fortunately, motivation very rarely comes directly from being paid more money; unless you are paying your employees far less that they are worth, it is unlikely that you need to pay them more to motivate them. Far better is to offer recognition for a job well done - this will move slowly at first, but will pick up momentum as people starting working better and being recognized more.
2. I'm sure that time-card padding is rife in my company - how can I stop it?
Time attendance tracking with an employee telephone time clock is a fast, simple way to eliminate time card padding. These systems can also automatically calculate employee hours and overtime, and you can check on the status of your employees by phone at any stage of the day.
3. My worker's comp costs are really eating into the budget
No worker wants to be injured - our base instincts simply don't allow us to deliberately seriously hurt ourselves, simply because somebody else will pay for it. So the key is actually reducing the risk of injury; there is an entire field of research in this area to advise you!
4. It seems that my employees have a culture of using up sick days whether they need them or not.
One fast, simple way to dis-incentivize this is to offer a reward of a half-day pay, per sick day left at the end of the fiscal year. You can also require a medical certificate for any sick days used that people are paid for. If people persist in using up all their sick days, consider moving the worst offenders to a casual employment basis.
5. An employee has constant medical problems that force her to take her entire sick leave, carer's leave and stress leave requirements, as well as unpaid leave.
This can be a massive burden on a company, even if the leave is technically due to every employee anyway. Make sure you enforce the need for a medical certificate for any paid leave, and consider instituting a policy that if more than a certain amount of unpaid leave is required, an employee may forfeit their contract.
With the aid of technology like telephone time clocks, and a little thoughtful policymaking, it is relatively easy to turn many cash-sucking employee problems around.