5 Ways to Drive Down Payroll Expenses

Payroll is a necessary cost for any business that has employees. However, if payroll expenses get too high, then it can put a strong financial stress on the company. Using an employee scheduling app, such as Ximble, will help your business to keep track of everything, and make payroll’s job easier. Here are some great strategies to help your company drive down its payroll expenses!

Payroll Software, 5 Ways to Drive Down Payroll Expenses• Minimize Overtime

Overtime is a problem because it forces your company to pay 50% more for the same quality of labor that you would get if the employee hadn’t already worked 40 hours in the week. So, limiting overtime, and preventing your employees from working past 40 hours in the week can significantly reduce payroll costs.

• Use Payroll Software

Payroll software can help you track employee work hours. It can also control and report labor costs.

Importantly, it prevents HR reps or other employees from having to use spreadsheets, or other time consuming payroll services to keep track of employee work hours. Payroll software speeds up payroll processing, makes it more efficient, and can reduce payroll expenses.

• Reduce the Amount of Hours Employees Work

If you do this, your business may have to go through a slight adjustment period where your company must find ways to do things more efficiently. However, if your payroll expenses are way too high, then this could be one of the most effective ways to reduce them.

For example, if you think an employee can get a week’s worth of work done in 36 hours as opposed to 40 hours, then you can limit this employee’s weekly hours to 36 hours a week.

• Use Temporary Shutdowns During Slow Times

Sometimes, it may simply be unnecessary for your company to be open. For example, on major holidays, or following severe weather events such as snowstorms or hurricanes, it may be a better idea to temporarily shut down.

This is often a more cost effective decision than opening during such times and paying employees when there is no business for them to work on. Using an employee scheduling app such as Ximble will help you to plan for these situations by working out when you make the least money, allowing you to manage staff more efficiently.

• Schedule Effectively

Ineffective scheduling can lead to an unnecessary increase in payroll costs. For example, if you schedule two employees to come in to work when you only need one, and this mistake goes unnoticed, then you could end up paying twice as much as you would have needed to pay for the work.

work schedule maker such as the Ximble app can help you to prevent making mistakes, and can help save your company money! Unlike traditional spreadsheet scheduling, Ximble will intelligently plan when you need more employees, and when you need fewer. This will help you to get the most out of your scheduling, and allow you to spend more time on important matters.

Driving down payroll expenses is necessary for any business because it forces you to streamline your efforts and use staff more efficiently. Planning your employee schedules with Ximble takes the hard work out of it, and helps you to utilize your staff to best suit your business needs. Most importantly, having all your employee information in one place allows you to pick up on mistakes much quicker, and to catch them before you lose too much money.

Karin Jakovljevic

About the author

Karin Jakovljevic

Karin Jakovljevic is the head of marketing at Ximble, a powerful, cloud-based workforce management system, simplifying employee scheduling and time tracking for retailers, restaurants and small businesses.

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