Payroll Inefficiencies - Have some?

At the beginning of this month an electrical contractor client invested?an entire day?off-site to …

-???????review his existing 3-year Vision;

-???????create a brand-new 1-year Business Plan (albeit a?very?non-Traditional one);

-???????create brand new 90-day goals … for the 1st?? of his brand-new 1-yr N.T. plan.

Watch the video, by clicking here.

In his very next WRAR –?Weekly Reflections & Achievements Review?form – which he sent to me, as my clients do, to help us “cut to the chase” in our upcoming coaching session he had a comment, followed by a question:

"... our payroll is the highest it's ever been in ratio to our gross sales and this scares me to be spending more on payroll" (He was mentioning his resistance to hiring another key person for a particular department.)

"How do you know if the payroll is getting out-of-hand and we are just being too inefficient in the office?"

And here’s?my response:

• What’s your profit margin TODAY?
• When previously comparing gross sales to salary/wages what was your profit margin?
• How can you know if there are inefficiencies?
• How can you measure them?
• How can you help eliminate/minimize inefficiencies?

My saying is ALWAYS:

• Every expenditure is an INVESTMENT.??
• Every INVESTMENT?must?give me an ROI / a Return.

Hence:

The wages/salary of each & every employee?MUST?give you a Return.

I recommend that you “invest” a good-sized chunk of Business Development time in identifying how & where each & every employee is giving you an ROI on their salary/wages and this includes “all” investments such as employee remittances, bonuses, health insurance, etc. etc., right?

Then list each of each person's tasks and how each of those tasks computes to $$ & cents. (Why do keyboards no longer have “cent” signs?!?! LOL — one of my pet peeves! LOL :-)

• For this one you’ll need to KNOW the $$ & cents so it may take you a little longer.
• How about if you start with the people you find most questionable when it comes to inefficiencies?
• Identify what you NEED to be receiving on each task.
• Identify the inefficiencies.
• Identify the training they need to help them become more efficient in performing each task.

And, K, there is a “tipping point.”? This is why mid-sized construction companies (and in other industries, as well, I’m CERTAIN) implode.?They grow … but not enough to get past that tipping point.

GREAT question, BTW, K!!

****************

Then, in our coaching session, I also reminded him that?

Our clients pay for Everything!

If you, too,

• are wondering,
• have questions and/or
• are experiencing challenges,

why not take a look at this Live & Interactive seminar (that I used to do in-person) which I'm doing on-line on April 21st to help YOU, too, Overcome YOUR Top 3 Challenges. (click image above ... or - MLJ below)

Hope to see you there!

Lynne https://mljInternational.com/21April22