5 Tips to Save Your Company Money

28 Jan

Human resources management decisions can save your company moneyIt is no secret that in today’s economic times, your company probably tries to save money whenever possible. It makes sense. But when it comes to employee and payroll solutions, there can be a point of diminishing returns when cutting costs leads can do more harm than good and leads to your operation suffering.

Here are five tips for perfecting your employee economics, taken from Entrepreneur Magazine.

1.  Staffing agencies, or professional employer organizations, can save you money on employee benefits. These companies essentially lease your employees back to you.

2. Think about hiring temporary employees when business surges rather than having permanent employees sitting idle during slow business cycles.

3. Interns offer free or low-cost labor in exchange for experience. Local college students look forward to learning the ropes for college credit and can be trained on the job for free and make for a seamless transition as a new hire.

4. Independent contractors can save a company money because employers generally don’t have to withhold or pay any taxes on payments to them. Just be wary that your contractors fit the definition provided by the IRS.

5. When you hire your own sales reps, there can be substantial costs for overheard, salaries, incentives, training costs and fringe benefits. Contracting independent manufacturers’ sales reps that are solely paid on commission is far less expensive.

Some companies have tried pretty creative ways to save money. As a gift for the holidays in 2010, all 12,400 U.S. employees of IKEA received a bicycle. The company hopes to save money in the long term by helping its employees be healthier, meaning less missed work, more productive days and lower insurance costs. 

Do you have any creative ways that your company is trying to save money and at the same time help with human resources management?

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