Option 1 Giving Away Free Labor Paid for by YOU for competition’s efficiency
Option 2 Paying for Senseless Labor Paid for by YOU for your inefficiency
You don’t want to have labor costs without getting a big bang for the buck for them. Much of the controllable labor cost and productivity results from Human Resources/Human Capital Management (HR) and you’ll be behind the 8 ball if you don’t manage it skillfully.
HR means Recruiting/Hiring, Training/Development, Compensation, Benefits, Employee Relations, HR/Personnel Records, Health/Safety & Strategic Planning
The question is… What are you doing about Labor Economics especially compared to others?1
The rest of the story (Optional):
Top five questions to ask yourself in relation to Option 1 and 2.
- Can I define our HR job and its importance to this organization?
- Do I know how much time and money we spend exactly per employee companywide to do HR well?
- Of the three available HR options A) Delegate HR to our staffer(s) as an additional responsibility) B) Use dedicated HR EE’s in a Professional department or C) Outsource HR, we chose option (A, B or C) ___ for the following reasons… Blah Blah.
- What usually happens after someone makes an error in your company?
- When was the first occasion you noticed it was harder to get the very best employees without going broke?
The others: CT Economics1
We have seen budgeted ‘HR” costs per employee range all over the place, from $270 per employee to $5,500 per employee for companies under 250 employees. What? That’s crazy. Someone is wrong. BTW question 3, Option A, is the most expensive way to go nearly 90% of the time.
Investigate and seek professional help to make sure you get it right.