Lowering The Biggest Costs When Re-Starting Your Small Business

the biggest costs when starting your small business

Liz Strikwerda

Content strategist and corporate blogger (2000+ posts). Her work has been featured on G2's Learning Hub, Human Resources Today, CloserIQ, Better Buys and over 500 business websites. She plays bluegrass mandolin and enjoys hiking in the red rock wilderness of southern Utah. Connect with me on LinkedIn

Updated May 5, 2021

Worried about overhead as you re-open? If you can lower expenses, you will have more cash for other important things. Refreshed digital marketing, perhaps. Or upgrading your workplace for OSHA COVID compliance. Some companies are even offering their employees a COVID vaccine incentive.

Where will you find the money?

The best bet is reducing your labor costs.

Wages and Benefits Cost the Most

Labor is probably your largest line item. More expensive than marketing. More expensive than buying or leasing equipment. Even more expensive than renting space.

Small businesses spend at least 50% of their operating budget on employee wages and benefits.  In some industries, they spend up to 70%.

Reducing Labor Expenses Has a Big Payoff–Especially When Re-opening

Because labor commands so much of the budget, it makes sense to be as lean as possible. Surprisingly, many small businesses fail to improve labor management.

Why the disconnect?

Reducing The Biggest Costs When Re-starting Your Small Business

Reducing labor expenses lowers overhead every single pay period.

So how do new small businesses maximize their labor budget?

Intelligent automation is the key. Start with a comprehensive cloud-based HR system designed for small businesses.

While there are many HR systems designed for enterprise businesses, there is only one designed for the complex operational requirements of small businesses.

Maximize Your Labor Budget

WorkforceHub from Swipeclock has the robust labor management features small businesses need to squeeze every penny out of their labor budget.

WorkforceHub connects workforce management, strategic and core HR in one hub. And it only costs a few dollars per employee per month.

Let’s discuss the labor management functions contained in WorkforceHub.

WorkforceHub Timekeeping

WorkforceHub automates employee timekeeping and scheduling. Employees clock in and out for shifts in the system. The software creates timecards and stores them online. You can import hours directly into your payroll system.

For shift punch in/out, employees can use a physical or web-based time clock. This allows employees to punch in on any internet-enabled device.

Mobile Tracking

WorkforceHub has mobile tracking as well. Your offsite employees can punch in with the mobile app. Your managers can see exactly when and where everyone is working.

4 Ways Timekeeping Software Reduces The Biggest Costs When Re-starting Your Small Business

Here are some important ways WorkforceHub reduces the largest cost when re-starting your small business.

1. WorkforceHub Ensures Accurate Payroll

Timekeeping software increases payroll accuracy. Payroll mistakes are costly. You have to find the problem, correct it in the system, and issue a new check. And it’s not just about money. Payroll mistakes give you a bad employer reputation. Repeated mistakes reduce employee loyalty. They can contribute to higher employee turnover—which is costly in itself.

2. WorkforceHub Prevents Employee Time Theft

Multiple studies have revealed how pervasive employee time theft is. For example, in a Kessler International survey of over 500 workers, 95 percent admitted to theft. Hours theft was one of the forms of deceit. This includes buddy punching and timecard padding.

Buddy punching, entering inaccurate start times, and early punch-ins and late punch-outs result in an average of 4.5 fraudulent hours per week, per employee. For one worker earning a wage of $15 per hour, that’s loss of $67.50 per week. Do I have your attention yet?

The best way to prevent time theft is to integrate timekeeping software with a biometric time clock. A biometric time clock may seem too expensive, but it’s a wise investment. It’s also easier to start your business with a biometric clock than introduce one later. Ensure wage and hour accountability from business launch. You won’t have to deal with employee resistance by introducing one down the road.

If you are just starting your small business, you can learn from other employers’ mistakes. Never lose money due to time theft. Preventing time card fraud reduces one of the biggest costs.

3. WorkforceHub Empowers a Small, Lean HR Team

Did you downsize your HR team? Perhaps you have an HR department of one. WorkforceHub is ideal for small businesses with a small HR department. Many WorkforceHub customers have a one- or two-person HR staff.

With WorkforceHub, preparing payroll is quick and easy. You will save on wages and benefits for admin staff. Plus, your HR manager won’t grow weary of manual data entry tedium.

4. WorkforceHub Minimizes Costly Overtime

If you mismanage overtime for hourly employees, you’re going to pay for it. Paper timecard systems don’t have built-in alerts to inform you when employees are approaching or have exceeded their authorized hours. Customizable overtime alerts are one of the most popular features in timekeeping software. Limiting overtime reduces one of the biggest costs when starting your small business.

Simplify HR management today.

Simplify HR management today.

Photo by Yan Krukov from Pexels

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