is it a must to reduce the total number of staff members on payroll to reduce cost?

[maventiger]

Business at times deploy some dirty strategies to reduce the cost of production and operations. Decreasing the total amount of on payroll expense can increase the money available to invest in other areas of the business. Most business owner lower their payroll expense which affect the quality of their product and/or service. Decreasing payroll expenses can place extra burden on your remaining employees and cause quality to suffer.

.......what are your views?

 

[Suba]

In general, there are two causes for the high cost of labor, namely the improper placement of machines and production equipment and a work atmosphere that is not conducive so that workers do not feel comfortable working. To reduce labor costs does not mean that companies reduce the number of existing workers. It is better if you make improvements to the placement of machines and equipment so that they can work effectively. In addition, fixing the workspace so that the workforce is more comfortable and productive. all of these things will have an impact on production costs.

 

[Shigobad2020]

Yes it is a must to reduce the number of staff on payroll to reduce cost, imagine the average scalar is 50,000 but you have 10 workers and you are paying them 30,000, normally if you know you can do with just 6workers and the 50,000 salary will be constant, it is advisable to just reduce the workers and increase the salaries of the remaining ones to make them happy.

 

[Nurudeen]

If you want to reduce cost with shorting or sacking some of your workers you need to put into consideration that this action can bring down your production and you also need to check if the retained workers can do d entire work of the company

 

[Seun4luv]

Reduce Employee Turnover. Attrition is incredibly costly to a business. .Focus On Cross-Training Employees. Another creative way to cut costs is by cross-training your staff. Automate, Streamline, and Outsource Trivial Tasks. Optimize Your Employee Schedule.

 

[Neeta313]

That is why for every business you venture into you should have a well structured business plan laid out and you would have known the number of workers you would need and how much it will cost to maintain those workers. I don't think it's right to just lay of some workers simply because you want to reduce cost and have extra cost to be able to put in your business, you can always make your staff work harder so that you people can gain more profit.

 

[Victor001]

Thats while we preach independency, owning your business to avoid suituations like this, as long as you dont decide when income enters your account, the business can take a new turn. The managers decision is for the future best.

 

[Tinaconcept]

Yes if its necessary you have to reduce your staff in order to reduce cost because to me its better you relief your staff than keep people working for you for over some months without payment that is too painful, its one of the challenges business do face in some periods

 

[Thosynho]

Business at times deploy some dirty strategies to reduce the cost of production and operations. Decreasing the total amount of on payroll expense can increase the money available to invest in other areas of the business. Most business owner lower their payroll expense which affect the quality of their product and/or service. Decreasing payroll expenses can place extra burden on your remaining employees and cause quality to suffer.

.......what are your views?

It is not a must to reduce total number of staff on your payroll in order to cut down cost. Sometimes many staff could be to your advantage when they are all productive and hard-working but why would you keep an unproductive staff on your payroll?

 

[Bookwormlux]

Business at times deploy some dirty strategies to reduce the cost of production and operations. Decreasing the total amount of on payroll expense can increase the money available to invest in other areas of the business. Most business owner lower their payroll expense which affect the quality of their product and/or service. Decreasing payroll expenses can place extra burden on your remaining employees and cause quality to suffer.

.......what are your views?

This is what most employers do whenever they realize that they cannot pay all their employees. I feel it is not the best thing to do. Better for you to let the employees know that you can no longer pay them and let them leave knowing the reason than to do so without letting them know the reason.

 

[maventiger]

If you want to reduce cost with shorting or sacking some of your workers you need to put into consideration that this action can bring down your production and you also need to check if the retained workers can do d entire work of the company

@Nurudeen I think that will be unfair to those who will be filling in for other vacant positions. By so doing, they will be stressed at work and their level of productivity will reduce overall. Reducing number of employees to reduce cost is never a wise decision to me.

 

[Sotherefore]

sometimes when the company or organisation does not require a huge labour and if people were employed by mistake then obviously it is always better for you to reduce the numbers of workers in an organisation to minimise the amount of money or cost of maintaining that particular business.

Post automatically merged: Feb 12, 2021

sometimes when the company or organisation does not require a huge labour and if people were employed by mistake then obviously it is always better for you to reduce the numbers of workers in an organisation to minimise the amount of money or cost of maintaining that particular business.

 

[Briangsam]

This might not be the only solution. You have to be sure the working environment is conducive enough for them. You have to equally be sure that the working equipments or tools are of good qualities and in good conditions to aid their work before taking the step.

 

[Victor72]

As a businessman as a company owner I don't think it's a must to reduce the total number of stuff on your payroll to to reduce cost, if you wish to reduce cause I suggest you decrease the quantity of your product, or you can increase the price Gretna market to get more profit

 

[Ridorz]

If you want to reduce the product payment cost for employees, there is no how you can do it than to reduce a employees. But mind you if you reduce an employees definitely your productivity will reduce, so you have to think wisely.

 

[Milz]

if you are not making as much profit as you use to before, it's advisable you cut down on the number of workers you have to ensure that every other person gets paid in time and work efficiently.

 

[Lyrrex]

Yes it is a must to reduce the number of staff on payroll to reduce cost, imagine the average scalar is 50,000 but you have 10 workers and you are paying them 30,000, normally if you know you can do with just 6workers and the 50,000 salary will be constant, it is advisable to just reduce the workers and increase the salaries of the remaining ones to make them happy.

Sometimes more workers are needed to increase production.

 

[Mahnoor]

Businesses reduce staff to cut costs and align their employee numbers with the amount of work that's available. There are two main ways to reduce staff: permanent layoffs and temporary layoffs. In a permanent layoff, a small business usually targets a certain group, such as poor performers, the newly hired or those earning the most money.

 

[idhans]

6

Business at times deploy some dirty strategies to reduce the cost of production and operations. Decreasing the total amount of on payroll expense can increase the money available to invest in other areas of the business. Most business owner lower their payroll expense which affect the quality of their product and/or service. Decreasing payroll expenses can place extra burden on your remaining employees and cause quality to suffer.

.......what are your views?

There are a couple of factors that determines the number of Staff you have to employee in your company and the number of workers you need for a product line. You don't have to compromise on standards and quality because you want to make more profit. I don't think this is appropriate for any business that wants to grow and compete in the market.

 

[Nicklas22]

To reduce cost on payroll you have to reduce the amount of staff you have
But mind you if you reduce an employees definitely your productivity will reduce, so you have to think wisely.