Reducing Wages Payable

In most businesses, the biggest expense is payroll; a rock-star employee demands a rock-star salary. Interns are nice because they either work for free (gaining only experience and perhaps a few credit hours), or they work for next to nothing. Fresh college graduates are also good hires because they are capable but lack experience – which means you can pay them less. Counter-intuitively, allowing employees to work less can save money. If they only want to work part time, that’s great, you only have to pay them part time.

Micro-contracting (AKA freelancing) through websites such as Fiver, Upwork, or Guru is a cheap way to outsource your work. Whatever you need, from Photoshopping to IT, there are countless freelance professionals ready and eager to work. Post what you need done, do a few interviews, and hire the best candidate. Alternatively, for design jobs and temp work, crowdsourcing sites like 99designs andDesignCrowd allow artists to compete for your business and you decide the winner.

A related option is employee leasing through a professional employer organization (PEO) such as PayChecks. The PEO provides the workforce and assumes responsibility for providing benefits and reporting wages / employment taxes. You delegate, manage, and control the work done by the employees then pay the leasing company to cover their expenses.

When it comes to work, time is money. Therefore, if you increase your employees’ efficiency, you save money (or generate more money depending on how you frame it). One of the best ways to cut back on wasted time is to optimize meetings. This means always having a goal. Never have a meeting unless everyone involved knows the purpose. Think you need an hour for a meeting? Cut that in half. This will reduce tangents, keep people focused, and decrease the amount of useless chit-chat. Before the meeting even starts, make sure that only the right people are in attendance. You don’t need everybody and their mother to be at the meeting. As a general rule, the smaller the crowd the better.

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