The increase in the national minimum wage has since caused hardships among companies in the US, UK, and Canada as this adds more to the already high payroll expenses of the business. This may put an additional burden on small to medium enterprises financially, and could actually lead to losses as a result.
Before jumping to the solution, you have to first ask yourself, “What is inflating my employee costs?”
HOW COMPANIES CAN SOLVE THIS PROBLEM
Downsizing can be an option, but that could affect the business’ efficiency, and for some businesses is not an option. When downsizing, you will put more pressure on your remaining staff which can lead to diminishing performance, consequenting in losses.
How can you reduce costs without losing manpower? Businesses worldwide have found that operating globally through outsourcing helps their business stay competitive locally.
Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity that is or could be done internally, and sometimes involves transferring employees and assets from one firm to another.
HOW OUTSOURCING CAN HELP
Operations are much more manageable when you outsource tasks like call/text, chat, email, or social media support. Many businesses have opted to work with outsourcing company Pac Biz, to help them with customer support, ecommerce, data entry, dispatching and more. (Saving companies over $200k in annual payroll costs.) Pay a low monthly fee, customized for the services you need. Save significantly, since you can forget about paying costs such as health benefits, IT, equipment, hardware costs, management.