Many business owners are under the impression that the bigger the staff, the better. This is simply NOT true. In fact, it’s the complete opposite. Running with a lean (small) staff is more beneficial to you and your staff. Running with a lean staff will not only save you money but it will also boost staff morale and reduce your level of stress as you operate your business.
Sure, you can say "But what if someone quits?" Then keep one "insurance policy" worker on your staff. Someone who doesn't need/want to work a lot, but will temporarily if you need it.
Federal Unemployment Tax Act
Have you heard of the Federal Unemployment Tax Act? As an astute business owner you may have but, do you really understand how it impacts you as a business owner? It takes money out of your checks every single pay period. Well, almost. Let me explain...
The Federal Unemployment Tax Act, FUTA, essentially imposes a tax on employers. This tax helps to fund state agencies, particularly workforce agencies. The tax is imposed on the first $7,000 that EACH of your employees earns. So, for arguments sake, let’s say you have 10 employees on staff and each of those employees earns $7,000. You will be paying about $560 under FUTA for each of those ten employees. That equates to a whopping $5,600. On the other hand, if you only had five employees doing the same amount of work, you would only be paying out $2,800 under FUTA.
Do you see how less really is more?
Many scheduling software companies charge you per user. For example, Pet Sitter Plus scheduling software charges $49.95 a month for 2 – 5 sitters, $89.95 a month for 6 -10 sitters, and $149.95 for 11 – 20 sitters. Referring back to our initial example of hiring 5 sitters versus 10 sitters, you would save $40 per month on your scheduling software alone. You see how running your company with a lean staff is already saving you money?
Time is Money
What do you want to spend most of your work day doing? Interacting with your staff is an integral part of a successful business but again, less is more. Quality versus quantity. Think about the time it takes you to lead each staff member. Texts, phone calls, training, staff meetings… you get the drift? Time is of the essence – especially when you’re paying for it.
Think about each staff meeting that you hold. How long is it? Probably two hours, am I right? Ten employees, two hours at whatever their hourly rate may be. That adds up. Again, if you have a staff of ten employees, then that’s twenty billable
hours right there as opposed to ten billable hours if you only had a staff of five employees.
Not to mention food for the staff meeting or a location to actually hold it at. What about first aid training and other professional development that you wish to provide your employees with?
Investing in your employees is imperative to the success of your business too but wouldn’t it make more sense to provide solid professional development to a staff of five as opposed to loosely training a staff of ten?
One sure-fire way to boost your business is by boosting staff morale. Think of this, everyone wants to be part of something. Your organization is a community and you want it to feel that way to your employees. Your employees will feel valued, like they belong if you keep them fully involved. They need to feel like you value their existence and the work that they do for you is important. Employees that FEEL like they are an integral part of your business will behave like they are part of your business. Fully vested employees are more eager to help you make your business succeed.
Will your ten employees feel like they are important if they only work a handful of hours a week? Again, do you have what it takes to make ten people feel like they matter? AND will those ten people do enough pet sits to really feel like they’re part of your team?
Another way we, as business owners, make our employees feel valued is showing our appreciation towards them. Holiday bonuses and parties, employee appreciation day/week, birthdays. You get the idea? Wouldn’t you rather give a great holiday bonus to five people and make them feel really appreciated as opposed to giving a slim holiday bonus to ten staff members?
Running with a lean staff really IS the way to go. It saves you time and quite a bit of money, allows you to fully invest in your employees, thereby boosting staff morale and will save you a few headaches along the way.
Back To You...
How does this all sound? Makes sense doesn't it? That is how I have chosen to run my company and how I teach people to run theirs. I believe it is more efficient.
But I want to hear what you have to say...
Sound off below and tell me if you agree or disagree with me and how you have chosen to run your company. Has it been a strategic move? Or has it just evolved as you hired people who could help you here and there?