One way of controlling salaries and benefits is to use temps for those peak times of the year or when sales spike upward. Fast growing sales will make you wonder if it will really last. Until you know the solid answer to that question, why add expenses that are difficult to get rid of later if sales fall back again. Why put yourself in a position where you have to dismiss someone you recently hired because you can't afford them anymore? It's better to use a temp for an easy-to-learn position with no set guarantee of how long the position will last.
The other advantage is that you can see how the temp performs their job before adding them to your permanent staff. Using temps is a good way to manage salary and benefit expenses when you're just not sure elevated sales will continue. Find a temp agency that you can trust to provide the right type of people for your business and show some loyalty to them for doing a good job. Also let the temp person knows your intentions in the beginning if possible and everyone wins!
More on curbing expenses in chapter 10 of my book "Save Your Business" available at Amazon in the USA and UK.
Tuesday, July 26, 2011
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