The next few shows will highlight problems business owners are having with talent. Whether the issue is attracting, selecting, training, keeping, or compensating, this part of the series starts from the problem and works backwards. The first 12 shows focused on starting at the beginning - what and how to build an Employer of Choice operation.
Although this has been universally true for years, in the post-pandemic world it has become truer - is that even a word?
Not matter how small, the level of professionalism required for managing HR - people - has reached extreme levels. Small business owners in the past could manage all of the hiring, training, paying etc., or delegate to someone in an non-operational role like the accountant. I wish we were still in the world, but we're not.
That is one reason for this show series - be your HR expert without paying for it. Now that is a deal.
Labor costs, dependent on industry, should range between 20% and 35% of sales. That means for every dollar collected from a customer, 20 to 35 cents is a contribution to their compensation. If we start our thinking here, then it is possible to raise compensation without raising prices.
I will leave reducing costs which is another method of attacking costs for another show. Today we are going to stay simple - baseline your sales at 3 levels - best, worse, and mean - not average.
"The World Of Business At Your Finger Tips"
If you have any questions or comments related to this Show, please use the Comments Section below. Also what specific people problems are you having today with opening your business at full capacity or running it at that level - please leave those issues here. We will contact you on the show date your issue will be addressed.
The situation in my small business is that after a certain amount in the neighborhood of $27.88 per hour, a wage increase does not result in a noticeable increase in employee productivity. I think a lot depends on the specific situation, but in my case the salary issue is very complicated.
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Executive Team & Show Hosts
Commentary and opinions on entrepreneurial capitalism.