Business Education

How to Handle Employee Requests for More Hours When Your Budget Is Limited

A few good, loyal employees have recently started approaching you seeking more hours. You want to accommodate them because these requests stem from a real need. (Though not necessarily a team player’s desire to contribute even more to your growing business.) Regardless, as a small business owner, you also face the tough challenge of balancing employee satisfaction with your company’s financial health. It’s a delicate tightrope walk, to say the least.

1. Understanding the Request and Your Budget

Employees often request additional hours for valid reasons. Sometimes, it’s about personal finances; they need more income to cover living expenses or unexpected bills. Other times, it’s a desire for more responsibility or to feel more useful within the company. They might feel they have more to offer than their current schedule allows.

Before granting their request, a thorough budget review is vital to making an informed decision. Look closely at your variable costs, like supplies and utilities, versus fixed costs, like rent. Understand your cash flow; where does money come in, and where does it go out? This view helps you see your true financial limits.

Next, create a clear, updated budget. It should detail all current labor costs and show how much room you have for extra hours, if any. After all, adding hours means more than just paying a higher wage. So, consider overtime pay rules if hours go beyond a standard workweek. Factor in payroll taxes, workers’ compensation insurance, and any benefits that might kick in with increased hours. And remember, there is also administrative work tied to more hours, like processing payroll changes.

From here, you’ll be able to calculate the total cost for each extra hour an employee works. Add wages, taxes, and any other related expenses to get a truly realistic picture.

2. Open Communication: The Foundation of Resolution

When an employee asks for more hours, approach them with empathy. Listen to their request without forming an immediate judgment. Your goal is to fully understand their situation. Schedule a private meeting to talk about their request. Choose a comfortable, quiet setting where you both can speak freely.

Focus on hearing the employee’s perspective and understanding their goals. Show them you value their work and their dedication to the business. Letting them speak freely builds trust and shows you care. Imagine an employee needing extra income due to a sudden emergency, like a medical bill or car repair. Understanding this helps you explore temporary solutions or alternatives, proving you’re on their side.

Still, be honest about your business’s current financial limits. You do not need to share all your detailed financial data. Just explain that the budget cannot stretch further right now. It’s important to set clear boundaries. Plainly state what is financially possible and what is not. Briefly explain your reasoning, focusing on the big picture without giving too much detail.

3. Exploring Creative Staffing and Scheduling Solutions

Flexible options can sometimes give employees what they need without raising the payroll. Consider remote work if their job allows it. A compressed workweek means they work more hours over fewer days. Job sharing could also fit some roles, allowing two part-time people to fill one full-time spot. Ask your employees what flexible work options they prefer. This might uncover solutions you hadn’t considered. Like cross-training.

Cross-training employees means teaching them new skills. This allows them to handle different tasks as business needs change. This can lead to more consistent hours for them over time without a direct increase in pay. It also makes your team more versatile. Also, look for skill gaps in your team. Then, create a plan to cross-train employees in those areas.

Review your current work schedules. Look for ways to make them more efficient. Are there tasks that could be done by existing staff without adding hours? Maybe you can redistribute work to better use the hours you already pay for. A retail store, for example, might rearrange shifts to better cover busy times using its current staff, rather than adding new hours.

Using part-time employees or freelancers can be a smart move. They can handle specific tasks or seasonal spikes in demand. This is often more budget-friendly than hiring another full-time person. It offers flexibility without the ongoing cost burden.

4. Alternative Forms of Recognition and Compensation

Valuable recognition does not always equate to higher compensation. Offer increased autonomy in their role. Provide opportunities for special training. Publicly acknowledge their hard work and dedication. These actions build loyalty and boost morale without touching your payroll budget.

Start an employee recognition program. Reward good performance and strong dedication in ways that don’t cost a lot of money. If your budget allows for potential future growth, tie extra pay to business success. When the company does well, employees get a bonus. Or, offer a small share of profits when certain goals are met. This motivates them to help the business grow. Research shows that incentive-based pay truly boosts employee motivation and output.

Investing in an employee’s skills helps everyone. Offer access to online courses relevant to their job. Pay for workshops or industry certifications. This benefits the employee by growing their career. It also helps your business by having a more skilled team. It is a valuable form of compensation that pays off for both sides. Fund online courses, workshops, or certifications related to their job. This shows you care about their future.

5. Planning for Future Growth and Increased Capacity

Think ahead about what needs to happen to allow for more hours. What financial conditions would make it possible? Create different scenarios for your budget. This proactive approach helps you prepare for the future. Outline specific revenue targets or cost savings goals. Reaching these benchmarks could open up the budget for additional staff hours.

Keep a close eye on your business’s performance. Monitor key metrics, such as sales figures and customer acquisition costs. Tracking these Key Performance Indicators helps you find opportunities to expand and shift your budget. This data shows you when you can afford to invest more in your team. Define the most important KPIs for your business. Track them regularly, looking for trends and opportunities.

Having a financial cushion is smart. A contingency fund helps you manage unexpected events, both good and bad. This fund provides the flexibility to increase staffing when a sudden opportunity arises. It also protects you during slower times.

Want to Accomplish More?

Do you want your company to grow faster and earn more while spending more time with your family doing everything you started your business to do?

We can make that dream a reality. Give us 30 minutes, and we will show you how to get your life back. Skeptical? Good! Put us to the test.

You can call us for your free appointment at 480-636-1720, or, if you prefer, send us an email. You can also visit us at Waters Business Consulting Group to learn more about us and the services we offer.

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Why Natural Disasters are So Disastrous to Businesses

September 28, 2017 No Comments

While hurricanes Harvey and Irma are gone, Hurricane Maria poses a possible threat. And, that’s a warning because in the aftermath of Hurricane Sandy, there were over 1 million insurance claims processed. The fact of the matter is, there are still businesses in Texas and Florida which are dealing with the devastation left by Hurricane Harvey and Hurricane Irma. Although time has passed, simple supplies remain scarce. This isn’t to unnecessarily frighten you, only to serve as a stark reminder natural disasters are so disastrous to businesses of all kinds. Why Natural Disasters are So Disastrous to Businesses Dealing with a business emergency doesn’t have to be an exercise done on the fly. In fact, it shouldn’t be approached without an effective plan. However, too many businesses simply are not prepared. Statistics show that 94 percent of all small businesses in the U.S. do backup their critical financial information. But, only 4 in 10 backup off-site. From natural disasters like Hurricane Sandy to common theft and hardware malfunctions, small businesses are particularly vulnerable in times of crisis. “Disasters can wipe out a small business in seconds,” said the U.S. Small Business Administration (SBA). Yet small businesses are often the most unprepared for emergencies. —Forbes This one figure is a peek into why so many businesses fail in the wake of natural disasters. Nearly 40 percent of all small businesses never reopen following a natural disaster, according to the Federal Emergency Management Agency or FEMA. That’s not an insignificant figure to ignore. And, it clearly shows businesses are quite susceptible to natural disasters. How to Protect Your Business from Natural Disasters You shouldn’t have to endure more stress and worry than necessary. Your company can make it through a fire, earthquake, tornado, or hurricane. All you need is a plan and to be proactive. This way, you’re fully prepared and know precisely what to do. Here’s a few helpful suggestions for how to protect your business from natural disasters: Back up company records in the cloud. Not only should you routinely backup your company records, including your financials, on-site, but off-site, as well. There are many platforms out there and these provide an invaluable service. Focus on those which cater to business information as those will offer the best fit. Establish clear policies for employee, vendors, and customers. To keep your working relationships in good standing, you’ll need an actionable plan for team members, vendors, and customers. After all, if there’s going to be a delay in paying employees or delivering to your customers, you need a way to deal with such situations. Create a workable continuity plan to follow in the aftermath. Your continuity plan should identify key and essential operations. Basically, what your business can’t do without. You might need to cross-train employees. But, your goal is to put a workable continuity plan into place. Run drills from time to time and strive to make improvements. Even the best plan is useless if it’s never practiced. So, run drills periodically to keep everyone in practice. This will help ensure things run smoothly if the time comes. What’s your business’ plan for a natural disaster? How are you preparing your company to avoid losses? Are there any other precautions you would suggest taking? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group. [shareaholic app=”follow_buttons” id=”26833294″]

4 Big Problems with a WFH and On-Site Hybrid Business Operation

June 15, 2021 No Comments

With the roll-backs of local, state, and federal COVID-19 restrictions, businesses are attempting to return to a state of normalcy. But, reinstating pre-pandemic conditions isn’t as simple as they ought to be, and too many entrepreneurs are experiencing such a cruel reality. So, some are experimenting with a hybrid solution: a combination of work-from-home or WFH and on-site business operation. Sure, it certainly sounds like a logical solution. But, every solution breeds new problems. Meaning, there are distinct disadvantages to adopting a WFH and on-site business model. Biggest Hybrid Workplace Advantages Obviously, corporations around the world wouldn’t put a hybrid model in-place unless it had substantial benefits. And, there are some compelling reasons, like the potential of increased productivity via a customizable schedule. After all, happy employees are more productive and that’s certainly good for the bottom line. Then, there’s the morale boost which comes from being able to choose from WFH and on-site. Employees cherish the freedom and that too, helps to boost both productivity and morale. What many companies are converging on is a mixture of remote working and traditional office working, known as the hybrid workplace. A hybrid workplace exists when a business allows their employees to work either remotely or from the office. In a typical hybrid workplace, employees have the choice of working in a central office, working from home, or splitting their time between the two. —WeWork Ideas Blog Additionally, it can help to reduce operating costs, which decrease with the lessened need of supporting individuals constantly on-site. Moreover, it allows employees to avoid toxic situations. For instance, two or more employees who don’t get along very well in-person can find relief by not having to be in close proximity. 4 Issues with a WFH and On-Site Hybrid Business Operation While a hybrid operation might sound like a perfect answer, that just isn’t the case. Unfortunately, there are big potential problems with adopting a hybrid model, as the following issues might present: Managing a hybrid team is very difficult. Anyone with experience in managing a team is familiar with the vast time and effort that goes into making it work. Now, add-in a bunch of other variables that weren’t present before and it’s easy to imagine just how more difficult or nightmarish managing people in totally different physical locations is in reality. Some WFH employees will take advantage. Put this problem in the all-too-obvious column: some employees will exploit the new policies to their own personal advantage, even if it results in harming others and/or the company. While it’s not something you might relish thinking about, it is most definitely a possibility or perhaps, even a probability. A hybrid scenario can easily foster resentment. Another potential problem is along the same lines as the one above — that one or more employees will gain a sense of others’ nefarious behaviors regarding the hybrid operation. That could very well cause resentment to rear its ugly head. Not everyone will contribute the same amount. Expounding on the last two possible issues, is the real possibility one or more employees will shuffle responsibilities off their own shoulders and onto their coworkers through a form of sleight of hand. What other suggestions do you have to deal with potential work-from-home issues? Please take a few minutes to share your thoughts and experiences. Perhaps others can benefit from your unique perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Elon Musk, Twitter, and Bogus Business Numbers Teach this One Simple Lesson

May 22, 2022 No Comments

Elon Musk’s acquisition of Twitter is full of drama. It’s one of the biggest deals in the world of social media. What makes it so fascinating is the many bomb drops that continue to detonate, drawing huge public attention. Among the latest is about the actual number of bots on the microblog. Musk threatened to walk away if the company can’t provide proof positive about the percentage of fake accounts, citing his offer was predicated on official SEC filings. Turns out, there might be a lot Twitter is hiding from the public and this is a prime teaching example. Why Businesses should Never Mislead the Public or Consumers As a business owner, you should be aware of the consequences of misleading the public. When businesses knowingly deceive their consumers, it can lead to disastrous results. Not only can it ruin your reputation and cost you customers, but it can also lead to legal trouble. In this article, we will discuss the consequences of misleading the public and why honesty is always the best policy. One of the most influential propositions in marketing is that customer satisfaction begets loyalty, and loyalty begets profits. Why, then, do so many companies infuriate their customers by binding them with contracts, bleeding them with fees, confounding them with fine print, and otherwise penalizing them for their business? Because, unfortunately, it pays. Companies have found that confused and ill-informed customers, who often end up making poor purchasing decisions, can be highly profitable indeed. —Harvard Business Review Deceptive advertising is one of the most common ways that businesses mislead the public. This can take many forms, such as false claims about a product’s effectiveness, exaggerated claims about sales figures, or even making false promises about what a product can do. In some cases, businesses may even resort to fraudulent activities, such as selling counterfeit products or engaging in bait-and-switch schemes. Consumers rely on businesses to be truthful about their products and services. When businesses engage in deceptive practices, it erodes consumer trust and confidence. This can lead to lost business and customers turning to your competitors. In addition, if you are caught deceiving consumers, you could face legal action from state attorneys general or the Federal Trade Commission. The bottom line is that honesty is the best policy when it comes to running a business. Misleading the public may seem like a quick and easy way to make a profit, but in the long run, it will only lead to problems. Be truthful about your products and services, and you will build trust with your customers that will last for years to come. Have you ever been misled by a business? How did it make you feel? Share your story in the comments below. And if you’re a business owner, remember – always be honest with your customers! It’s the best policy for ensuring long-term success. Interested in learning more about business? Then just visit Waters Business Consulting Group.