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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How to Support an Employee Going through a Crisis

May 1, 2021 No Comments

One employee’s personal crisis can become a big problem for your business in an instant. That’s unfortunate and even inconvenient but it can easily become a reality. (Especially during a time of disruption, caused by a global pandemic and subsequent shutdowns and re-openings.) When employees return to work — or continue to work through such turbulent times — crisis can manifest in various ways. When it affects an employee, it can likewise have a substantial impact on your business. Crisis Comes in Many Forms We’ve all heard the statistics and figures about the toll the lock-downs have taken. Drug use and overdoses are at historic highs. Depression runs rampant. Job losses are also a huge problem and with those losses, undue financial pressure. Then, there’s just the matter of separation of family members and close friends from one another. We all have life events that distract us from work from time to time — an ailing family member, a divorce, the death of a friend. You can’t expect someone to be at their best at such times. But as a manager what can you expect? How can you support the person to take care of themselves emotionally while also making sure they are doing their work (or as much of it as they are able to)? —Harvard Business Review The divorce rate is also expected to spike when all the data is calculated. Plus, births have actually fallen — not risen — as formerly expected. The point is crisis comes in many forms and can emerge in any one (or more) of your employees’ lives. When this happens, it can have a profound effect on your business. Ways Businesses can Deal with an Employee in a Crisis Situation Fortunately, there are ways businesses can deal with an employee in a crisis situation. Nearly regardless of the circumstances, you can help your team member get through and stay a productive part of your company. Here are some of the most effective strategies to help employees cope with personal crisis: Encouragement. Okay, let’s begin with an obvious need — being supportive. Offering your support and encouragement can do a lot — a whole lot — for someone experiencing uncertainty and anxiety. A few kind, supportive words occasionally can have a really big impact on his or her attitude, work quality/quantity, and more positives. Incentives. Another way to help an employee in a crisis is to reward them with incentives. Just a small reward can help lift up a person’s spirits in profound ways. If you can find the right rewards, they will indeed big a real return on investment. Flexibility. Of course, offering him or her the flexibility they need will also do a lot for their mental and emotional health. By letting them customize their schedule and offering a combination of work-from-home and on-site, you can help them get through a very tough time. Contingencies. An employee experiencing a personal crisis might not be able to maintain a routine schedule. If you are confident this will only last for a short amount of time, you can have someone else step in and take some of their workload. Referrals. Unfortunately, not every situation will come to a positive end. Some crises are just too much and result in having to let an employee go or accept a resignation. If this happens, you can always offer a referral to help him or her to help them secure a new position. What other suggestions do you have? Please take a few minutes to share your own thoughts and feelings so that others can benefit from your experiences and perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Why Too Much Business is Bad for Business

May 24, 2017 No Comments

We all know that a business without much business, that is sales, usually sails slowly into the abyss. In some scenarios, a lack of sales starts a fantastic slide into oblivion quickly, causing the organization to grind to an abrupt halt. Regardless if it’s a slow bleed to death or a rapid demise, the end results are the same. This is what most first-time entrepreneurs know and fear, which is why they put all their resources into an astonishing effort in a race to success. While this scenario is certainly common and there are countless examples of companies wanting to dissolution, there’s another situation which can manifest and cause the same outcome — too much business. Why Too Much Business is Bad for Business Sure, it’s paradoxical, but nonetheless true: too much business, too many sales, is bad for business. It’s a strange phenomenon, but, it can’t be allowed to become a reality. When a business grows too fast, it runs the risk of outpacing its own abilities and that can cause customers to be shortchanged and to outpace the businesses capital resources. That’s nothing short of a disaster waiting to unleash itself, sabotaging a company from the inside. Incremental change rather than big splashy launches? Caution rather than risk? That may not sound like the profile we’ve come to associate with entrepreneurs, but it’s exactly this somewhat paradoxical mix of creativity and innovation combined with restraint, regulation and caution that is driving the next phase of [the country’s] business growth. The culture of prudence that has sometimes led [the country] to be seen as an economic lightweight has, in these tough economic times, proven to be our greatest asset. –Ivey Buiness Journal A company can’t overreach or it will be overwhelmed. We’ve all seen the real world effects when Fortune 500 companies rush a product to market. The Sony Betamax, New Coke, the Apple Newton PDA, and Facebook Home are some of the most high profile product failures. These demonstrate that not every new product will work, and, show that even large companies can make huge marketing mistakes. These major brands, though, can push through such bad experiences because they have the capital, brand recognition, and diversification. For a small to medium-sized business, this usually isn’t the case and there are real dangers in growing a company’s sales too large, too quickly because: Your team members can’t keep-up with the demand. While it’s great to see a steep increase in sales, that means having to meet the demand. If your team isn’t large enough, you’ll probably opt to squeeze more out from each employee. Quality will suffer as a result and when you sacrifice quantity for quality, you’re doing your customers and company a disservice. You rush through the hiring process. Another option you might exercise is to bring on new team members. The problem with this is, in an environment where there’s not enough hands-on-deck, you’ll have to expedite your hiring process. This can easily lead to bringing people on-board without the proper skill-set, attitude, or work ethic. So, you’ll have to suffer the pain of replacing employees and incur the expense of additional training. You need additional tools to sustain output. The tools of the trade are hugely important to providing quality work. When there’s a hurry to get things done, you might not have enough at your disposal. The remedy will probably be impulse purchases and that means heavily risking buyer’s remorse. You can’t effectively manage the company. Every successful business owner knows that it takes time to find and mentor good organizational leaders. This will become unavoidably apparent when there’s too much going on for your personal attention to all the moving parts. Your steep growth strains your cash flow and drains your capital reserves. Most successful business owners recognize the need for capital to start a business, but sometimes fail to realize that more sales requires more capital. Sometimes a business owner believes that more sales brings more revenue and that revenue will capitalize the business growth. Although a business owner can strategically manage the business cash flow and growth with sales to capitalize it, this must be balanced carefully and strategically. Think of the strategy like flying a plane. When a pilot takes off, the plane is on a steep but controlled ascend and then the pilot steadies the climb. If a pilot were to pull back for a steep climb and try to push the throttles and the jet to climb faster than the aircraft was capable, the pilot would burn too much fuel, create too much force and the potential risk of having the plane stall. This is similar with a business owner who pushes too many sales too fast, business runs out of cash and it stalls leaving the business to nose dive. Yet another unpleasant consequence of increasing sales beyond capacity is that you’ll have trouble responding to customer needs. If anyone is going to recognize this shortfall immediately, it will be your customers. This is why incremental growth is a sound policy. It allows you to identify gaps, learn from your small mistakes, and, to adapt at a realistic rate. Want to find out about what a business coach can do for you? [shareaholic app=”follow_buttons” id=”26833294″]

How to Run a Work-from-Home Business

May 24, 2017 No Comments

The Internet, and more particularly, the world wide web, is revolutionizing so many things in our lives and the workplace is no different. More companies are using telecommuters to work for them, and, they are reaping the benefits of less overhead. In addition, the web makes starting a business quite simple. The biggest problem for a part-time or full-time entrepreneur is being able to effectively manage their time. Those work-from-home commercials and websites leave out many aspects of having a home-based business. While they tout the freedom and no need to endure frustrating daily commutes, they do leave some things out. The devil is in the details and it’s those things you might not think about that can cause you to fail. How to Run a Work-from-Home Business Running a work-from-home business not only takes a lot of entrepreneurial spirit, a vision, and an executable plan, it also requires a heavy amount of self discipline. When you stop to think about it, you’ll realize that having a home-based business means you won’t leave either work or home for the majority of the week. Another phenomenon (read: unrealistic expectation) that you’ll probably face from your spouse is about household chores. When you work outside the home, you don’t take any household appliances with you. The washer and dryer stay in the laundry room and the dishwasher remains right beside the kitchen sink. Ninety-seven percent of entrepreneurs love or like working from home, according to Money Tips.com’s recent survey of 160 successful Americans who run their businesses from home. Most enjoy it so much that 54 percent of them would turn down an offer of free office space just one mile from home. —Inc.com In addition to these, the lawn mower, vacuum, and all those household cleaning supplies won’t mysteriously jump into your vehicle. However, your significant other won’t necessarily grasp this concept, and, will wonder why there’s laundry to fold or dishes to take out of the dishwasher. Any one that runs a home-based business knows that chores are time consuming and just because the office is in the house, doesn’t mean all the chores will get done. In addition to this, you’ll be literally surrounded with distractions. It could be guitars, a game console, television, crafts, social media, or any other hobby or pastime that beckons day after day. If you want to run a successful work-from-home business, you’ll need to do the following daily: Create a schedule and stick to it. There’s a reason you have scheduled work hours when your job takes you out of the home and to a workplace. Do the same for your home-based business: create a schedule and don’t deviate from it. Let your clients or customers know your hours of operation and be available when needed. Get dressed for work. One of the perceived advantages people have about working out of the home is being able to dress down. While you can certainly work in your pajamas or just a tee-shirt and shorts, it does have a strong impact on your psyche, and, it’s not a good one because it promotes procrastination. Dress business casual and you’ll actually feel like it’s a work environment. Take breaks during the day. You do this at any workplace, but, when you start a home-based business, you’ll probably experience an urge to stay put in your office or work space to get things done. You need breaks during the day, so, put these into your schedule. It could be a short walk around the block, or even doing a chore, but these should be regular. Give yourself time off. Because your work and home environment are one-in-the-same, you’ll face the temptation to get this or that done when family is home. Don’t shortchange your family and you’ll find yourself to be a lot happier when there’s a good balance. Get out at least once per week. Don’t make the mistake of chaining yourself to your desk. You can go out to lunch and meet a friend or your spouse, but, be sure to do this at least once per week to keep your professional mannerisms sharp. Another tip you ought to take is to stay focused on your business. Because you might not regularly interact personally with others, your mind will tend to wander and you might get some new ideas to pursue. While it’s wonderful to be creative, you won’t be able to go off in different directions at once — keep your focus or you’ll increase your chances of failing. I just had this conversation yesterday with a Chief Marketing Officer who works virtually, and he enjoys the flexibility. We met at The Henry on Camelback in Phoenix. Personally, I prefer to get dressed, and head to my office with focus on my schedule and priorities. Call me traditional, but my work ethic has been embedded into my habits for over 35 years and it works for me. Now, I also find myself logging in when I get back to my home office. So, one of my incentives is to remain focused and productive at my office during the work week so that my evenings and weekends are free at home. It does take discipline, but this allows me time with my family and to enjoy a balanced life outside of my work. What I do like about working from home, is the flexibility it provides me and my family as well as the flexibility in the services that I can provide for my clients. What is most exciting is the business and career opportunities that our technology gives us. Go out and create your new opportunities … and start from home! Want to find out about what a business coach can do for you? [shareaholic app=”follow_buttons” id=”26833294″]

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

1. Understanding the Request and Your Budget

2. Open Communication: The Foundation of Resolution

3. Exploring Creative Staffing and Scheduling Solutions

4. Alternative Forms of Recognition and Compensation

5. Planning for Future Growth and Increased Capacity

Want to Accomplish More?

Like this article?

Related Posts

How to Support an Employee Going through a Crisis

Why Too Much Business is Bad for Business

How to Run a Work-from-Home Business

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