3 Ways to Reduce Labor Costs in 2018

3 Ways to Reduce Labor Costs in 2018

If improving engagement, recruitment, retention AND getting your expenses under control are among your 2018 goals, well then, you are not alone!

In fact, we recently spoke to an organization that is struggling with all of these issues. Thinking about it was so overwhelming that they didn’t even want to begin to ponder what it was costing them.  By the end of our conversation we had totaled their cost of recruitment and retention problems.  $864,00 per year!! For a single 100-bed organization!!

What about you? What can help you to reduce labor costs in 2018?

Streamline Processes to Reduce Overtime
Overtime adds up quickly.  As you know, paying 1.5 times what you should be paying can quickly kill your budget.  In addition to the obvious lack of staff, inefficiency is a significant cause of overtime.  In the focus groups we have conducted with thousands of team members we have found inefficiency comes in many forms: Lack of readily available supplies, managerial approval for minor decisions, repetitive paperwork, etc.

Hire Right
Do you know what type of person thrives in your organization?  Creative? Energetic? Customer orientated?  Identify what the attributes are that your rockstar employees all have in common and determine how you can attract more of them!  If you’re willing to hire anyone then you’ll probably end up with no one, or perhaps worse, a disengaged employee.  We helped one client pinpoint exactly the type of employee that flourishes in their organization and then helped them craft questions that would draw in the same kind of people.

Treat them Right
Once you hire right, you need to treat them right!  Prior to working with us, one of our clients hired 66 people.  65 of them left within one year!  The wasted resources, both time and money, was astounding and resulted in us helping them take a hard, but necessary, look at their culture to see what was causing the bleed.  What specifically is causing the turnover in your organization?  Lack of recognition, poor communication and inadequate training are what employees tell us most often make them leave.

This article was written by Drive President Denise Boudreau-Scott.

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