When looking for ways to reduce labor costs, keep in mind that sometimes the changes needed are not always large ones. Taking a look at things like technology being used, training, and what kind of overall employee environment you have, may be all you need to do. If you want to know how to lower labor costs without undergoing costly changes, try out these simple but fruitful methods.




Training costs time and money and certainly isn’t an area you can just cut out. However, you can look for ways to make it more efficient and useful.


Offer incentives for experienced employees to train newcomers rather than paying a trainer or training company. Train a large group at once when possible rather than one-on-one to save time.


Sit in on training now and then to make sure it is very thorough. Training that isn’t thorough is a waste of time and can lead to lower productivity.


By optimizing your business’s training process, you can save time and reduce labor costs simultaneously.


Update Technology


Allow technology to work for you. Are you using the latest and the greatest when it comes to technology in your business? If not, taking the plunge and upgrading could be a key way to reduce labor costs.


If your employees are still hand-stamping timecards every morning, you may want to consider an update, such as a web-based time clock software. Besides clocking in, keeping track of time being used is helpful in seeing where schedule changes can be made, and also helpful in showing employees how they can better manage their time.


How about computers? Are your employees’ laptops constantly running into glitches because they are too old? Technology is constantly advancing. Your business could get left in the dust if it doesn’t advance along with it.




All the training in the world and the latest technology won’t slow down employee turnover if the work environment is not good. Faithful employees who stay with the company for years begin to see your company as an investment in their lives. An excellent work environment produces employees who have no desire to look elsewhere.


Every time you hire someone new, you have to cover training time and costs. And when an employee is new, they won’t produce as quickly as your veteran employees. New employees are great and often needed. Just be sure to show your current employees how much you appreciate them on a daily basis, so they will stick around, helping to reduce labor costs.


As you look for ways to reduce labor costs, keep an eye on smaller areas along with the larger ones. Every area works together, improving your business and bringing costs down.

Published On: February 15th, 2021 / Categories: Small Office / Tags: , , , /