We all know that the main reason to have an employee is for profit.
Somehow you get more profit by having an employee than by not having the employee.
Unfortunately, we see a lot of people pile up employees around them for irrational reasons!
Why do you need to know this?
Because meeting the goal of a profitable employee requires four other things of you:
(1) buying into the premise that employees need to be profitable
A lot of business owners get bullied into having and keeping unprofitable employees for all sorts of reasons.
(2) calculating true and total costs of having employees
These are rarely calculated other than basic salaries, NI and other benefits.
When you discover your £45K per year managers are really costing you nearer £85K per year – you may be open to managing them differently.
(3) creating a means of measurement for return on investment (ROI)
Now that you know your managers cost you £85K per year, £7,830 per month, £50 per hour.
What sort of return on that investment will be satisfactory to you?
(4) intolerance for unsatisfactory ROI
Even if you were to put your £85K in an high interest account, you would get some return without any further effort.
Is it refreshing to have this kind of straight talking?
These are the types of conversations we have business owners within their own private section of our membership site.
To see how this may help you create a more profitable business. Click below for more info.
Kind regards, Irene