Cut Personnel Costs Creatively

When it comes to cutting costs, personnel is one of the toughest areas to look at. One way to ease the pain is by taking a little bit off across the board, versus hacking off costs in one area or another.

David Peters, Jewelers of America’s resident education and management expert, shares some tips on how to effectively control personnel expenses.

Use this tips to thrive with creatively cutting the personnel costs of your business:

• Reduce salaries, including owner and manager salaries.
• To increase performance, consider raising commission rates for a salesperson once a minimum sales threshold is met.
• Use temporary and part-time help as much as possible.
• Have a cost-cutting brainstorming session with your employees.
• Switch to less costly online staff training when possible.
• Use an outside payroll service if it’s cheaper than doing it in-house.
• Cross train employees for added flexibility.
• Redistribute duties when a position becomes vacant.