Monday, January 18, 2010

What is the cost of your new employee?

The number one expense in a service business is your labor costs. So you need to be sure that the money you spend is for someone that is qualified to do the work you are paying your hard earned money for.

The first way to do this is to have a set hiring procedure in place before you every place that first want ad.
Second you should have a detailed application just for your company not some office supply store form.
Third you should have an employee handbook made, given to every new hire and signed for.
Fourth you should run a background check and if possible a drug screening as well.

Taking these steps will not only give your customers value that you can spot light in your marketing but will give you added value as well in the long run by knowing you have skilling, qualified, honest, drug free employees representing you and your company. The old adage 'You get what you pay for' can be attested to by anyone that has just hired someone off the street or because a friend of a friend said he was a good worker and knew what he was doing, only to have anything from major trouble to just routine annoyance caused by this person. Hopefully you have not been damaged too severely so far but by following these steps you will greatly improve your odds of never having to worry about it.

These steps can save you money by reducing employee absenteeism, possible reduction in insurance premium rates, reduce or eliminate loss due to theft, increase the quality of employees that should work faster and safer allowing you to do more jobs without increasing man power.

I will go over in the next four blog posts this week information on each of these points and where more information can be found, that you can go to, and use on your own.

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