Ways to reduce operating expenses and increase revenues
Scottsdale, AZ -- (SBWIRE) -- 11/01/2012 -- KG Compensation Consulting is offering complimentary pay program reviews for small and mid-sized businesses to identify strengths and weaknesses in programs which could save them money. Using a simple questionnaire, KG Compensation Consulting can provide a summary of your compensation programs. Compensation refers to the programs/policies that guide employee pay decisions; specifically those where money is distributed directly to employees in the form of wages, incentives and bonuses.
Smaller businesses typically do not have the compensation expertise on-site but can benefit from effective compensation programs just as much as larger businesses. Many companies, especially smaller ones, tend to make pay decisions on an "as needed" basis rather than having a well thought out approach. Unfortunately, a haphazard approach to employee wages can result in:
- A disconnect between employee rewards and business objectives impacting revenue growth
- Pay inequities between employees impacting employee engagement
- Wages not being market competitive impacting turnover and recruiting efforts
- Labor laws not being adhered to leaving employers open to legal risk
Compensation is the biggest operating expense for most businesses. The percent of total operating costs does vary by industry, but generally, labor costs (includes wages, benefits, taxes, retirement contributions) account for 40 to 70 percent of total expenses. Employee wages alone account for the significant portion of this expense.
Compensation consultants can review current programs or develop new ones that will ensure businesses are competitive without overspending, compliant with key labor laws, and receiving optimal ROI on employee wages.
Learn more about KG Compensation Consulting’s complimentary pay program review by viewing: Complimentary Pay Review Information.