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Keeping Staff Costs Down in Your Business

Image courtesy of Graeme Maclean
Image courtesy of Graeme Maclean
If you run a business and employ people, you will know how much it costs what with paying them and contributing to pensions, national insurance PAYE etc. It can not only be expensive but confusing and there are many complicated employee laws that you need to know about. However, it can be possible to reduce these costs by employing in an alternative way that is cheaper. Letting staff go is never nice so it is worth thinking hard about making sure that you only take on staff that you can afford. Also if yo pay low wages, because you have very little money to pay staff with you may find that morale is low, they may not be prepared to work their hardest or you find difficulty employing anyone in the first place.

Employ contractors
The work contractor can conjure up worries about expense as normally contractors are known to earn more then employees, but this need not be the case. This could mean that you get in temporary workers and if you do not use an agency they will be even cheaper. You can pay them an hourly rate and only ask them to work for the hours that you need. This means that you may just use someone for a few weeks or perhaps a few days or a few hours. You will not have to worry about sorting out their pension, taxes or national insurance, they will be responsible for that. You can have them come to work in your premises or get them to do freelance work online. If you do this, you could find that they will be even cheaper.

Use part-timers
It might be better to take on part-time, rather than full-time workers. With part-time staff you have less obligations with regards to paying pensions and you will not have to pay out so much money for your workers. If you do not have that much work for staff to do, this could be a good way of making sure that you are not paying someone to do nothing. It could also be more affordable for the company than paying full time wages.

Get in work experience people
Some local school and colleges will encourage their pupils to have some work experience. This could be in a block, perhaps a week or it could be odd days in the week. It can be a good way to get some free help, particularly if you need jobs doing that are relatively easy such as filing, answering phones or data entry.

Taking on an apprentice can be a great way to get a staff member without having to pay them very much. Apprentices earn a very low wage. They will be at college some of the time though. However, being as they are young, they are less likely to have set ways of doing things. This means that they will be easier for you to teach to show them the ways that you like things to be done.



Rachel Henderson is a professional freelance writer from the UK. She writes on many subjects but specialises in personal finance. As well as contributing to various blogs and websites she has her own website tracking her own money making process and sells her books through

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