Actions Businesses Can Take to Free Up Finances for Payroll
By | Ben Eubanks | Human Resources Professional, Speaker, and Blogger
The effects that changing finances can have on a business may not be felt by every employee immediately, but for many companies, human resources departments are the first to notice changes.
For the many HR departments in charge of meeting payroll and hiring new staff, tightening budgets can create a variety of problems. From difficulty actually meeting payroll, to postponing new hires, HR professionals often find themselves in tough situations.
Despite this common problem, there are often a variety of solutions businesses can employ to free up extra resources and save money. Let’s examine a few unconventional methods for freeing up finances so that HR departments can meet or expand payroll.
Negotiating Business Utilities
Many businesses give little thought to the cost of their utilities: after all, one can’t negotiate over whether or not utilities are needed in the workplace. However, businesses can negotiate over the prices they are charged for utilities – with the outcome often being a favourable one that saves businesses money.
Enter services such as https://www.utilitybidder.co.uk/. Business utilities comparison shopping can be conducted in mere minutes, with quotes furnished from a variety of utility companies. In the case of Utility Bidder, quotes for business water, business electricity and business gas are provided, resulting in savings for businesses up to 45% of their utility bills. Given that the average business spends around 5 percent of its budget on utilities, this one simple solution can potentially free up 1-2 percent of overall spending for payroll operations.
The amount of dedicated employee space in a business setting certainly can affect costs – particularly for those who lease office space. Even for companies that own their properties, heating and cooling larger areas requires more energy. Ultimately, many executives are looking for ways to reduce the number of square metres per employee, with a target goal for many being 9-10m².
The easiest way to accomplish such is through embracing telecommuting. As technology continues to free workers from the proverbial chains of their desk, it also frees employers to utilise smaller and smaller spaces for day-to-day operations. Given that rent can be a huge cost factor for many businesses – particularly smaller ones – it is worth assessing whether the current office space can be reduced in the pursuit of freeing up finances to meet or expand payroll.
Invest in Pre-Owned Equipment
The first instinct of many business is to buy new equipment, often at prices well above their actual value. Given that many forms of electronic equipment quickly depreciate in value, purchasing pre-owned equipment that has been cared for can often result in major savings over an extended period (for tips on calculating specific equipment value depreciation, click here).
Items such as computer peripherals, refurbished mobile devices, company vehicles and furniture are known not to hold value. By investing in these types of purchases rather than their newer equivalents, businesses can reduce procurement costs in these areas by as much as 50 percent without any diminished functionality.
Short-term issues with payroll can often resolve themselves, but businesses need not wait to free up finances for more manoeuvrability with respect to raises, new hires and general payroll. These three tips can help re-assess the situation of existing businesses, free up additional revenues, and guarantee that no HR department is ever caught in a sticky situation with regard to meeting obligations.
Republished with permission and originally published at upstarthr.com