Increase Efficiency to Reduce Retail Labor Costs

While retailers struggle to maintain their profit margins, labor costs continue to rise. Check out these smart ways to keep them under control.

Fine-tune schedules.

This can be tricky in retail; there may be too many employees on the job when customer traffic is low, or not enough when the store is jammed. Analyze your POS sales data to more accurately schedule the right number of employees for each shift. (Or obtain scheduling software that will do it for you.)

Avoid overtime.

Instead of having your full-time employee work extra shifts at the time and a half, pay a part-time or temporary worker the base rate to cover the same hours.

Eliminate time theft.

A time and attendance app will ensure that employees are not being paid for the time they didn’t actually work: coming in late, leaving early, long breaks, rounding up hours or buddy clocking in/out.

Cross-train employees.

Most people are happy to learn new skills and take on new roles. And you’ll be happy that fewer people are needed to get the work done. Plus, if one employee quits, you’ll have another ready to step in without the costs of a new hire.

Reduce employee turnover.

Recruiting and hiring new employees is expensive; it’s much more cost-effective to keep the ones you have. That doesn’t mean you have to give them raises; the number one reason people leave a job is happiness, not money. Provide opportunities for engagement and career advancement to keep them on board.

Increase employee productivity.

Another benefit of keeping employees happy is that it also keeps them more productive and efficient — up to 20% more, according to some studies. That means you could get the same work out of fewer people.

Re-evaluate wages and pay structures.

  • Check whether your pay rates are consistent with industry norms at PayScale or Glassdoor. If they’re too high, bring them in line for new hires.
  • Convert sales roles to a commission-only pay structure.
  • Give pay raises based on performance, rather than an automatic annual increase.

The best way to reduce labor costs isn’t to reduce staff. It’s to increase efficiency in managing the human resources you already have. That’s how you have your cake and eat it too: keep customer satisfaction while taking a giant step toward improving profit margins.

 

This post is intended to be used for informational purposes only and does not constitute as legal, business, or tax advice. Please consult your attorney, business advisor, or tax advisor with respect to matters referenced in our content. Xendoo assumes no liability for any actions taken in reliance upon the information contained herein.

 

Just What the Doctor Ordered: 3 cash flow tips for medical practices

You don’t need a second opinion to know that the healthcare landscape is drastically changing. Insurance companies are paying less and patients are paying more — yet many medical practices continue to run their business the same way they did five years ago.

If that’s you, it’s time to make a change.

Your practice’s cash flow is a big indicator of its overall health. Considering that…

• insurance reimbursements are plummeting

• self-pay is the number three payer behind Medicare and Medicaid

• about 68% of patients with medical bills $500 or less didn’t pay in full in 2016

…it’s time to help educate patients about their financial responsibility and use tools that keep your cash flow and A/R healthy.

Now that we’ve diagnosed the problem, here are three ways to improve your practice’s cash flow!

Train your staff

Step one is making sure your staff understands your practice’s policies, which should be clearly defined and not vary by physician. Help them understand why healthcare changes may be one reason behind patients’ unwillingness to pay and show them how to make decisions based on aging reports, not feelings.

Send invoices promptly and statements regularly

Your A/R is your practice’s largest asset, so it should be a priority. Promptly sending invoices and regular statements (sooner than 90 days overdue) helps patients get into the habit of paying on time and understand that they do owe you money.

Tweak your statements

Small changes to your patient statements can help increase the urgency to pay. Try removing the:

Aging boxes – which subtly tell patients it’s ok to wait until the last box before there’s a consequence

Amount paid box – which sends the signal that patients have the option of how much to pay

Statement date – which can be confused with the due date

And remember, even after making these changes, your staff may still make mistakes when it comes to a patient’s billing. But the sooner you correct mistakes, the sooner your patients will pay their balance.

 

This post is intended to be used for informational purposes only and does not constitute as legal, business, or tax advice. Please consult your attorney, business advisor, or tax advisor with respect to matters referenced in our content. Xendoo assumes no liability for any actions taken in reliance upon the information contained herein.