is it a must to reduce the total number of staff members on payroll to reduce cost?

[nimzy]

Well it's necessary for a business entrepreneur to reduce the number of staffs in his payroll in other to reduce the cost of expenditure on staffs when they are not productive or the rate of input is less than the output.

 

[Sotherefore]

In most cases this is always a Bad sign because as long as a business need more staff members then it's should also at the same time be able to generate enough money that will be needed to pay them all, reducing it to save cost may not be the best but you should rather think of how you can generate more profits.

 

[Immilash]

If you want to reduce cost with shorting or sacking some of your workers you need to put into consideration that this action can bring down your production and you also need to check if the retained workers can do d entire work of the company

That's it, reducing workers can bring down the cost of your production, it Is not advisable to sack your workers, it better for you to rectify the problem than to sack some of your workers.

 

[Adebayonle7]

This is why initial strategic planning is very important while starting business, also why an effective Human resource department should be put in place. If the available workforce is enough for the available work then no need to reduce staff but in a case where the employees are more than the available jobs, you may have to pay some workers off to enable you save more money instead of spending unrequired salaries. Like you have said, such money can either be saved by the business or used to buy more goods.

 

[Kingstone]

This is very common in schools. You will see a teacher taking like 5 subjects all in the name of the employer does not want to.employ more people to work. There is no how he or she will manage the subjects effectively.

 

[Sotherefore]

You will also need a cleaner and a security, those are also very important in a business, this will definitely depends on the business you are going into because that is one of the things that will determine this... In most business you need a waiter and in some you will Need a marketers.

 

[Suba]

As a wise manager, of course he will look for other solutions, before reducing employees or terminating employment, but if no alternative or other solutions are found, then he will be forced to reduce workers gradually to reduce operational costs.

 

[joy101]

I don't think it is a must to reduce total number of staff in payroll unless if the person is not making enough profit from the business, then he/ she can reduce.

 

[Smiles20]

You must not reduce the total number of employees in order to cut costs. Fact it should be the last thing that you will consider. If there are any unnecessary project that can wait then you should consider it first.

 

[Immilash1]

That's a good idea. But it will bring setbacks to your business. It will bring setbacks in the sense that you will have low cost of production. And that's not supposed to be.

 

[kinqzbitz]

It is not a most but then it is something doable and also it is very efficient and it helps a lot in a lot of ways and so it must be carried out from time to timw

 

[Good-Person]

There is a company near my area that only starts payroll after you make a few sales. They do this to make sure that they would be able to pay the employee in case the employee fails to make a sale. It is quite unfair but who can argue with them? Personally, I would not work for such company.

 

[Laurentta]

Although it's not the nicest idea but at least it's a good idea. That's what most companies do. If you they can't afford to pay the whole employees anymore then have have to drop some, to meet up.

 

[Thinker009]

You can do so ,but make sure it's not going to affect the effectiveness interms of the organization productivity , because this alone would be a negative impact ,I think

 

[Skysaint]

There is always a certain amount of staff a particular company or business would require to carryout they operation very efficiently and employing more that is required is more like gaining liabilities to yourself so you would need to do the needful

 

[Syldan]

Well, over staffing is of the factors that runs down a business over a period of time. this is because the resources that will be used for other development project and expansion will be used in servicing salaries of workers.

 

[Emmy]

Employee's salary is not the only expenses in the business. There are other expenses in which you can reduce cost. Don't forget! Employees make production possible by their efforts and they have to be paid considerably.

 

[Syldan]

High numbers of workers on a payroll, most often do affect the productivity of the business or the organisational success. this is because the amount of money that will be used for the maintenance, expansion and promotion of the organisational productivity, will be used for the payment of workers which is not productive.

 

[Bookwormlux1]

Even though this is hard to admit most times, one has to be careful to not ruin everything. You can definitely to slash their salaried and see whether they will remain or not.

 

[Kvngsammy]

In cases where the dismissal of staff would affect production such as in physically demanding jobs, then overhead costs should try to be reduced. Costs such as machine repairs and maintenance, legal and consultancy services expenses can be reduced.